1. FOREST ECOSYSTEM SERVICES E mail: mohitgera87@gmail.com
Dr. Mohit Gera, IFS
Faculty, IGNFA
E mail:

2. OUTLINE … Goods and services from forests Relevance to NLBI
Payment for ecosystem services
Case study results from India

3. GOODS AND SERVICES PROVIDED BY THE FORESTS
Timber, fuelwood
Pulpwood
Food (tubers, flowers, seeds and gums)
Non-edible oils
Medicines
Fibers and flosses
Resins
Lac
Tendu and other leaves
Bamboos and canes
Fodder
Water
Services
Soil stabilization & erosion control
Ground water recharge
Regulation of climate by trapping moisture
Trees trap PM & improve air quality (human health)
Biological diversity
Habitat for wildlife
Nutrients re-cycling
Recreation & tourism
Maintenance of visual quality of environment.
Carbon sink & sequestration

4. Relevance to NLBI
The national policies and measures of NLBI essentially cover the following:
Encourage recognition of the values, particularly the intangible values from forests as well as from Trees outside Forests.
Explore ways to reflect such values in market place in line with the national policies and the legislation.
(Domestic markets may be more rewarding than the international market; Explore vigorously the domestic markets)
3. Developing effective financing strategies for SFM.
4. Enhanced access to local population to forest resources and relevant markets.

5. Introduction to payments for environmental services
Water services
Supply of services:
Upstream land uses affect the Quantity, Quality, and Timing of water flows
Introduction to payments for environmental services
Adopted from Stefano Pagiola & Gunars Platais, 2005

6. Introduction to payments for environmental services
Water services
Demand for services:
Possible downstream beneficiaries:
Domestic water use
Irrigated agriculture
Fisheries
Recreation
Introduction to payments for environmental services

7. The problem Deforestation and use for pasture Conservation
Benefits to land users
Introduction to payments for environmental services
Costs to downstream populations

8. The logic of payments for environmental services
Deforestation and use for pasture
Payment
Conservation with payment for service
Conservation
Introduction to payments for environmental services
Benefits to land users
Costs to downstream populations
Important!
This logic is repeated every year
» Need annual payments
» Need sustained financing

9. What is Payment for Ecosystem Service ?
PES is a voluntary transaction where
There is a well-defined Ecosystem Service
is being 'bought' by a (minimum one) ES buyer
from a (minimum one) ES provider
if and only if the ES provider secures ES provision (conditionality).
The core idea of PES is that external ES beneficiaries make direct, contractual and conditional payments to local landholders for adopting practices that secure ecosystem conservation and ensure uninterrupted flow of ES in question.

10. BENEFICIARY PAYS PRINCIPLE
Examples of ecosystem services in demand
Recreational value
Air quality improvement (urban demand)
Watershed protection (Water, soil conservation)
Biodiversity conservation
Carbon sinks
Need for creation of a system of localized payments for these ecosystem services from forests. This may prove to be a long term & sustainable solution to financing SFM in India.

11. AVAILABLE LITERATURE ON TCM STUDIES FROM INDIA
Valuation of biodiversity in KNP : Rs / (average consumer surplus, Chopra et al.)
Rs was calculated to be average recreational benefit per visit for VOF National Park (Gera et al., 2003)

12. CVM STUDIES CONDUCTED IN INDIA
WTP for annual Recreational benefits of Bhoj wetland – Rs 241/hh.
WTP for Maintenance and preservation of Borivili National Park – Rs 90 per hh.
Aggregate benefits to urban literate & employed people when the water quality of river Ganges improves from present to bathing quality – Rs per hh

13. CVM STUDIES CONDUCTED IN INDIA contd…
Valuation of Terai forests of Yamuna sub-basin, 40 districts (Hills, plains & foot hills) for the services of recreation, biodiversity conservation and nutrient cycling etc.
Average WTP = Rs per hh/year

14. CONCLUSION
Why should a forest be assigned a value when it is slated to be lost?
“Beneficiary pays principle”
Payment for Environmental Services may be the key.
We should have a mechanism in place for localized payments to ES providers.

15. THANK YOU FOR YOUR KIND ATTENTION