Willingness to Pay for Water Quality: A Contingent Valuation Approach for Bolgoda Lake

Bolgoda lake is known as the largest fresh water body in Colombo Urban Area (CUA) and situated in the Southern boundary of CUA. The lake provides a variety of environmental services including recreation, fisheries production and ground water recharge. Environment of the Bolgoda lake is currently threatened by the disposal of waste by industries. However, there will be an increasing demand for the environmental services produced by the Bolgoda lake in the future.Objectives of the present study are to identify the environmental benefits of the lake and estimate economic values of different user groups for the improvement of water quality. A pilot survey was carried out and five major user groups were identified; fishermen, hotel owners, boat owners, recreational users and indirect users. Selected study area for the present study belongs to five GN divisions from Moratuwa and Panadura DS divisions. Contingent valuation method was applied and users’ willingness to pay (WTP) was elicited on a pre-tested hypothetical market focusing on a pollution control programme.Depending on the WTP values, the 5 user groups were regrouped into two categories, WTP values per household per month for the heavy dependency group was LKR 1,550 while for the less dependency group it was LKR 514.30. Regression analysis was carried out to identify the socio economic characteristics of the users that affect the WTP value of the users. The results were consistent with the theory. Aggregated value for all user types for the study area is LKR 1.365 billion per year and per hectare value is LKR 4.389 million per year (2020 prices).Natural assets such as Bolgoda lake are becoming very scarce in the Colombo Urban Area. The above estimated value could be taken as a guide to manage it as an environmental amenity and to highlight the need to prevent pollution and to improve the uses obtained from the lake.Keywords: Bolgoda lake, contingent valuation, water qualit

Analysis on Supply Chain of Organic Vegetables and Organic Rice reaching Colombo

Organic food can simply be identified as the food that is produced from organic farming. The market for organic food in Sri Lanka is on the rise and the main consumer is the Colombo District. The growers are mostly from outside areas. Systematic studies on organic food from the supplier perspective however have not being carried out. The present study aims at identifying the actors of the supply chain of organic rice and vegetables and evaluating the price ranges. The methodology adopted mainly was a structured questionnaire survey among the suppliers, a market survey and key informant interviews. The study focused on the main supermarket chains in Colombo, open markets, other specific organic supermarkets and organic food exhibitions. To establish the existing supply chain the supermarkets were chosen using purposive sampling and the actors were chosen using snowball sampling. A total of 22 supermarket outlets were chosen from the supermarket chains of Keells and Softlogic Glomark. The Colombo Good market was identified as an open market and 20 individual producers were interviewed. Only the local producers were chosen for the study. The food was categorised and the price ranges were quantified. The chain supermarkets have a greater proportion of leafy vegetables, other organic vegetables but lesser varieties of organic rice. In specific and open markets the quantities available of green vegetables are greater than the leafy vegetables and a variety of organic rice is observed. Chain supermarket outlet sources indicate that only 15-20% sales are gained from organic food compared to their conventional counterparts. It was observed that the large scale suppliers earn a larger profit but small scale rice farmers in remote areas get a very low profit. Suppliers find labour as the major cost component. The minimum price increment for organic food was 27% for leafy vegetables. Higher price increments were found for recognized, certified, branded products where the price is sometimes seven times higher than the conventional price. Dedicated organic supermarkets seem to have higher prices for most of the food items. Thus the public image and the recognition play a greater role in defining price mechanism for the organic vegetables and rice. The general conclusion is that because the organic foods industry is still growing, the majority of chain supermarkets retailing organic food are not able to achieve the same level of economies of scale as conventional vegetable due to the higher prices.Keywords: Organic food, Supply chain, Market structure, Price differenc

Sustainability Assessment of Wetland Rice Farming in Sri Lanka: A Case Study in Kaduwela Wetland Ecosystem

Achieving sustainability in farming systems which are in close connection with natural ecosystems is a challenging task for farmers, researchers and policy makers. There is long history for use of floodplains for agriculture, due to their high fertility created by regular flooding events. Kaduwela wetland ecosystem is such floodplain which is situated in Colombo district. Paddy is the most prominent cultivation in this area and intensive farming practices hence has led to continuous reduction of sustainability and natural biodiversity of this wetland ecosystem. The objective of the study is therefore to calculate a total sustainability index (TSI) for the paddy farmers with social, economic and environmental components. A household survey using a pre-tested questionnaire was conducted among randomly selected 100 paddy farmers from Dedigamuwa Grama Niladhari Division of Kaduwela Divisional Secretariat Division. Key informant interviews were also conducted to collect information. Thirteen different indicators were developed to analyse economic, social and environmental sustainability. These data were used to derive an Economic Efficiency Index (EEI), Social Security Index (SSI) and an Environmental Security Index (ESI). Total Sustainability Index (TSI) was calculated finally combining all indices. According to the results only 3% (TSI>0.5) of paddy farmers were totally sustainable within the system. Overall results emphasized that only 13%, 8% and 4% of paddy farmers respectively were economically, socially and environmentally sustainable. Further, as a result of continuous reduction of paddy productivity and higher labour cost, 87% of paddy farmers were economically vulnerable while overuse of fertilizers and agrochemicals has lead to reduction of environmental sustainability of the system. Lack of proper extension services and poor women involvement in agriculture has lead 92% of paddy farmers towards the social vulnerability. The study concludes that lack of adequate knowledge on sustainable farming systems and unfamiliarity with resource conserving practices negatively related to less adoption of sustainable agricultural practices. Finally the study suggest that government support and intervention in agricultural advisory services can serve as an engine to promote sustainability in paddy production while conserving the natural characteristics of this wetland ecosystem.Keywords: Paddy farming, Sustainability index, Wetland ecosyste

Valuing the Hikkaduwa Coral Reef: An Application of the Zonal Travel Cost Method

Hikkaduwa marine ecosystem is one of the major attractions among the recreationists for its fringing coral reef and the beach. However, a rapid degradation of the coral reef and the beach pollution are the main influences on the sustainable tourism. In this context, valuing the Hikkaduwa Marine National Park is important in order to draw the attention for the protection of the ecosystem. The objectives of this research were to estimate the economic values derived by the local visitors and to derive an optimal entrance fee. This research also aimed at investigating factors that influence visitation rates. Data collected from an onsite survey carried out among a sample of 231 visitors from 16 districts in Sri Lanka were analysed, using the Zonal Travel Cost Method to estimate the recreational value derived by the local visitors. The travel cost function showed that visitation rate is significantly and positively influenced by recreational experience and urban population fraction. The explanatory power of the estimated model was strong with an adjusted R2 value of 0.752. In the second stage, these significant explanatory variables were used to construct the demand curve. The estimated local recreational value of the park is around 380 times the income from the local visitors per year, which is worth about Rs. 1,300 per local visitor. As this site does not have a proper entrance fee, the calculated entrance fee which maximises the total revenue was around Rs.1,100. However, the current level of visitors will be reduced by more than 50%, if this entrance fee is imposed implying intragenerational equity issues. The outcomes of this research are useful in the management decision making for the protection of the Hikkaduwa coral reef and the surrounding environment.Keywords: Consumer surplus, Hikkaduwa coral reef, Tourism, Zonal Travel Cost Metho

Comparison of Household Carbon Footprint between Two Grama Niladhari Divisions in Sri Lanka

The Carbon Footprint (CF) calculates the amount of greenhouse gases, primarily carbon dioxide released into the atmosphere by direct and indirect human activities in a certain time frame. CF provides a measure of effect of human activity on the earth's climate and provides guidance on mitigation potential. This study aims to measure the carbon footprint per household in two Grama Niladhari (GN) divisions and aims to establish relationship between the CF and socioeconomic parameters of the households. Primary data were collected from a survey carried out in Gangodawila South GN division of Colombo District and Galbada GN division of Galle District. Households were selected using random sampling technique and data on activities that emit greenhouse gases including energy use, transport were collected. In addition, secondary data was collected from various sources. Carbon footprint was calculated by using emission factors obtained from 2006 IPCC guidelines for National Greenhouse Gas Inventories. Most relevant and appropriate emission factors for Sri Lankan conditions were selected to increase the accuracy of the study. Results indicate that the CF estimated for Galbada is lower than that of Gangodawila GN division. CF is significantly influenced by income in both locations. Carbon foot print estimations are useful in guiding households towards the choice of options with lesser emissions. Keywords: Carbon footprint, Greenhouse gas, Ecological footprint, Emission factor

Evaluation of Performance of Environmental Protection License of Rice Mills of the North Central Province

Improper management of industrial pollution can result in serious damage to the environment and as well as to human health. Environmental Protection License (EPL) is a regulatory tool under the NEA to control the discharge of effluent, emission and deposits of solid waste. Present study was carried out to assess the effectiveness of EPL of rice processing industry in the North Central province and to investigate the factors affecting adoption of pollution control by the industries. Data were collected from 100 rice mills from two divisional secretariats (Thamankaduwa and Hingurakgoda) from Polonnaruwa district and three divisional secretariats (Kekirawa, Nachchaduwa and Thalawa) form Anuradhapura representing different scales of the industry. Information on production capacity, milling technology, management of solid waste, waste water and emissions, adoption of EPL, expenditure on pollution control were collected using a pretested questionnaire. Results indicate that production capacity of rice mills varied from 0.3 to 150 metric tons per day for type A and B industries. Total waste management cost varied from LKR 165 million to 12,000. Although majority of the mills had modern mills, most common waste water treatment method was open discharge. Fly ash control was done mainly with ash rooms. Only 60% of the operating industries (of A and B categories) have obtained EPLs. A multiple regression analysis indicates that total waste management cost was mainly influenced by the factors such as treatment method, production capacity, land extent and the type of mill. It was identified that information gaps regarding best available technologies act as barriers of adoption of pollution control which could be mitigated by supportive consultation services and close monitoring.Keywords: Environmental Protection License, Rice mills, Pollution contro

An assessment on Trends of Exportation of Forest Products in Sri Lanka

The resources extracted directly from forest or forest based sources are defined as forestproducts. Sources of such produce include various forest types which belong to state(montane, submontane, lowland rain, moist monsoon, dry monsoon, savanah and mangroves)and home gardens. Export forest products are of three main categories: significant non-woodforest products which are medicinal plants, rattans, bamboo, edible plants, gums and resins,and moderately significant non-wood forest product exports which are Kithul produce, barks,fruits, seeds, flowers, and leaves from forest and wood products. Quantification of exportedforest products have however received lesser attention and the objectives of this study aretherefore to prepare an inventory of exported forest products of Sri Lanka with types,quantities, values and destinations and to identify the trends of exports.Data were collected from Forest Department and Sri Lanka Customs. Forest Departmentissues export permits for different product types of plant parts, wood and non-wood valueadded products. Details related to product types, quantities, values and destinations have beenextracted from the records and analysed for the last five years. Major product markets werealso identified by analyzing the obtained data.Results indicate that there are about 2,400 permits issued per year for both wood productsexports and plants/plant material exports. Quantity of the wood products exports per year areabout 5million pieces. Seventy five percent was for commercial purposes and 24.43% was forindividual requirements. The major exports markets were United Kingdom, Australia, Indiaand Maldives. Quantity of the plants/plant material exports per year are about 6.3 millionpieces. About 91.9% is for commercial purpose and 8.1% is for individual requirements. Themajor export markets were Germany, Kuwait, Japan and Netherland.Records of the Sri Lanka Customs showed that there are significant illegal exports includingWallapatta, Sandalwood, live plants, cardamom, orchid plants and bird nests. Commonexport restrictions of Forest Department include plants and plant parts such as Kothalahibutu(Salaciareticulata), Nux vomica, Polpala, Kottamba leaves (Terminalia catappa) andMaswadda.Implications for policy include mechanisms to formalise record keeping procedures of theinstitutions involved and the urgent measures to avoid the significant losses to the economydue to illegal exports.Keywords: Forest products, Legal/illegal exports, Wood and non-wood forest products,Econom

ECONOMIC VALUE OF KADUGANNAWA SCENIC VIEW A CONTINGENT VALUATION.APPROACH

Rapid degradation of natural habitats due to direct exploitation and conversion into other landuses is a major problem faced by Sri Lanka. Many natural habitats have been converted tosettlement schemes, highways. hydropower projects and hotel complexes. The negligence andunderestimation of various values in particular, conservation values of natural habitats have beenidentified as the major reason for this problem.In order to overcome this problem. an economic evaluation has been carried out for the scenicview of Kadugannawa. The main objective was to calculate the use and non-use values for thescenic view.A Contingent valuation survey was carried out to estimate willingness to pay for use and nonusebenefits of the scenic view using two samples of people in Pahala Kadugannawa of Kegalledistrict (on site) and Colombo district (offsite) of Sri Lanka.The resultant willingness to pay (WTP) estimates were consistent with the theory. The meanWTP values for use values of on site and off site were Rs. 441.40 and Rs. 236.10 respectively.Furthermore, onsite and off site mean bequest values were Rs. 440.20 and Rs. 268.50respectively.These use and non-use values would be important in decisions on the land use changes in thearea. However, further studies would be necessary to estimate the total value of the site.

Estimation of Local Community and Global Externalities from Rice Processing Industry: A Case Study in North Central Province of Sri Lanka

Rice processing industry generates solid waste, waste water, fugitive dust and boiler emissions. Particulate matter and NOx are the main air pollutants generated from rice mills which impact on surrounding communities in the North Central Province of Sri Lanka. Emission of CO2 from boilers contributes to global warming. Present study attempts to evaluate cost to surrounding communities due to local air pollutants and aims to estimate global damage cost due to CO2 emissions. Three large scale (with production capacity of 100-175 Mt/d), 2 medium scale and 5 small scale rice mills were selected from North Central Province. Replacement cost approach and preventative expenditure approach was adopted to estimate community nuisances and 418 households were selected from each distance zone (250, 500, 750 and 1,000 m) away from the selected mills. Information on additional cleaning activities carried out by the households and the expenditure on preventive strategies against air pollutants were collected from the households using a structured questionnaire. The global damage cost was estimated using benefit transfer approach and using the data on CO2 emissions from each mill. Results revealed that that houses need cleaning additionally two days per week due to milling dust. The total cost of preventative and replacement expenditure for 990 affected households around the 10 mills is LKR 20.6 million. If the mills are operating 20 days per month, 25,216 Mt are released into the atmosphere annually and the global damage cost is LKR 35 million. The study emphasizes the need to provide incentives for pollution control of rice processing industry. Keywords: Rice mill, Replacement cost, Boiler emissions, Global damage cos

Preferences of Vehicle Owners for Improved Emission Standards An Economic Evaluation.pdf

Air quality in developing countries is being continuously deteriorated due to rapid urbanizationand growth in transport demand. The growing vehicle population together with the highcongestion has lead to serious air pollution problem in many urban areas. There were 5,120,797vehicles in the active fleet by the end of September 2013 in Sri Lanka and nearly 50% of thisbelongs to Western Province. Vehicle emissions are also linked to number of health effectsincluding respiratory and cardiovascular diseases. The objective of the present study was toestimate the vehicle owner’s willingness to pay for improved emission standards.Study was carried out during October to December in 2013 by randomly selecting six vehicleemission test centres from each district of Western Province, Colombo, Gampaha and Kalutara.Pretested questionnaire was used to survey 500 randomly selected vehicle owners who came toget their vehicle emission testing certificate. The survey involved 56 Motor cars, 87 MotorTricycle, 267 Motor Cycles, 16 Buses, 36 Dual purpose vehicles and 38 Lorries which wasbased on the distribution of each vehicle type in the Western Province. The survey wasrestricted to the owners of the vehicles. The survey instrument mainly asked respondents abouttheir preferences for improving the existing vehicle emission standards and their willingness topay for any cost increases associated with such improvements.According to the results, mean willingness to pay for all types of vehicle owners in WesternProvince is Rs 3773.70. The lowest value was stated by motor cycle owners while the highestwas stated by bus owners. Income of the vehicle owners was shown to be positively andsignificantly contributing towards the willingness to pay. Implications of the results towardsdesigning better standards for vehicle emissions are also discussed.