Economic Value of Biodiversity Conservation provided by Forest and Agro-forest Ecosystems in Kodagu District

The purpose of this study is to make recommendations to institutionalize a Payment of Ecosystem Service (PES) model. Visitors (direct users) of Nagarhole National Forest, who derive satisfaction from non-consumptive use value of scenic beauty and non-use value of biodiversity (CAFNET 2012), compensate coffee-growers and forest dwellers (Under the recognition of Forest Right Act 2006) for biodiversity conservation. Visitors would pay to maintain coffee plantation under high density tree cover by conserving native tree species.

Payment for these ecosystem services will be derived from non-market valuation techniques. Contingent behavior data will be used to elicit visitor’s willingness to pay in the face of a policy (hypothetical) that would impose higher entrance fees. This willingness to pay will be compared to the opportunity cost, i.e., benefits forgone due to timber sale. Potential of augmenting increased public expenditure on biodiversity conservation with tourist expenditures will be explored.