Economic valuation of ecosystem services: A case study of kole wetlands, Ramsar site

Abstract

Wetlands are one of the most productive ecosystems on the planet, equivalent to tropical evergreen forests, and they play an important role in ecological sustainability. The quality and extent of these wetlands are rapidly deteriorating. The purpose of our study, was to determine the services offered by the wetland as regarded by stakeholders and to quantify the economic value for various ecosystem services. It was held in one of most important wetland systems in Kerala, the Kole wetlands, which has been designated as a Ramsar site. The data used in this study was collected from both primary and secondary sources. Primary data respondents were chosen using a multistage random sampling method (200 samples), and data was collected using a personal interview method with a pretested organised schedule. The obtained data was analysed by using market value approach, travel cost method, replacement cost method, benefit transfer method, and contingent valuation method. The farmers involved in paddy farming, fishing activities, lotus farming, and those leasing land for duck rearing are the stakeholders relying on the Kole wetlands. Another key economic activity in the Kole wetlands is tourism, accounting additional income to the farmers. Flood storage, groundwater recharge, and carbon sequestration are some of the additional indirect benefits. The relevance of wetland ecosystem services was recognised by the respondents. Crop raiding by birds, pollution, floods, and poor wetland management are important issues that the farmers have facing at Kole wetlands. The Total Economic Value (TEV) of the system is composed of direct use value, indirect use value and non-use value. The level of income generated by wetland-related activities was used to calculate the direct use value of the wetland. Paddy cultivation worth Rs. 126 crores per year, highlighted as most important service provided by the Kole wetland. It has a direct usage value of Rs. 148 crores

and the flood storage function of Rs. 187 crores, whereas the groundwater recharge function is worth Rs. 9.9 crores per annum. It has a non-use value of Rs. 7.3 crores. According to the findings, wetland ecosystem services have an estimated economic worth of Rs. 390 crores per year which highlights its enormous importance. The findings of the study can be used to construct a socially acceptable management strategy for the conservation of long-term viability of Kole wetland.