Valuating intangible benefits from afforested areas: A case study in India

Avinash Jain

India

Tropical Forest Research Institute

Division of Forest Ecology & Rehabilitation

Girish Chandra

India

Indian Council of Forestry Research and Education

Division of Forestry Statistics

Raman Nautiyal

India

Indian Council of Forestry Research and Education

Division of Forestry Statistics

Submitted: 2016-09-08

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Accepted: 2017-05-31

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Published: 2017-06-21

DOI: https://doi.org/10.7201/earn.2017.01.04
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Keywords:

Contingent valuation, India, Intangible benefits, Logit model, WTP

Supporting agencies:

National Thermal Power Corporation

Dadri.

Abstract:

Environmental compensation measures usually accompany energy projects. Willingness-To-Pay (WTP) for five intangible benefits derived from afforested areas of a compensatory afforestation programme of National Thermal Power Corporation Dadri are estimated. Conventional Contingent Valuation shows the average WTP € 2.1 per respondent per month with more than 43 % of total WTP for ‘soil conservation and remediation’ and ‘improvement in underground water level’. Logit model method depicts the same order of magnitude but differs significantly at 5 % level for all the benefits. More informed decisions upon energy projects and afforestation programs shall help in conserving forests and their ecosystem services.
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