Using the Non-market Value of Ecosystem Services to Mainstream Biodiversity into Community Forest Management

This study estimates the economic value of ecosystem services generated from the management of community forests at sub-watershed level. A total 300 households were surveyed in Jhikhu khola watershed of Kavrepalanchok district. We used discrete choice experiment method to estimate the value of ecosystem services generated from ecosystem management at watershed level. Random parameter logit model was used to analyze choice responses. Three data sets were generated to analyze the data including pool, upstream and downstream.

The results indicate that drinking water, irrigation water, forest litter and fuelwood are the locally important ecosystem services. Forest users are keen to contribute to management activities through their community forest user groups. On average, forest users are willing to pay NPR 29 per year for one additional liter of drinking water per household per day during the dry season. They are willing to pay more than NPR 1,444 per year for an additional month of irrigation. Respondents are willing to pay approximately NPR 1,300 for an additional 30 baskets of leaf litter per month or NPR 43 per basket. This reflects the value of leaf litter as a substitute for chemical fertilizers. Respondents are willing to pay approximately NPR. 117 per bhari or head load fuelwood. The estimated average annual household willingness-to-pay is NPR. 3,136 for the specific community forest management scenario.

In addition, up-stream community member are willing-to-pay 1.37 times more for watershed services relative to downstream members. In addition, drinking water demand, irrigated land holding size and sex of respondents are main demographic characteristics to determine willingness-to-pay of forest users. The study suggests that choice experiment is useful tools to mainstream biodiversity into community forest management.