Economic valuation of landscape-level wetland ecosystem and its services:

Case study of Little Rann of Kachchh (LRK), Gujarat

Somnath Bandyopadhyay

Nalanda UniversityRajgir (BIHAR) 803 116 INDIA

www.nalandauniv.edu.in

The ecological facts

Matter cycles; Energy flows

First law of thermodynamics:Matter is neither created nor destroyed;

Second law of thermodynamics:Energy is always lost as heat (ENTROPY)

Biogeochemical cycles defined:Water, carbon, nitrogen, phosphorus, sulphur

Trophic chains discovered:Grazing chain, detrital chain, food-webs; 10% law

Source:

Ecological Economics Principles & Applications,

Farley and Daly

Economic Growth and Human Welfare

Welfare in a growing economy is dependent on natural resources (e.g. food);

Welfare in a mature economy is dependent on human resources (e.g. health care);

Socialism collapsed because it did not allow prices to tell the economic truth.

Capitalism may collapse because it does not allow prices to tell the ecological truth.

Source: Dahle, 2001.

Growth and Development

Quantity Quality

Economy Philosophy Throughput Stock of consumer goods

Stock of natural capital

Analogy

Growth More and more

Maximize Maximize Liquidate Vacuum tube

Steady-state Do more with less

Minimize Optimize Maximize Microchip

The real debate: “Prosperity without growth”• What we need is a debate on creating “prosperity without

growth”• UK’s Sustainable Development Commission (2009) is a good

start.

Little Rann of KachchhCatchment Area: 10,500 sq km35 talukas, 7 districts140 MCM water

Little Rann of Kachchh (LRK)Area: 3,570 km2

Rann: 3,384 sq kmBets: (70) 185 sq km

Latitude: 22O55’-24O35”NLongitude: 70O30’-71O45’ERainfall: 325 - 533 mm

Wild Ass Sanctuary, 1973

Study Objectives

• Characterize the wetlands of LRK, with particular reference to variations in hydrological and salinity regimes;

• Identify unique biodiversity and ecosystem services that support key economic activities;

• Estimate the economic value of these services, evaluate trade-offs and propose policy and management options.

Wetlands of LRK Total Area- ~5000 sq km

LRK

GoK/MNP

GRK

Kachchh

Saurashtra

Banas R.

Rupen R.

Bambhani R.

Surajbari

Biodiversity of LRK

o Last remaining population of ~4000 Wild Asses (Equus hemionus khur)

o Network of wetlands:o large assemblage of birds, including many rare

and threatened ones o two of the total five nesting grounds of Lesser

Flamingos in the worldo large congregation of cranes and other

migratory bird species o Endemic prawn species – Metapenaeus kutchensiso Unique assemblage of halophytes, including grasses,

in the fringe and island areas

Ecosystem services supporting economic sub-systemsHydrological Dynamics…Controlled by

• Inflow of - Fresh water- runoff • Inflow of Saline tidal water from Creek

Formation of Brackish Water Wetland

Support Ecological SystemPrawn, Fish, Zoo and Phyto-plankton

Support Habitat for Migratory Birds & Other Biodiversity

Prawn Fishing Nature & Wildlife Tourism

Hydrological Sub- System

Biological Sub- System

Economic Sub-System

Outflow of Brackish water through Creek

Local Occupational Profile

Main Occupation No. of Families

Key Constituents

Agriculture & Labor 32325 Cotton, Jeera; Isabgol, Jowar, Bajra; Wheat, Sesame, Groundnut, Castor; Mung, Math

Salt Making 3495 Edible salts & industrial chemicals

Animal Husbandry 2676 Milk, wool, meat

Fishery 1300 Fish, Prawn

Tourism NA Nature and Wildlife

Salt making, prawn fishing and tourism are key ‘wetland dependent’ economic sub-systems for people of 108 peripheral villages.

Fish/ Prawn capture Biodiversity – migratory birds

Salt production Tourism for Recreation/ Education

Key Values of

LRK Wetland

Valuation of ecosystem services of LRK

Valuation approachSector Method Sample Size Sample Distribution

Fishery Market Analysis 6262

No. of Sites/Dhasis8 temporary migrant fishing settlements and 1 fishing village

Salt production Market Analysis FGD Secondary Data

Tourists Travel Cost 40 No. of Resorts covered - 6

Migratory BirdsCVM

FishersFarmersTouristsAgariasOther Public

6291404060

8 temporary migrant fishing settlements and 1 fishing village19 farmers villages cover in 10 talukas of 5 DistrictNo. of Resorts covered - 6

Valuation of fisheries

Valuation of salt production

Valuation of tourism

Value of LRK wetlandTotal Estimated Annual Value of Wetland System of LRK

Goods & Services Method Total Annual Value*(Million Rs.)

Prawn Fisheries Market Revenue Analysis 410.14Salt production Market Revenue Analysis 694.30Tourism & Recreation Travel Cost 276.05Maintenance of Biodiversity

Contingent Valuation 136.80

Total 1517.29

* For Prawn production and Salt production, we estimated net annual value

Important Landscape level Issues

Little Rann of

Kachchh

Gujarat Part of Catchment Area ofLRK (Dark red line)

• About 10,600 Sq km of total Catchment

• About 30 small and medium irrigation schemes in Gujarat and Rajasthan catchment

• Total Annual Capacity = 1700 MCM

• Average Annual Storage ~ 750 MCM

• Banas River flow reduced from 70 mcm in 1975 to 4.8 mcm in 1991

• Rupen Riverflow reduced from 13.2 mcm in 1980 to 6.9 mcm in 1991

• More than 800 check dams constructed in Gujarat part

• Reduced deposit of organic detritus, decline prawn growth

• Complete loss of Hilsa fishing

Hydroecology of LRK

o Complete loss of Hilsa fishing

o Reduced deposit of organic detritus, decline in prawn growth

Water Type Proportion (%) Key ecological functionTidal creek water 27.0 Brings larvae of M. kutchensis and other small invertebrate

species which provide food items for M. kutchensis

Direct rain water 51.7 Provide large amount of freshwater to maintain brackishness and depth, creating suitable habitat for prawn species

Runoff water from catchment

21.3 Bring nutrient & detritus materials to LRK, essential for growth of phyto- and zoo-planktons and other food items of M. kutchensis

Ecologic disturbance and economic mis-management

Hydrological Dynamics…Controlled by

• Inflow of - Fresh water- runoff • Inflow of Saline tidal water from Creek• Outflow of Brackish water through creek

Alteration in Hydro-ecological Dynamics

• Salt infrastructure in Creek..Changes in Water Flow and / or salinity regimes

• Watershed development in catchment area - Changes in Water and Nutrient flow

Changes in Ecological Sub-Systems

Changes in Economic Sub-Systems

Policy regimes and institutional capability

Unsustainable resource use & management practices

Understanding the values of ecosystem services

• Values are biased towards the lower end (everything is not recognized, demonstrated or captured);

• Values keep changing with natural variability, human development and market conditions;

• Values need to be seen in the light of underlying drivers for ecosystem services;

• Synergistic and antagonistic dimensions in valuing different ES in the same ecosystem;

• More than the absolute values, it is important to understand the trends and what might endure.

Prawn production

Spatial differences in prawn catch

ONLY LOCATIONAL ADVANTAGE, no additional access to fishing tools and labouro Customary norms to access to

different quality fishing grounds

o Higher prawn biomass capture near discharge points of seasonal rivers

o Best locations are river mouths close to tidal creeks

20% fishers catch about 50% of total annual catch

Salt production

• Diversion of Mud-flats and Creeks for salt work

• Official Salt Lease Area: 21600 ha

• Satellite Imagery based : 44600 ha

Tourism in LRK

perception

satisfaction2001-02 02-03 03-04 04-05 05-06 09-10 10-11 11-12 12-13 13-140

2000

4000

6000

8000

10000

12000

14000

Indian Foreign Total

Year

Num

ber o

f Tou

rists

Sustainability of economic values

Conclusion:economic analysis and policyoThere is little scope for generating greater value

from salt production without seriously disturbing the creek ecosystem

oFish catch varies greatly with freshwater availabilityouse-value of biodiversity is growing in LRK despite

natural variability and increasing disturbances, and osustainable development pathways need to

conserve the flow of ecosystem services in the catchment area of LRK to support its biodiversity.

Tolerance to wetland degradation Human engagement

Sustainable growth of economic value

2001-02

2002-03

2003-04

2004-05

2005-06

2009-10

2010-11

2011-12

2012-13

2013-14

0

2000

4000

6000

8000

10000

12000

14000Indian Foreign Total

o Tourists prefer flamingoes;o Flamingoes abandon nests;o Lack of adequate water;o Free catchment could increase

depth of LRK by 29 cm;o Direct improvement of nesting

sites;o Collateral gains in prawn

fisheries.

Implications and recommendation• Need for a tourism policy to regulate infrastructure and promote services

• Sector study of LRK tourism• Promotional strategy• Infrastructure, routes, revenues• Regular monitoring

• Need for a LRK Landscape Authority to negotiate e-flows and agriculture• Empower and upgrade BCRLIP Society• Coordinate with development planning processes• Organize consultation workshops with stakeholders• Use biodiversity values as indicators of progress

Dr. Arun M Dixit Principal Investigator

Dr. Somnath Bandyopadhyay Co-Investigator Mr. Lalit Kumar Senior FellowDr. Satyasiba Bedamatta Senior Fellow Mr. Prashant Kadgi Remote Sensing Expert Mr. Dipak Nandani Research AssistantMr. Ketan Sonara Research AssistantMr. Nitin Choudhary Research AssistantMr. Pravin Solanki Research Assistant

Thanks from the study teamSpecial Thanks to

Prof P P Patel (Geohydrologist, former Professor, MSU, Vadodara)

Reviewer(Expert, Env Econ)

Dr Dinesh Kumar (Hydrologist)

Nitin Bassi (Hydro-ecologist)

Approach for Eastern Himalayas• Kameng River Basin (Arunachal Pradesh)• Comprehensive Management Plan• Framework for monitoring and research• GIS-based, multi-dimensional, interactive, decision-support• Ecological functions – soil, water, vegetation, biodiversity etc.• Ecosystem services and planning issues – hydropower, land-use change etc.• Socio-ecological linkages – pollinators, gender, traditional institutions etc.• Economic valuation of ecosystem services and biodiversity• Network approach – starting with TISS; NERIST, Universities etc.