MSc

Wetlands are one of the most productive ecosystems, comparable to tropical evergreen forests and play a significant role in the ecological sustainability. They are facing rapid decline in coverage and quality. The present study on “Valuation of ecosystem services-A case study of Kolleru Lake in Andhra Pradesh” was taken up with the objectives of identifying the services provided by the lake as perceived by the stakeholders and assessing the Willingness To Pay (WTP) for ecosystem services. It was conducted in one of the important wetland systems in India, Kolleru Lake in Andhra Pradesh, which is declared as a RAMSAR site.

The data for the study was drawn from primary and secondary sources. The respondents for primary data were selected by multistage random sampling (180 samples) and data was gathered through personal interview method using pretested structured schedule. The major tool for the analysis was Contingent Valuation Method (CVM), following dichotomous choice questions.

The stake holders depending on the Kolleru wetlands were farmers, fishermen, dairy farmers, duck rearers, input suppliers and agricultural labourers. Though Kolleru Lake Development Authority (KLDA) was constituted for the purpose of conservation and sustainable development of the area, majority of the respondents (65.5%) did not acknowledge the conservation efforts. The respondents were aware of the pollution level and concerned about the conservation as they considered the lake as the main source of livelihood for them.

The Total Economic Value (TEV) of the system constitutes of both Direct Use Value (DUV) and Indirect Use Value (IUV). The DUV of the lake was estimated by the level of income enjoyed by the stake holders from lake related activities. It ranged from Rs. 12,280 to Rs. 12, 81,639 with an average of Rs. 1, 08,529 per annum per household. Extrapolating for the total population DUV of the lake system amounted to Rs. 941 crores per annum. The IUV as revealed by the WTP was estimated by the linear regression model and ranged from Rs. 83 to Rs. 196. The average WTP was Rs. 116 per annum per household. At this level, total IUV of the lake system was estimated as around Rs. 1 crore per annum. Thus the TEV of the ecosystem was around Rs. 942 crores. Age, education and level of dependence on the lake were the important factors that influenced the WTP and it varied significantly among stakeholder groups.

Findings suggested the economic rationality of the investment of Rs. 942 crores for the conservation of lake. It also shows the possibility of the resource mobilisation through a system of Payment for Environmental Services (PES). The study can form the basis for the development of a management plan for the sustainable use of the lake system which is socially acceptable.