Ecosystem valuation and payment for ecosystem services services (PES) of kole wetlands in Kerala
By: Neetha Rose, C D.
Contributor(s): Prema, A (Guide).
Material type:
BookPublisher: Vellanikkara Department of Agricultural Economics, College of Agriculture 2025Description: 239,lvi,vp.Subject(s): Agricultural Economics | Ecosystem | Kole wetlands | KeralaDDC classification: 630.33 Online resources: Click here to access online Dissertation note: Ph. D Abstract: The basic requirements for developing effective conservation and sustainable management strategies are to recognise the benefits provided by wetlands, assign an economic value, and translate the estimated values into an actionable policy instrument. The present study was carried out at the kole wetlands, which were reported to be one of the most productive and threatened wetlands in the state, with the objectives to comprehensively value the wetland ecosystem and to estimate payment for ecosystem services (PES) value for designing a PES scheme that focuses on its sustainable management and conservation. The PES is a novel policy instrument used across the world to protect and restore the wetland ecosystems by means of rewarding stakeholder conservation efforts. The kole wetlands are a unique sub-sea level rice production area providing multiple services with high ecological significance, making it an internationally renowned Ramsar site. The study was based on both primary and secondary data. The primary data was collected during the year 2024-25, from randomly selected 585 respondents belonging to the stakeholder groups identified as paddy farmers, inland fishermen, local residents, kole tourists, general public, and other minor stakeholder groups, using a structured pretested group-specific schedule through the personal interview method. Apart from this, data on contribution rating was also collected from 40 expert personnel using a separate questionnaire, which was administered online, making the total sample size of the study as 625. The ecosystem services (ES) and disservices (EDS) generated by kole wetlands were identified by formal and informal discussions with stakeholder groups and officials, together with direct observations during the survey, and the relative preference among stakeholders was analysed using the Garrett ranking method. The study identified 21 ES belonging to all four major categories, such as 5 provisioning services, 4 cultural services, 12 regulating and supporting services and 10 EDS generated by kole wetlands. The water-related services, like floodwater regulation and groundwater recharge, were the most preferred ES among the respondents, followed by the provisioning services. Thus, the services that directly affect the stakeholder utility were found to be preferred the most. The direct market valuation method was used to estimate the value of provisioning services at ₹ 8,890 lakhs. The value of cultural services was ₹ 1,538 lakhs, as estimated using the individual travel cost method. The value of regulating and supporting services was obtained as ₹ 28,889 lakhs, estimated by using the replacement cost method, benefit transfer method, substitute cost method, and double-bound dichotomous choice contingent valuation method. The mean willingness to pay (WTP) for the conservation was highest among the kole tourist stakeholder group (₹ 211.67 per annum), pointing towards the significant opportunity of sustainable tourism development in the area. The value of disservices was estimated by using the benefit transfer method, benefit loss estimation, added cost method, and restoration cost method at ₹ 21,211 lakhs. The total economic value (TEV) of kole wetlands was estimated by deducting the total value of EDS from ES as ₹ 18,107 lakhs, equivalent to ₹ 1.32 lakhs per hectare. Notably, the value of regulating and supporting services together accounted for 74 per cent of the total ES value, reflecting the strong ecological relevance of the area. In the kole wetlands context, the value of provisioning and cultural services together provided the estimate of the marketed ES at ₹ 10,428 lakhs. The potential PES value of kole wetlands was estimated at ₹7,678 lakhs by deducting the value of marketed ES from the TEV. The per-hectare potential PES value was obtained as ₹ 56325, which forms the scientific base or upper limit of the eco-compensation amount that can be provided to the kole wetland resource managers. The PES scheme design describes the framework for providing financial incentives or payments to natural resource managers in exchange for the supply of non marketed ES. A management-based PES design that is able to acknowledge the multifunctional role of the kole wetlands agroecosystem by taking into account the diverse wetland management practices referring to the agricultural practices in the current context, and its ability to contribute towards ES generation, was proposed by the study. The identified wetland management practices were grouped into 14 categories, and the indicative contribution towards the 7 selected non-marketed ES was quantified, based on 40 expert personnel ratings obtained through the Delphi method. The minimum PES payment allocation rate was determined as 9 per cent of the proposed PES amount, which can be regarded as the basic payment rate of the scheme. The payment allocation rates for all existing and practically feasible wetland management practices category combinations were worked out for equipping the scheme to secure as well as enhance the quality and quantity of ES delivery. Thus, the suggested PES scheme design ensures a fair compensation to the resource managers for the actual environmental benefits they generate, with the added potential to correct the negative effects, augmenting both the quality and quantity of ES supply. The proposed PES scheme helps to ensure that the kole wetlands farmers are fairly compensated for the actual environmental benefits they generate. The scheme also envisions to efficiently utilize the allocated resources for conservation in a holistic manner that enhances both the quality and quantity of wetland ecosystem service supply. Thus, this PES scheme for kole wetlands may be considered as a practically viable and effective policy instrument for conservation. Further, PES scheme payments fall under the green box category of the WTO classification of domestic support which are considered to have minimal trade-distorting effects and are permitted in unrestricted manner. Therefore, allocation of public fund for conservation under these types of schemes can be easily justified. The existing paddy royalty scheme in the state may be refined specifically for the kole wetlands by incorporating the proposed management based PES scheme design. This will enable equitable compensation distribution based on actual ecosystem service contributions and enhance the efficiency of resource distribution. Also, more research studies are required to develop a universally accepted framework for the identification and assessment of EDS, which may help to make the PES value estimation more efficient and realistic. The high WTP values of the Kole tourist group indicate the immense potential of tourism activities in revenue generation and developing an ecotourism project explicitly for kole wetlands, focusing on responsible tourism practices, local community involvement, and conservation education, may also provide a sustainable solution to the conservation challenges. Specifically, it is suggested to explore the feasibility of adding crop loss due to saltwater intrusion as an add-on cover to the existing agricultural insurance schemes.
The present study was subjected to the usual limitations of sample surveys, including the assumptions and biases inherent in the methodologies used. Moreover, lack of standardised assessment methods and scientific data has forced the study to follow ad hoc assessment methods and area approximations in certain cases. In the future, the proposed PES scheme may be improved by considering the bio-physical assessment of contributions by various management practices, together with the incorporation of opportunity costs and trade-offs, which may be achieved through formulating a multi-disciplinary research project for the area. Also, the proposed PES scheme design may be validated and refined in consultation with the stakeholder groups, funding agencies, and implementing agencies, to make it ready for practical implementation. Further, the ecosystem valuation supported by actual bio-physical assessment of services and disservices, based on universally accepted ES and EDS valuation frameworks, may be carried out for accurate information generation, so as to develop efficient conservation policy instruments and resource allocation decisions. Overall, the study featured the ecological significance of kole wetlands, restating the need for a holistic approach to enhance the effectiveness of conservation efforts. The proposed management-based PES scheme that may enable policymakers as well as stakeholders to pinpoint the strategies for planning effective conservation policies and actions at kole wetlands, which would ultimately lead to the preservation and enhancement of ecosystem quality.
| Item type | Current location | Collection | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
Theses
|
KAU Central Library, Thrissur Technical Processing Division | Thesis | 630.33 NEE/EC Ph.D (Browse shelf) | Not For Loan | 176601 |
Ph. D
The basic requirements for developing effective conservation and sustainable management strategies are to recognise the benefits provided by wetlands, assign an economic value, and translate the estimated values into an actionable policy instrument. The present study was carried out at the kole wetlands, which were reported to be one of the most productive and threatened wetlands in the state, with the objectives to comprehensively value the wetland ecosystem and to estimate payment for ecosystem services (PES) value for designing a PES scheme that focuses on its sustainable management and conservation. The PES is a novel policy instrument used across the world to protect and restore the wetland ecosystems by means of rewarding stakeholder conservation efforts. The kole wetlands are a unique sub-sea level rice production area providing multiple services with high ecological significance, making it an internationally renowned Ramsar site. The study was based on both primary and secondary data. The primary data was collected during the year 2024-25, from randomly selected 585 respondents belonging to the stakeholder groups identified as paddy farmers, inland fishermen, local residents, kole tourists, general public, and other minor stakeholder groups, using a structured pretested group-specific schedule through the personal interview method. Apart from this, data on contribution rating was also collected from 40 expert personnel using a separate questionnaire, which was administered online, making the total sample size of the study as 625. The ecosystem services (ES) and disservices (EDS) generated by kole wetlands were identified by formal and informal discussions with stakeholder groups and officials, together with direct observations during the survey, and the relative preference among stakeholders was analysed using the Garrett ranking method. The study identified 21 ES belonging to all four major categories, such as 5 provisioning services, 4 cultural services, 12 regulating and supporting services and 10 EDS generated by kole wetlands. The water-related services, like floodwater regulation and groundwater recharge, were the most preferred ES among the respondents, followed by the provisioning services. Thus, the services that directly affect the stakeholder utility were found to be preferred the most. The direct market valuation method was used to estimate the value of provisioning services at ₹ 8,890 lakhs. The value of cultural services was ₹ 1,538 lakhs, as estimated using the individual travel cost method. The value of regulating and supporting services was obtained as ₹ 28,889 lakhs, estimated by using the replacement cost method, benefit transfer method, substitute cost method, and double-bound dichotomous choice contingent valuation method. The mean willingness to pay (WTP) for the conservation was highest among the kole tourist stakeholder group (₹ 211.67 per annum), pointing towards the significant opportunity of sustainable tourism development in the area. The value of disservices was estimated by using the benefit transfer method, benefit loss estimation, added cost method, and restoration cost method at ₹ 21,211 lakhs. The total economic value (TEV) of kole wetlands was estimated by deducting the total value of EDS from ES as ₹ 18,107 lakhs, equivalent to ₹ 1.32 lakhs per hectare. Notably, the value of regulating and supporting services together accounted for 74 per cent of the total ES value, reflecting the strong ecological relevance of the area. In the kole wetlands context, the value of provisioning and cultural services together provided the estimate of the marketed ES at ₹ 10,428 lakhs. The potential PES value of kole wetlands was estimated at ₹7,678 lakhs by deducting the value of marketed ES from the TEV. The per-hectare potential PES value was obtained as ₹ 56325, which forms the scientific base or upper limit of the eco-compensation amount that can be provided to the kole wetland resource managers. The PES scheme design describes the framework for providing financial incentives or payments to natural resource managers in exchange for the supply of non marketed ES. A management-based PES design that is able to acknowledge the multifunctional role of the kole wetlands agroecosystem by taking into account the diverse wetland management practices referring to the agricultural practices in the current context, and its ability to contribute towards ES generation, was proposed by the study. The identified wetland management practices were grouped into 14 categories, and the indicative contribution towards the 7 selected non-marketed ES was quantified, based on 40 expert personnel ratings obtained through the Delphi method. The minimum PES payment allocation rate was determined as 9 per cent of the proposed PES amount, which can be regarded as the basic payment rate of the scheme. The payment allocation rates for all existing and practically feasible wetland management practices category combinations were worked out for equipping the scheme to secure as well as enhance the quality and quantity of ES delivery. Thus, the suggested PES scheme design ensures a fair compensation to the resource managers for the actual environmental benefits they generate, with the added potential to correct the negative effects, augmenting both the quality and quantity of ES supply. The proposed PES scheme helps to ensure that the kole wetlands farmers are fairly compensated for the actual environmental benefits they generate. The scheme also envisions to efficiently utilize the allocated resources for conservation in a holistic manner that enhances both the quality and quantity of wetland ecosystem service supply. Thus, this PES scheme for kole wetlands may be considered as a practically viable and effective policy instrument for conservation. Further, PES scheme payments fall under the green box category of the WTO classification of domestic support which are considered to have minimal trade-distorting effects and are permitted in unrestricted manner. Therefore, allocation of public fund for conservation under these types of schemes can be easily justified. The existing paddy royalty scheme in the state may be refined specifically for the kole wetlands by incorporating the proposed management based PES scheme design. This will enable equitable compensation distribution based on actual ecosystem service contributions and enhance the efficiency of resource distribution. Also, more research studies are required to develop a universally accepted framework for the identification and assessment of EDS, which may help to make the PES value estimation more efficient and realistic. The high WTP values of the Kole tourist group indicate the immense potential of tourism activities in revenue generation and developing an ecotourism project explicitly for kole wetlands, focusing on responsible tourism practices, local community involvement, and conservation education, may also provide a sustainable solution to the conservation challenges. Specifically, it is suggested to explore the feasibility of adding crop loss due to saltwater intrusion as an add-on cover to the existing agricultural insurance schemes.
The present study was subjected to the usual limitations of sample surveys, including the assumptions and biases inherent in the methodologies used. Moreover, lack of standardised assessment methods and scientific data has forced the study to follow ad hoc assessment methods and area approximations in certain cases. In the future, the proposed PES scheme may be improved by considering the bio-physical assessment of contributions by various management practices, together with the incorporation of opportunity costs and trade-offs, which may be achieved through formulating a multi-disciplinary research project for the area. Also, the proposed PES scheme design may be validated and refined in consultation with the stakeholder groups, funding agencies, and implementing agencies, to make it ready for practical implementation. Further, the ecosystem valuation supported by actual bio-physical assessment of services and disservices, based on universally accepted ES and EDS valuation frameworks, may be carried out for accurate information generation, so as to develop efficient conservation policy instruments and resource allocation decisions. Overall, the study featured the ecological significance of kole wetlands, restating the need for a holistic approach to enhance the effectiveness of conservation efforts. The proposed management-based PES scheme that may enable policymakers as well as stakeholders to pinpoint the strategies for planning effective conservation policies and actions at kole wetlands, which would ultimately lead to the preservation and enhancement of ecosystem quality.


Theses
There are no comments for this item.