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Ecosystem Valuation: Theory, Analytical Methods and Applications

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Ecosystem Valuation: Theory, Analytical Methods and Applications

D. Suresh Kumar & P. Indira Devi

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Blurb

The understanding that the wellbeing of the universe is closely linked to the health of the ecosystem, prompts the planners to revisit the development agenda. This entails the need for technical inputs that support scientific decision-making process, especially in the field of natural resource management. This publication is an attempt towards this objective. The book adopts a systematic approach starting with the concept of ecosystem and ecosystem services, theoretical basis for assigning the value and the purpose of valuation. The classification of methods and detailed discussion on each method with specific examples and data set is furnished, later on. It is intended to be a reference and study material for Masters’ and Doctoral students and researchers in the field of environmental economics and resource economics.

1.ECOSYSTEM VALUATION: CONCEPTS AND THEORETICAL BASIS

1.Introduction

1.1.Concept of Value and valuation

1.2.Ecosystem and ecosystem services

1.2.1.Ecosystem services

1.2.2.Types of values

1.3.Need for Ecosystem valuation

1.4.Theoretical Basis of Valuation

1.4.1  Consumer surplus

1.4.2 Compensating and Equivalent variation

1.4.3. Revealed presences and Stated preference theory

1.5.Conclusion

1.6.References

2.VALUATION METHODS

2.1. Ecosystem Valuation Methods: Types of valuation in practice

2.1.1 Market price valuation

2.1.1.1.Economic Surplus approach (ES)

2.1.2Non-market valuation

2.1.2.1. Proxy available

2.1.2.1.1. Direct Proxies:

2.1.2.1.1.1 Productivity change methods

2.1.2.1.1.2 Cost of illness method

2.1.2.1.1.3. Human Capital cost method

2.1.2.1.1.4. Friction cost method (FCM)

2.1.2.1.1.5. Substitute Cost method (Alternate cost method)

2.1.2.1.1.6. Aid cost method

2.1.2.1.1.7. Replacement cost method

2.1.2.1.2. Indirect Proxies

2.1.2.1.2.1. Travel Cost Method 

2.1.2.1.2.2. Hedonic Price Method (HPM)

2.1.2.2. No Proxies

2.1.2.2.1 Contingent Valuation Method (CVM)

2.1.2.2.2 Multi Attribute models

2.1.2.2.2.1 Conjoint Analysis

2.1.2.2.2.2 Choice Modelling

2.1.3. Benefit Transfer

2.2. Conclusion

2.3.References

3.ECOSYSTEM VALUATION OF IRRIGATION TANKS

3.1.Introduction

3.2. Tank irrigation in India

3.3.Multiple uses and ecosystem services

3.4. Framework for Valuation of tank ecosystem 

3.5. Valuation of tank ecosystem: An empirical analysis

3.5.1. Valuation of different ecosystem services

3.6.Empirical results

3.6.1. Case study 1

3.6.2. Case study 2

3.7. Conclusion and Potential policy options

3.8. References

4.VALUATION  OF WATERSHED ECOSYSTEMS : APPLICATION OF ECONOMIC SURPLUS METHOD 

4.1. Watershed ecosystem

4.2. Methodology and Data

4.2.1.Meta Analysis

4.2.2. Indicators :

4.2.3. Case study

4.2.4. Sampling framework

4.2.5. Economic Surplus Approach 

4.2.5.1. Application of Economic Surplus Method to Watershed Evaluation

4.2.6. Cost of Project

4.3. Watershed Development in the Study Area

4.4. Results from Field Studies

4.4.1. Meta Analysis

4.4.2. Case Studies

4.5.Conclusion and Policy Suggestions

4.6.References

5.FORESTS ECOSYSTEM: VALUATIONS

5.1 Forest Ecosystem: An Introduction

5.2 Need for Valuation Forest ecosystem

5.3 Valuation of Forest Ecosystem

5.4 Conclusion

5.5 References

6. ENVIRONMENTAL BENEFITS OF ECOTOURISM : AN APPLICATION OF TRAVEL COST METHOD

6.1 Eco-tourism

6.2 Why valuation of eco-tourism

6.3 Travel cost method and its application

6.4 Value of ecotourism benefits

6.5 Conclusion and Policy Implications

6.6 References

7. DEMAND FOR AND SUPPLY OF ECOSYSTEM SERVICES: AN APPLICATION OF CVM

7.1. Introduction

7.2. Demand for Ecosystem services

7.3. Supply of Ecosystem services

7.4. Application of CVM

7.5. Results and Discussions

7.6. Conclusion

7.7. References

8. DEMAND FOR AND SUPPLY OF ECOSYSTEM SERVICES: AN APPLICATION OF CHOICE EXPERIMENT

8.1. Introduction

8.2. Demand for Ecosystem services

8.3. Supply of Ecosystem services

8.4. Application of Choice Experiment

8.5. Results and Discussions

8.6. Conclusion

8.7. References

9. QUALITATIVE TECHNIQUES FOR VALUATION OF ECOSYSTEM SERVICES

10. SUMMARY, CONCLUSIONS AND FUTURE DIRECTIONS

10.1.Synthesis from the different cases

10.2.Future directions

LEXICON

REFERENCES

INDEX

 

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