Non Timber Forest Products and Biodiversity Conservation - A Study of Tribals in a Protected Area in India

This study analyses the economics of Non Timber Forest Products (NTFPs) and the economic values appropriated by tribals in a protected area in India. Using primary data covering a cross section of tribals in the Nagarhole National Park (NNP), South India the stud y notes that the economic values appropriated by the tribals are quite high. Even after including external costs (i.e. wildlife damages costs and defensive expenditures to protect against wildlife attacks) the Net Present Value of NTFP benefits derived by the tribal households was over Rs 30,378 per household (at 12% discount rate for cash flows summed over 25 years). Interestingly when the external costs borne by third parties (i.e., coffee growers) are taken into account the net NTFP benefits turned negative. In other words, although from the NTFP extractors viewpoint NTFP extraction is a viable activity, from the society's viewpoint this is not so. The estimated net NTFP benefits from NNP after including the external costs borne by NTFP extractors was estimated at between USD 33.5 to 167.5 per ha per year using alternate assumptions regarding the park's catchment area. The tribals have a positive attitude towards biodiversity conservation. Asked to justify and rank the reasons why biodiversity needs to be conserved, the tribals emphasized its livelihood and ecosystem fun ctions. Using contingent valuation method, the study notes that those with income from coffee estates and forest employment, and those residing in the core zone of the national park are less willing to accept compensation and relocate outside the national park. The study suggests improving the incentive structure in order to obtain the support and participation of tribals in biodiversity conservation strategies.Non Timber Forest Products, Biodiversity Conservation, Net Present Values, External Costs, Contingent Valuation Method, Resource /Energy Economics and Policy,

THE ECONOMICS OF BIODIVERSITY CONSERVATION-A STUDY IN A COFFEE GROWING REGION OF INDIA

This paper analyses the economics of biodiversity conservation in the context of a tropical ecosystem in India, where coffee is the main competitor for land use.Using primary data covering a cross section of coffee growers,the study notes that the opportunity costs of biodiversity conservation in terms of coffee benefits foregone are quite high.Even after including external costs due to wild life damages and defensive expenditures to protect against wild life, the NPVs and IRRs from coffee for all land holding groups were high.The study notes that the external costs accounted for between 7 to 15% of the total discounted costs of coffee cultivation, and smaller holdings proportionately incurred higher external costs as compared to larger holdings. The study also notes high transaction costs incurred by the growers to claim compensation for wild life damages. Notwithstanding these disincentives, the study notes that the local community were willing to pay in terms of time for participatory biodiversity conservation, and they preferred a decentralised government institution for this purpose.Resource /Energy Economics and Policy,

Agriculture, Forestry and Other Land Uses (Chapter 7)

The Agriculture, Forestry and Other Land Use (AFOLU) sector encompasses managed ecosystems and offers significant mitigation opportunities while delivering food, wood and other renewable resources as well as biodiversity conservation, provided the sector adapts to climate change. Land-based mitigation measures represent some of the most important options currently available. They can both deliver carbon dioxide removal (CDR) and substitute for fossil fuels, thereby enabling emissions reductions in other sectors. The rapid deployment of AFOLU measures is essential in all pathways staying within the limits of the remaining budget for a 1.5°C target (high confidence). Where carefully and appropriately implemented, AFOLU mitigation measures are uniquely positioned to deliver substantial co-benefits and help address many of the wider challenges associated with land management. If AFOLU measures are deployed badly then, when taken together with the increasing need to produce sufficient food, feed, fuel and wood, they may exacerbate trade-offs with the conservation of habitats, adaptation, biodiversity and other services. At the same time the capacity of the land to support these functions may be threatened by climate change itself (high confidence)

Non Timber Forest Products and Biodiversity Conservation - A Study of Tribals in a Protected Area in India

This study analyses the economics of Non Timber Forest Products (NTFPs) and the economic values appropriated by tribals in a protected area in India. Using primary data covering a cross section of tribals in the Nagarhole National Park (NNP), South India the stud y notes that the economic values appropriated by the tribals are quite high. Even after including external costs (i.e. wildlife damages costs and defensive expenditures to protect against wildlife attacks) the Net Present Value of NTFP benefits derived by the tribal households was over Rs 30,378 per household (at 12% discount rate for cash flows summed over 25 years). Interestingly when the external costs borne by third parties (i.e., coffee growers) are taken into account the net NTFP benefits turned negative. In other words, although from the NTFP extractors viewpoint NTFP extraction is a viable activity, from the society's viewpoint this is not so. The estimated net NTFP benefits from NNP after including the external costs borne by NTFP extractors was estimated at between USD 33.5 to 167.5 per ha per year using alternate assumptions regarding the park's catchment area. The tribals have a positive attitude towards biodiversity conservation. Asked to justify and rank the reasons why biodiversity needs to be conserved, the tribals emphasized its livelihood and ecosystem fun ctions. Using contingent valuation method, the study notes that those with income from coffee estates and forest employment, and those residing in the core zone of the national park are less willing to accept compensation and relocate outside the national park. The study suggests improving the incentive structure in order to obtain the support and participation of tribals in biodiversity conservation strategies

Social Cost-Benefit Analysis of Scientific Versus Traditional Shrimp Farming: A Case Study from India

This paper attempts a social cost-benefit analysis of scientific versus traditional shrimp farming in West Bengal, India. Using primary data, the paper shows that although intensive or scientific shrimp farming yields high returns as compared to traditional shrimp farming, when the opportunity costs and environmental costs of shrimp farming including disease risk are accounted for, scientific shrimp farming loses its advantage. In fact sensitivity analysis shows that if expected benefits were to fall short by 15% and costs rise by a similar proportion, scientific shrimp farmers report higher losses than traditional shrimp farmers. But large traditional shrimp farmers continue to report positive net returns. These results are also most pronounced for small and marginal scientific shrimp farmers. Further if the probability of disease risk is also accounted for, scientific shrimp farming reports significant losses whereas traditional shrimp farming in most cases shows positive net returns. In the light of the high social and environmental costs, and risks, this paper questions the rationale behind promoting intensive or scientific shrimp farming, especially among small and marginal holdings as an income-generating activity or poverty alleviation measure. It also suggests that policy makers need to factor in sustainability concerns while formulating policies to promote intensive shrimp farming

THE ECONOMICS OF BIODIVERSITY CONSERVATION-A STUDY IN A COFFEE GROWING REGION OF INDIA

This paper analyses the economics of biodiversity conservation in the context of a tropical ecosystem in India, where coffee is the main competitor for land use.Using primary data covering a cross section of coffee growers,the study notes that the opportunity costs of biodiversity conservation in terms of coffee benefits foregone are quite high.Even after including external costs due to wild life damages and defensive expenditures to protect against wild life, the NPVs and IRRs from coffee for all land holding groups were high.The study notes that the external costs accounted for between 7 to 15% of the total discounted costs of coffee cultivation, and smaller holdings proportionately incurred higher external costs as compared to larger holdings. The study also notes high transaction costs incurred by the growers to claim compensation for wild life damages. Notwithstanding these disincentives, the study notes that the local community were willing to pay in terms of time for participatory biodiversity conservation, and they preferred a decentralised government institution for this purpose