In India, around 300 million people rely directly on natural ecosystems for sustenance. This is in the form of food, firewood, grazing pastures, nontimber food produce and medicine. Moreover, even urban populations often benefit from natural habitats! These benefits from natural landscapes are often referred to as ecosystem services. In this article. we discuss exactly what ecosystem services are and how they are valued!
What are ecosystem services and functions?
Ecosystem services are the benefits that people derive from ecosystems. They are how ecosystems contribute to human well-being, including both direct and indirect benefits. Ecosystem services can be divided into four main categories:
Provisioning services: These are the products that humans obtain from ecosystems, such as food, water, timber, fiber, and medicines.
Regulating services: These are the benefits that ecosystems provide by regulating natural processes, such as climate regulation, water purification, erosion control, and pollination.
Supporting services: These are the services that maintain the conditions for life on Earth, such as soil formation, nutrient cycling, and photosynthesis.
Cultural services: These are the non-material benefits that people obtain from ecosystems, such as aesthetic and spiritual values, recreational opportunities, and educational benefits.
Source: https://www.earthwiseaware.org/wp-content/uploads/2017/07/Ecosystem-services.png
Ecosystem services are essential to human well-being and economic development, and they are also critical for maintaining biodiversity and ecological resilience. The concept of ecosystem services has gained increasing attention in recent years as a way to promote sustainable development and conservation
Ecosystem valuation may be a challenging and controversial endeavor, and economists have frequently been criticized for attempting to “price tag” nature. Yet, organizations in charge of managing and conserving natural resources frequently face challenging budgetary choices that include resource allocation trade-offs. These choices are economic ones, thus they are influenced by societal ideals either overtly or covertly. To justify and set priorities for programs, laws, or activities that conserve or restore ecosystems and their services, the economic valuation might thus be helpful.
Complications in ecosystem services valuation and management
Ecosystem services are often public goods, meaning they can be enjoyed by any number of people without affecting other people. However, collective action is required to produce the most beneficial quantity. Externalities can also have side effects of human actions, such as when a stream is polluted by runoff from agricultural land. The problem with negative externalities is that the people (or ecosystems) they are imposed upon are generally not compensated for the damages they suffer.
The most important details are that if property rights for natural resources are not clearly defined, they may be overused. Open-access fisheries can lead to severe over-harvesting and potentially severe declines in fish abundance, and ecosystem valuation can help resource managers measure their costs to society in terms of lost economic benefits. Costs can be imposed on those who are responsible and can be used to determine the value of actions to reduce or eliminate environmental impacts. Examples of this include reducing crowding in public recreation areas, improving efficiency in the commercial fishing industry, and determining the appropriate fines or taxes to be levied on those responsible.
Valuation of ecosystem services
Economists measure the value of ecosystem services to people by estimating the amount people are willing to pay to preserve or enhance the services.
Valuation of ecosystem services is a complex task, as it involves measuring the economic value of intangible benefits that nature provides. Some methods for ecosystem services valuation include:
- Market-based methods: These methods use market prices to estimate the value of ecosystem services. For example, the value of timber or fish can be estimated by looking at the market price for these goods.
- Cost-based methods: These methods calculate the value of ecosystem services based on the cost of providing them. For example, the cost of maintaining a watershed can be used to estimate the value of the water that is provided.
- Benefit transfer methods: These methods use data from existing studies to estimate the value of ecosystem services. For example, the value of a particular wetland can be estimated by using data from studies on the value of other wetlands.
- Stated preference methods: These methods ask people how much they would be willing to pay for a particular ecosystem service. For example, people might be asked how much they would be willing to pay to protect a particular area of forest.
- Revealed preference methods: These methods use data on people’s actual behavior to estimate the value of ecosystem services. For example, the value of a park can be estimated by looking at the number of money people spend on activities in the park.
- Hybrid methods: These methods combine different valuation techniques to produce a more accurate estimate of the value of ecosystem services. For example, a study might combine revealed preference and stated preference methods to estimate the value of a particular ecosystem service.
It’s important to note that each method has its strengths and weaknesses, and the choice of method will depend on the specific context and the type of ecosystem service being valued.
Case studies of Ecosystem services valuation in India
Ecosystem services Valuation of Tiger Reserves
One example of an ecosystem services valuation study for a tiger reserve in India is the Valuation of Tiger Reserves in India study conducted by the Indian Institute of Forest Management in collaboration with the National Tiger Conservation Authority and other organizations.
The study aimed to estimate the economic value of the ecosystem services provided by six tiger reserves in India: Bandhavgarh, Kanha, Pench, Satpura, Tadoba-Andhari, and Periyar. The ecosystem services considered in the study included tourism, biodiversity conservation, carbon sequestration, water resources, and non-timber forest products.
The study used a combination of market-based and non-market valuation methods to estimate the value of the ecosystem services. Market-based methods were used to estimate the value of tourism and non-timber forest products, while non-market valuation methods, such as the contingent valuation method and the travel cost method, were used to estimate the value of biodiversity conservation, carbon sequestration, and water resources.
The study found that the total annual economic value of the ecosystem services provided by the six tiger reserves was approximately INR 5.96 billion (approximately USD 80 million). The highest value came from tourism, which contributed INR 4.46 billion (approximately USD 60 million), followed by carbon sequestration (INR 999 million), biodiversity conservation (INR 344 million), non-timber forest products (INR 94 million), and water resources (INR 39 million). The study also found that the economic value of the ecosystem services provided by the tiger reserves exceeded the costs of conservation and management, indicating that the reserves provide a net economic benefit to the local and national economies.
Overall, this study highlights the importance of valuing ecosystem services provided by tiger reserves in India and demonstrates the economic benefits of conservation and sustainable management of these areas. It also provides valuable information for policymakers and stakeholders in making informed decisions about the management and conservation of tiger reserves.
Valuating Ecosystem Services provided by Wildlife Sanctuaries
One example of an ecosystem services valuation study for a wildlife sanctuary in India is the Valuation of Ecosystem Services of the Bori Wildlife Sanctuary in the Satpura Range, Madhya Pradesh, India. The study was conducted by the Indian Institute of Forest Management in collaboration with the Wildlife Institute of India.
The Bori Wildlife Sanctuary is a protected area in the Satpura Range of Madhya Pradesh and is home to a variety of wildlife species, including tigers, leopards, and Indian wild dogs. The study aimed to estimate the economic value of the ecosystem services provided by the sanctuary, including timber, non-timber forest products, water resources, carbon sequestration, and tourism.
The study used a combination of market-based and non-market valuation methods to estimate the value of the ecosystem services. Market-based methods were used to estimate the value of timber and non-timber forest products, while non-market valuation methods, such as the travel cost method and contingent valuation method, were used to estimate the value of water resources, carbon sequestration, and tourism.
The study found that the total annual economic value of the ecosystem services provided by the Bori Wildlife Sanctuary was approximately INR 5.5 billion (approximately USD 73 million), with the highest value coming from tourism (INR 4.4 billion) followed by carbon sequestration (INR 452 million) and water resources (INR 236 million).
The study also found that the economic value of the ecosystem services provided by the sanctuary exceeded the costs of conservation and management, indicating that the sanctuary provides a net economic benefit to the local and national economies. Overall, this study demonstrates the importance of valuing ecosystem services for protected areas such as wildlife sanctuaries and national parks in India and highlights the economic benefits of conservation and sustainable management of these areas.
Conclusion
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Written By: Aditi Dave