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

Avinash Jain, Girish Chandra, Raman Nautiyal


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.


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

Subject classification

H43; Q51

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