FOREST. Valuation of Forest Ecosystem Services and Biodiversity in The Western Ghats Case Study in Uttara Kannada. Draft Report

Transcription

1 01 Draft Report Vauation of Forest Ecosystem Services and Biodiversity in The Western Ghats Case Study in Uttara Kannada FOREST THE ECONOMICS OF ECOSYSTEMS AND BIODIVERSITY-INDIA INITIATIVE Ministry of Environment, Forest and Cimate Change Government of India

2 THE ECONOMICS OF ECOSYSTEMS AND BIODIVERSITY-INDIA INITIATIVE Indo-German Biodiversity Programme The Ministry of Environment, Forest and Cimate Change, Government of India (MoEFCC) is coaborating with the Federa Ministry for Economic Cooperation and Deveopment (BMZ), Government of Germany and the Federa Ministry for Environment, Nature Conservation, Buiding and Nucear Safety (BMUB), Government of Germany. The Indo- German Biodiversity Programme comprises the foowing: n The Economics of Ecosystems and Biodiversity - India Initiative (TII) n India Business and Biodiversity Initiative (IBBI) n Conservation and Sustainabe Management of Existing and Potentia Coasta and Marine Protected Areas n Himacha Pradesh Forest Ecosystem Services Project n Access and Benefit Sharing Partnership Project Responsibe JR Bhatt, Scientist-G, MoEFCC Konrad Uebehoer, Director, Indo-German Biodiversity Programme Suggested citation Ravindranath, N.H., Gundimeda, H., & Murthy, I.K. (2016). Vauation of ecosystem services and biodiversity in the Western Ghats: Case Study in Uttara Kannada. The Economics of Ecosystems and Biodiversity India Initiative. GIZ India. pp. 104 MoEFCC and GIZ 2016 ISBN No Pubished by Deutsche Geseschaft für Internationae Zusammenarbeit (GIZ) GmbH Discaimer The views expressed in the report are purey those of the authors and may not in any circumstances be regarded as stating an officia position of the Ministry of Environment, Forest and Cimate Change (MoEFCC) or GIZ. The designation of geographica entities in the report, and presentation of materia, do not impy the expression of any opinion whatsoever on the part of MoEFCC or GIZ, concerning the ega status of any country, territory, or area, or of its authorities, or concerning the deimitation of its frontiers or boundaries.

3 Vauation of Forest Ecosystem Services and Biodiversity in The Western Ghats: Case Study in Uttara Kannada N H Ravindranath, IISc, Bangaore Haripriya Gundimeda, IIT, Bombay Indu K Murthy, IISc, Bangaore Impementing partners: Indian institute of science, Bangaore Indian institute of technoogy, bombay

4 THE ECONOMICs of ecosystems and biodiversity india initiative Acknowedgements This document is a joint effort of the Ministry of Environment, Forests and Cimate Change, Government of India with financia support from the Indo-German Biodiversity Programme, GIZ, India. We thank them extensivey for their technica and financia support. We are aso gratefu to the Scientific and Technica Advisory Group (STAG) for their vauabe comments and for steering us in the right direction. We are extremey indebted to Dr Kirit Parikh, Chairman of STAG, for his very vauabe guidance, support and comments, a of which made this a very usefu exercise for the Western Ghats region. We woud ike extend our specia thanks to Mr Hem Pande, Specia Secretary, Enviornment, and Dr J. R. Bhatt, Director, CS Division, MoEF, for their vauabe support throughout. Our sincere gratitude to Dr Edgar Endrukaitis, Director, Indo-German Biodiversity Programme, for his keen interest and impetus to pursue this important project for India. We are thankfu to Mr Ravindra Singh, Farhad Vania, and Mr Ritesh Sharma, Technica Expert, Indo-German Biodiversity Programme, for their technica coordination, ensuring the timeiness of this report. We extend our specia thanks to Dr Gopa Kadekodi, Honorary Professor, Centre for Muti-Discipinary Deveopment Research, for his vauabe comments and suggestions in deveoping our study more accuratey. We aso extend our heartfu gratitude towards Dr K. N. Ninan, Professor and Head, Centre for Ecoogica Economics and Natura Resources, for his invauabe input in improving our study. We are aso deepy thankfu to the Dandei Widife Division, Karnataka Forest Department, for providing us with usefu data and support for executing this project. Finay, we thank a the respondents of the survey for their vauabe time and information, which made this report possibe. Project Team Team Leader (Ecoogica Assessment): Prof. N H Ravindranath, Centre for Sustainabe Technoogies, Indian Institute of Science, Bangaore Team Leader (Economic Assessment): Prof. Haripriya Gundimeda, Department of Humanities and Socia Sciences, Indian Institute of Technoogy, Bombay Project Coordination: Indu K Murthy, Centre for Sustainabe Technoogies, Indian Institute of Science, Bangaore Study Team: G T Hegde, Savithri Bhat, Vani Sathyanarayan, Priya Joshi, Visha Pati, Tashina Esteves, Centre for Sustainabe Technoogies, Indian Institute of Science P R Bhat, Centre for Ecoogica Sciences, Indian Institute of Science, Yashashree Garge (Intern), M S University, Baroda, Prantika Das and Soumik Mitra, IIT-Bombay, Swapan Mehra, Iora Ecoogica Soutions Pvt. Ltd., New Dehi, Dr Vasudeva R, Forestry Coege, Sirsi, Mr N R Hegde, LIFE II

5 Vauation of ecosystem services and biodiversity in the Western Ghats The economics of ecosystems and biodiversity-india initiative The Economics of Ecosystems and Biodiversity India Initiative (TII) aims at making the vaues of biodiversity and inked ecosystem services expicit for consideration and mainstreaming into deveopmenta panning. TII targets action at the poicy making eves, the business decision eve and awareness of citizens. TII has prioritized its focus on three ecosystems - s, inand wetands, and coasta and marine ecosystems - to ensure that tangibe outcomes can be integrated into poicy and panning for these ecosystems based on recommendations emerging from TII. In addition to the existing knowedge, TII envisions estabishing new poicy-reevant evidences for ecosystems vaues and their reation to human we-being through fied-based primary case studies in each of the three ecosystems. In response to an open ca for proposas for conducting fied-based case studies in the context of reevant poicy or management chaenges for conservation and the sustainabe use of biodiversity and ecosystem services, over 200 proposas were received. A Scientific and Technica Advisory Group (STAG), comprising eminent ecoogists and economists, appraised the proposas and recommended 14 case studies for commissioning under TII. These studies in s dea with issues such as hidden ecosystem services of s, conficts between humans and widife, and the economic consequences of species decine. In wetands, the studies draw essons on water resources management, community stewardship and equity, and the economics of hydroogica regime changes. In coasta and marine ecosystems, the studies expore the opportunities and economic efficiency of interventions such as eco-abeing, seasona fishing bans, mangrove regeneration, and the chaenge of bycatch in marine fisheries. The reports of these 12 case studies have been pubished in this TII series. THE SERIES: 01 Vauation of Forest Ecosystem Services and Biodiversity in The Western Ghats: Case Study in Uttara Kannada 02 The Economics and Efficacy of Eephant-Human Confict Mitigation Measures in Southern India 03 An Economic Assessment of Economic Services Provided by Vutures: A Case Study from the Kanha-Pench Corridor wetands 04 Economics of Ecosystem Services and Biodiversity for Conservation and Sustainabe Management of Inand Wetands 05 Economics of Biodiversity and Ecosystem Services of Rivers for Sustainabe Management of Water Resources 06 Economic Vauation of Ecosystem Services: a Case Study of Ousteri Wetand, Puducherry 07 Economic Vauation of Landscape Leve Wetand Ecosystem and its Services in Litte Rann of Kachchh, Gujarat 08 Economic Feasibiity of Wiow Remova from Wuar Lake, Jammu & Kashmir coasta and marine ECOSYSTEMS 09 Vauation of Panted Mangroves 10 Assessment of Eco-abeing as Too for Conservation and Sustainabe Use of Biodiversity in Ashtamudi Lake, Keraa 11 Economic Vauation of Seasona Fishing Ban on Marine Fisheries Services in Seected Maritime States of India 12 Economic Vauation of Biodiversity Loss: a Study of By-Catch from Marine Fisheries in Andhra Pradesh III

6 THE ECONOMICs of ecosystems and biodiversity india initiative IV

7 Vauation of ecosystem services and biodiversity in the Western Ghats V

8 THE ECONOMICs of ecosystems and biodiversity india initiative KEY messages Recognised as a goba biodiversity hotspot and UNESCO Word Heritage Site, India s Western Ghats form a watershed for as many as 58 rivers. It is aso home to around 50 miion peope and a arge number of endemic pants and animas across six states. Putting an economic vaue on goods and services sienty provided by these giant s wi aid in their conservation. Findings n There is a restriction on wood remova in Uttara Kannada. Taking the restriction into account, the vaue of timber is `73,892 (US$ 1,232) to `95,524 (US$ 1,592) per hectare per year. n Sawmis add a vaue of 15.5% and processing adds another 44.5% to the harvested timber. n The fuewood contributed 16% to 37% and non-timber products (NTFP) contributed 40% to 63% of the income among gathering househods. n The demand for NTFP in Uttara Kannada district is estimated at 720 miion kgs, which transates to a vaue of `32,230 (US$ 537) per hectare. n The benefit from carbon sequestration in Uttara Kannada district (7,819 sq km) amounts to `7.56 biion (US$ 126m) annuay. The benefit is passed on to the goba community. n The vaue generated by tourism in Dandei and Anshi Protected Area was `11.37 biion (US$ 189m) per year for the year VI

9 Vauation of ecosystem services and biodiversity in the Western Ghats Recommendations n Sustainabe harvesting, processing and marketing of Non- Timber Forest Products (NTFPs) has a arge potentia to generate sustainabe income for oca communities, which may require information generation on sustainabe harvest rates and creating processing infrastructure. n The economic benefits from tourism shoud be shared with the oca communities through a forma institutiona arrangement such as Joint Forest Management. n Deveop certification schemes for the harvest of NTFPs and other raw materias from s. n Buid capacity of Biodiversity Management Committees and Forest Department at the range and the division eves to understand the economic vaue of s and to ensure adequate financia compensation to oca communities. VII

10 Photo: Ritesh Sharma

11 Vauation of ecosystem services and biodiversity in the Western Ghats Tabe of Contents Executive Summary 1 1. TEEB for Western Ghats - Background, Issues and Approach Introduction and Background 1.2. Area under Forests in India and Trends in Area under Forests 1.3. Threats, Gaps and Chaenges in Forest Conservation and Management Issues in Conservation and Restoration of Forest Biodiversity and Ecosystem Services Existing Evidence Base on Ecosystem Services and Vauation Gaps in Vauation of Forest Ecosystem Services and Biodiversity 1.4. Purpose/Scope of the Study 2. Ecoogica Assessment of Biodiversity and Ecosystems Services of Western Ghats Forest Ecosystems TEEB Study in the Western Ghats 2.2. Approach The Western Ghats Importance of the Western Ghats 2.3. Biodiversity and Ecosystem Services Assessment and Methods Study Area Methodoogy Assessment of Biodiversity Assessment of Ecosystem Services Ecosystem Services Studied 2.4. Bio-Physica Estimates of Biodiversity, Provisiona and Reguating Services Indicators of Biodiversity Species Richness Species Diversity Species Dominance Size Cass (DBH) Distribution of Individuas Basa Area of Trees Quantification of Ecosystem Services from the samped area Provisioning Services Reguating Services Cutura Services Supporting Services Stocks and Fow of Ecosystem Services 2.5. Community Dependence on Forests Methodoogy Leve of Dependence of Househods on Forests for Fuewood, Fodder and Manure Purposes Fuewood Manure Fodder Quantity of Fuewood, Fodder and Manure Extracted by Gathering Househods Fuewood Manure Fodder NTFPs IX

12 THE ECONOMICs of ecosystems and biodiversity india initiative 2.6. Trends in Biodiversity And Ecosystem Services Biodiveristy Diversity Index Number of Trees Basa Area, Biomass and Carbon Ecosystem Services 2.7. Potentia Sustainabe Rates of Extraction 3. Economic Assessment of Biodiversity and Ecosystem Services of Forest Ecosystems in Western Ghats, India Introduction 3.2. Vaue of Forest Ecosystem 3.3. Estimates of Forest Economic Vaues Vaue of Timber from Forests in Western Ghats Vauation of Timber Resources Suppiers of Timber Extraction Methods Used Transportation from the Source to Depots Timber Deaers and Depots Assessing the Vaue Addition for Timber Poicies for Sustainabe Management of Forest Resources Vaue of Fuewood and Non-Timber Forest Products (NTFP) from the Western Ghats Vauing the Contribution of NTFPs and Fuewood to the Househods Seection of Sampe Viages Key Findings of the Survey and the Empirica Mode Concusion and Poicy Impications 3.4. Vaue of Carbon Reguatory Service 3.5. The Economic Opportunity from Tourism Survey Methods and Description of Sampe Area Toos and Methods Used in Estimating the Vaue of the Dandei-Anshi Tiger Reserve Vaue to the Loca Economy Tota Vaue from Tourism in Dandei-Anshi Tiger Reserve Ecotourism Vaue of Dandei-Anshi Tiger Reserve Vaue to the Loca Economy 3.6. Economic Disincentives for PA Conservation 3.7. Concusions and Poicy Impications 3.8. How Much is Forest Ecosystem Worth in Uttara Kannada? Key Concusions And Recommendations 72 References 81 X

13 Vauation of ecosystem services and biodiversity in the Western Ghats List of Tabes Tabe 1: Net area (Mha) under different density casses at different time periods Tabe 2: Summary of studies reevant to the study region Tabe 3: Area under according to density casses (sq. km) in the Western Ghats districts for the period 2003 to 2013 Tabe 4: Percentage area under different types across divisions of Uttara Kannada district Tabe 5: Forest types and study ocations (viages) of assessment of biodiversity and ecosystem services Tabe 6: Detais of samping for enumeration of trees, shrubs, herbs and soi Tabe 7: Ecosystem services assessed in this study Tabe 8: Species richness and number of individuas per hectare in different type ocations Tabe 9: Shannon Weiner diversity index of trees, shrubs and herbs in the study ocations across types in the Western Ghats Tabe 10: Top ten dominant species in the study pots across different types Tabe 11: Number of species providing provisiona ecosystem services in the three types of Uttara Kannada district of the Western Ghats Tabe 12: Number of species providing provisiona services in the study pots according to different types in the Western Ghats Tabe 13: Quantity of structura timber and poes avaiabe for extraction in the three types of Uttara Kannada district of the Western Ghats Tabe 14: Quantity of fuewood avaiabe for extraction in the study ocations of the three types of the Western Ghats Tabe 15a: Biomass (above ground + beow ground) and soi carbon stock in the study ocations across types of Uttara Kannada district of the Western Ghats Tabe 15b: Estimates of carbon across tropica s Tabe 16: Bio-physica quantities of ecosystem services Tabe 17: Tota number of househods and number samped in study viages Tabe 18: Percentage househods coecting NTFPs for fuewood, manure and fodder purposes Tabe 19: Quantity of fuewood, fodder and manure gathered by househods in the sampe viages (Vaues are in kg/househod/year) Tabe 20: Quantity of NTFPs coected and percentage of househods dependent on NTFPs Tabe 21: Change in diversity index and number of individuas in the study pots of Uttara Kannada district of the Western Ghats from 2009 to 2014 Tabe 22: Comparison of basa area, tota biomass and carbon in the study pots of Uttara Kannada district of the Western Ghats during 2009 and 2014 Tabe 23: Potentia sustainabe extraction rates of timber, fuewood and itter in different types of Uttara Kannada district of the Western Ghats Tabe 24: Vauation approaches for ecosystem goods and services Tabe 25: Stakehoder perceptions on timber extraction, opportunities generated and impact on environment Tabe 26: Viage wise annua fuewood and NTFP coection and proportion of annua income Tabe 27: Resuts of the regression anaysis s of NTFP coection from the survey resuts Tabe 28: Imputed vaue of NTFPs coected and key features of the coecting househods Tabe 29: Tobit mode parameter estimates for NTFP Tabe 30: Description of independent variabes Tabe 31: Size of surveyed resorts and homestays Tabe 32: Comparison with vaues from earier studies for the Western Ghats region Tabe 33: Synergies and tradeoffs in Western Ghats region List of Figures Figure 1: Forest cover of India according to density casses (ISFR, 2013) Figure 2: Forest cover of India (ISFR, 2013) Figure 3: Approach to TEEB-Western Ghats assessment XI

14 THE ECONOMICs of ecosystems and biodiversity india initiative Figure 4: Leves of bioogica richness in the Western Ghats Figure 5: Leves of fragmentation in the Western Ghats Figure 6: Monitoring pot ayout Figure 7: Nested pot ayout Figure 8: Ecosystem services and benefits obtained (MA, 2005) Figure 9: Forest type wise and ocation wise size cass (DBH) distribution of individuas in the study pots of the Western Ghats Figure 10: Basa area of trees in study pots of different types of the Western Ghats Figure 11: Tota Economic Vaue of Ecosystem Goods and Services Figure 12: Percentage contribution of ry and ogging sector to Gross District Income of Karnataka at constant prices Figure 13: Vaue Added from Forestry and Logging at Constant ( ) Prices Figure 14: Vaue Chain of Timber in Karnataka Figure 15: Quantity of Timber, Junge Wood, Firewood & Poes Produced from Maki and in Uttara Kannada District Figure 16: Division-wise Outturn of Timber (in m³) at Depot/Range from Forests in Uttara Kannada in Figure 17: Division-wise Number of Private Saw Mis Permitted to Extract Timber by Forest Department in Uttara Kannada Figure 18: Potentia and Actua Empoyment in Uttara Kannada District, Uttara Kannada Figure 19: Graphica Representation of Vaue Addition (`/m³) at Different Links of Vaue Chain Figure 20: Fuewood used in Western Ghats States 2011 Figure 21: Percentage of (a) Rura and (b) Urban Househods Using Firewood for Cooking in Karnataka Figure 22: Key Aspects of the Study Viages Figure 23: Demand Curve of Fuewood Figure 24: Dandei-Anshi Tiger Reserve in Uttara Kannada Figure 25: Dandei-Anshi Tiger Reserve in Uttar Kannada Figure 26: Region Wise (percentage) of Tourist Arrivas at Dandei-Anshi Nationa Park During Survey Figure 27: Group Size of Tourists Surveyed Figure 28: Income Distribution of Surveyed Tourist Groups Figure 29: Demand Curve for Visiting Dandei-Anshi Protected Area Figure 30: Fow of Ecosystem Services in `/ha/year (highy restricted scenario) Figure 31: Net Present Vaue of Ecosystem Services List of Boxes Box 1: Garcinia Species Box 2: Honey Coection Box 3: Cinnamon Coection and Trends in Avaiabiity Box 4: Operationa Anaysis of sawmis Box 5: Vaue addition by Garcinia indica, Garcinia Cambogia or Garcinia gumi-gutta Box 6: Honey vaue addition in Uttara Kannada district List of Annexes Annex 1: Species wise variation in prices (` per m³) depending on cassification Annex 2: Methodoogy for vauing the contribution of NTFPs and Fuewood to the househods Annex 3: Trave Cost Method (TCM) XII

15 Vauation of ecosystem services and biodiversity in the Western Ghats Executive Summary The Economics of Ecosystem Services and Biodiversity (TEEB) in the Forest Ecosystems of Western Ghats: A CASE STUDY 1. Reevance of the Study and Introduction Forest ecosystems provide vauabe ecosystem services for human we-being in the form of provisioning, reguating, supporting and cutura services. These services often are not additivey separabe and often not produced simutaneousy from the same ocation. Despite the importance of the ecosystems they are degraded and ost in most parts of the word incuding India, the most mega diverse countries of the word. The oss and degradation of ecosystems can be attributed to various demographic and socioeconomic pressures aong with institutiona and poicy faiures. Further there is difficuty in quantifying the benefits and divergence between private and pubic benefits and costs eading to its undervauation, making conservation of pristine ecosystems a non-optima outcome. It is now widey recognized through initiatives ike the goba TEEB project (UNEP 2010) that recognizing the economic vaue of biodiversity and ecosystem services, and providing economic incentives can pay a significant roe in conservation and sustainabe management of ecosystems. The objective of TEEB was to draw attention to the goba economic benefits of nature and to highight the growing costs of biodiversity oss and ecosystem degradation whie highighting opportunities arising from conservation, restoration, maintenance and sustainabe management of ecosystems and biodiversity. TEEB iustrated how recognition, demonstration and capturing of the vaue of ecosystems and biodiversity in decision making can hep better ecosystem management. Recognizing the importance of vauing the ecosystem services, TEEB-India initiative (TII) has been aunched by the Ministry of Environment and Forests and Cimate change for the s, wetands, coasta and marine ecosystems. This report is part of TII initiative on ecosystems for which we considered the region of Western Ghats being the most biodiverse hotspots in India. Despite having the most progressive conservation and deveopment egisations, poicies and programmes, the ecosystems are under severe stress. The reasons for the degradation of vauabe ecosystems can be compex and varied incuding incompete information and non-recognition of vaues of the Western Ghats ecosystems. Not recognizing the poicy and institutiona triggers of the stress can impact the human we-being with differing impacts on various groups. This ceary justifies the need to recognize, demonstrate and capture the ecoogica and economic vaues and internaize them in the decision-making. A comprehensive evauation of the ecosystem services enabes visuaization of the trade-offs that different groups of peope face ceary in addition to guiding efficient resource aocations, providing a hint at the future uncertainties in resource avaiabiity, designing biodiversity conservation programs, highight the distortions from non-recognition of vaues from ecosystem services. 1

16 THE ECONOMICs of ecosystems and biodiversity india initiative 2. Objectives of the Study The objective of this report is to assess the ecoogica and economic vaues provided by the ecosystem services in Western Ghats for the study region of Uttara Kannada district of Karnataka. Uttara Kannada district is seected as it is representative of the diversity of the Western Ghats. To iustrate the vaues the report consider three types of ecosystem services (Provisioning services - Food, fue, raw materias, manure, medicine and other non-timber products), Reguating Services refecting the ecosystems ecoogica process (Carbon sequestration), and Cutura Services (Recreationa service). The rest of the services coud not be considered due to ack of compete information. The report is structured into two parts namey: 1) assessment of the biophysica aspects and ecosystem services and ii) economic vauation of the ecosystems. The report concudes with the poicy recommendations for the Western Ghats. 3. Biophysica assessment of Biodiversity and Ecosystem Services The biophysica quantification of biodiversity and some of the key ecosystem services were assessed based on the permanent pots estabished during by the Indian Institute of Sciences in the s of Uttara Kannada district of Karnataka part of the Western Ghats. The study was conducted in 9 viages covering three types namey evergreen, moist deciduous and dry deciduous s. The study was conducted during 2014, using the standard fied ecoogica methods and socio-economic surveys. In the samping sites, the number of tree species in the evergreen varied between per hectare depending on the type, with owest in the dry deciduous and highest in the evergreen s. The Shannon-Weiner index of trees in the evergreen type is estimated at 3.02, foowed by 2.9 for the moist deciduous pots and 1.54 for dry deciduous pots. These vaues compare we with studies such as Singh et a., 1984 and Rai, 1983 for the Western Ghats. The size cass distribution of trees with varying diameter casses showed that in a the viages, the number of stems was highest in the ower most diameter cass of 0-10 cm, indicating high regeneration status of the, despite arge dependence of communities on the s. The foowing ecosystem services are provided by the s in the region n Food - In the samped pots, around 40 different species are used as food or food substitutes in evergreen s, whie in the moist and dry deciduous types, 32 and 8 different tree species are used as food, respectivey. Few of the dominant species that are specificay used in this region as food and food substitutes or favouring agents are Garcinia indica (6 kg/househod/year), Garcinia cambogea (69 kg/househod/year), Carissa carandas (5 kg/househod/year), Artocarpus integrifoia (50 kg/ househod/year), Mangifera indica (10 kg/househod/ year), etc. n Timber - Among the three types, highest amount of timber stock is recorded in the moist deciduous s (184 t/ha), foowed by dry deciduous (164 t/ha) and evergreen s (162 t/ ha). Even though oca communities use s for meeting their timber requirements (fencing poes, agricutura impements, furniture, etc.), no data is avaiabe, since there is a ban on feing trees in the s. n Fuewood - Fuewood is the main source of energy for cooking in rura areas of the Western Ghats, aong with other househod and non-agricutura uses. The average quantity of fuewood avaiabe for extraction is highest in the evergreen type (146 t/ha), foowed by moist deciduous (101 t/ha) and then the dry deciduous type (83 t/ha). In most viages, over 90% of the househods coect fuewood from s and pantations. The quantity of fuewood coected in the nine sampe viages is around 2.5 tonnes per househod per year (1.9 to The objective of this report is to assess the ecoogica and economic vaues provided by the ecosystem services in Western Ghats for the study region of Uttara Kannada district of Karnataka. 2

17 Vauation of ecosystem services and biodiversity in the Western Ghats 2.9 t/househod/year). The sustainabe extraction of timber and fuewood has been estimated in the range of 0.5 to 0.78 tonnes/hectare/year and for fuewood it is 1.01 to 1.58 tonnes/hectare/year. For eaf manure, assuming 50% of the eaf itter can be extracted sustainaby, the sustainabe rate of extraction coud be in the range of 2.5 to 7 tonnes/ ha/year. n Fodder - Rura househods in Western Ghats region argey graze their catte in s, pantations, grassands and cropands. The main sources of fodder or grass for sta feeding are the cropands and grassands. However, in three of the nine viages, dry grass (1.5 to 3.2 tonnes/househod/year) and green grass (0.9 to 4.7 tonnes/househod/year) is coected from s. In addition tree eaves are coected for feeding to ivestock. Leaf fodder yieding species in the study area incuded Gmeina arborea, Grewia tiifoia, Lagerstromia parvifoia, Scheichera trijuga, Dienia pentagyna, etc. Here again, athough the above mentioned species are distincty documented to be fodder species, oca communities use ops and tops of many species. n Manure: There is a traditiona practice of coecting green and dry eaves from as a source of manure for rice and pantation crops. In six of the nine viages, 20 to 85% of the househods gathered green eaves (0.7 to 7.9 tonnes/househod/ year) and dry eaves (1.4 to 3.6 tonnes/househod/ year) for manure purposes. The main manure yieding species in the s studied incude Careya arborea, Caycopteris foribunda, Terminaia beerica, Terminaia chebua, Aporosa indeyana, Macaranga petata, Ixora brachiata and Grewia tiifoia. Severa studies have been conducted to estimate the itter production in the s of Western Ghats. These studies have shown the itter production, argey consisting of eaf itter is in the range of 5 to 14 tonnes/hectare/year. n Medicina: The number of species used for medicina purposes in the study region range between 91 in evergreen type to 30 in dry deciduous type. Species used for medicina purposes incude Actinodaphne hookeri, Caycopteris foribunda, Gycosmis pentaphya, Knema attenuata, Mappia foetida, Myristica beddomei, Cinnamomum zeyanicum, Embica officinais, Terminaia beerica, Terminaia chebua, etc. No quantitative estimates of medicina pant coection coud be obtained. n Recreationa Services: Uttara Kannada district has severa tourist attractions in the s such as Dandei-Anshi Tiger Reserve, Attiveri Bird Sanctuary, severa waterfas such as Jogfas, Unchai, rocky mountain outcrops (Yana), etc., which attract many tourists providing recreationa services and empoyment to the oca communities. A case study of the tiger reserve is presented in a ater section. n Reguating Services: Forests provide many reguatory services and ony cimate reguatory service is assessed due to imitations of time and resource. Carbon reguating service is an important service from the ecosystems. Biomass + Soi carbon: The carbon reguatory service is estimated as a stock of aboveground biomass, beowground biomass and soi carbon. The carbon stock vaues ranged from 108 t/ha in dry deciduous s to 180 t/ha in evergreen s. In addition the report undertook a detaied case study of Garcinia and Honey. Garcinia is an important nutritionay vauabe tree species used in cooking as we in the form of a coo drink. A case study conducted in five viages showed that that Garcinia accounted for 50 to 80% of the househod income of the famiies gathering the product. The annua income of these famiies from Garcinia coection was in the range of `40,000 to `100,000 per househod per year. The case study of honey gatherers in four of the five study viages showed that the quantity of honey coected ranged from 1 kg to 30 kg per househod per year. 4. Economic Vaue of the Biodiversity and Ecosystem Services Timber The timber produced from s can be vaued using market prices in case of no market imperfections. However if markets are inefficient, the resource is underpriced due to capture of resource rent by other actors other than the owner. Timber and and resources enter into vaue-added cacuations in the economy at the point of purchase either as an end product or as an input into another process. In this study the timber has been vaued in terms of the surpus vaue accruing to the extractor or user or an asset after a costs and norma returns have been taken into account. The main vaue addition takes pace at sawmis with a vaue addition of 15.5% and processing of timber adds further vaue of 44.5%. Given the restrictions on wood removas in the region, the vaue of timber per hectare per year in Uttara Kannada has been estimated in the range from 73, ,524 `/ha (US$ ,569.31/ha). 3

18 THE ECONOMICs of ecosystems and biodiversity india initiative Fue wood is the ony source of fue for most househods. Resuts showed that the fuewood contributed 16% to 37% of the househod income and NTFPs contributed amost 40% to 63% of househod annua income Fuewood and NTFPs Fuewood and non-timber products are the other important provisioning services provided by Western Ghats. The vaue of fuewood and NTFPs in the study region has been estimated through anayzing the data from 458 househods from nine viages of Uttara Kannada district nearer to the ecoogica samping sites, which woud best capture the peope dependencies. Three important factors were considered whie seecting the viages i.e. vegetation type, extent of disturbance and proximity to the s. The choice of the viages based on the type, distance from the s and disturbance gives us an opportunity to capture the reation between s and NTFP dependence. The vaues have been estimated using househod production function. Fue wood is the ony source of fue for most of the househod and therefore entire fue wood coected is used for cooking and heating purpose. The resuts showed that the fuewood contributed 16% to 37% of the househod income and NTFPs contributed amost 40% to 63% of househod annua income. From the demand anaysis, the annua estimated demand for fuewood per househod has been 12,264 kgs and the demand for firewood for entire Uttara Kannada has been estimated at 2.6 Miion tonnes. The average shadow price of fuewood has been estimated to be `3.4 /kg. Considering the benefit to the entire popuation dependent on fuewood in Uttara Kannada with a area of 7,81,900 hectares, the benefits amount to `8,840 miion rupees with a per hectare vaue of `11,306 `/ ha. However, if we assume a sustainabe fow wherein approximatey 1.05 Miion or approximatey 1.42t/ha of firewood can be sustainaby extracted (based on the ecoogica study), the vaue per hectare due to firewood extraction (based on whatever is sustainaby extracted is used), the benefits amount to `4590/ha. This is a very conservative scenario based on the assumption that whatever is demanded is suppied from s ony through remova of twigs and branches and not through cear feing. The househods coected approximatey 3173 kgs of NTFPs annuay. The demand for NTFPs has been estimated at 720 miion Kgs which gives aper hectare vaue of `32,230 `/ha (US$ 519.2/ha). This estimate provides an indicative figure of the use vaue of s in Western Ghats in a highy conservative regime. Forest Carbon From the biophysica measures, we estimated that the district of Uttar Kannada has a tota carbon stock of MtC which is equivaent to 672 MtCO2 equivaent with an annua carbon sequestration of 1.12 tc/ha/year. The benefit of carbon sequestered in the s vaued in terms of the avoided socia costs is estimated as `756 crores (US$ crores) annuay equivaent to `9673 /ha/year (US$ /ha/year) which woud accrue to the goba community. Recreationa Vaue The protected s in Uttara Kannada benefit the oca, regiona and nationa economies through direct money injected into the economy through visitor spending and internationa funds, job creation in sectors heaviy dependent on tourism. The study used trave cost method to estimate the benefits from tourism from a face-to-face survey of 450 tourists (75 groups) visiting Dandei Sanctuary the second argest sanctuary in Karnataka attracting many nationa and internationa tourists. However, this method gives ony the use vaue and not the existence or intrinsic vaues. during June 2014, The incurred expenditures by tourists are surrogates for the price paid for the site s use. The vaues to the oca economy were generated through the face-to-face interviews of taxi drivers, tour operators, home stays, hotes and restaurants. The study estimated that the tota surpus the economy derives per hectare of Dandei-Anshi Protected Area is around `83,337/ ha/yr (US$ 1,369/ha/year), assuming an average of 41,175 visits to the Sanctuary in a year. The surpus to the economy from a visitors visiting the Dandei and Anshi Protected Area is `11, 375 miion (US$ 187 miion) per annum for the year However, protected areas might not aways generate a win-win scenario as decaring protected areas woud impose costs on the oca popuation as they 4

19 Vauation of ecosystem services and biodiversity in the Western Ghats ose access to the park and its resources, which may be disproportionatey arger than the benefits incurred. The interaction with oca viagers iving around Anshi tiger reserve did indicate the costs to the oca economy whie the benefits are often reaped gobay. 5. How much is Forest Ecosystem Worth? The study reveaed that there are important trade-offs faced in the region where 80% of the geographica area is under s and more importanty when it is diverse Western Ghats ecosystem. It needs to be carified that the tota economic vaue shoud be used ony to compare two aternate scenarios. In the present case, the comparison shoud be between the present scenario of fow of benefits in a highy reguated regime vis-à-vis, the aternate scenario in which conversion is not reguated and hence the benefits are absent. In Karnataka as a matter of poicy of the State Government of Karnataka imposed a compete ban on any green feing and ony remova of dead and faen timber is permitted though mature green trees are avaiabe in some of the s. Locas aso have some use restrictions on coection of products. The study did not consider the biodiversity vaue and the option vaue of the s due to the paucity of time, which however coud be the scope for further research in future. Severa studies do exist, but the authors wish to exercise caution in transferring the studies done at an earier date and aso for a different site. The net present vaue of the five ecosystem services in the current high protection regime (discounted at 1% and 5%) is expressed in Figure beow The net present vaues show how much woud the asset earn during its ife span. High discount rate impies that present is more vauabe than future and hence woud be expoited more and vice versa as there are restrictions on the use of s. These vaues do not incude extraction from non- areas. One can see that the recreationa vaue is high. There woud be trade-offs between recreationa vaues and other provisioning services. The study did not incude many of the other services provided by s, particuary those reated to water, due to imitation of time. The contribution of s seems ow but is not so as there is a nexus between the aocation of s for ogging and other uses versus the conservation of s for protecting biodiversity and ecosystem services. Despite the high protection costs and the income foregone from moratorium on timber expoitation and other access reguations, the ecosystems sti provide net benefits to the society. The study has considered ony a imited set of whoe range of ecosystem services and coud be extended. However, the extrapoated vaues from sma case s tudy or sampe areas to regiona or nationa scaes shoud be viewed with caution and it is better to err on the side of conservation. 6. Poicy, Institutiona and Financia Options for Conservation and Sustainabe Fow of Ecosystem Services Forests of Western Ghats are critica for biodiversity, watershed services, the economy and iveihoods of communities. Thus there is a need to conserve the s and biodiversity and ensure sustained fow of economic benefits by using economic incentives. Lot Net present vaue of ecosystem services from Uttara Kannada ecosystems % 5% Timber FW NTFP Carbon Recreation Tota 5

20 THE ECONOMICs of ecosystems and biodiversity india initiative of potentia exists to expore win-win opportunities to benefit the ocas, businesses, goba community and the poicy maker. n Recommendation 1- Identify the vaues to different stakehoder and capture these vaues accruing to the different stakehoders in the decision-making framework Currenty there is ack of information and data on the vaue of biodiversity and ecosystem services. The vaue of ecosystem is not recognised in the decision-making framework. Even where vaues exist, there is severe undervauation. Faiure to recognize the positive externaities provided by ecosystems woud ead to distorted poicies with detrimenta environmenta and human consequences. Impications of distorted poicy making can be: 1) conversion of s to ow return non-ry activities, where the economic returns coud be ower than the opportunity cost of retaining the ecosystems; 2) ower compensation paid for and conversion due to undervauation; 3) enhanced conversion and irreversibe oss of biodiversity and ecosystem services in the Western Ghats due to undervauation and 4) Because of undervauation, the aternate uses of and ooks more vauabe. Identifying the ecoogica and economic vaues makes a strong case for conservation, maintenance, restoration and sustainabe management of Western Ghats ecosystem. We need poicies aiming individuay at each of the ecosystem service as we as targeting the ecosystem as a whoe. n Recommendation 2 - Estimate the sustainabe extraction rates of timber, fuewood and NTFPs and set efficient prices There is imited information and knowedge on the sustainabe rates or modes of extraction of different products such as timber, fuewood, grass and other non-timber products. As a resut oca communities and commercia contractors may be over harvesting many products, or even over harvesting in the s, eading to degradation and oss of the services. This was observed in the case of Garcinia and Cinnamon species, and honey coection in the Western Ghats. Hence, research has to be carried on sustainabe methods of extraction of products to determine sustainabe rates of harvest. These rates may vary from ocation to ocation, and thus a potentia range of rates of extraction may have to be deveoped for the Western Ghats region. Here the community traditiona knowedge coud aso be utiized in determining sustainabe rates of extraction. The ranges of sustainabe rates of extraction shoud be communicated to the Biodiversity Management Committee s (BMCs) and Joint Forest Management Committees (JFMCs). The timber shoud be efficienty priced taking into account the negative externaities. The iega activities coud be curbed through appropriate monitoring and effective enforcement, encouraging farm ry and species that provide mutipe ecosystem services. Aongside conservation of ecosystems, poicies shoud address the fue dependence and provide aternatives or mange the sustainaby taking into account the fue requirements of the oca communities. n Recommendation 3 - Recognizing demonstrating and capturing of the NTFP vaues in decision making framework hep conserve the Western Ghats ecosystems. The study has shown that in the Western Ghats region a arge number of NTFPs are extracted and used ocay and in addition many NTFPs are in commercia demand. The market potentia of the NTFPs is not fuy understood. Extraction of some of the NTFPs is reguated by the department, eading to overexpoitation by the contractors. Due to the absence of markets, the oca communities are getting ower prices for the products extracted and marketed. Many NTFPs have short shef-ife eading to distress sae at ow prices. The NTFP activity need to be organized in the region and the contribution of the sector needs to be given due priority in the poicy making. The market potentia of the NTFPs is aso not known and the deveopment of markets is required for many species, ensuring sustainabe rates of extraction and practices. At the moment the prices of NTFPs are not Lack of information about sustainabe rates or modes of extraction of products may be resuting in over harvesting, eading to degradation and oss of services 6

21 Vauation of ecosystem services and biodiversity in the Western Ghats efficient as there is no information on the demand and suppy of these products. There is an opportunity to invove ocas in inventorying the information simiar to the Peope s Biodiversity Registers. The conservation and regeneration of NTFP species is not a priority for many of the species and efforts shoud be made to ensure that NTFP yieding species are sustained. Many NTFPs have short shefife and thus may require storage faciity or immediate processing to avoid distress sae or ow prices. Efforts shoud be made to generate empoyment through agencies invoved in NTFP procurement, processing and sae of NTFPs. To make the sector ucrative, profitabe, and sustainabe and encourage ocas to take up the job of primary coectors of NTFPs aong with being eaders in conservation, Loca communities or institutions such as BMCs and JFMCs shoud have fu access to NTFPs and the poicy of auctioning and invovement of contractors shoud be avoided. The state departments coud charge a fee for the NTFPs gathered. NTFP management can be inked to the NREGA scheme. More coordinated efforts are required to demonstrate the potentia vaue of NTFPs from the s in India and their roe in poverty aeviation, creation of empoyment, foods security and income generating opportunities. Government shoud pay an active roe in tapping the untapped potentia of the NTFPs in Western Ghats and put a break on monocuture pantations. There shoud be an excusive poicy on NTFPs recognizing their importance to oca iveihoods shoud be in pace. The state departments, SBAs, BMCs and JFMCs are not aware of the many vaues that the ecosystem provide and hence do not internaize them in the decision making. The state departments and State Biodiversity Authorities (SBAs) shoud be made aware of the provisions under Nationa Biodiversity Authority (NBA) for fu vauation of ecosystems, sustainabe rates of extraction, approaches and methods for vauation of biodiversity and ecosystem services and the need for enforcing these provisions. Simpe guideines and toos need to be deveoped and disseminated aong with periodic training programmes. The BMCs and JFMCs may aso have to be trained to adopt the vaues of ecosystem services estimated for the Western Ghats region whie charging royaty or user fees. n Recommendation 4 - A potentia Payment-for- Ecosystem-Services scheme can be deveoped where in the service that is traded is scenic beauty and the oca communities can be invoved with minima damage to the ecosystem. The protected areas offer a arge potentia for ecotourism and for generating economic benefits to the oca communities. Right now the potentia is unutiized and oca communities benefit very itte at the moment. Further, there are no cear guideines for invoving oca communities and for sharing benefits from ecotourism. The oca communities are not even aware of the existing Ecotourism Guideines. A cear ecotourism poicy emphasizing minima impact of tourism on the ecoogy has to be in pace for the region, and not part of the department of tourism poicy and the prime sector generating tourism be given compete benefit. Lot of potentia for recreationa benefits that can be tapped without disturbing the ecoogy of the area exists, which woud yied high revenues. The benefits of tourism shoud be shared with oca community and oca pubic shoud be invoved in providing direct services to the tourists. This is a potentia Paymentfor-Ecosystem-Services scheme, wherein the ecosystem services that is traded is scenic beauty, the beneficiaries being the tourists and the suppier of services is the department through the oca communities. It is aso important to design a compensation mechanism to offset oca resource use foregone. Rather than aienating the oca community, a cear vision on strategies for tourism, conservation ways with community participation with peope and ecosystems at the center need to be evoved rather than unreated tourism in the region. Provisions shoud be made to ensure that the oca communities are adequatey compensated for any oss of access to goods and services from the PAs and avoid conficts between them and the widife. n Recommendation 5 - There is a strong need to provide incentives for industries and corporate for conservation of biodiversity and ecosystem services Many arge and sma-scae industries depend on raw materias from s and the biodiversity. There are no cear guideines on enforcing sustainabe harvest practices or for ensuring sharing of benefits with oca communities. This is not in the interest of either the industry or biodiversity in the ong-term. In the Western Ghats region, many industries depend on for raw materias such as picke manufacturing units, Garcinia processing units and pharmaceutica units depending on species such as Terminaia chebua, Terminaia beerica and Embica officinais. 7

22 THE ECONOMICs of ecosystems and biodiversity india initiative 1. TEEB for Western Ghats - Background, Issues and Approach 1.1. Introduction and Background India is one of the mega-diversity countries in the word and around 1.2 biion peope co-exist with 7-8% of a recorded species, incuding over 45,000 species of pants and 91,000 species of animas, of which severa are keystone species. India with more than 16% of the goba popuation, and ony 2.4% of the word s and area has a daunting chaenge with its skewed endowment of natura resources. Further, with ony 38 miion hectares (Mha) of pasture and (Panning Commission, 2011), suppemented by other fodder resources, India supports one-sixth of the word s ivestock popuation. Miions of peope depend on the natura resources such as s, wetands and coasta ecosystems for their iveihoods, particuary important are the 104 miion tribas iving in and around the s and depending on them for their income and iveihoods (MoA, 2013). India, with an objective of Faster, More Incusive Growth, according to the 12th Five Year Pan has to ensure the conservation of the biodiversity and heath of its diverse ecosystems, whie ensuring the growth. Environmenta sustainabiity is of utmost importance in India and to achieve and sustain higher eves of income and standard of iving for a, the overa deveopment with increased opportunities for empoyment and optimum use of natura resources is critica. Baancing environmenta conservation and economic growth is a chaenging task and invoves huge trade-offs. However, achievement of sustainabiity is a ong-term process and requires investment in human as we as natura capita. India has severa constitutiona provisions, aws and poicies to promote environmenta conservation and sustainabe use of natura resources. India is a signatory to many internationa conventions and treaties, reated to environmenta protection and has taken severa initiatives towards their impementation. India has prepared Nationa Biodiversity Targets towards impementation and achievement of Aichi Biodiversity Targets at the nationa eve. The Government of India has aso deveoped a Green Nationa Accounting Framework and appied to imited extent economic instruments for conservation of ecosystems. In the above context, the Ministry of Environment and Forests, Government of India formay aunched a TEEB India Initiative (TII).Consutations in February and September 2011 ed to identification of three ecosystems for assessment. The three ecosystems seected for economic vauation incude s, inand wetands, and marine and coasta ecosystems. A review report on the economic aspects of the three ecosystems was presented as an Initia Assessment and Scoping Report at COP11, Hyderabad, India (October 2012). The report outined a strategy for ecosystem-based economic vauation. Forests account for a third of the earth s and area and about 80% of terrestria biodiversity. Gobay, the iveihoods of cose to 1.6 biion peope are dependent on s (FPP, 2012). Forests provide mutipe supporting, provisioning, reguating and cutura services to human we-being. According to studies reviewed by TEEB (TEEB, 2010), the contribution of s and other ecosystems to the iveihoods and incomes of the poor rura househods is significant. The contribution of sector to the nationa GDP is high in many tropica regions and countries (FAO, 2014). The state and heath of the s, in particuar the tropica s, is crucia for the economy and iveihoods of vast popuation in tropica countries, the poor in particuar. Further, there is a growing recognition of the roe s pay in goba cimate change. Forest resources have an important bearing on the environmenta/ecoogica security and we-being of the country and peope (ISFR, 2011). The importance of s as a natura resource has been recognized by the government of India and therefore arge emphasis has been aid on the conservation, restoration and deveopment of s. Figure 1: Forest cover of India according to density casses (ISFR, 2013) Very dense 2.54% Moderatey dense 9.7% Open Forest 8.99% Scrub 1.26% Non 77.51% 8

23 Vauation of ecosystem services and biodiversity in the Western Ghats Figure 2: Forest cover of India (ISFR, 2013) 1.2. Area Under Forests in India and Trends in Area Under Forests The Forest Survey of India (FSI) defines as, a the ands, more than one hectare in area, with a tree canopy density of more than 10%.The area under s in India is estimated to be Mha, accounting for 21.2% of the tota geographic area of the country and 200 miion ive in and around s, and depend on it for their iveihoods (SFR, 2013). In terms of density casses, about 2.5% is very dense, about 10% is moderatey dense, about 9% is open and scrub accounts for 1.2% of the tota geographic area (Figures 1 and 2). In India, many rivers originate in s. The sector contribution to GDP in India, though ow (at 1.7% during 2011), coud be high for the iveihood of dependent communities or poor in genera. Tabe 1 presents the net area under s in India during the period to Data in Tabe 1 shows that the area in India is generay stabe and consistenty increasing since However, a study by Ravindranath et a. (2012) using pubished data of FSI, has concuded that India is experiencing significant scae oss and degradation. Simiary, an assessment by Puyravaud et a. (2010) has shown that there is oss of India s native s. Gibert (2012) has aso highighted the controversy over the area under s in India. The factors driving change in cover in the different States are varied. Factors causing a decrease in cover incude shifting cutivation in the north-eastern States such as Manipur, Mizoram, Nagaand, and Assam to rotationa and panned feing by the Forest Department in Andhra Pradesh and Haryana to encroachments as reported from Andhra Pradesh, Assam, Chhattisgarh, Madhya Pradesh and Maharashtra (FSI, 2013). The factors contributing to increase in cover in some of the States such as Gujarat, Dehi, Bihar, Keraa, etc., incude conservation and afation Threats, Gaps and Chaenges in Forest Conservation and Management In India there are severa poicies and programmes that have promoted conservation and deveopment. However, these have ed to constitution of isands of biodiversity (and socia excusion) the so-caed Protected Areas (PAs) in an ocean of ecoogica devastation outside of these PAs (WGEEP, 2011). What is needed as advocated by Western Ghats Ecoogy Expert Pane (WGEEP) is a mode of conservation and deveopment compatibe with each other encompassing the whoe of the Western Ghats region, to repace the prevaiing, deveop reckessy conserve thoughtessy pattern with one of deveop sustainaby conserve thoughtfuy. Tabe 1: Net area (Mha) under different density casses at different time periods Forest Year of assessment density cass Dense Open Tota Source: State of Forest Reports 1987 to

24 THE ECONOMICs of ecosystems and biodiversity india initiative According to the report of the High Leve Working Group on Western Ghats (2013), there are unprecedented threats to the natura andscape of Western Ghats region by deveopment projects and urban growth as a resut of highy interventionist and environmentay damaging activities ike mining or pouting industries. Here, we summarise some of the threats, gaps and chaenges in conservation and management of s of India, particuary the Western Ghats from the existing iterature on ecosystems in India. The same has been eaborated in the TEEB-India Scoping Report. In India, according to an assessment of conversion and oss made by Ravindranath et a. (2012) at the district eve, about 63,650 ha was ost annuay during the period and 99,850 ha annuay during Further, s in India are aso subjected to degradation due to non-sustainabe extraction of fuewood and Non-Timber Forest Products (NTFPs), over-grazing by ivestock, fire, fragmentation and encroachment (Afreen et a., 2011). According to ISFR (2013), ony 13% of the recorded area has no biotic infuence. About 11% and 20% of the recorded area has high and moderate biotic infuence, respectivey Issues in Conservation and Restoration of Forest Biodiversity and Ecosystem Services Biodiversity is integra to amost a ecosystem processes, with some species paying key functiona roes that are essentia for maintaining the vaue of ecosystems to humans. However, many ecosystem services remain non vaued, and decision makers rarey consider biodiversity in poicy deveopment, in part because the reationships between biodiversity and the provision of ecosystem services are not directy obvious and hence not appreciated. Some of the potentia issues in conservation and restoration of biodiversity and ecosystem services were eaborated in the scoping report and a summary of the same is provided beow and an attempt is made to address some of these issues in this study: n Lack of periodic assessments and monitoring that generates knowedge, information and data on the status of biodiversity and ecosystem services and the threats and drivers of degradation and oss n Lack of awareness on the economic vaue of biodiversity and ecosystem services requiring due recognition and demonstration of the vaue of ecosystems n Lack of integration of biodiversity and ecosystem services concerns in panning and designing of conservation and restoration poicies and programmes n Lack of technica and institutiona capacity for conservation and restoration of biodiversity and ecosystem services n Lack of effective institutiona arrangements for effective conservation and restoration of biodiversity and ecosystem services Existing evidence base on ecosystem services and vauation Whie the number of studies based on economic vauation of biodiversity and ecosystem services is growing wordwide, there is sti a dearth of simiar studies in India. An extensive review is provided in the TEEB Scoping Report (2012). Studies conducted coud be categorized as those that vauated provisioning, reguating, supporting and cutura services and there are ony a few that have adopted a hoistic approach and evauated mutipe ecosystems services. In a, there are about 10 hoistic studies covering either a singe state or a group of states or the entire country (Gundimeda et a, 2005, 2006, Chopra, 1993, Parikh et a, 2008; Verma et a., 2010., Verma et a., 2007). Provisioning service of ecosystems is quantified by severa studies (Negi & Semwa, 2010; Joshi & Negi, 2011; Mahapatra & Tewari, 2005; Purushothaman et a., 2000; Narendran et a., 2001; Murthy et a., 2005; Sarmah and Arunachaam, 2011; Appasamy, 1993). There is one study by Kiran and Kaur, 2011, which has quantified the nutrient retention (supporting) service of s. Badoa et a (2010) and Hadker et a (1997) have evauated the recreation service (cutura) of Biodiversity is integra to amost a ecosystem processes, with some species paying roes essentia for maintaining ecosystem vaue to humans. Sti, decision makers rarey consider biodiversity in poicy deveopment 10

25 Vauation of ecosystem services and biodiversity in the Western Ghats The key pressure/threats to ecosystems in India incude: n Forest conversion: According to NBAP (2008), about one Mha of area has been diverted for impementing about 14,997 deveopmenta projects since the enactment of the Forest Conservation Act in n Extraction of timber and NTFPs: Fuewood is the dominant source of cooking energy for rura popuation in India with s contributing significanty to this. According to ISFR (2011), about 216 Mt of fuewood is consumed in India of which about 27% is sourced from s. Domestic demand for timber and fuewood is we above the sustainabe eve. n Livestock grazing: Grazing has profound infuence on vegetation whie ight controed grazing is beneficia, heavy uncontroed grazing is harmfu (ISFR, 2013). Harmfu impacts of uncontroed grazing incude death of seedings, reduced porosity of soi due to compaction resuting in poor aeration and increased run-off and oss of paatabe grasses. According to ISFR (2013), incidence of moderate to high grazing pressure is reported for more than 30% of the recorded area. n Forest fire: The area estimated to be fire prone by the Forest Survey of India (ISFR, 2013) is about 54% of the recorded area of which heavy fires are estimated to affect about 1.3% and moderate and mid fires are estimated to affect about 6.5% and 46%, respectivey. The extent of area estimated to be experiencing surface fire that affects ground fora and organic matter in the soi is 3.69% and this poe crop and regeneration is affected in an estimated area of 1.42% (ISFR, 2013). n Mining: Mining, particuary open cast mining, has significant impacts on and biodiversity of India. Sahu and Dash (2011) estimated the tota and area impacted by mining to be 13,546 ha during In the Western Ghats region, iron ore mining activity has resuted in degradation of and and area and impacted the water quaity in the Bhadra River on Major threats to Indian ecosystems incude cimate change, mining, and fire account of sitation and contamination of water by the ore (SoE, 2003). n Forest fragmentation: Fragmentation decreases habitat through oss of and area, reducing the probabiity of maintaining effective reproductive units of pant and anima popuations. Landscape fragmentation resuts in ess connectivity of habitat to aow natura migration, imiting the adaptive capacity of species and the viabiity of ecosystems (Vos et a. 2008).Roy et a (2013) have conducted an assessment of, and mapped the extent of fragmentation using high-resoution geospatia data on vegetation and a fragmentation index for the entire Indian andscape. According to this study, most of the biodiversity-rich s, such as evergreen, subtropica broadeaf and temperate broadeaf s, are reativey intact or have a ow degree of fragmentation. But the study aso concudes that, certain highy fragmented regions across the Indian andscape harbours a number of endemic species, some of which have medicina importance requiring conservation. n Invasive aien species: The major invasive species incude Lantana camara, Eupatorium ganduosum, Parthenium species, Mimosa species, Eichornia crassipes, Mikania micrantha, Uex europaeus, Prosopis juifora, Cytisus scoparius, Euphorbia royeana, etc. Highy invasive cimbers ike Chromoaena and Mikania species have over-run the native vegetation in northeast Himaayan region and the Western Ghats (NBAP, 2008). A study conducted by Forest Survey of India for the State of Forest Report concudes that about 60% of the recorded area has moderate to scanty presence of weeds whie about 20% of the area has very dense distribution of weeds (ISFR, 2013). n Anthropogenic cimate change: The assessment of cimate impacts based on projections of the Regiona Cimate Mode of the Hadey Centre and the goba dynamic vegetation mode IBIS for A1B scenario for the short-term ( ) and ongterm ( ) periods showed that at the nationa eve, about 45% of the ed grids are projected to undergo change. This means the future cimate is not optima for the existing types and biodiversity eading to die-back and change in biodiversity in the ong run. 11

26 THE ECONOMICs of ecosystems and biodiversity india initiative ecosystems in Corbett Tiger Reserve, Uttarkhand and Borivii Nationa Park, Maharashtra. The reguating service of ecosystems have been quantified for a singe type (Badoa et a., 2010), or the entire s of India (Kadekodi and Ravindranath, 2007; Singh, 2007 and Kumar et a., 2006). Some of the studies which are particuary reevant to the study region are given in Tabe 2 beow. In addition to the individua research initiatives on Western Ghats, the Government of India constituted two high eve committees to take stock of Western Ghats ecosystems, understand the deveopment pressures on the region, and suggest some key impementation pans for Western Ghats. The Kasturi Rangan report identified around 60,000 sq.km of natura andscape (37% of the tota geographica area of Western Ghats Region) as ecoogicay sensitive area and deveoped the andscape indices (bioogica richness and fragmentation) from the geospatia anaysis of IRS LISS-III sateite data and incuded data on species richness of vegetation, endemicity, ecosystem uniqueness, disturbance indicators, adjacency and patch characteristics. The committee had recommended a prohibitory and reguatory regime in the ecoogicay sensitive areas for a the activities which destroy and intervene with ecosystem functioning. The committee offered some suggestions to some of the major deveopment versus environmenta trade-offs in the region for exampe, in the case of Gundya hydropower project where the committee suggested that decision shoud consider the damage to s in terms of ecoogica fows in the downstream areas, suggested compete ban on mining, quarrying and sand mining in the region, a strict no to therma power pants etc. The committee aso suggested strengthening of the data monitoring systems, participation and invovement of oca communities in decision making, incentivising conservation, encouraging states to take up conservation through grant-in-aid, encouraging PES services within the region etc. The Gadgi s report demarcated area under Western Ghats to be approximatey 1,29,037 sq. km. The report emphasized on sustainabe deveopment of the region with thoughtfu conservation of the ecoogicay sensitive areas of the Western Ghats. Some of the recommendations reevant to this report incude encouraging system of use of positive incentives to encourage continued conservation oriented actions, cear recognition of the damages done to ecoogicay sensitive areas as a resut of various deveopment projects and considering a precautionary approach erring on the side of conservation to the decision making process. Tabe 2: Summary of studies reevant to the study region Forest goods and services Provisioning goods and services NTFP (incuding fuewood) Provisioning services Study year Area 2012 Uttar Kannada District Karnataka 2013 Tropica wet and semi-evergreen Forests, Western Ghats Reguating services 2013 Tropica wet and semi-evergreen Forests, Western Ghats Bioprospecting vaues 2013 Tropica wet and semi-evergreen Forests, Western Ghats Supporting services 2013 Tropica wet and semi-evergreen Forests, Western Ghats Recreationa vaue Dandei Widife Sanctuary and Karnataka Carbon storage Karnataka Medicina Pants Karnataka Provisioning services (NTFP) Opportunity cost of biodiversity conservation Net resource benefits (grazing, fuewood and NTFPs) Wiingness to reocate outside Dandei Widife Sanctuary 2005 Periyar Tiger Reserve, Western Ghats 2005 Madari viage of Kodagu District, Western Ghats Uttar Kannada district, Western Ghats Uttar Kannada District, Western Ghats 12

27 Vauation of ecosystem services and biodiversity in the Western Ghats Method Vaue Source Market vaue (impicit in the subsistence, income and oca empoyment) Market vaue (consumptive vaue) `2,05,388/hectare/yr Ashwath D N et a. (2012) ` crore (Unrecorded vaue), `35.3 crore (recorded vaue) Panchmukhi et a. (2008), CSO Market vaue Timber- `7,02,146/ha/yr Verma, M. et a. (2013) Market vaue Bamboo- `6261/ha/yr Cost adjusted price of fodder Fodder- `24898/ha/yr Market vaue NWFP- `50586/ha/yr Market vaue Fuewood- `30,268/ha/yr Socia cost of carbon Carbon sequestration- `29801/ha/yr, Carbon storage- Verma, M. et a. (2013) ` /ha/yr Repacement cost Poination and seed dispersa- `95844/ha/yr Water recharge- `15703/ha/yr Species richness Verma, M. et a. (2013) Avoided cost approach Soi conservation- `72707/ha/yr Verma, M. et a. (2013) Individua Trave Cost Method ` per Sq km (for Dandei Widife Sanctuary) Panchmukhi et a. (2008), CSO and `21.12 crores (for Karnataka state) Market vaue of carbon ` crores Panchmukhi et a. (2008), CSO Contingent Vauation Method 0.001% of GSDP for year Panchmukhi et a. (2008), CSO Use vaue Forest dependency varies based on socio-economic characteristics of househods and stake of oca peope over protected varies across different socio-economic groups. Poor peope are more vunerabe to poicy changes on management. Sathyapaan, J. (2005) Contingent Vauation Method Market based approach High opportunity costs for biodiversity conservation. Significant externa costs incurred by coffee grower due to wid ife conservation accounting for between 7-15% of tota discounted costs of coffee US$/hh (NPV at 8% discount rate, assumed time span- 25 years) Ninan, K. N., & Sathyapaan, J. (2005) Ninan K.N. (2007) Contingent Vauation Method US$/hh Ninan K.N. (2007) 13

28 THE ECONOMICs of ecosystems and biodiversity india initiative The Ministry of environment and s has aso commissioned a report on revising the NPV rates to compensate for the oss on ecosystem services that occur due to conversion of different cass/category of s for non- purposes (Verma et a., 2013). For the wet evergreen s of Western Ghats region in scenario (2) after adjusting for doube counting at discount rate of 4%, the net present vaues ranged from 44 akhs for very dense s to 14.3 for open s and for semi evergreen s the estimates ranged from 33.9 to 15.4 akhs/ha. The study has considered timber, fuewood, fodder, non-timber products, ecotourism, soi conservation, water recharge, poination, bioprospecting vaues and is soey based on secondary sources of information and benefit transfer from other studies. For the studies to be more reevant and usefu they shoud take oca conditions into consideration. Extrapoation of vaues from different case studies to regiona or nationa scaes shoud be viewed with caution. For any such sustainabe mode of deveopment and conservation, a study ike TEEB for Western Ghats woud be extremey hepfu. The study is based on ecoogica data coected from fied and backed with the economic data coected through various primary data sources Gaps in Vauation of Forest Ecosystem Services and Biodiversity In India there have been a few studies aimed at assessing economic vaue of biodiversity and ecosystem services, argey focused on the use vaue or the marketabe products. There are severa imitations of the studies conducted so far which imit their use for guiding poicy making: Inadequate and incompete coverage of ecosystems/ areas of the country. Focus on one or a few of the ecosystem services arising from a ecosystem eading to incompete vauation and hence not refecting the tota economic vaue of the s. The tota economic vaue of ecosystems is critica, especiay for decisions on conversion of s to infrastructure projects. Macro eve vauation at the state or nationa eve, based argey on secondary and internationa sources of economic vaue of products and services, making them imited in reevance to oca situations and poicy making. These estimates are further based ony on current rates of extraction and not sustainabe rates of extraction. Limited data on the cost of oss of biodiversity and ecosystem services due to conversion of and to non- purposes and its impications. Absence of empirica data based vauation of biodiversity and ecosystem services. Absence of tota economic vaue of biodiversity and ecosystem services, especiay in the Western Ghats and in India. Lack of standard methods for vauation of biodiversity and ecosystem services, making them incomparabe Purpose/scope of the study Biodiversity and ecosystem services pay key roe in future economic strategies seeking to promote deveopment and prosperity. Biodiversity diversity within and among species is reated to the production of most ecosystem services (Hooper et a. 2005, Bavanera et a. 2006). When ecosystems are managed for ony a imited set of goods and services, such as timber from s (Nasi and Frost 2009), many other ecosystem services may be overooked and therefore undervaued. If ecosystems are to be effectivey managed and conserved, the vaue of a ecosystem services, incuding the externaized costs of their oss, needs to be understood by decision makers. A key roe for science is to refine our understanding on how ecosystems function, to estabish the inks between functions and the provision of ecosystem services, and then to communicate that knowedge effectivey to decision makers and the pubic. Iustrating the importance of biodiversity for ecosystem goods and services vaued by peope is an increasingy important contemporary approach to infuencing conservation poicy and compements other arguments for biodiversity conservation (Thompson et a. 2011).Transating the existing body of iterature on ink between biodiversity and ecosystem services into poicy advice is a major chaenge (Perrings et a. 2011). There are many efforts at the nationa, state and Biodiversity and ecosystem services pay a key roe in future economic deveopment strategies. If these ecosystems are to be effectivey managed and conserved, the vaue of a ecosystem services needs to be understood by decision makers 14

29 Vauation of ecosystem services and biodiversity in the Western Ghats oca eve to conserve, restore and sustainaby manage s. However, the decine and oss of ecosystem and biodiversity services continues unabated. One of the ways to counter this is to reward best practices by deveoping markets for ecosystem services and aso products and services. Economic vauation of ecosystem services and biodiversity coud thus promote ongoing conservation and restoration efforts and aso ensure sustained fow of benefits to dependent communities. Rewarding oca communities with actua vaue for the products and services from s woud enhance the stake for oca communities in protecting and managing the s, eading to conservation. There is aso an emerging need to represent biodiversity and ecosystem services in the Nationa Accounts, which is currenty imited by ack of information on the economic vaue of both use and in particuar non-use vaue of ecosystem products and services, as evidenced by states such as Himacha Pradesh, Uttarakhand and Sikkim. Economic vauation of biodiversity and ecosystem services is an important step to internaize the vaues in decisionmaking process. TEEB thus presents an approach that can hep decision-makers recognize, demonstrate and capture the vaues of ecosystems and biodiversity in decision making. The Economic Vauation of Biodiversity and Ecosystem Services woud hep meet the foowing goas and targets: n Enabe actua vauation of biodiversity and ecosystem services and enabe comparison with aternate use or and conversion prospects n Motivate corporates and industries to provide technica support, financia incentives and enabe ong-term coaboration with oca communities n Enabe Biodiversity Management Committees or Joint Forest Management Committees JFMCs to seek appropriate or actua price for products and services compensation for protection or conservation n Generate information for nationa/state green accounting n Identify and create potentia opportunities for financing sources for conservation n Identify the beneficiaries of conservation and the magnitude of the benefits they receive, and thus hep design mechanisms to capture some of these benefits and make them avaiabe for conservation n Enabe meet some of the AICHI targets thereby contributing to the objectives of the Convention on Bioogica Diversity. 2. Ecoogica Assessment of Biodiversity and Ecosystems Services of Western Ghats Forest Ecosystems 2.1. TEEB study in the Western Ghats The TEEB-Western Ghats study is one effort to address and evauate the economic benefits of biodiversity and ecosystem services. The Western Ghats study wi provide oca context to vauation, which coud potentiay be used for poicy-making and market deveopment. More importanty, the study wi assist in confronting nationa conservation chaenges by providing a poicy patform for any reforms that may be needed to achieve higher conservation resuts by not ony recognizing, but aso demonstrating, the vaue of biodiversity and ecosystem services. The study intends to hep identify the scope for corporate and industria invovement in reaizing the true vaue of biodiversity and ecosystem services, which utimatey eads to conservation and sustained fow of biodiversity and ecosystem services to a stakehoders, particuary oca communities. The specific objectives of the study incude: n Assessment and estimation of the status of biodiversity and fow of ecosystem services from seected types in the Western Ghats Biophysica services n Estimation of the economic vaue of biodiversity and ecosystem services in the Western Ghats Evauating the contribution of ecosystems to the socia and economic status of human societies Recognition and demonstration of the importance of monetary and non-monetary benefits of ecosystems n Understanding poicy and institutiona issues and barriers in the Western Ghats region with respect to biodiversity and ecosystem services Suggesting poicy, institutiona and financia options for providing incentives to promoting conservation and the sustainabe fow of economic benefits to oca communities. The report adopts the goba TEEB Framework, or the tiered approach, in anayzing and structuring vauation. The tiered approach may be represented by the acronym RDC: n Recognize - Recognizing vaue in ecosystems, andscapes, species, and other aspects of biodiversity, is an activity of a human societies and communities, and is sometimes sufficient to ensure conservation and sustainabe use. n Demonstrate - Demonstrating vaue in economic 15

30 THE ECONOMICs of ecosystems and biodiversity india initiative terms is often usefu for poicymakers and others, such as businesses, in reaching decisions that consider the fu costs and benefits of a proposed use of an ecosystem, rather than just those costs or vaues that enter markets in the form of private goods. n Capture - Capturing vaue, the fina tier of the economic approach, invoves the introduction of mechanisms that incorporate the vaues of ecosystems into decision making, through incentives and price signas. This can incude payments for ecosystem services, reforming environmentay harmfu subsidies, introducing tax breaks for conservation, or creating new markets for sustainaby-produced goods and ecosystem services Approach The study based in the Western Ghats is an effort to provide an evidence base for the mutipe ecosystem services that fow from ecosystems and aso a demonstration of an approach to the economic vauation of biodiversity and ecosystem services from ecosystems. The study is designed to recognize, capture and demonstrate the economic vaue of ecosystems through the approach presented in Figure 3. The approach adopted for demonstrating the economics of biodiversity and ecosystem services of ecosystems in the Western Ghats invoves the foowing steps: (i) Seecting ecosystem services to be quantified; (ii) assessing the current status of the services as we as the trends in fow of services; (iii) assessing the impications of any such change on various stakehoders and its impacts; and, finay, (iv) formuating recommendations and strategies for addressing the change so as to sustain fow of benefits to a stakehoders whist ensuring the conservation of resources and benefits The Western Ghats The exact tota area under the Western Ghats varies due to ack of we-defined boundaries for the Western Ghats. For exampe, according to Western Ghats Ecoogy Expert Pane (WGEEP), the tota area under Western Ghats is 1,29,037 sq. km, but others put the area anywhere between 1,36,800 sq. km to 260,962 sq. km. About fifty miion peope inhabit the Western Ghats and the Western Ghats spreads over an area of 1,64,280 sq. km and traverses six states of India, viz. Gujarat, Maharashtra, Goa, Karnataka, Keraa and Tami Nadu, spanning 188 tauks in 51 districts. An anaysis of the area under s in the states and districts of the Western Ghats region over a 10- year period, from 2003 to 2013, shows that the area under s has increased by 7,839 sq. km. However, Figure 3: Approach to TEEB-Western Ghats assessment Seection of ecosystem services based on stakehoder consutations, iterature survey and impications for conservation Services Ecoogica, Economic, Reguatory, etc Status or fow of ecosystem services (2014) Poicies, Institutions and Financia Mechanisms to address conservation Drivers Poicy, Markets, Technoogy Trends in fow of ecosystem services Loca Communities Forest Department Traders/Entrepreneurs Ecoogica Systems Impacts 16

31 Vauation of ecosystem services and biodiversity in the Western Ghats when area under s in the different density casses is seen, the area under dense s is reported to have increased but the area under moderatey dense s has decreased by 481 sq km, with area under open s increasing simutaneousy (Tabe 3). A cose ook at the area under various crown density casses in the different districts of the 6 states for the 10-year period of 2003 to 2013 indicates there is a change in area under different crown density casses and, in many states, there is a reduction from higher density crown cass to ower density crown cass across states: n Maharashtra: A net oss of about 79 sq. km area in the very dense and 58 sq. km area in the moderatey dense categories over the period 2003 to n Gujarat: A oss in moderatey dense area of 587 sq. km. n Goa: A oss of 670 sq. km of moderatey dense s in north and south Goa districts. n Karnataka: A oss of ony 2 sq. km in the very dense category but a oss of 1621 sq. km in the moderatey dense category in a districts, except Mysore. n Keraa: A reported oss in area under very dense as we as moderatey dense categories is reported and the oss is 50 and 749 sq. km, respectivey over the decade. n Tami Nadu: About 278 and 103 sq. km oss has been reported for the decade in the very dense and moderatey dense categories. The oss in area under very dense and moderatey dense s in some of the districts, (incuding a oss of 479 sq. km of moderatey dense s in Uttara Kannada) of the 6 Western Ghats states is a cause Tabe 3: Area under according to density casses (sq. km) in the Western Ghats districts for the period 2003 to 2013 Very Dense Forest Moderatey Dense Forest Open Forest Tota Source: State of Forest Report (FSI, 2003, 2005, 2009, 2011 and 2013) of concern as such osses in native s are irreversibe and the biodiversity osses at times are permanent, as the Western Ghats is home to some of the most endangered and threatened species. Such osses aso have impications for the biomass and carbon stocks, as we as the dependent iveihoods and economies of oca communities Importance of the Western Ghats The Western Ghats is a treasure trove of biodiversity and the water tower of Peninsuar India. The great topographic heterogeneity (from sea eve to 2695 m at its highest point, the Anaimudi peak) and strong rainfa gradient (annua precipitation of <50 cm in shetered vaeys in the east to >700 cm aong west-facing sopes) together give rise to tremendous diversity of ife forms and vegetation types, incuding tropica wet evergreen, montane stunted evergreen (shoa) and grassand, ateritic pateaus, moist deciduous and dry deciduous s, dry thorn s, and grassands. Some of these are critica habitats for pants and animas. The Western Ghats is aso home to about 50 miion peope in the six states it traverses. The Western Ghats is a hot spot of biodiversity (Myers et a. 2000) and, at the same time, high human popuation density and major andscape transformation since the mid-18th century emphasize the urgency of conservation of the Western Ghats and the sustainabe use of its resources. A study in the southern region, comprising the states of Karnataka, Keraa and Tami nadu, showed that between the period , about 40% of the origina vegetation cover was ost or converted to another form of and use (Menon and Bawa 1997). It is estimated that not more than about 7% of the area of the Western Ghats is presenty under primary vegetation cover, though a much arger area is under secondary or some form of tree cover. Neary 15% of the Ghats is aso under the Protected Area system. The importance of the Western Ghats in terms of its biodiversity can be seen from the known inventory of its pant and anima groups, and the eves of endemism in these taxa (Gunawardene et a. 2007). Neary 4000 species of fowering pants (27% of the country s tota species) are known to inhabit the Ghats. Of 645 species of evergreen trees (>10 cm dbh), about 56% is endemic to the Ghats. Among the ower pant groups, the diversity of bryophytes is impressive, with species; of these, 682 species are mosses, with 28% endemics, and 280 species are iverworts, with 43% endemics. 17

32 THE ECONOMICs of ecosystems and biodiversity india initiative The Western Ghats aso form the major watershed in India, and as many as 58 major Indian rivers originate from it. Forty seven of these rivers fow towards the west, eight rivers fow eastward and three rivers fows outwards. The Godavari, the Krishna, the Cauvery, the Kai, the Bedthi, the Tadri and the Sharavati are major rivers in the region (Tewari, 1995). The Ghats is an important source of water for the entire Peninsuar India, as it receives between 2,000 and 8,000 mm of rainfa annuay within a short monsoon period and performs important hydroogica and watershed functions. Approximatey 245 miion peope ive in the peninsuar Indian states that receive most of their water suppy from rivers originating in the Western Ghats. The great range of the Western Ghats infuences the cimate of India, particuary the rainfa pattern. Figure 4 presents the varied eves of bioogica richness whie Figure 5 presents the extent of fragmentation in the Western Ghats. As can be seen from Figures 4 and 5, the extent of highest fragmentation argey coincides with regions of high biodiversity richness, indicating pressure on resources, with impications for conservation as we as sustained fow of biodiversity and ecosystem services to communities residing in and around these s Biodiversity and Ecosystem Services Assessment and Methods The importance of s as a natura resource has been recognized by the Government of India and therefore arge emphasis is aid on the conservation, restoration and deveopment of s. The sector can pay a critica roe in equitabe and incusive growth, aong with protecting natura heritage and ensuring sustainabe deveopment (11th Five-Year Pan, MoEF Working Group Report). Forest deveopment provides an opportunity to optimize broad-based deveopment and poverty reduction of -dependent communities, as we as heps address goba concerns of cimate change and the conservation of bioogica diversity. Aong with poicy, egisative and administrative reforms, avaiabiity of adequate resources for deveopment of s and -dependent communities shoud contribute towards reaizing the new vision based on faster, more broad-based and incusive growth, which woud satisfy needs and aspirations of a sections of the society (11th Five-Year Pan, MoEF Working Group Report). The s of the Western Ghats are rich in biodiversity and there have been descriptive studies deaing with the quaitative aspects of the s of Figure 4: Leves of bioogica richness in the Western Ghats Figure 5: Leves of fragmentation in the Western Ghats 18

33 Vauation of ecosystem services and biodiversity in the Western Ghats the Western Ghats (Champion and Seth 1968, Rai and Proctor1986, Pasca and Peisier 1996), but very few studies have attempted quantitative assessment of the status and dynamics of the region (Rai 1983, Bhat et a., 2000a, Pomeroy et a., 2003). The biodiversity rich s of the Western Ghats are subjected to degradation and oss, despite severa progressive conservation and deveopmenta poicies and programs. The main hypothesis of this study is that proper economic vauation of biodiversity and ecosystem services and awareness of these vaues wi contribute to the conservation and sustainabe use of s. The first step towards the vauation of biodiversity and ecosystem services from s is its recognition, which has been documented by various institutions and individua researchers over the decades. The next step is demonstration of the vaue of biodiversity and ecosystem services, which is dependent on the type, the status of the, the current eve of dependence on the s and other cimatic and noncimatic factors. To arrive at a vaue for a resource, it is imperative to quantify the benefits (bio-physica vauation) that accrue from a resource both use and non-use vaues, and/or both tangibe and intangibe benefits. The first part of the study aims at bio-physica quantification of the provisiona and carbon reguatory services as we as the biodiversity status in 1-ha ongterm monitoring pots estabished during by the Centre for Sustainabe Technoogies, Indian Institute of Science in Uttara Kannada district of Karnataka, part of the Western Ghats. The unique feature of this study is that a the provisiona services and carbon reguatory service vauation is based on primary studies and ocation-specific data. The study invoves ecoogica assessments of evergreen, moist deciduous and dry deciduous types Study Area In the Western Ghats region, the Uttara Kannada district in Karnataka is seected for the case study, since s dominate the geographic area of the district, accounting for 76.3% of the tota geographic area. The Western Ghats, which run parae to the west coast, passes through this district and divides it into two distinct zones a wide upand country aong the Ghats, at an eevation of 675 m above sea eve, and a narrow coasta strip. Further, Uttara Kannada was seected because of the avaiabiity of past data for understanding and estabishing trends in the status of s and fow of ecosystem services. Uttara Kannada district, ies between to N at., 74 9 to E ong. A detaied description of the physica environment of Uttara Kannada district is avaiabe in Bhat et a. (2000b). This district is richy endowed with s and receives an average annua rainfa of 3,500 mm near the coast to more than 5000 mm aong the ridge of the his, mainy from the southwest monsoon, concentrated during the months of June to September. The vegetation of the district is of the evergreen/ semi-evergreen type aong the sopes; towards the east of the ridge, it is moist deciduous (Pasca 1982, 1984, 1988). The tota geographic area of the district is 1,029,100 ha, of which s account for 781,900 ha, according to the State of Forest Report 2013, which is about 76% of the tota geographic area of the district. Champion and Seth (1968) have cassified the on the western sope as tropica evergreen and incuded the of the eastern zone in the category of south Indian moist deciduous type. Based on rainfa and vegetation types, the district can be broady divided into evergreen/semi-evergreen and drier secondary/ moist deciduous zones. The district receives an average annua rainfa of 2,742 mm mainy from the southwest monsoons and it is concentrated during the months of June to September. The district has been divided into five divisions to faciitate proper management of s by the department and the area under the different types in the five divisions of the district is given in Tabe 4. The main hypothesis of this study is that proper economic vauation of biodiversity and ecosystem services and awareness of these vaues wi contribute to the conservation and sustainabe use of s 19

34 THE ECONOMICs of ecosystems and biodiversity india initiative Methodoogy In this section, we discuss the types seected for estabishing the status of biodiversity, the ecosystem services quantified, the samping strategy and the methods of ecoogica assessment Assessment Of Biodiversity Assessment of biodiversity was carried out in seected types of Uttara Kannada district, across a rainfa gradient. The pots seected are the ong-term monitoring pots estabished in evergreen, semievergreen, moist and dry deciduous types by the Indian Institute of Science during n Seections of pots: In a, 9 pots 3 of each type, 1 ha each estabished during 2009, were revisited for enumeration. Evergreen pots were seected in three ocations, namey Ekkambi, Tattikai and Hosur. Moist deciduous pots at Hudeakoppa, Panchavati and Tograi were incuded, and dry deciduous pots of Magiand Adikehosur were incuded for the assessment (Tabe 5). n Pot size and shape: The pots are square in shape and 100 X 100 m in dimension (Figure 6). Each pot has been sub-divided into sub-pots of 20 X 20 m, for ease of measurement, and the corners of the pot as we as every 20th metre of the pot has a stone panted on the ground as physica marking. n Approach: The nested pot approach adopted for the study and the pot ayout for enumeration of trees, shrubs and herbs is given in Figure 7. The size of the pot for trees, shrubs and herbs is given in Tabe 6. n Trees: Within this 1 ha, a individuas 10 cm in girth or 1.5 m in height were cassified as trees and enumerated, aong with the unique identification Tabe 4: Percentage area under different types across divisions of Uttara Kannada district number aocated to the individua tree during previous enumerations by use of meta tags on the stem of the trees. Parameters recorded incude: name of the individua tree, GBH (Girth at Breast Height) of the tree 130 cm above ground height of the tree, and remarks on unique features observed on the tree, such as cuts, termite attacks, signs of fire incidence, or presence of a cimber, iana, or other orchids and ferns. n Shrubs: For measurement of shrubs, metre square pots were aid in a diagona pattern across the five strips of tree pots within the 1 hectare pot. The n Tropica Evergreen: This type is a narrow bet stretching aong the Western Ghats and distributed in the high rainfa areas of centra and western parts of the district. This type generay occurs between eevations m and above (Arora, 1963). n Semi-evergreen: This occurs towards the ower sopes, foot his and aong interior coasta pains. However, there is no cear-cut zonation between the evergreen and semi-evergreen. Degrees of biotic interference and state of soi seem to be the distinguishing factors. Thus, in this study, semi-evergreen type is merged with evergreen type. n Moist Deciduous: This type is yet again a resut of biotic interference and soi type and it repaces the semi-evergreen type graduay over the pateau. n Dry Deciduous or Scrub: This type is found in cimaticay and topographicay homogeneous areas, the reason being biotic disturbance. It forms a sma percentage of the ower foot of the eastern sopes, with ow rainfa. Forest division Area under different types (%) Evergreen Semievergreen Source: Karnataka Forest Department Moist deciduous Dry deciduous Haiya Yeapur Karwar Honnavar Sirsi Tabe 5: Forest types and study ocations (viages) of assessment of biodiversity and ecosystem services Evergreen type Moist deciduous type Dry deciduous type Ekkambi Hudeakoppa Magi Hosur Panchavati Adikehosur Tattikai Tograi Chibbageri* * Chibbageri pot has been converted to a pantation during the recent years and therefore not incuded in vegetation anaysis. But community dependence on s was assessed in a the 9 viages during

35 Vauation of ecosystem services and biodiversity in the Western Ghats girth measurements were taken at breast height using a pair of caibrated Vernier caipers. A individuas 10 cm in girth and height of 1.5 m were cassified as shrubs and measured. The diameter or DBH (Diameter at Breast Height) and height of the shrub aong with the name of the species were recorded. n Herbs: Herb pots of 1 1 meter were aid at the two corners of each shrub pot and a individuas with height 1.5 cm were enumerated for their numbers according to species Assessment of Ecosystem Services The Miennium Ecosystem Assessment (MA, 2005) considers humans as an integra component of the natura ecosystem unike cassica approaches, which differentiate humans as non-natura. The approach aso addresses the sustainabiity of resources and iveihoods by considering human webeing a parae theme to the functioning of the natura ecosystem. Figure 8 outines ecosystem services from ecosystems: provisioning, reguating, cutura and supporting services Ecosystem Services Studied Foowing the Miennium Assessment Framework, the ecosystem services quantified in the current study incude provisiona services such as timber, fuewood, food, fodder, medicine and fibre, or broady, timber and Non-Timber Forest Products (NTFPs), incuding fuewood and fodder. The carbon reguatory services were quantified considering aboveground biomass, beowground biomass and soi organic carbon (Tabe 7). The seection of ecosystem services for the study was imited by the avaiabe time and resources. Provisiona Services Provisiona services ike timber and fuewood coection are under the reguation of the department and are coected and sod as we as used by oca communities. The approach adopted for quantification of provisiona services in the pots was firsty through inventory of different tree species and their characteristics Figure 6: Monitoring pot ayout 5-V 5-IV 5-III 5-II 5-I 4-V 4-IV 4-III 4-II 4-I 3-V 3-IV 3-III 3-II 3-I 100 m 2-V 2-IV 2-III 2-II present in the pots and secondy through coection of secondary data on the end use of different species be it timber, fuewood or NTFPs from iterature and oca knowedge. Assessment of Carbon Reguatory Services The carbon poos incuded in this assessment as eaborated earier are aboveground biomass, beowground biomass and soi organic carbon. Carbon Poos In a ecosystem there are five carbon poos, namey: aboveground biomass, beowground biomass, dead wood, itter and soi carbon. Ideay, a five have to be estimated. However, due to imitations of time, the current study cacuates aboveground biomass based on measurements and estimates beowground biomass using a defaut. Soi organic carbon is measured and quantified. These are the dominant carbon poos. Above Ground Biomass Among the methods for estimating aboveground biomass, the most commony used method is the pot 2-I 1-V 1-IV 1-III 1-II 1-I 100 m Tabe 6: Detais of samping for enumeration of trees, shrubs, herbs and soi Pant form Tree Shrub Herb Soi Size of the pot 100 X 100 m 10 X 10 m 1 X 1 m 30 cm depth Tabe 7: Ecosystem services assessed in this study Provisioning Services Reguating Services Supporting Recreationa Food, Fodder, Fuewood, Fibre, Timber, Manure, Medicine Cimate reguation - Biomass and Soi Carbon Biodiversity Eco-tourism 21

36 THE ECONOMICs of ecosystems and biodiversity india initiative Figure 7: Nested pot ayout 10 m Shrub pot < 5 cm GBH > 1.5m height 1 m Herb Pot < 1.5 m height 20 m 10 m 1 m Tree pot > 5 cm 130 cm 20 m Figure 8: Ecosystem services and benefits obtained (MA, 2005) Provisioning Services Products obtained from ecosystems Food Fresh water Fuewood Fibre Biochemicas Genetic resources Reguating Services Benefits obtained from reguation of ecosystem processes Cimate reguation Disease reguation Water reguation Water purification Poination Cutura Services Non-materia benefits obtained from ecosystems Spiritua and reigious Recreation and ecotourism Aesthetic Inspirationa Educationa Sense of pace Cutura heritage Supporting Services Services necessary for the production of a other ecosystem services Soi formation Nutrient cycing Primary production method. Aboveground biomass was estimated using height and DBH data of trees by cacuating the basa area (m 2 /ha -1 ) and converting it to biomass foowing Murai et a. (2005), since species-specific aometric equations are not avaiabe for the majority of species found in the study region. Biomass (in umes) = x (Basa area) Beowground Biomass Beowground biomass is estimated based on estimates of aboveground biomass stocks and the use of a defaut conversion factor of 0.26 (IPCC 2003). Biomass is aso an indicator of the productivity of a patch. Aboveground biomass x 0.26 (IPCC Defaut Factor) = Beowground biomass Soi Carbon Soi sampes were coected at a depth of 30 cm from the surface within the monitoring pots in different types. The steps invoved in estimation of soi organic carbon incude: n Coection of the soi sampes at a depth of 30 cm from the corners of 10 X 10 m pots aid for shrub enumeration n Mixing of soi sampes coected in repicates to obtain a composite sampe 22

37 Vauation of ecosystem services and biodiversity in the Western Ghats n Estimation of buk density n Estimation of organic matter or carbon content present in the soi sampe using Wakey and Back method in the aboratory n Cacuation of carbon stock in tonnes of carbon/ hectare using organic matter content, buk density and depth of soi. The mutipe soi sampes coected were combined to give a composite sampe. This sampe was anaysed for soi organic carbon density in the aboratory using the Wakey Back method Bio-Physica Estimates of Biodiversity, Provisiona and Reguating Services Biodiversity, meaning variety of ife, is an intrinsic vaue that is worth protecting, regardess of its vaue to humans. Biodiversity performs a number of ecoogica services for humankind that have economic, aesthetic and recreationa vaue. Both points of view (intrinsic and anthropocentric) need not be contradictory, as they are compementary Biodiversity refers to the number, abundance, and composition of the genotypes, popuations, species, functiona types, communities, and andscape units in a given system. Biodiversity is both a response variabe that is affected by changes in cimate, resource avaiabiity, and disturbance, as we as a factor, with a potentia to infuence the rate, magnitude, and direction of ecosystem processes. This chapter focuses on this second aspect the effects of biodiversity on ecosystem processes and the ecosystem services that humans obtain from them. Ecosystem services are broady defined as the benefits provided by ecosystems to humans; they contribute to making human ife both possibe and worth iving (Daiy 1997; MA 2003). Biodiversity affects numerous ecosystem services, both indirecty and directy. Some ecosystem processes confer direct benefits on humanity, but many of them confer benefits primariy via indirect interactions Indicators of Biodiversity In this section, firsty, pot characteristics incuding species richness, abundance, size cass distribution, basa area and biomass are estimated and presented. Secondy, the provisiona services fowing from the different species and the carbon reguatory services both biomass and soi are presented Species Richness Species richness is the number of different species represented in an ecoogica community, andscape or region (Cowe Robert, 2009). Tabe 8 presents the number of species and the number of individuas representing each of the species in the study ocations across evergreen, moist and dry deciduous types. Evergreen type: The number of tree species in evergreen pots varied between 54 in Ekkambi to 79 species in Tattikai and on an average these evergreen pots had 1978 individuas. In the same pots, the number of shrub species in the tota samped area of 1000 sq. m (10 X 10 m pots, 10 in number) ranged between 23 to 32, averaging around 27 species. Enumeration of herbs in 10 repicates of 1 X 1 sq. m pots within the shrub pots nested in the tree pots indicate a herb density species richness of 24 to 31. Moist deciduous type:among the moist deciduous pots, the number of species was highest in Tograi (75), foowed by Panchavati (61) and Hudeakoppa (55). The shrub species richness varied between 17 to 28 and the herb species richness 25 to 30 in the same pots. Dry deciduous type: Among the two dry deciduous pots Magi pot had twice the number of tree species as compared to Adikehosur. However the number of shrubs was higher in Adikehosur. The herb species richness was 17 and 21 in Adikehosur and Magi, respectivey Species Diversity Ecoogists define species diversity on the basis of two factors: (i) the number of species in the community which ecoogists usuay ca species richness and (ii) Tabe 8: Species richness and number of individuas per hectare in different type ocations Forest type/ Number of species (No. of individuas) Location Trees Shrubs Herbs Evergreen Ekkambi 54 (1610) 32 (405) 31 (107) Hosur 61 (1389) 23 (116) 25 (85) Tattikai 79 (2196) 25 (184) 24 (99) Moist Deciduous Hudeakoppa 55 (1622) 18 (75) 25 (87) Panchavati 61 (1461) 17 (48) 30 (102) Tograi 75 (1358) 23 (120) 26 (96) Dry Deciduous Magi 32 (483) 13 (33) 21 (73) Adikehosur 16 (490) 28 (367) 17 (46) 23

38 THE ECONOMICs of ecosystems and biodiversity india initiative the reative abundance of species, or species evenness. In this study, the species diversity was cacuated using the Shannon Weiner Index for species diversity. The equation for Shannon Wiener diversity index is: H = π n π where pi is the proportion of individuas found in species I; pi = ni/n, where ni is the number of individuas in species i and N is the tota number of individuas in the community. Tabe 9 presents the diversity index of trees, shrubs and herbs across the various pots of the three types. Among the tree pots, highest diversity was recorded in the Tograi moist deciduous pot whie owest diversity was recorded in the Adikehosur dry deciduous pot. In the shrub pots, the diversity recorded was higher than 2 in a the pots except Magi wherein the diversity index was as high as In the herb pots, the diversity index ranged from 3.08 in Panchavati a moist deciduous pot to 2.46 in Adikehosur dry deciduous pot. On an average, the diversity index of trees in the evergreen type was 3.02, foowed by the moist deciduous pots with a Shannon Weiner diversity index of 2.98, and then the dry deciduous pots with The shrub diversity was highest in the dry deciduous pots (3.46) foowed by the moist and then the dry deciduous pots. The herb diversity was however highest in the moist deciduous pots, foowed by the evergreen and then the dry deciduous pots Species Dominance Species dominance is traditionay expressed as a ratio of Tabe 9: Shannon Weiner diversity index of trees, shrubs and herbs in the study ocations across types in the Western Ghats Forest type Location Trees Shrubs Herbs Evergreen Ekkambi Hosur Tattikai Moist Hudeakoppa Deciduous Panchavati Tograi Dry Magi Deciduous Adikehosur the number of individuas beonging to a species, to the tota number of individuas in a bioogica community. The dominant species across the different pots within as we as across types differ. Tabe 10 presents a ist of top 10 species considering number of individuas representing that species in each of the pots in the three types studied. It is interesting to note that among the evergreen pots, the top ten species account for about 66 to 80% of the tota number of individuas (average 74%) whie in the moist deciduous pots, it is about 66 to 85% (average of 76%) and in the dry deciduous pots, it is greater than 90% in both the pots. Ixora brachiata dominates the Ekkambi pot, whie in Tattikai, it is Aporosa indeyana, and in Hosur, it is Memecyon umbeatum. Among the moist deciduous pots, Hudeakoppa pot is dominated by Aporosa indeyana, Panchavati by Terminaia panicuata and Tograi by Leea indica. In both the dry deciduous pots, Terminaia panicuata dominates foowed by Tectona grandis. It is aso important to note that some of the species recorded in the pots are endemic to the region and they incude species such as Hoigarna grahamii and Hoigarna arnotiana. Aso, it shoud be noted that the properties of species are more important than species number in infuencing cimate reguation. Cimate reguation is infuenced by species properties via effects on sequestration of carbon, fire regime, as we as water and energy exchange Size cass (Dbh) Distribution of Individuas Distributing individuas in a study area across diameter (DBH) casses gives an indication of the structure of the popuation as we as the status of regeneration. In a the pots across a ocations and a types, the number of individuas was highest in the owermost DBH cass of 0-10 cm with the number in the other diameter casses much ower (Figure 9). This kind of distribution indicates significant regeneration of species. It is interesting to note that this trend is observed across sites and types, despite human dependence on these s for various purposes Basa Area of Trees Basa area is an indicator of growing stock and biomass production. The basa area of the different pots in the evergreen, moist and dry deciduous types is presented in Figure 10. As can be seen, the basa area of the evergreen pots are comparativey higher than that of moist deciduous and the dry deciduous pots, in that order. The average basa area recorded is higher 24

39 Vauation of ecosystem services and biodiversity in the Western Ghats for evergreen pots (39.5 m 2 /ha) foowed cosey by the moist deciduous pots (35.9 m 2 /ha). The average basa area of the dry deciduous pots is owest, at 26.9 m2/ha. Lower basa area resuts from indiscriminate ogging, ower amounts of precipitation, varying species composition, age of the trees, disturbance and succession stage of the stand. Differences in basa area are mainy reated to both the density of individuas and their size. It is evident from the information presented in this section that the s of Uttara Kannada district of the Western Ghats are rich in pant biodiversity and have accumuated substantia basa area over the years, an indication of pant growth and biomass avaiabiity both timber and fuewood to oca communities. The observed pant diversity and biomass accumuation despite community dependence on these s is an indication of community awareness of the importance of maintaining diversity, regeneration and heath of these s. Tabe 10: Top ten dominant species in the study pots across different types Evergreen type Ekkambi Tattikai Species No Species No Ixora brachiata 311 Aporosa indeyana 600 Aporosa indeyana 241 Oea dioica 346 Terminaia panicuata 186 Psychotria dazei 295 Murraya koenigii 98 Facourtia montana 131 Caycopteris foribunda 87 Terminaia tomentosa 108 Randia spinosa 74 Hoigarna arnotiana 102 Oea dioica 73 Psychotria favida 100 Casaeria tomentosa 70 Sympocos beddomei 95 Hoigarna grahmii 46 Sympocos spp 89 Aophyus cobbe 39 Knema attenuata 68 Others 385 Others 1001 Tota 1610 Tota 2935 Moist deciduous type Hudeakoppa Panchavati Species No Species No Aporosa indeyana 289 Terminaia panicuata 198 Murraya koenigii 265 Caycopteris foribunda 193 Randia spinosa 192 Randia spinosa 167 Caycopteris foribunda 158 Aophyus cobbe 156 Aophyus cobbe 130 Grewia tiaefoia 99 Randia uiginosa 121 Murraya koenigii 95 Terminaia panicuata 117 Maotus phiippinenis 87 Grewia tiaefoia 43 Lagerstroemia anceoata 42 Aseodaphne semecarpifoia 32 Randia uiginosa 41 Ervatamia heyneana 28 Ziziphus rugosa 39 Others 247 Others 344 Tota 1622 Tota 1461 Contd... 25

40 THE ECONOMICs of ecosystems and biodiversity india initiative Dry deciduous pot Magi Adikehosur Species No Species No Terminaia panicuata 146 Terminaia panicuata 373 Tectona grandis 97 Tectona grandis 63 Caycopteris foribunda 75 Terminaia tomentosa 13 Lagerstroemia anceoata 65 Randia uiginosa 9 Xyia xyocarpa 21 Anogeissus atifoia 8 Carea arborea 18 Diospyros montana 7 Largerstroemia parvifora 11 Cassia fistua 3 Adina codifoia 10 Xyia xyocarpa 3 Ervatamia heyneana 5 Adina cordifoia 2 Anogeissus atifoia 4 Lagerstroemia anceoata 2 Others 31 Others 7 Tota 483 Tota Quantification of Ecosystem Services From the Samped Area Ecosystem goods and services represent the benefits human popuations derive, directy or indirecty, from ecosystem functions (Costanza et a. 1997). Some ecosystem services are we known, such as those which are essentia for ife (e.g. food, cean air and water) or those which improve our quaity of ife (e.g. recreation and aesthetics). Other services are often taken for granted, such as natura processes (e.g. poination and food reguation). In this section we discuss some of the direct ecosystem services that fow from s to dependent communities. As presented earier, the services estimated incude provisiona and carbon reguating services from ecosystems. In this section, the various provisiona services from ecosystems, foowed by the reguating service of cimate mitigation through carbon sequestration are discussed. Provisioning services encompass a diversity of products that are extracted and utiized by the oca communities for sef-consumption as we as commercia purposes in oca, regiona or nationa markets Provisioning Services These are products directy obtained from ecosystems and incude the foowing: Food and fibre: This incudes the vast range of food products derived from pants, animas, and microbes, as we as materias such as wood, bamboo, honey, gum, and many other products derived from ecosystems. Fue: Wood, eaves, and other bioogica materias serve as sources of energy. Genetic resources: This incudes the genes and genetic information used for anima and pant breeding and biotechnoogy. Biochemicas, natura medicines, and pharmaceuticas: Many medicines, biocides, food additives such as aginates, and bioogica materias are derived from ecosystems. Ornamenta resources: Fowers and eaves are used as ornaments, athough the vaue of these resources is often cuturay determined. The present study has generated an evidence base reevant for understanding the significance of many provisiona services provided by evergreen, moist and dry deciduous types in Uttara Kannada district of the Western Ghats. The various species recorded in the different pots of the different types provide mutipe benefits. The primary and secondary use for each of the species recorded in the various pots was compied from oca communities and iterature. These were previous studies and pant databases provided by different sources and argey restricted to the Western Ghats region. Food Many pant parts such as fruits, seeds, fowers and eaves are consumed by oca communities. There is a growing awareness of the contribution of NTFPs to househod economies, food security, nationa economies and conservation of biodiversity. NTFPs provide food, 26

41 Vauation of ecosystem services and biodiversity in the Western Ghats Figure 9: Forest type wise and ocation wise size cass (DBH) distribution of individuas in the study pots of the Western Ghats Evergreen type Moist deciduous type Ekkambi Hosur Tattikai Hudeakoppa Panchavati Tograi 0-10 cm cm cm cm cm 0-10 cm cm cm cm No. of individuas cm cm cm cm cm cm cm >50 cm No. of individuas cm cm >50 cm DBH (cm) DBH (cm) Dry deciduous type Dry deciduous type No. of individuas Magi Adikehosur Evergreen Moist deciduous Dry deciduous 0-10 cm cm cm cm cm cm cm cm cm >50 cm 0-10 cm cm cm cm cm cm cm cm No. of individuas cm >50 cm DBH (cm) DBH (cm) fuewood, medicines, fibre and cash income to rura househods (Okafor et a., 1994). In the deveoping countries, 80% of the peope use products for food and persona care (Anon, 2000). In the study area aso, severa tree species are extracted and used as food or food substitutes. The tota number of tree species yieding food products across the three types is given in Tabe 10, and Tabe 11 provides ocation-wise number of species that have potentia use as food across types. It can be seen from Tabe 11 that about 40 different tree species are used as food in the evergreen type, whie in the moist and dry deciduous types, 32 and 8 different tree species are used as food, respectivey. It is between 14 and 34 tree species across different evergreen types (Tabe 12). Simiary, in the moist deciduous type, it varies between 17 and 22 tree species and in the dry deciduous type, it is anywhere between 2 to 17 tree species. Some of the dominant species that are specificay used in this region as food and food substitutes or favouring agents are Murraya koenigii, Garcinia indica, Garcinia cambogea, Artocarpus akoocha, Carissa carandas, Artocarpus integrifoia, Eugenia jamboana, Facourtia montana, Ziziphus rugosa, etc. The number of tree species that are food yieding 27

42 THE ECONOMICs of ecosystems and biodiversity india initiative Basa Area (m2/ha) is given in Tabe 11. It can be seen that the number of tree species yieding food is higher in evergreen and moist deciduous types, with more than 14 tree species. The dry deciduous s seem to have fewer number of food yieding tree species. Figure 10: Basa area of trees in study pots of different types of the Western Ghats Ekkambi Hosur Tattikai Hudeakoppa Panchavati Tograi Evergreen Moist Deciduous Dry deciduous Magi Adikehosur Timber Forest is the prime source of timber. This incudes wood for making furniture, agricutura impements, fencing poes, and panks for roofs. Whie green feing is reguated in India foowing the Supreme Court order, timber continues to be one of the most readiy marketabe benefits from s. Athough after the Nationa Forest Poicy of 1988, s in India are not specificay managed with the goa of timber production, it is important to recognize that the economic vaue of timber production from s of India is significant (Verma, 2013). Hence it is important to quantify the timber yied in the seected pots of the three types studied. The number of timber yieding species is isted in Tabes 11 and 12. In a, about 27 species are used for timber purposes (11-24 species across ocations) both structura and fencing poes in the evergreen type. Simiary in the moist deciduous type, about 21 species (10-17 species) and in the dry deciduous type about 9 species (6-8 species) are used as timber. The important timber species in the different pots incuded Tectona grandis, Terminaia panicuata, Dabergia spp., Cordia spp., etc. The quantity of timber in the different pots Tabe 11: Number of species providing provisiona ecosystem services in the three types of Uttara Kannada district of the Western Ghats Forest type Food Timber Fuewood Fodder Medicina Fibre Other uses Evergreen 40 (14-34) 27 (11-24) 5 (3-5) 6 (3-5) 91 (38-77) 1 13 (7-25) Moist deciduous 32 (17-22) 21(10-17) 4 (2-3) 5 (2-5) 84 (45-57) 1 32 (13-22) Dry deciduous 8 (2-17) 9 (6-8) 1 5 (3-4) 30 (11-25) 1 10 (2-9) Vaues in parenthesis indicate the range of tree species and the vaue outside the parenthesis is a count of unique species across the three representative pots in each type. Tabe 12: Number of species providing provisiona services in the study pots according to different types in the Western Ghats Evergreen Moist deciduous Dry deciduous Ekkambi Hosur Tattikai Tograi Hudeakoppa Panchavati Magi Adikehosur Food Timber Fodder Fibre Medicina Other uses Fuewood Faen branches and twigs from a tree species in the s are used as fuewood 28

43 Vauation of ecosystem services and biodiversity in the Western Ghats is substantia and the same is presented in Tabe 13. Quantity of timber that is potentiay avaiabe in the different ocations across the three s was computed by considering ony trees with girth >50 cm. It can be seen from Tabe 12 that the quantity of timber avaiabe ranges from 155 t/ha in Tattikai to 166 t/ha in Ekkambi among the evergreen type ocations. In the moist deciduous pots, Hudeakoppa has recorded the highest timber quantity of 217 t/ha, foowed by Tograi with 191 t/ha and Panchavati with 144 t/ha. In the two dry deciduous pots of Adikehosur and Magi, the recorded quantity of timber is 120 t/ ha and 208 t/ha, respectivey. Among the three types, highest amount of timber is recorded in the moist deciduous s (217 t/ha), foowed by dry deciduous (208 t/ha) and evergreen s (166 t/ha). Fuewood Fuewood is the main source of energy to the rura popuation in India for cooking, aong with other househod and non-agricutura uses. NSSO 54 th Round data reveaed that more than haf of the fuewood requirement of the country is met from s. Loca communities gather fuewood irrespective of the species athough there are preferences for some over others. Loca peope coect faen wood/dry tree branches from the s for cooking food and heating purposes. It is the most important product in the Western Ghats region, as wood is used for processing areca, cardamom, cashew and other agricutura Tabe 13: Quantity of structura timber and poes avaiabe for extraction in the three types of Uttara Kannada district of the Western Ghats Forest type Location Quantity of timber (t/ha) Evergreen Moist Deciduous Dry deciduous Ekkambi 166 Hosur 165 Tattikai 155 Hudeakoppa 217 Panchavati 144 Tograi 191 Magi 208 Adikehosur 120 Average quantity of timber (t/ha) products, incuding rice. The study showed that twigs and branches of a tree species are used as fuewood. Loca communities do not and cannot distinguish the species from which twigs and branches have faen, especiay when they are dry. The quantity of wood avaiabe as fuewood was computed considering the tota biomass stock of trees in the various pots excuding the quantity estimated as timber (Tabe 13). Fuewood quantities avaiabe in the various study pots in the three types of the Western Ghats are presented in Tabe 14. The quantity of fuewood avaiabe for extraction in the evergreen type ocations ranges from 134 t/ha to 164 t/ha, whie in the moist deciduous ocations it is 91 t/ha to 116 t/ha, and in the dry deciduous ocations it is 80 t/ha and 85 t/ha. The average quantity of fuewood avaiabe for extraction is highest in the evergreen type (146 t/ha), foowed by moist deciduous (101 t/ha) and then the dry deciduous type (83 t/ha). Fodder Tree eaves and ground herbage (grass) are coected from the s to feed the ivestock as we as spread it on the foor of catte sheds. In a, there were 6 tree species used for fodder purposes in the evergreen type, whie in the moist and dry deciduous types, the number of tree species used for the same purpose was 5. Fodder yieding tree species in the study pots incuded Gmeina arborea, Grewia tiifoia, Lagerstromia parvifoia, Scheichera trijuga, Dienia pentagyna, etc. Here again, athough Tabe 14: Quantity of fuewood avaiabe for extraction in the study ocations of the three types of the Western Ghats Forest type Location Quantity of fuewood (t/ ha) Evergreen Moist deciduous Dry deciduous Ekkambi 134 Hosur 164 Tattikai 140 Hudeakoppa 97 Panchavati 91 Tograi 116 Magi 85 Adikehosur 80 Average quantity of fuewood (t/ ha)

44 THE ECONOMICs of ecosystems and biodiversity india initiative the above mentioned tree species are distincty documented to be fodder species, oca communities use ops and tops of many tree species. Medicina purposes Approximatey 1500 species of vascuar pants are used for medicina proposes by triba and ethnic groups in India (Handa 1998). Preservation of traditiona pant knowedge as a part of the goba heritage has been championed by severa authors (Lambert et a. 1997, Ayyanar and Ignacimuthu 2005) as we as recognized by the CBD (1992). In the deveoping word, traditiona medicina uses of pants are often the ony or primary heathcare avaiabe to peope, and thus are of extreme importance in some ocations (Ghosh 2003). The number of species used for medicina purposes in the study region range between 91 in evergreen type to 30 in dry deciduous type (Tabe 10). Tabe 10 ceary indicates that the s of the Western Ghats are home to severa species that are used for medicina purposes. Some exampes of species used for medicina purposes incude Actinodaphne hookeri, Gycosmis pentaphya, Knema attenuata, Mappia foetida, Myristica beddomei, Cinnamomum zeyanicum, Embica officinais, Terminaia beerica, etc. Manure The important manure yieding species in the pots studied incude Careya arborea, Caycopteris foribunda, Terminaia beerica, Terminaia chebua, Aporosa indeyana, Macaranga petata, Ixora brachiata and Grewia tiifoia. Fibre and other uses Species producing fibre incude Grewia tiifoia, Ceiba pentandra and Hoigarna arnotiana. The number of species yieding fibre in the study pots is ni or one. Species are aso used for various other purposes that incude extraction of dyes, essentia ois, as arvicide, insecticide, ornamenta purposes, food pant for arvae, as we as in sericuture and as fish poison. The extract of Eugenia spp. is used for termite resistance, the fruit extract of Gmeina arborea is used as a poishing fuid, and Sapindus spp., aso known as soapnut tree, is commerciay used for preparation of soaps and other cosmetic products. It is very cear from the discussion on provisiona services that the s of Uttara Kannada district of the Western Ghats pay a key roe in the oca iveihood and economy. Provisiona services provide a strong reason for conservation and sustainabe management of ecosystems to ensure sustained fow of products and services Reguating Services These are the benefits obtained from the reguation of ecosystem processes, incuding air quaity maintenance, cimate reguation, water reguation, erosion contro, water purification and waste treatment, reguation of human diseases, bioogica contro, poination and storm protection. The reguating services are very critica. However, due to imitations of time and resources, the key water and soi reated ecosystem services coud not be estimated. The cimate reguation service was assessed in the form of carbon sink estimates. Carbon Stock In Forests Carbon reguating service is an important service from ecosystems. Forests provide severa goods and services that are crucia to human surviva. Forests constitute one of the word s major carbon sinks, containing about 80% of above-ground terrestria biospheric carbon and 40% of terrestria beowground carbon. Forests pay an important roe in the goba carbon cyce. According to a new report based on empirica evidence from across the country, the net increment in carbon stock of s in India was approximatey 217 miion tonnes between 1994 and In terms of absoute estimates, the carbon stock of s in India was approximatey 6,289 miion tonnes The s of Uttara Kannada district of the Western Ghats pay a key roe in the oca iveihood and economy. Provisiona services provide a strong reason for conservation and sustainabe management of ecosystems to ensure sustained fow of products and services 30

45 Vauation of ecosystem services and biodiversity in the Western Ghats of carbon in 2004 (MoEF, 2012). Beow we discuss the carbon reguating services Biomass Carbon and Soi Carbon fow from the s of Uttara Kannada district of the Western Ghats. Biomass Carbon Stock In the pots of Uttara Kannada district of the Western Ghats, carbon stocks of above ground biomass was estimated using a biomass equation that incorporates basa area of tree species. Using the defaut IPCC root: shoot ratio of 0.26, the beowground or root biomass was estimated and added to the aboveground biomass to obtain tota biomass. Carbon vaue of biomass was cacuated using the IPCC defaut factor of The carbon reguatory services, estimated for the three distinct types (Tabe 15a) showed that the biomass carbon (above ground + beow ground) in dry deciduous type (140 t/ha) was owest when compared to moist deciduous (162 t/ha) and evergreen types (175 t/ha). Within the evergreen type, the carbon in biomass ranged from 167 t/ha in Tattikai to a high of 187 t/ha in Hosur. In the moist deciduous pots, the range was arge, with a high of 178 t/ha recorded in Hudeakoppa to a ow of 133 t/ha recorded in Panchavati. Among the two dry deciduous pots, there was a marked difference in carbon stocking, with Magi recording 166 t/ha and Adikehosur having ony 113 t/ha. Soi Organic Carbon Stock Forest soi organic carbon is an important component of goba carbon cyce, and the changes in its accumuation and decomposition directy affect terrestria ecosystem carbon storage and the goba carbon baance. In the present study, the status of soi organic carbon in different pots has been studied. In this study, the soi organic carbon was estimated using the Wakey Back method and the resuts are presented in Tabe 15a. The soi organic carbon in the moist deciduous pots was highest at 59±13.7 tc/ha, foowed by evergreen (54±14.9tC/ha) and the dry deciduous (42±18.6 tc/ ha) pots. The biomass estimates are within the range of vaues reported by Swamy et a. (2010) for tropica wet evergreen s of the Western Ghats. These estimates are aso within the range of vaues reported for other primary neotropica s by Brown et a. 1995, Gerwing and Farias 2000, Chave et a and Keer et a The carbon estimates of the present study (estimated using a factor of 0.45 from the reported biomass vaues) are thus within the range and comparabe to carbon in other tropica s (Tabe 15b). There are variations and these may be attributed to factors such as type, growing conditions, nonrandom samping, within-site variance, etc. (Francis, 1984; Ku et a., 1981) Cutura Services Cutura services are tighty bound to human vaues and behaviour, as we as to human institutions and patterns of socia, economic, and poitica organization. Thus perceptions of cutura services are more ikey to differ among individuas and communities than, say, perceptions of the importance of provisiona services. These are the non-materia benefits peope Tabe 15a: Biomass (above ground + beow ground) and soi carbon stock in the study ocations across types of Uttara Kannada district of the Western Ghats Forest type Location Carbon (tc/ha) Tota carbon Biomass Average Soi Average (Biomass + Soi) Evergreen Ekkambi ± Hosur Tattikai Moist Deciduous Hudeakoppa ± Panchavati Tograi Dry Deciduous Magi ± Adikehosur

46 THE ECONOMICs of ecosystems and biodiversity india initiative Forests provide a range of products and services to oca communities, the nationa economy and internationa trade. These incude timber and other products, widey referred to as Non-Timber Forest Products obtain from ecosystems through spiritua enrichment, cognitive deveopment, refection, recreation, and aesthetic experiences. Thus these services are difficut to quantify. However, there is a practice of worship of many tree species and widife in the Western Ghats. The presence of Sacred Groves in the Western Ghats is we recorded (Gadgi and Vartak, 1976; Burman, 1992 and Baasubramanyan and Induchoodan, 1996) Supporting Services Supporting services are those necessary for the production of a other ecosystem services. They differ from provisioning, reguating, and cutura services in that their impacts on peope are either indirect or occur over a very ong time, whereas changes in the other categories have reativey direct and short-term impacts on peope. Supporting services such as nutrient cycing and poination are difficut to estimate in a short-term study such as the present study Stocks and Fow of Ecosystem Services A summary of the stocks and annua fows of different ecosystem services is presented in Tabe 16. Ony biodiversity, timber, fuewood and carbon stock services are presented in Tabe 16. About 160 to 180 tonnes of timber stock is recorded for the three types studied and the fuewood stock range from 83 tonnes in dry deciduous to 146 tonnes in evergreen type Community Dependence on Forests Forests provide a range of products and services to oca communities, the nationa economy and internationa trade. These incude timber and other products, widey referred to as Non-Timber Forest Products. In the previous section, the potentia avaiabiity of some of the provisiona services was presented. Communities depend on many of the provisiona services. However, there are reguations in utiizing the products and services. For exampe, extraction of green timber is banned and extraction of some of the NTFPs is reguated. The importance of NTFPs in the economy has aways been underpayed because most of the products are argey used for subsistence. A range of NTFPs is coected and used by communities for various purposes Tabe 15b:Estimates of carbon across tropica s Forests Location Tota carbon* (tc/ha) Reference Moist disturbed open-cosed Bangadesh Drigo et a., 1988 Tropica rain s Cambodia Hozumi et a., 1979 Tropica moist dense s Cambodia FAO, 1971 Tropica moist mixed dipterocarp s Sarawak, Maaysia FAO, 1972 Tropica moist evergreen-high yied Sri Lanka FAO/UNDP, 1969 Tropica moist evergreen-medium yied Sri Lanka Tropica moist evergreen-ow yied Sri Lanka Tropica rain W. Ghats, India 206 Rai, 1984 Montane rain s New Guinea 227 Edwards et a., 1977 Tropica dry high to ow voume cosed s India 7-36 GOI, 1972 Tropica evergreen Myanmar 5-90 FAO, 1985 Tropica wet evergreen W. Ghats, India Bhat et a., 2000a Tropica evergreen and deciduous s W. Ghats, India Present Study *estimated by authors using the IPCC defaut carbon fraction of 0.45 from the reported biomass vaues 32

47 Vauation of ecosystem services and biodiversity in the Western Ghats Tabe 16: Bio-physica quantities of ecosystem services Services Stock/ fow Evergreen Moist Deciduous Dry Deciduous Biodiversity (Shannon Wiener Index) Index Manure (tonnes/ha) Fow 5-14 Timber (tonnes/ha) Stock Fuewood (tonnes/ha) Stock Carbon (tonnes of Carbon/ha) Stock Food, fodder, medicine non-timber produce (kg/househod) Fow 1261 kg - Incudes edibe fruits, medicina pants, honey, gum, structura timber, poes, fodder, etc. food, fibre, fodder, favor/fragrance, fatty ois, gums, resins, medicina herbs, reigious rituas, structura materia, househod artices, agricutura impements, etc. NTFPs are of importance to -dependent communities for subsistence and as raw materia for sae to industry. The dependence of communities and industries on s of Uttara Kannada district has been assessed by Ravindranath et a., 1997, Murthy et a., 2005 and Bhat et a., The fow of products was assessed by these studies by samping househods in viages that fa within different types, using the questionnaire method. Murthy et a. (2005) report that amost a rura househods gather products such as fuewood, medicina pants etc., for subsistence use and some househods are aso invoved in the coection of commerciay vauabe products. About 50% of the rura househods in the district gathered diverse NTFPs. A simiar study for understanding the dependence of communities on s was undertaken in a the viages cose to the ecoogica pots in evergreen, moist and dry deciduous regions during Methodoogy A preiminary survey was conducted to gather information on the geographic area of viages, occupation pattern, and and catte hodings and other socio-economic aspects of the househods. A questionnaire survey was conducted to coect information on: diversity of NTFPs extracted, the parts of the trees used, their end use as we as the season of coection, and quantity of NTFPs gathered per typica trip and quantity coected in a season. Househod survey was conducted in 9 viages spanning 457 househods during the period March to May, The seected viages and the number of househods samped in each of the viages is presented in Tabe 17. An attempt was made to cover a the househods with 100% samping, but due to unavaiabiity of some of the househods, not a househods coud be surveyed. The main occupation in these viages is agricuture. The communities depend on s for different products for their consumption and iveihoods. A these viages are ocated within proximity of 2 to 3 kms from the s in the study viages. A preiminary survey was conducted to gather basic information about the viages. Further, a questionnaire survey was conducted to coect information on the diversity of NTFPs extracted, the parts used, their end use as we as the season of coection, and quantity of NTFP gathered per typica trip and quantity coected in a season Leve of Dependence of Househods on Forests for Fuewood, Fodder and Manure Purposes A diversity of NTFPs is extracted in a the zones. Tabe 18 gives percentages of househod dependence on Tabe 17: Tota number of househods and number samped in study viages Forest type/ region Viage Tota number of househods Number of househods samped Evergreen Ekkambi Hosur Tattikai Moist Hudeakoppa deciduous Panchavati Tograi Dry Magi deciduous Adikehosur Chibbageri

48 THE ECONOMICs of ecosystems and biodiversity india initiative NTFPs coected by viage househods incude fuewood, manure, and fodder, with variabe eves of dependence and extraction for each viage and type NTFPs for fuewood, fodder and manure purposes in the three zones Fuewood The eve of dependence of communities on s for fuewood purposes is significant in a viages, across a the three zones. In the evergreen zone, it ranges from 89 to 100%, whie in the moist deciduous zone, the eve of dependence ranges from 72 to 100%. In the dry deciduous zone, community dependence on for fuewood ranges from 98 to 100% (Tabe 18) Manure Manure in the form of green and dry eaves is extracted and used for catte bedding as we as muching purposes. Farmers in a the three zones coect green and dry eaves for manure purposes. In 5 out of 9 viages, over 40% of the househods coect green eaves and in 6 out of 9 viages, over 20% (up to 75%) of farmers coect dry eaves for manure purposes (Tabe 18). Thus there is a arge dependence of househods on s for manure purposes in the Western Ghats region Fodder Coection of pant parts for fodder purposes is either in the form of green or dry eaves. In the evergreen zone, both green and dry grass is coected ony in 2 of the 3 viages (Tabe 18). The percentage of househods depending on s for green grass is about 34% and 24% in Tattikai and Ekkambi, respectivey. Simiary the eve of dependence on dry grass in the same viages is 20% and 15%. Loca communities graze their ivestock in and non- areas and harvest of green eaves from s for fodder purposes is imited Quantity of Fuewood, Fodder and Manure Extracted by Gathering Househods Tabe 19 presents the quantity of fuewood, fodder and manure extracted by househods from the s adjacent to their viages Fuewood The average quantity of fuewood gathered in a the viages is about 2 tonnes or more. Among the evergreen viages, in Hosur cose to 3 tonnes is gathered as fuewood, whie in Tattikai about 1.9 tonnes is gathered. Among the dry deciduous and moist deciduous viages aso, about the same quantity of fuewood is gathered on an average, athough there are sight variations in quantities gathered across viages and househods (Tabe 19) Manure The highest amount of green eaves is gathered in the viages of evergreen zone, about 4 tonnes on an Tabe 18: Percentage househods coecting NTFPs for fuewood, manure and fodder purposes Forest type Viage Fuewood Manure Fodder Green eaves Dry eaves Dry grass Green grass Evergreen Ekkambi 89% 3% 20% 3% 5% Hosur 100% 82% 68% - - Tattikai 100% 85% 75% 65% 35% Moist deciduous Hudeakoppa 72% 41% 44% 24% 15% Panchavati 100% 48% 29% - - Tograi 98% 74% 50% - - Dry deciduous Magi 98% 7% Adikehosur 100% 1% Chibbageri 99%

49 Vauation of ecosystem services and biodiversity in the Western Ghats average per househod. The next highest quantity of green eaves is gathered in the dry deciduous viages (2.7 tonnes/househod), foowed by the moist deciduous viages (1.7 tonnes/househod) for manure purposes (Tabe 18). The quantity of dry eaves extracted and used as manure is aso highest in the evergreen viages (2.6 tonnes/househod). The quantity of dry eaves gathered ranged between 1.4 tonnes/househod/year and 3.5 tonnes/househod/year Fodder Fodder coection in the form of green and dry grass is practiced ony in 2 of the evergreen and one of the dry deciduous viages. The quantity gathered across the two zones is on an average about 2.4 tonnes/househod of dry grass and about 3.2 tonnes/househod of green grass (Tabe 18). Rura househods normay graze catte in s, wasteands and cropands and sta feeding is practiced in a imited manner NTFPs In the study viages a diversity of NTFPs are coected. The percentage dependence of househods on NTFPs is varied and high on commerciay important species such as Artocarpus integrifoia, Garcinia cambogea and Mangifera indica (Tabe 20). However, a very arge proportion of the product is used for subsistence ony in majority of the househods. It is cear from the discussion above that househods residing in and around the s of Uttara Tabe 19: Quantity of fuewood, fodder and manure gathered by househods in the sampe viages (Vaues are in kg/househod/year) Forest type Viage Fuewood Manure Fodder Green eaves Dry eaves Dry grass Green grass Evergreen Ekkambi Hosur Tattikai Moist Hudeakoppa deciduous Panchavati Tograi Dry Magi deciduous Adikehosur Chibbageri Tabe 20: Quantity of NTFPs coected and percentage of househods dependent on NTFPs NTFPs Percentage (of the sampe) househods reporting coection (%) Quantity coected by gathering househods (kg/ househod) Average quantity coected/ househod (kg) Garcinia Indica Ziziphus rugosa Cordia dichotoma Carissa carandas Bamboo shoot Garcinia cambogea Artocarpus integrifoia Mushroom Facourtia montana Mangifera indica

50 THE ECONOMICs of ecosystems and biodiversity india initiative Kannada district of the Western Ghats are dependent on s for a diversity of products incuding fuewood, fodder and manure Trends in Biodiversity and Ecosystem Services Loca communities and the economy depend on biodiversity and ecosystem services. Coection and utiisation of products and services coud have negative or positive impications for biodiversity and fow of ecosystem services. In the current study, the trends in biodiversity and some of the ecosystem services coud be assessed due to the avaiabiity of past data from Box 1: Garincia Species Garcinia, popuary known as Kokam, is an important part of ifestyes of peope inhabiting the Western Ghats region. Its fruit is used for cooking, as we as in the form of a coo drink to fend off the high summer temperatures and improve digestion; the fruit s butter is aso used as a cosmetic and the dry rind from the tree is aso used widey. Garcinia is found in the s of Uttara Kannada mainy in the form of two species, viz., Garcinia indica and Garcinia gummi-gutta. The two species are commerciay and cuturay very important in the region and aso have high nutritiona vaue. A case study was conducted in four viages among the Garcinia coecting househods. The primary occupation of these househods is agricuture and areca nut cutivation. Forest is the major source of a Garcinia that is coected, with other minor sources being homesteads and smascae pantations. Survey of 9 viages showed that 9% of the househods gathered Garcinia for househod consumption as we as sae. The quantity coected by househods ranged from 53 kg to 1,897 kg. A arge percentage of the coected quantity is sod and this contributed to from about 4% to as high as 83% of the tota househod income. Viage Quantity of Garcinia coected (Kg/year) Househod Sae Tota use % HH income from Garcinia Aregui Hemagara the same study pots monitored for biodiversity and seected ecosystem services. Here we present the trends in diversity, the number of individuas, basa area and finay biomass and carbon stocks based on comparison of the 2014 vaues with data generated in in the same pots monitored during the current study Biodiveristy Diversity Index Diversity index is an indication of the number of species and its distribution in space at a given time. The Shannon Wiener diversity index during is ower than that recorded during the 2014 assessment in a the three evergreen pots (Tabe 21). Among the moist deciduous pots, higher diversity index has been recorded during 2014 in Panchavati and Tograi pots whie it is ower than the assessment in Hudeakoppa. Among the dry deciduous pots, Adikehosur has recorded ower diversity whie Magi has higher diversity than the previous assessment of Generay in majority of the pots, a margina reduction in the diversity index is observed (Tabe 20) Number of Trees Pots enumerated during 2009 shows differences in the number of tree individuas recorded in the tree pots. A positive change is an indication of regeneration whie a negative change is an indication of the oss of individuas due to natura death or anthropogenic disturbances such as remova by the oca communities for use as fencing poes, fuewood, etc. Tabe 21 presents the tree species density of the different study pots across types. As can be seen, among the evergreen study ocations, a oss has been recorded in ony Hosur whie in the other 2 ocations; there has been recruitment of trees resuting in an increase in the tota number of individuas per hectare. In the moist deciduous pots, two of the three ocations have recorded a oss in the number of individuas whie in the dry deciduous type, Magi shows recruitment and Adikehosur shows oss in individuas. There is no cear trend on the oss or recruitment of trees. It varies from viage to viage Basa area, Biomass and Carbon Among the eight pots across the three types, a oss in basa area and biomass stock is recorded in ony one of the moist deciduous pots, namey Panchavati (Tabe 22). In a the other seven pots, an increase in basa area ranging from 0.8 to 2.5 m 2 /ha over a period of 5 years is recorded. The trend in basa area transates 36

51 Vauation of ecosystem services and biodiversity in the Western Ghats Box 2: Honey Coection Honey coection is practiced in many of the viages of Uttara Kannada district. Honey not ony benefits the rura poor nutritionay and economicay but aso creates a sense of awareness about the importance of s and their conservation due to their dependence on it. A case study of five viages that primariy depend on agricuture as their main source of iveihood and on honey coection from the surrounding s as a secondary source of income for their iveihoods was conducted. Honey coection is being practiced traditionay in the study viages. Coection of honey is from s and, according to the coectors, there has been a decine in avaiabiity of honey over the ast few decades. The average amount of honey coected from the s in the study viages ranged from as ow as 30 kg for subsistence use by househod to about 8,200 kg by traders. About 2 to 3% of the honey coected is usuay for househod use and the rest is sod to contractors or private traders. For individua coectors, honey coection contributes to about 20 to 60% of the househod income. Honey coection aso gives an important by-product in the form of wax, which is sod at a price of `150 per kg in the oca markets. The wax generated from honey coection is around 500 kg annuay. Honey is ike an insurance poicy to communities practicing coection. With continuous increase in demand for honey in the market, coectors express concerns about fufiing future demands. Main threats perceived by them incude fire damage, poisoning of bees by smoke and ack of training amongst coectors. They suggest sustainabe ways of harvest, incuding harvest at the right time with minimum damage to brood aong with foowing a tender mechanism for extraction. Apart from this, monitoring of harvest of produce, protection of host trees, capacity buiding programs and creation of aternate iveihoods are suggested options by the coectors, in times of crop faiures. Viages Main occupation Quantity of honey coected (Kg) % househod income Househod Sae Tota from honey consumption Kease Honey Auda Agricuture Shanavai Agricuture Hutkhand Agricuture NA Yeapur Spice Trade NA Tabe 21: Change in diversity Index and number of individuas in the study pots of Uttara Kannada district of the Western Ghats from 2009 to 2014 Forest type Location Shannon Wiener diversity index (H`) Number of individuas (trees/ha) Change Evergreen Ekkambi Hosur Tattikai Moist deciduous Hudeakoppa Panchavati Tograi Dry deciduous Magi Adikehosur

52 THE ECONOMICs of ecosystems and biodiversity india initiative Box 3: Cinnamon Coection and Trends in Avaiabiity Cinnamon is one of the most important spice varieties. Out of the two species mainy found in the Western Ghats, Cinnamon maabathrum and Cinnamomum zeyanica, the atter is widey used and is in great market demand nationay and internationay. It is found abundanty in the evergreen s of Uttara Karnataka district. A case study of Cinnamon coection and trade was conducted in 11 viages of Uttara Kannada district. The spice coectors interviewed in this study depend on Cinnamon coection and trade as an important source of their income and iveihoods. Cinnamon is coected primariy from the natura. The coectors usuay get a free pass to coect Cinnamon from the s. Other sources incude betta ands and homesteads. A few househods in the viages of Kaagadde-Kanchigadde, Kabkui, Kaagadde and Katnpa have private pantations of Cinnamon on a sma-scae, whie in viages of Sonaginamane and Taddaase, naturay estabished dense pantations of Cinnamon are found. About 28% of househods have panted Cinnamon on their private ands as a tertiary crop. The primary occupation in the study viages is agricuture. The quantity of Cinnamon coected per househod ranges from about 2 kg to about 32 kgs. The average annua income of househods in these viages ranges from `60,000 to `3,50,000. Cinnamon coection and sae contributes from about 1% to amost 50% of the annua househod income in some of the viages. In four of the study viages (Sonaginamane, Kaagadde-Kanchigadde, Menasi and Badagigadde), Cinnamon is used daiy for cooking purposes, whie few househods aso use the spice for medicina purposes. A case study anaysing the trends in the avaiabiity of Cinnamon was conducted in Kaagadde- Kanchigadde and Menasi viages. The number of Cinnamon trees in the two viages have decined Viage Quantity of Cinnamon coected (Kg) % househod income from Cinnamon Tota income from Cinnamon (`) Bhagvat pa Bekemat Kaagadde Kanchigadde Kabkui Kaagadde Katnpa Neaimata Haagebie Handimane Taddaase Sonaginamane No. of trees Kaagadde Kanchigadde Menasi consideraby. The reasons for decine incude increase in price (`20 in 1985 to `600 in 2014), eading to over expoitation and unsustainabe harvest. Aso, the yied per tree has reduced consideraby from 6 to 8 kg to about 4 to 5 kg over a 20-year period. Apart from this, variations in temperature and rainfa are aso considered to have affected the productivity and yied of Cinnamon in the past few years. to biomass and carbon accumuation, or oss, in the case of Panchavati. The average increase in carbon across the three types ranges from 4.2 tc/ha or a 0.8% increase in carbon per hectare per year in moist deciduous s to about 1 tc/ha/year in the evergreen and dry deciduous types. It is interesting to note that even though there is a reduction in the number of trees in four viages (Tabe 21), biomass and carbon stock decined ony in one viage (Tabe 22), namey Panchavati. This indicates biomass growth in the standing trees have compensated for the oss in the number of trees/ha. Thus, on the whoe in the Western Ghats s of Uttara Kannada district, biomass and carbon stocks have increased, despite dependence on the s for many products and services. 38

53 Vauation of ecosystem services and biodiversity in the Western Ghats Tabe 22: Comparison of basa area, tota biomass and carbon in the study pots of Uttara Kannada district of the Western Ghats during 2009 and 2014 Forest type Location Basa area (m 2 /ha) Tota biomass (t/ha) Carbon (tc/ha) Change Change Change Evergreen Ekkambi Hosur Tattikai Moist Hudeakoppa deciduous Panchavati Tograi Dry Magi deciduous Adikehosur Ecosystem Services There is no change in the number of species providing ecosystem services in a the pots studied across the three broad types of Uttara Kannada district of the Western Ghats. However, there are changes in the cimate mitigation reguating service provided by the ecosystems, as there is a gain in most viages. As indicated in Tabe 21, there is an overa net gain in sequestered carbon over the 5-year period in the a the three types of Uttara Kannada. Thus it coud be concuded that in the Western Ghats region, monitoring of eight viage pots over a period of 5 years showed no change in the species diversity index, in additon to which the carbon stock has increased during these years Potentia Sustainabe Rates of Extraction In the earier sections, the extent of provisiona services avaiabiity and the current eve of dependence of oca communities on s were presented. In this section, an attempt is made to estimate the potentia sustainabe rates of extraction of fuewood and timber. There are no scientific or pubished sustainabe rates of extraction of timber, fuewood and different NTFPs. Since the potentia sustainabe rates of extraction of timber and fuewood are required for estimating the economic fow of provisiona services, the estimates are provided in Tabe 23 and the method adopted is given as a footnote to the tabe. The potentia sustainabe rate of timber extraction is in the range of about 0.5 to 0.72 t/ha/year for moist deciduous and evergreen types, respectivey. Simiary, potentia fuewood rates of extraction are in the range of 1.07 to 1.68 t/ha/year for the same types. Tabe 23 aso provides the tota potentia sustainabe extraction quantity for timber and fuewood. It is assumed that most of the NTFPs are extracted sustainaby. Litter consisting of argey eaf itter production is in the range of 5 to 14 t/ha/year. Tabe 23: Potentia sustainabe extraction rates of timber, fuewood and itter in different types of Uttara Kannada district of the Western Ghats Services Forest type Potentia sustainabe extraction rate in tonnes/ha/ year Tota potentia sustainabe rate of extraction for the tota area under types (tonnes/year) Timber Evergreen ,39,853 Moist deciduous ,32,763 Dry deciduous ,46,327 Fuewood Evergreen ,86,975 Moist deciduous ,69,550 Dry deciduous ,97,088 Litter* Notes: Of the tota annua biomass production Mean Annua Increment, one-third of the NPP is aocated to timber or stems and the remaining two-thirds to fuewood (Ravindranath et a., 2000) In this study, Mean Annua Increment is considered as the upper imit of sustainabe rates of extraction. *Based on studies conducted in the region (Mohan Kumar and Deepu, 1992; Bhat, 1990 and Pragasan and Parthasarathy, 2005) 39

54 THE ECONOMICs of ecosystems and biodiversity india initiative 3. Economic Assessment of Biodiversity and Ecosystem Services of Forest Ecosystems in Western Ghats, India 3.1. Introduction Forest ecosystems provide vauabe ecosystem services for human we-being (see for exampe, MA 2005, TEEB 2010). Ecosystem services, coined by the Miennium ecosystem assessment (MA, 2005), are cassified into four broad categories: provisioning, reguating, supporting and cutura services. The most important distinction, which TEEB adopts in comparison to MA, is that it does not consider supporting services such as nutrient recycing and food chain dynamics, which according to TEEB is a subset of ecoogica process (see TEEB, Chapter-1, Ecoogica and Economic Foundations). Specificay, provisioning services such as food, fresh water and fue may be produced or managed intentionay for the purpose of meeting human needs. Reguating services indirecty contribute to heath and safety through reguation of cimate and disease, air and water purification, and prevention of soi erosion. Cutura services provide nonmateria benefits such as spiritua enhancement, cognitive deveopment and recreation, and supporting services incude production of oxygen and soi formation necessary for the maintenance of a other services. However, many of these may not be additivey separabe as the abiity to provide these ecosystem services depends on the intermediate functions and processes and how we the ecosystem is maintained. Some of the ecosystem services may not be produced simutaneousy at a singe ocation. For exampe, fuewood and carbon sequestration cannot be achieved simutaneousy. Timber production reduces the nontimber products or genetic diversity. Reduction in the ecosystem service of a particuar type may impact provision of other service more than proportionatey. For exampe, the quantity and quaity of water avaiabe for human use depends on the compex interaction between vegetative cover, sois, wetands, microorganisms and other ecosystem components (Daiy, 1997). Damaging or atering any of the ecosystem components may ater the ecosystem function of water purification and thus the human wefare. The impacts on human wefare aso vary spatiay and temporay. Thus viewing ecosystems in terms of ecosystem services enabes visuaization of the trade-offs that different groups of peope face much more ceary. Forest ecosystems wordwide, in tropica regions, and in particuar the Western Ghats, are under threat, which has major impications for human we-being. The drivers of these risks are compex and varied. The main drivers incude popuation change, demand for food production, industria growth, mining, agricuture, rea estate, consumption patterns, changes in ife stye. Aong with these direct drivers, market and poicy faiures are the other prime reasons for the oss. There are hidden incentives that encourage and conversion. Aso, many of the ecoogica functions of s are non-marketed, thereby giving an impression that they have zero prices and hence zero economic vaue. Because of this incompete knowedge of the exact contribution of ecosystems to human webeing, any decision to convert s from its current use to another does not take into consideration the consequences and the costs of our action. This justifies the need to recognize, demonstrate and capture the economic vaues provided by s and internaize them in the decision-making. Vauation of ecosystem services is important for different reasons. The benefits provided by Western Ghats are often not quantified, and hence they are underestimated in poicy making. A comprehensive anaysis of the vaue of ecosystem services considering the oca context is very important. An economic vaue of the ecosystem services of Western Ghats that can capture the trade-offs between ecosystem service provision, biodiversity conservation, agricutura production, or other uses of and, is necessary to support and-use decisions. The objective of this section is to anayze the economic vaue of the bunde of ecosystem services provided by the Western Ghats in Karnataka, India. The study considered three types of ecosystem services: Provisioning Services (food, fue, raw materias, nontimber products), Reguating Services (refecting the ecosystems ecoogica processes, incuding carbon sequestration), and Cutura Services (recreationa service). The study coud not consider the supporting services and a the services at this stage due to ack of compete information. The detais of the study area were given at the beginning of this report. The focus of anaysis is the Uttara Kannada District of the Western Ghats. The area has been seected because the ecosystems in this area are representative of the diversity of the Western Ghats. In Uttara Kannada, 80% of the geographica area is covered with s. The district has mainy five ecoogica zones coasta, evergreen, semi-evergreen, and moist deciduous and dry deciduous s. A variety of crops are cutivated in roughy 13% of its and area, which incudes rice, 40

55 Vauation of ecosystem services and biodiversity in the Western Ghats coconut, areca nut; spices ike pepper, cardamom, ginger and nutmeg; cocoa, cashew and fruit trees, ike Mango, Jack, Garcinia, Sapota, Banana, Pineappe; and other vegetabes. Uttara Kannada is especiay popuar among tourists for the natura attractions as we as for reigious practices. The region has severa rivers, waterfas and pigrim paces. Though a major ecosystem service vaues were not considered, in future they can be incuded Vaue of Forest Ecosystem The Western Ghats ecosystems are extremey vauabe as they provide a bunde of ecosystem services ike biodiversity conservation, recreation, improving air quaity, recharge of ground water aquifers, etc. The vaues here can be intrinsic, economic, cutura and aesthetic, and often these vaues compement instead of substitute each other. Whie not undermining other vaues, the focus here is on economic vaues, the vaues that contribute to the human wefare. The basic premise behind vauation is that the individua s economic wefare is maximized through the use of the goods and services provided by ecosystems. These economic vaues are a based on the notion of wiingness to pay, which vary among individuas depending on their sef-interests. Hence, the economic vaues are anthropocentric and hence instrumenta vaues. Instrumenta vaues aow the comparisons across different trade-offs. For exampe, a managed for timber wi have ow vaues for carbon and simiary s protected for the purpose of biodiversity conservation wi have ow vaues for timber. The vaues refect ony the current choices given a mutitude of socio-ecoogica conditions such as the distribution of income and weath, the state of the natura environment, production technoogies, and expectations about the future (Barbier et a., 2008) The economic vauation of resources is important as most of the poicy decisions are based on various economic criteria. The TEEB (2010) study indicates different purposes of vauing ecosystem services: (1) ecosystems, despite providing mutipe vaues, are undervaued and non-priced, which eads to distortions in efficient resource aocations; (2) for some biodiversity goods and services it is important to understand and appreciate the aternatives and aternate and uses; (3) suggesting future uncertainties in resource avaiabiity; (4) designing biodiversity conservation programs and for the deveopment of green accounts (see TEEB 2010, MA 2005). Demonstrating the economic vaues can highight the extent of these distortions, the distribution of costs and benefits of conservation, as we as enabe design of mechanisms which woud capture the benefits from s. Ecosystems through ecosystem processes and functions provide economic benefits for human we-being. The benefits are the output whie the ecosystem processes and functions are the inputs. The tota (output) vaue of ecosystems has often been conceptuaized as the sum of different use vaues (direct, indirect and option) and non-use vaues (existence and bequest vaues) of the communities (Krutia, 1967, Pearce 1993, Costanza et a., 1998, and the extensive iterature foowing that). The use vaues can be categorised into direct consumptive vaues (reduction in quantity avaiabe for others due to use) and direct non-consumptive vaues (no reduction in the quantity). Exampes of consumptive use vaues are the provisioning services provided by the ecosystems ike food, fibre, water, and non-timber products, whie the non-consumptive use vaues are the cutura and recreationa services of MA cassification. The indirect use vaues are those that are used as an input to the other production processes but are not fina goods. These incude some of the supporting and reguating services provided by s. The use vaues (both direct and indirect) can be used now or coud have a potentia to use ater (Option vaue). The second category of vaue, the nonuse vaue, stems from the fact that individuas woud in genera have an intrinsic vaue of natura eements (e.g. spiritua vaues, cutura vaues) for their mere existence or woud ike to pass the natura capita as an asset to the future generations (Bequest vaue). This category of vaues fas under the cutura vaues of MA assessment. The ast category of vaues are difficut to assess but can be vaued using non-monetary toos. The diagrammatic representation is given in Figure 11. Whie there is no debate on the fact that ecosystems have vaue, the debate is on the use of monetary vauation techniques. The tota economic vaue is based on a preference-based vauation approach, which is based on the subjective preferences of individuas. Different vauation approaches market based and non-market based, as we reveaed non-market based and stated non-marked based preferences are avaiabe to vaue ecosystem services. Sometimes, one can use participatory vauation approaches or resort to benefit transfers (see Wittmer and Gundimeda, TEEB D2, chapter 3). Tabe 24 indicates the vauation approaches that coud be used to derive economic vaues. 41

56 THE ECONOMICs of ecosystems and biodiversity india initiative 3.3. Estimates of economic vaues Vaue of Timber from Forests in Western Ghats The ry sector in Uttar Kannada district is very important, as 75.98% of geographica area of the district is under s (India State of Forest Report, 2013). The district has a tota cover of about 10,291 sq. km. The per capita and tree cover avaiabiity in the district is about 0.54 ha. Amongst a the districts under Western Ghats region, the ry and ogging sector 1 of Uttara Kannada district contributed about 3.7% of Karnataka s Gross District Income (at constant prices) in (Figure 12). Timber production vaues are we-recorded by the departments and refected in nationa accounts. Forest resources can be vaued for the and as a resources and for the fow of services that it generates (e.g. standing timber). Cutivated s are produced Figure 11: Tota Economic Vaue of Ecosystem Goods and Services Tota Economic Vaue Use Vaue Non-use Vaue Actua Vaue Option vaue Phianthropic Vaue Atruism to biodiversity Direct Use Indirect Use Bequest vaue Atruist vaue Existence vaue Consumptive eg: Timber, NTFP, Crops, ivestock, fisheries, wid foods, aquacuture eg: Recreation, spiritua/cutura we being, research Non consumptive Market anaysis, Cost methods, Hedonic pricing, Contingent Vauation method eg: Pest contro, poination, water reguation & purification, soi fertiity eg: Future use of known and unknown benefits Repacement cost method; mitigation cost method & avoided eg: Satisfaction of knowing that future generation wi have access to Contingent vauation & contingent eection eg: Satisfaction of knowing that other peope have access to nature s benefit eg: satisfaction of knowing that species or ecosystem exists Market anaysis, Cost methods, Production function 42

57 Vauation of ecosystem services and biodiversity in the Western Ghats assets whie the natura s are treated as nonproduced assets Due to the enforcement of the Forest Conservation Act (1980, 1981 and 2003) and the Nationa Forest Poicy, s in India are not excusivey managed for timber production; hence arises the nexus between the aocation of s for ogging versus the conservation of s for biodiversity protection and ecosystem services. According to the Forest Survey Report (2013), Uttar Kannada district witnessed no change in cover, mainy due to stringent ban on green feing of trees, with ony the remova of dead and faen timber permitted, though mature green trees are avaiabe in some of the s. Thus in the Western Ghats, the trade-offs are ceary iustrated. Tabe 24: Vauation approaches for ecosystem goods and services Group Methods Summary Statistica anaysis Which services vaued 1. Direct market prices 2. Market aternative 3. Surrogate markets 4. Stated preference Market prices Observe market prices Simpe Provisioning services i. Repacement costs Finding a man-made soution as an aternative to the ecosystem service ii. Damage cost avoided iii. Production function How much spending was avoided because of ecosystem service provided? How much is the vaue-added by the ecosystem service based on its input to production process? i. Hedonic Price Method Consider housing market and the extra amount paid for higher environment quaity ii. Trave Cost Method i. Contingent Vauation Method 5. Participatory i. Participatory Environment Vauation 6. Benefit transfer i. Benefit transfer (mean vaue, adjusted mean vaue, benefit function) Source: Wittmer and Gundimeda, TEEB (2012), chapter 3 Cost of visiting a site: trave costs (fares, car, use etc.) and aso vaue of eisure time expended Given a menu of options with differing eves of ecosystem services and differing costs, which is preferred? Asking members of a community to determine the importance of a non-marketed ecosystem service reative to goods or services that are marketed Borrowing or transferring a vaue from an existing study to provide a bapark estimate for current decision Simpe Simpe Compex Very compex Compex Very compex Simpe Can be simpe, can be compex Poination, water purification Damage mitigation, carbon sequestration Water purification, freshwater avaiabiity, provisioning services Use vaues ony, recreation and eisure, air quaity Use vaues ony, recreation and eisure A services A services Whatever services were vaued in the origina study 43

58 THE ECONOMICs of ecosystems and biodiversity india initiative Vauation of Timber Resources Vaue of timber as an ecosystem good is usuay evauated using four methods: stumpage vaue method, consumption vaue method, net present vaue (NPV) method, and vauation after aowing for management cost. Timber produced from s can be easiy vaued as it is marketed. In case of no market imperfections, using market prices is the idea scenario. However, in case of inefficient markets, economic rents often are captured by others (the intermediaries), instead of the owners in this case the s. Inefficiencies may arise because of the non-commercia uses of timber, timber privieges, or under-pricing of the resource. Timber for commercia use is mainy in the form of round wood, sawn wood, and pupwood, whie the non-commercia purposes are for the use by ocas. These can be in the form of privieges granted for timber, for the purpose of construction, renovation, extension or repair of houses; grant of bamboos, sma timber and junge wood, for the purpose of making agricutura impements, or for agricutura purposes; and for grant of dry firewood. Usuay, there is no right to produce of any kind, except Manad priviege rights, which are avaiabe Figure 12: Percentage contribution of ry and ogging sector to Gross District Income of districts under Western Ghats region (as identified by the Western Ghats Ecoogy Expert Pane) in Karnataka at constant prices Chikmangur 2.3 D Kannada 2.2 Davangere Chamarajnagar Begaum 3.7 U Kannada 3.1 Hassan 4.9 Kodagu 2 Mysore 4.8 Udupi 4.5 Shimoga Source: Directorate of Economics and Statistics, Bangaore ony in respect of certain areas, as provided by the Karnataka Forest Manua. Thus the timber and and resources enter into vaue-added cacuations in the economy at the point of purchase either as an end product or as an input into another process. In the process, the resource og can potentiay pass through a number of processes before it is finay consumed as an end product. A tree, for instance, may initiay be sod as a sawn og to a saw mi, then as sawn wood to a furniture manufacturer, and then to consumers at the retai eve. Fuewood, poes, etc., may be consumed by the same user who acquire them. When a tree is converted into a og, it has vaue added to it. At each stage, the vaue addition is distributed, accruing as income to some other actor in the economy. Since there is a vaue buid-up for each ink, a breakdown of the different reevant activities that may generate cost or revenue is required. A basic structure reevant for the study region is given in Figure 14. The timber originates from different sources, processed, and transported to the depots or deaers. The auctioned timber is then transported to the sawmis, from where the timber is shaped, sized and sod to different end users, ike carpenters and furniture deaers. The fina product is transported to the fina customer Suppiers of Timber Timber is sourced from s, government pantations, private pantations and non- ands. The key resources required for them are and, abour, good quaity environment and technoogy. There are severa inputs required for producing the fina product, incuding seeding, weeding, panting, ceaning, thinning, pruning and fina harvesting. These management costs depend on the source of timber. For natura s these costs are ow, whie for private pantations or agro ry this may be high. The timber avaiabe to cater to the demand is approximatey 2.3 miion cubic meters. Various kinds of timber, from dead and faen trees and teak poes, are removed by the contractors approved by the Forest Department and brought to the Government timber depots. However, ony miion cubic meters per year (1.5% of the tota timber suppied) is extracted from s by the department and the Karnataka suppy industria corporation (KFSIC), according to EMPRI, Timber may aso be sourced from sma scae agro ry, individua trees outside of s, private s, maki and 2 (Figure 6), 1 Forestry and ogging sector comprises of timber production and extraction of fuewood and non-wood products from s. 44

59 Vauation of ecosystem services and biodiversity in the Western Ghats Betta ands 3 and imports from neighboring paces ike Gujarat, Kanda, Tuticorin, Cochin, Goa, Chennai and Andaman and Nicobar Isands. The inter-state imports amount to 0.86 miion cubic metres per year (EMPRI, 2009). However, some of the wood is aso sod in nearby markets, making it difficut to estimate the exact amount of timber consumed within Karnataka. Some of the timer is imported from Myanmar, Gabon, Maaysia, Germany, Tanzania, Brazi, Russia, Benin, Indonesia, Itay, Ghana and other African countries (ITTO, 2012).`The average quantity of timber imports between from the Mangaore port, the primary port for timber imports in Karnataka, was estimated to be miion cubic metres per year. Agro ry pays an important roe in the Western Ghats. According to the Forest Survey of India report in 2013, approximatey 7,465 sq. km of and (10.3% of the geographica area of the Western Ghats) is under agro ry, with a growing stock of 69.2 miion cubic metres. To sum up, the sources of suppy through various channes to meet the growing demand are given in Figure 14, whie outturn of timber from maki and in Uttara Kannada district is depicted in Figure 15. manufacturing furniture, and wood based construction materias. One of the main responsibiities is to eiminate contractors in the whoe chain of operations, incuding ogging for timber and the processing and marketing of produce. The corporation conducts ogging works in the Forest Division of Shimoga, Dharwad, Sirsi, Mysore, Bangaore and Mangaore, and extracts firewood from Shimoga, Dharwad, Mysore, Bangaore, Mangaore and Sirsi. It aso operates sawmis in Shimoga and Dandei. The output after extraction is ogs, pupwood, fuewood, charcoa, and we assume that no part is wasted Transportation from the Source to Depots The ogs are then oaded on trucks and transported to the depots. Acacia auricuiformis pantations are cear feed to meet the fuewood requirement of the oca peope. Departmenta eephants are sometimes used for dragging timber and poes in inaccessibe and difficut parts of s to paces from where the ogs can be carted in trucks. The cost for extraction and transportation of timber varies from `2000 to 3000 per m³. The work is done by the department or through the Karnataka State Forest Industries Corporation (KSFIC) Extraction Methods Used Due to ban on cear feing, no extraction of green timber has taken pace since 1983, and ony savaging of dead and faen timber and firewood is carried out on a imited scae within the department. Thinning of Teak pantations, with a view to improving the status of stands, is aso carried out, but no proper records exist. Feing of marked trees in coupes, ogging and dressing are done by oca abour or imported abour. Usuay feing of marked trees is done by axes and saws and ogging is done by crosscut saws. After the trees are marked and feed, ogs are prepared out of them. The prepared timber is removed by means of trucks to various timber depots. The harvesting of the products is the responsibiity of the Karnataka State Forest Industries Corporation (KSFIC). The main objective of the corporation is to harvest produce for suppy to pupwood and rayon industries vis-à-vis creating empoyment potentia, in the forms of processing wood, Timber Deaers and Depots The timber from various sources reaches the government depots in Kanara circe of Uttara Kannada district stated at Haiya division (comprising of Dandei, Bhagavati, Kugi, Barchi depots), Honnavar division (Idagundi, Katga, Kabinnahakka depots), Karwar division (Kadra, Hattikeri depots), Sirsi division (Chipgi, Manmane depots) and Yeapur divisions (Kirwatti, Mundgod depots). The major types of timber which come to the depot incude teak, rosewood, Jamba, Matti, Kinda, Nandi, Dinda, Dhaman, Honni, Karimutta, acacia and other junge wood species, etc. There is no sandawood depot in the circe. The ogs are cassified as per the standard cassification norms and stacked in the depots. Figure 16 provides figures for the division timber outturn at the depot range in Uttara Kannada for year Depot Saes Proceedings Usuay, there are four saes in a year, in the months 2 Maki and usuay refers to thicky wooded areas that are not yet brought under cutivation or pantations but having the characteristics of s. Maki and is an important source of timber in Karnataka. Krishnapur, Gavi, Bheemgod areas of Begaum district and Kadamane estate of Hassan district and other such areas with wide stretches of maki ands. 3 Betta ands are the strips or patches of tree and on the hi sopes adjoining the areca orchards owned by the government, where oca communities have customary rights for muching, anima bedding, coecting grasses and eaves and fuewood, and for non-commercia purposes. 45

60 THE ECONOMICs of ecosystems and biodiversity india initiative Figure 14: Vaue Chain of timber in Karnataka Raw materia Suppy source Forests, government pantations, private pantations, Maki and, Betta and and non- ands (agrory, Trees outside s TOF) Logs prepared out of feed trees and carried to nearest road and transported by orries or trucks Depots Harvest and transportation - KSFIC, permitted saw mis Timber, firewood, ogs, canes, bamboo. The major types of timber species are teak, rosewood, jamba, matti, kinda, nandi, dinda, dhaman, honni, karimutta, acacia and other junge wood species etc. Retaiers - Sawmis, KSFIC Direct saes to bonafide Processing Sawn timber sawmis manufacture of furniture and wood based construction materia - KSFIC Fina consumers Loca Consumers Carpenters TImber deaers Wood based manufacturing industries of March, May, September and December. However, in cases of heavy accumuation of produce, specia saes are aso conducted after obtaining sae date and approva from the higher authorities. One month prior to the sae date, sae notification is pubished in major nationa newspapers and aso in the State Gazette to give wider exposure. The sae notification is aso circuated to major timber purchasers of the state and outside the state. The sae notification incudes information on approximate quantity of species wise timber, firewood and poes avaiabe at each depot. The buyers are timber deaers and genera pubic from oca as we as neighboring ocaities. The bidders come from various regions of Karnataka, as we as from other states, ike Andhra Pradesh, Keraa, etc. From the depots, timber is suppied to Government departments and pubic at retai price, fixed and revised from time to time. Timber eft after meeting these suppies is auctioned periodicay. The depot conducts 3-4 saes every year and earns revenue of approximatey `6-8 crores (US$ 966,496 1,288,661) per year. The depots usuay do not do additiona processing. The price of timber charged varies with species quaity and dimensions (see Appendix 1). Timber Retaiers: Saw Mis Saw mis are important stakehoders in the timber vaue chain. They form the crucia ink between the timber suppy source and the end users. Usuay saw mis se sawn timber after processing, thereby creating vaue addition. As in , there were tota 105 saw mis in Uttara Kannada. Figure 17 gives division-wise number of private sawmis permitted to extract timber in Uttara Kannada. 46

61 Vauation of ecosystem services and biodiversity in the Western Ghats Figure 15: Quantity of timber, junge wood, firewood & poes produced from Maki and in Uttara Kannada district Teak Junge wood Fire wood Poes Source: Forest Department, Karnataka Note: Quantity of timber, junge wood and firewood is in m³ and poes is in numbers Dandei Wid Life division was found to have no private saw mis. The sawmis are permitted to extract timber from the s and maki and up to certain permit imit granted by the department based on the working pans. The saw mis aso process the ogs into different shapes and sizes depending on the requirement of the customers. Sawmis have to invest in machinery to process the ogs, Sawmis buy timber in ots with variations in quaity and dimensions of the ogs. The sae is customized based on the requirements and sod per cubic feet or cubic inch, and poes are sod per piece; any remaining timber is sod as fuewood and the wastage is sod as chips and saw dust. In order to understand the exact operation of sawmis, we carried out a survey of various sawmis in the Karwar town of Uttara Kannada district. We gathered technica, financia and economic information from sawmis. Detais on voume and costs of raw materias sourced and purchased were aso gathered. In addition, a section on business practices was incuded to assess the profitabiity of timber business. This gave an idea about costs and net profit margins of the saw mis per standard voume aong the suppy chain (see Box 1 for the survey resuts). Fina Customers Timber from sawmis is bought by the construction industry or carpenters or big furniture houses who transform them into various vaue-added products. It has been extremey difficut to get further data on costs and revenues, as the products are highy customized to order, varying from sma artices to big artices. The price incudes ski factor as we Assessing the Vaue Addition for Timber It is apparent that the vaue of a og as an immediate end product that can be used directy is different from that of a og which undergoes processing and transforms itsef into a customised product for the end user. There is vaue addition at each and every stage and since our main intention is to demonstrate the vaue to different stakehoders in the economy, it is the tota vaue and not just the producer prices which are more reevant. Ideay, observabe market prices shoud be used to vaue timber resources, and the idea sources of these prices are vaues observed in markets in which each asset traded is competey homogeneous. We can view the vaue of timber in terms of the Figure 16: Division-wise outturn of timber (in m³) at Depot/Range from s in Uttara Kannada in Rose wood Teak wood Other kinds of timber Sawn timber other than seeper W L Haiya Honnavar Kanwar Sirsi Yeapur Dandei Source: Forest Department, Karnataka

62 THE ECONOMICs of ecosystems and biodiversity india initiative Figure 17: Division-wise number of private saw mis permitted to extract timber by department in Uttara Kannada Haiya Honnavar Karwar Sirsi Yeapur Tota Source: Annua Administrative Report, Karnataka Forest Department surpus vaue accruing to the extractor or user or an asset cacuated after a costs and norma returns have been taken into account. In the context of the environmenta assets, the surpus vaue is referred to as the resource rent, which can be cacuated directy using stumpage prices. In the case of the stumpage price of timber, the cost of managing the timber and the norma returns to capita are not deducted. However, as we did not have information on the costs of producing timber, we used an approximate percentage. Usuay the producers hire workers to cear fe the trees and then transport them to the depot. From the depot the timber is competitivey auctioned and the buyer bears the costs of transportation out of the depot. The price paid by the buyer at depot is the net economic benefit to the producers of timber. The price of wood aso depends on the quaity and species sod. Hence, the figure that we report here is the weighted price of timber, the weights computed in proportion to the quantity harvested. As the study objective is to understand the rea contribution of timber resource to the economy and the vaue as an asset (the potentia vaue) if eft untouched in the, the incrementa vaue added at each stage was used, i.e. the contribution at the point of entry pus further vaue added at different stages ti it eaves the retaier for use by the customer. This is done by deducting the user cost of the resource from the gross operating surpus of the suppiers of timber ( departments, Maki and producers and farmers seing timber as part of agro ry). For the vaue of timber at the point of entry into the market, payments for the purchase of raw materias or suppies, principa payments, and depreciation are not incuded in vaue-added for the activity under consideration. When it enters the market there is vaue added in the transportation and extraction sector. However, we did not have information on the operating costs of the transportation sector. So the estimates we got are the gross vaue additions. Simiar deductions were made for cacuating the vaue-added for successive activities from harvesting to subsequent downstream processing. A sawmi consuming sawn ogs cannot be credited with the vaue-added of producing the og itsef. As demonstrated, the og vaue-added was aready cacuated at its point of purchase. The market price aso incudes the cost of transportation and extraction, which need to be deducted to refect the net vaue of the timber per unit. To cacuate the tota vaue-added derived from timber resources, the above approach is appied for each activity or product of which they are a part unti their purchase by consumers as an end-product (or by another sector as an intermediate product or input). However, if the stand is in, the vaue is captured by its stumpage vaue. Whie cacuating the asset vaue of the resource, the vauation of timber resources is undertaken on the standing timber. A the standing timber stock is being vaued as if it is used soey as timber, without considering the other ecosystems they provide. Therefore, the vaue derived in this report (see Figure 19 for detai) is an asset vaue of timber resources when they are being removed and used as timber products. Based on the net primary productivity (see Tabe 23, section 2.8) of s in Western Ghats, the annua timber avaiabe is 2.4 miion cubic metres (1.16 t/ha). Based on the FSI estimate, the mean annua increment is assumed to be around 15 miion cubic metres. The depots auction timber four times annuay; the highest bidder s price is the purchase price and the prices vary across the species. For exampe, the cost 48

63 Vauation of ecosystem services and biodiversity in the Western Ghats Box 4: Operationa Anaysis of Sawmis The surveyed sawmis were engaged in timber business for about 30 to 70 years. Timber business is the main source of income from them. The timber is mainy procured from s, Maki and, and imports from nearby paces. The major timber species sod by these sawmis incude Nigiri, Bikambi, Teak, Jai, Acacia, Kinda, Honne, Junge wood, Bharanagi, Matti, Haasu, Mango and Nerae, which they purchased from government timber depots or maki and. The operating costs of sawmis comprise machinery costs, transportation costs, oading and unoading charges and abour charges. The surveyed sawmis generate an empoyment for about 28 individuas paying an approximate wage of `27.8 akhs per annum. We aso find that there is wide difference between potentia empoyment and actua empoyment generated (Figure 18). The difference between actua and potentia empoyment prospects was 158 in and Thus, it is possibe to increase wefare by generating adequate empoyment opportunities through providing better wages and other empoyment benefits. The average quantity of timber purchased by the surveyed sawmis (in tota) is cubic metres, and the average purchasing price of timber is about `23, per m³ (incusive of costs). Cost of transportation ranged between ` per m³. The saw mis have to incur fixed costs in terms of machinery cost (bade cost), ranging between ` per year, depending upon the size of operation. The average quantity sod by sawmis is cubic metres. The average seing price of timber without processing is `28,021 per m³ and the survey resuts show that sawmis se timber ony at 15.46% profit margin. Timber purchased is aso processed into cut sizes and rippers and sod to bonafide customers, tempes, furniture retaiers, other retaiers for industria purposes and farmers. The cost of processing usuay ranges between 10-30% of the cost. The average cost of processing is about `4, per m³. Processing of timber in form of sawn timber eads to vaue addition of about 10-30%. Figure 18: Potentia and actua empoyment in Uttara Kannada District, Uttara Kannada tota sawmis actua empoyment potentia empoyment of Dabergia atifoia (Sissum) is `7,70,332/m³ (US$ 12,655.4/m³), Tectona grandis (Teak) is `1,22,657/ m³ (US$ 2,015.06/m³), Terminaia panicuata(kinda) is `16,477/m³ (US$ /m³), Terminaia eiptica (Matti) is `17,789/m³ (US$ /m³) and Pterocarpus marsupium (Honne) is `39,811/m³ (US$ /m³) (at 2013 prices). There is variabiity in prices depending on the diameter of the ogs as we, which makes it more compicated to assign unit price for timber. The main consumers are sawmis, retaiers, other states, house constructors, etc. The main vaue addition takes pace at sawmis, who buy timber at a weighted average price of `23,907/m³ (US$ /m³) and se at a weighted average price of `27,605/m³ (US$ /m³) eading to a vaue addition of 15.46%. Processing of timber eads to further vaue addition of 44.5%. As the wood produced from Western Ghats due to restrictions is very sma in comparison to the goba 49

64 THE ECONOMICs of ecosystems and biodiversity india initiative demand, we can safey assume that the timber markets are competitive and hence there is no consumer surpus. Whatever is reaped is the producer surpus which is the net benefit accruing to the producer of wood as a whoe. Hence the vaue of net benefit is taken as the producer surpus or the economic vaue of timber resources. Here the producer surpus aong the chain of production has been summed up. Thus, based on the current scenario of seective and sustainabe harvesting regime, the vaue of timber per hectare per year in Uttara Kannada is estimated to range from 73,892 95,524 `/ha/yr (US$ 1, ,569.31/ha/yr). The vaues under reguated harvested regime seem to bevery ow compared to the study on estimation of NPV rates by Verma et a. (2013), where the Western Ghats s commanded a vaue of `7,02,146 ha/year for timber. However, this study assumes a very strict harvesting scenario as per the existing poicies and hence Western Ghats have higher vaue for other ecoogica services than that of timber Poicies for Sustainabe Management of Forest Resources The study tried to gather the perceptions of different stakehoders regarding the key issues surrounding the suppy of timber (Tabe 25 represents the summary). None of the stakehoders actuay fet that excess feing of timber is presenty eading to environmenta and Figure 19: Graphica representation of vaue addition (`/m³) at different inks of vaue chain Forest Dept/ depots In Transport Sawmis Retai unprocessing Forest Dept/Retaiing processing (cut sizes & rippers) Source: Authors representation of resuts based on survey outcomes degradation. The respondents are aware of the future consequences of resource unavaiabiity caused due to over-extraction. However, no efforts were made by them to protect the s and the environment. Haf of the respondents fet that extraction was done ony from faen trees or standing deadwood, whie the remaining 50% were of the view that sufficient panting processes are not taking pace and s shoud be expanded in partnership with oca communities. The survey recorded mixed reactions regarding the status of timber avaiabiity. A the respondents fet that the avaiabiity of timber is decining from both s and on Maki and; 50% of the respondents fet that the extent of decine is to the tune of 50%, whie the remaining 50% of respondents observed a 20-25% decine in timber avaiabiity. The income from timber business is decining up to 60%, as the demand for timber products has decined in comparison to past 5 years, since wood products are now repaced with substitutes ike cement, auminum, etc. Moreover, 84% of sawmi owners are of the view that severa poicies have been initiated by the government to curtai excessive expoitation of timber resources. Poicies such as ban on green feing, promoting timber pantations ony on government owned and, restriction on sawing a trees on Maki and were in pace. However, 16% of the respondents were of the view that too many restrictions by government on feing of trees is affecting their earnings. Some of the poicies that coud ead to sustainabe management of timber resources coud be curbing iega activities through appropriate monitoring and effective enforcement. Further repacing the species in natura s shoud be prioritized and muti-diverse species shoud be panted instead of mono-cuture species. The conservation targets can be easiy met due to avaiabiity of cose substitutes ike auminum and cement. In Western Ghats, due to the diversity in species, poicies shoud be in pace for a very strict conservation regime and to stricty observe sustainabe management of timber. The timber shoud be better priced so as to ensure profitabe returns to traders as we as to take into account the negative externaities. Farm ry can be encouraged and individua farmers can be aowed to grow commercia species of high vaue. Forest industries shoud be given specia impetus. The oca farmers can be encouraged and the industries sector coud be more competitive. The viage committees can provide good aternatives in this respect but better incentives need to be in pace to grow and save s. 50

65 Vauation of ecosystem services and biodiversity in the Western Ghats Tabe 25: Stakehoder perceptions on timber extraction, opportunities generated and impact on environment Perception Responses Extraction done ony from faen trees or standing deadwood 50% Sufficient panting processes are not taking pace and s shoud be expanded 50% Avaiabiity of timber is decining from both s and Maki and 100% a. Extent of decine is to the tune of % 50% b. Extent of decine is to the tune of 20-25% 50% Income decine from timber business due to avaiabiity of cose substitutes ike cement, auminum etc. 100% Poicies initiated by govt. to curtai excessive expoitation of timber resources 84% Too many restrictions by government on feing of trees is affecting their earnings 16% Excess feing eading to environmenta degradation 0% Awareness of future consequences of resource unavaiabiity due to over extraction 100% Efforts taken to protect the s 0% Vaue of Fuewood and Non-Timber Forest Products (ntfp) from the Western Ghats The dependence of humans on non-timber products has been we-documented since prehistoric times. The non-timber products can be edibe and non-edibe products ike foods, fue, nuts, berries, honey, mushrooms, medicina pants, spices, fibres, resins, grass, ornamenta pants, ois, speciaty wood products and other extracts from trees other than timber originating from s. Peope iving in the fringes and within the s are highy dependent on the coection of NTFPs for subsistence, empoyment and cash income. Often, they pay a crucia roe in providing food security to the rura peope. The number of products avaiabe from NTFP is staggering. The studies carried out in Western Ghats indicate that about 130 species of NTFP are used to varying extents by viagers in Uttara Kannada district (Hegde et a. 2000). These range from bamboos, canes, medicina pants, honey from beekeeping, fodder, fuewood for domestic and commercia use, itter, eaves for muching, fruits, etc. However, the economic vaue of non-timber products is often underestimated, as most of them are used for subsistence consumption and are rarey sod in the markets. Sustainabe extraction of NTFPs can augment rura incomes and contribute enormousy to the state domestic product of Karnataka. A key feature of NTFP-based economy is that it is possibe to expoit these products without damaging the ecosystems, in the case of sustainabe extraction, and hence can provide incentives for conservation. Highighting the contribution of NTFPs to the oca and then to the regiona and nationa economies is cumbersome due to the difficuty in tracking their coection and use, and the sae of parts and products of different species. Many studies have highighted the importance that NTFPs pay in the rura iveihoods (Chopra, 1993). In an attempt to quantify the vaue of ecosystem goods and services in Uttara Kannada, Ashwath et a. (2012) found that vauation of provisioning goods and services from ecosystems is about `2,05,388/ hectare/year (US$ 3,294.83/ha/year), which is impicit in the subsistence, income and oca empoyment. The study accounted for timber, NTFP, bamboo, canes, food, medicina pants, honey from bee keeping, fodder, fuewood for domestic and commercia usage, itter, muching eaves, inand fishing, domestic water use, industria water use, water for power generation, irrigation services, ecoogica water, oxygen provision and wid fruits. The use of NTFPs may make a substantia contribution to iveihood strategies of rura peope in providing buiding materias, fodder and wid food. This contribution is especiay important for poorer sections of the community, who might be abe to benefit from poicies designed to maximize the vaues of NTFPs. Tejaswi (2008), focusing on iveihood security of triba communities in the Western Ghats region, indicates that 55% empoyment was generated by the wage sector foowed by NTFP coection (26%) and other sectors (19%). NTFP generated an average annua income of `14,244 per househod (US$ per househod). Panchmukhi et a. (2008) estimated that about 86% of NTFPs are unrecorded in State Domestic Product (SDP) originating from ry and ogging sector, and this unrecorded vaue of NTFPs constituted about 1.45% of SDP of Karnataka in

66 THE ECONOMICs of ecosystems and biodiversity india initiative 03. Ninan (2007) estimated the NPV of net resource benefits (i.e. grazing, fuewood and NTFPs) in the Uttara Kannada district at around US$/ househod at prices. Quantification of NTFPs can be made using either area or househod as a unit. The first type entais mapping the ethno-botanica studies with the market price of the NTFPs, whie the second one ooks at the usage of various products and their vauation at the househod eve. Both are reativey compex as each species has a range of products and different uses, most of which do not have a market price, being used as substitutes for other products. If market prices exist then vauation is reativey straight forward. However, markets for many of the NTFPs are non-existent and it is impossibe to get their prices. Even where market prices can be estimated, there is very itte pubicy avaiabe information on the quantities harvested, consumed and sod, and the costs incurred in coecting the products. As a resut one has to resort to often more compicated anaytica toos to estimate the vaue of NTFPs. Lack of systematic monitoring and information systems on NTFPs aso means that the necessary data has to be coected from costy househod surveys. Fuewood coected from fringes is an important source of domestic energy for rura areas. Avaiabiity and accessibiity to oca s is the prime determinant of fuewood consumption by househods. Fuewood dependence and the vaue to the oca economy is we estabished, so whie not as compex to cacuate as NTFPs, there are few statistics showing the extent of dependence on fuewood. Figure 20 and 21 shows fuewood consumption and dependence of househods for the five states coming under Western Ghats. The figure shows that the percentage of quantities of fuewood used from is highest in Maharashtra (47.61%), with the highest cover of 50,632 sq. km., and second highest in Karnataka (27.55%), with second highest cover of 36,132 sq. km. Of the tota fuewood used in Karnataka, 21% comes from the s. As per 2011 Census, fuewood is the primary source of energy for cooking and heating in Uttara Kannada district for both rura and urban areas. About 78.6% of the rura househods of the district use firewood for cooking, whie 0.87% of househod use crop residue and cow dung, and ony 14.7% of the househods use LPG Vauing the contribution of NTFPs and Fuewood to the Househods The data for this anaysis came from nine viages of Uttara Kannada District of Karnataka nearer to the ecoogica samping sites, which woud best capture the peope- dependencies. Three important factors were considered whie seecting the viages: vegetation type, extent of disturbance and proximity to the s. The premise is that viagers iving within area have high dependence on NTFPs for subsistence, and those iving on fringes depend on the NTFPs for sae. The choice of the viages based on the type, distance from the s and disturbance gives us an opportunity to capture the reation between s and NTFP dependence. Based on these sites, we extrapoated the resuts for the entire Uttara Kannada district. Figure 20: Fuewood used in Western Ghats States 2011 Forest Cover No. of persons using fue wood No. of persons using fue wood from Quantity of fue wood used Quantity of fue wood used from Taminadu Karnataka Keraa Maharashtra Gujarat India Source: Authors representation of data from 52

67 Vauation of ecosystem services and biodiversity in the Western Ghats The study found that rura peope sti extract and depend on NTFPs for their subsistence ike food, medicines and buiding materias. Further, in the study area we aso found that there is ot of scope for creating NTFP-reated jobs. This is especiay important in Western Ghats, which can offer huge potentia for NTFP production, aong with deivering other ecosystem services. In order to assess the vaue of fuewood, fodder and non-timber products for the -dependent popuation and to extrapoate for the rest of the Western Ghats region, this study modeed the demand using the househod production function. The househod production function approach gives an understanding of househod behavior. The househod production function is based on theory that an individua househod tries to produce utiity maximizing bunde of goods through combining the time endowments of its members with other variabe and fixed inputs, incuding in this case avaiabe resources (Si et a., 2003). We find that this method is appicabe here as the viages are agrarian, iving on the margin, engaged in agricuture and coecting NTFPs and fuewood. Compete markets for agricutura products exist whie incompete markets exist for NTFPs and fuewood. The househods take a decision on how much time to aocate between coecting fuewood, NTFPs, agricuture, rearing ivestock, as we as other opportunities and time constraints that they have. The decision is aso driven by the amount of endowments that they have, ike and, access to s, income opportunities and househod size. In the study viages, NTFP and fuewood coection is done ony in pubic ands, i.e. s, and the househods do not produce them in their own ands. The ony variabe input in the product coection is the househod time. In the study area, most of the products coected are for persona consumption or for use as input in agricuture (dry eaves for muching, etc.). The househod mode has the foowing impications for our anaysis. The househod aocates the time for NTFP and fuewood coection up to the point at which the margina costs equa the margina benefits from coecting the products. The shadow vaue of time spent coecting products equas the margina utiity of income generated from other activities ike agricutura production, which in our case is the shadow vaue of income. As in rura areas the abour markets are incompete, the shadow wage can be estimated as the vaue of the margina product of abour (Kohin and Parks, 2001). Sis et a. (2003) argue that if mutipe markets are incompete, as is the case with the study area, it is important to obtain reduced form modes, wherein househod behavior is modeed as a function of socioeconomic and environmenta characteristics refecting preferences, technoogy and input endowments, rather than prices. Coection of NTFPs Figure 21: Percentage of (a) Rura and (b) Urban Househods using firewood for cooking in Karnataka (based on census 2011) Baga 92 Bijani 79 Bidar 52 Have 26 Begaum 60 Bagako Begaum 89 Raichi 36 UK 42 Bijani 75 Have Kop 27 Dharwa 48 Bidar 53 Raichi 79 UK 81 Dharwa 89 Gada 59 Gada 58 Kopp 89 Gada 53

68 THE ECONOMICs of ecosystems and biodiversity india initiative and fuewood is a function of different exogenous factors ike the househod size, income from NTFPs, socio-cutura factors (education and caste), househod weath (andhodings, ivestock), househod income, regiona variabes ike area, distance to the, presence of substitutes, etc Seection of Sampe Viages Data was coected through a survey of 9 viages of 458 househods during the months March to May, These viages are characterized by arge popuations dependent on the s for NTFPs in the four zones of evergreen, semi-evergreen, moist deciduous and dry deciduous in the Uttara Kannada District of Karnataka. The seected viages are Kegin Sarkui from Siddapur Tauka (20 househods); Hudeakoppa (32 househods), Ekkambi (56 househods) and Hosur (22 househods) from Sirsi Tauka; Togarai (45 househods), Janageri (21 househods) and Magi (83 househods) from Mundagod Tauka; and Chibbaageri (107 househods), Adikehosur (72 househods) from Haiya Tauka (brief over view of viages given in Figure 22). A these viagers engage mainy in agricuture and casua abour activities. The main occupation of a these viagers is agricuture and casua abour. Dependence of popuation on produce depends on the avaiabiity and accessibiity of such products. The viagers use househod abour for coecting the products. A these viages are ocated within proximity of 2 to 5 km from the s and have very imited opportunities for abour. A preiminary survey was conducted to gather basic information about the viages. Further, a questionnaire survey was conducted to coect information on the diversity of NTFPs extracted, the parts used, their end use as we as the season of coection, and quantity of NTFP gathered per typica trip and quantity coected in a season. The househod schedues mainy consist of information on the socio-economic characteristics of househods, status of fuewood and NTFP consumption, coection in terms of quantity coected, time taken to coect, frequency of NTFP coection, etc. Out of 458 househods surveyed ony, 275 reported to coect NTFPs. Typicay, the househods surveyed use severa different NTFPs to meet their everyday needs. The main NTFPs coected by househods are fuewood, green eaves, dry eaves, fodder, bamboo shoot, poes and fruits, such as mango, Garcinia Indica (Kokum), Jackfruit, Garcinia gumi-gutta (Uppagge), Carrissa, Bueberry, Kouikai, Muohunno, Vaate, Soapnut, Rugusa, Sampigai Hannu, etc Key Findings of the Survey and the Empirica Mode From the survey, it was observed that the range of the products coected varied between househods depe nding on the oca and externa contextua conditions, such as avaiabiity of the resources, the presence of substitutes, abour to coect, the income, famiy size. Not a the househods are engaged in NTFP coection. The survey indicated that whether viagers are activey invoved in coecting NTFPs depends on whether they are staying in the fringes of evergreen s or dry deciduous s. The househods coected NTFP and fuewood from s mainy for subsistence and are not engaged in any type of sae of NTFPs (incuding fuewood) in oca market. Househods are mainy invoved in seasona coection and maintain their stocks throughout the year. Fuewood is the ony source of fue for most of the househod and therefore entire fuewood coection is used for cooking and heating purpose. Apart from fuewood ony few househods use Kerosene as aternate fue, which they get from Pubic Distribution System (PDS). As far as seing of NTFP is concerned, ony few househods are engaged in seing other NTFP products such as Uppage, dry eaves, Gooseberry, Borumoggu, Rugosa, Vaate and Sham bamboo. The coection of NTFPs and fuewood contributes substantiay to the househod income. Tabe 26 shows that the contribution of fuewood ranges from 16 to 37% of househod income in different viages. The evergreen has highest dependence, whie dry deciduous has reativey ess dependence. Simiar is the case with NTFPs: in viages 1 and 2 the percentage contribution of NTFPs is amost 63% and 40% of their annua income. It may be pointed out here that income is aso an approximation by the househods as they try to reca the mutipe sources of earning that they have. Vaue of Fuewood Fuewood is often transported using head oads by foot. Thus the distance to the firewood source, the effort (measure of abour input which is measured as the number of hours spent in coecting fuewood) put in coecting the firewood, number of members in the house (a measure of abour suppy) and the size of the andhodings and ivestock possessed can be some important factors in determining the quantity of firewood coected from s. For detais on methodoogy refer to Appendix 2. Our resuts (refer to Tabe 26) indicated that arge househods coected more products (fuewood) than smaer househods. Ceary avaiabiity of abour 54

69 Vauation of ecosystem services and biodiversity in the Western Ghats Figure 22: Key aspects of the study viages Keign Sarkui (20hh) Tauk: Siddapur Geographica area: ha Popuation: 40,000 Forest area and type: ha, Evergreen s Proximity to s: 2 km Main occupation: Agricuture and casua abour Main crops: Paddy, coconut, pineappe, cashew, arecanut (major crop grown in the vaeys in between s), others-pepper, vania NTFPs coected: fuewood, green eaf, dry eaf, fodder, mango, poes, garcinia indica, jackfruit, uppagge a. Hudeakoppa (30hh), b. Ekkambi (56hh), c. Hossur (22hh) Tauk: Sirsi Geographica area: ha Popuation: 117,000 Forest area and type: , a. Moist deciduous, b & c. Evergreen Proximity to s: a & b 2 km, c 1 km Main occupation: Agricuture and casua abour Main crops: Paddy, Cardamom and vania. Arecanut is the primary crop grown in the viages that suround the town, making it one of the major trading centers NTFPs coected: fuewood, green eaf, dry eaf, fodder, bamboo shoot, mango, uppagge a. Togarai (45hh), b. Janegari (21hh), c. Magi (83hh) Tauk: Mundgod Geographica area: ha Popuation: 107,499 Forest area and type: ha, a & b Moist deciduous, c. Dry deciduous Proximity to s: a. 2 km, b. 3 km, c 5 km Main occupation: Agricuture and casua abour Main crops: Arecanut is the primary crop. Cardamom, paddy. NTFPs coected: fuewood, green eaf, dry eaf, fruits (not much in quantity) a. Chibbaageri (107 hh), b. Adikehosur (72 hh) Tauk: Haiya Geographica area: ha Popuation: Forest area and type: ha, a & b Dry deciduous Proximity to s: a & b 3 km Main occupation: Agricuture and casua abour Main crops: Arecanut is the primary crop. Cardamom, paddy, coconut NTFPs coected: fuewood is one key determinant of fuewood coection. Higher opportunity cost of time transates to ower coection, meaning that the poorer househods depended more on fuewood coection. Higher frequency of fuewood coection with ower coection per trip means that distance pays a major roe in fuewood coection. Peope iving off at a distance tend to coect arge quantities and stock them up whie those staying nearer coect ower quantities but more frequenty. Househods who possessed more and coected more fuewood. This refects the fact that other factors ike tradition, cuture, preference, etc., pay a major roe in fuewood coection. The demand curve derived for fuewood is given in Figure 23. We found a negative reationship between fuewood coected and the opportunity cost of time. If the opportunity cost is ow demand is high. From the demand anaysis, the annua estimated demand for fuewood per househod has been 12,264 kgs. Uttara Kannada has 2,28,877 rura househods and 95,643 urban househods. The dependence on fuewood in rura areas is 79%, in urban area 36%. The survey indicated that a the househods coected fuewood and none of them bought. Based on this the demand for firewood in Uttara Kannada district aone is 2.6 miion tonnes. Ideay the oca market price of fuewood is most suited to use. However, 100% of the viagers surveyed in the region are dependent on fuewood coected from s and none of them reported any market transactions. In such cases, the imputed vaues from neighboring markets may be used (the existing studies impute a vaue of `3/kg) but the study chose to use shadow price, as the markets for fuewood in the region are extremey thin and unrepresentative. On an average househods spent 65 days in coecting the fuewood. The shadow price of fuewood is computed as mean vaue of quantity of firewood coected, the mean hours spent coecting the firewood times the margina product of abour. The mean opportunity cost per day estimated in the mode is `390/day. Based on this the shadow price of fuewood is estimated to be 4.49 `/kg. However, if the existing NREGA wage rate for Karnataka of `204 per day is considered, the shadow price of fuewood is estimated to be `2.32/ kg. Considering the benefit to the entire popuation dependent on fuewood in Uttara Kannada with a area of 7,81,900 hectares, the benefits amount to `8,840 miion rupees (assuming an average of 3.4 `/kg (mid point of `/kg), with a per hectare vaue of 11,306 `/ha. However, if we assume a sustainabe fow wherein approximatey 10,53,613 tonnes (sum of tota potentia sustainabe extraction across types 55

70 THE ECONOMICs of ecosystems and biodiversity india initiative Tabe 26: Viage-wise annua fuewood and NTFP coection and proportion of annua income (at househod eve) Viage Mean Fuewood coected (Kg) Mean NTFP coected (Kg) Mean NTFP vaue Mean annua income (in `) % share of Fuewood in annua income % share of NTFP in annua income Keagina % 63 % Sarkui Hudekoppa % 40 % Ekkambi % 4 % Togarai % 13 % Janageri % 12 % Maagi % % Hosur % 45 % Chibbaageri % Adikehosur 2277 No NTFP coection % - Tota % 10 % Source: Author s compiation of survey resuts from Tabe 23) or approximatey 1.42 t/ha of firewood can be sustainaby extracted (based on the ecoogica study), the vaue per hectare due to firewood extraction (based on the knowedge that whatever is sustainaby extracted is used), the benefits amount to `4590/ha. This sustainabe yied is a very conservative scenario. We assumed that whatever is demanded is suppied from s ony through remova of twigs and branches and not through cear feing. Vaue of ntfps Househod demographics affect NTFP coection patterns. NTFP coection is positivey reated to measures of weath. The coefficient on agricutura weath aso has a positive sign, athough not significant. The positive correation with weath may refect the fact that these NTFPs are not necessities for day-to-day surviva ike fuewood, but rather add some variety to consumption possibiities (see Tabe 27 for the resuts). The househods were asked to impute prices on the NTFPs they coected for consumption, and hence are ower bounds. The viagers staying nearer to the s depended more on the NTFPs, and in fact even those househods which have and are invoved in coecting the NTFPs. The contribution of NTFPs to househod income ranges from 0.5 to 7% per NTFP coected (if househods coect more NTFPs, the contribution is substantia and they usuay coect more than one NTFP) depending on how activey the househods are engaged in NTFP coection. For the househods engaged in the sae of NTFPs ike uppage, kokum and honey, the contribution is quite substantia, which increases vaue addition to the economy (see Boxes 2 and 3). The estimated coection is 3,173 kg/househod. Assuming that the 1.02 miion popuations in rura areas consume NTFPs from s, the derived demand for coecting NTFPs is 720 miion kiograms (based on Tobit estimation). The mean price is `35 per kg (US$ 0.56/kg) across a types. Extrapoating these estimates to the entire Uttara Kannada district based on the econometric mode (Tobit estimation) gives a per hectare vaue of 32,230 `/ha (US$ /ha). This estimate provides an indicative figure of the use vaue of s in Western Ghats in a protected area management regime. The survey was based on reca and it is very ikey that for the products coected reguary accurate responses coud have been recorded in comparison to those coected occasionay. Another key issue is that the price of NTFPs is not efficient market price, but instead refects oca prices as quoted by the househod. Further, no adjustment for time costs were made, as the ony input we assumed in this case is time, and there is ot of debate on whether to deduct these time costs Concusion and Poicy Impications The study reveaed a very high fuewood dependence in oca communities iving coser to the s. Easy accessibiity, absence of fuewood substitutes and cutura practice contribute to this high dependence. The fue is mosty coected from agricutura fieds, 56

71 Vauation of ecosystem services and biodiversity in the Western Ghats Tabe 27: Resuts of the regression anaysis of NTFP coection from the survey resuts Dependent variabe quantity Fuewood coected per trip Ordinary east squares estimation Observations 458 R-squared 0.66 F (13,261) = Coefficient Constant (0.88) Househod size 1.31 (9.31) Opportunity cost of time (-20.17) Average expenditure per month 0.76 (6.43) Frequency of coection (-2.59) Vaue of the and possessed 0.05 (0.96) Viage dummies Coefficient Hudekoppa 0.46 (1.62) Ekkambi 0.13 (0.38) Togarai (-0.32) Janageri 0.58 (2.34) Maagi 0.29 (1.23) Hosur 0.27 (1.05) Chibbaageri (-0.08) Adikehosur.041 (0.16) Note: Figures in parenthesis indicate the t-statistics s, pantations, bottomands, road side pantations. This aso shows that in rura ed areas it is difficut to repace the fuewood and buying the commercia fues wi impose a burden on these communities especiay the poor. On the other hand, heavy dependence on fuewood may aso contribute to the degradation aong with other factors. The tradeoffs here are apparent. The poicies need to address this deicate baance of providing energy security to rura poor versus conserving the resources. Thus there shoud be more pantations of the fuewood species to take care of the energy needs of the communities. The departments in the Western Ghats region take an active roe in afing its and non- ands, distributing seedings to the farmers, promoting agro-ry, and invove oca peope in protection, panning and management of s. Sti the efforts are not sufficient as the s are being degraded. As trees are opped by the community for the firewood needs, it might impact other services provided by s. Aongside conservation, poicies shoud address the fue dependence and provide aternatives or manage the sustainaby taking into account the fue requirements of the oca communities. Figure 23: Demand curve of fuewood Logarithm of price of fuewood (opportunity cost of time) Quantity of fuewood coected (ogarithm) The resuts show that NTFP offers very good opportunities for informa job creation. The activity is unorganized in the region as a resut of which information on actua quantity coected, consumed, sod and the dynamics of market price coud not be assessed. It is important to maintain inventoried information on the NTFP yieding species, the number, and potentia quantity produced, coection for sefconsumption, sae and commerciaization aspects of the species for impementing NTFP poicies. At the moment the prices of NTFPs are not efficient as there is no information on the demand and suppy of these products. There is an opportunity to invove ocas in inventorying the information simiar to the Peope s Biodiversity Registers. Further, the contribution of this sector has been negected in the poicy making. The right over the resource ies with the state government. But rights of use can be given to certain communities or groups to expoit the NTFPs. Most of the products which are of high commercia vaue are reguated by the state government through the viage committees or the department. For most of the commerciaized species the rights to harvest NTFPs are auctioned and the winning bidder or contractor according to ocas is an effuent business person who has compete contro over the trading and marketing of the extracted NTFP for the entire range. The contractors hire oca peope to harvest. As the ease is given for a period of ony 2 years, the contractors do not ensure sustainabe extraction of NTFP products. In the case of honey, bees are poisoned: this is highy condemned. The non-commerciaised NTFPs can be extracted even by communities iving in and around areas. Not having appropriate poicy on sustainabe management of NTFPs can ead to indiscriminate use 57

72 THE ECONOMICs of ecosystems and biodiversity india initiative Tabe 28: Imputed vaue of NTFPs coected and key features of the coecting househods NTFPs Qty. coected No. of hh. Coecting Imputed price (` Avg. qty coected Avg. vaue of Avg. vaue of % of surveyed Avg. Annua Avg. hh size (in kg) NTFP /Kg) per hh. coection/ hh. sae/ hh. hh reporting coection income Garcinia Indica Koui kai Mue hannu Chae kai Carrissa Bamboo shoot Uppage A sod Jackfruit Bueberry Mushroom Koui hannu Sampigai hanun Mango Fodder Source: Author s compiation based on survey resuts Tabe 29: Tobit mode parameter estimates for NTFP Tota observations Left Uncensored observations = 145 pseudoikeihood = Quantity of Estimate Margina effects NTFP coected (dependent variabe) Househod size 0.498(1.54).498 (1.54) Price of NTFP (-14.11) (-14.11) Weath of the 0.120(1.72).120(1.72) househod Opportunity (-0.75) -.127(-0.75) cost of NTFP coection Educationa years (0.06).0018(0.06) Constant 7.150(6.70) of the resources. During our survey, it was pointed out that Uppage (Garcinia Cambogia) trees have been feed indiscriminatey. Garcinia is a species of utmost importance to ocas in maintaining sustainabe fow of benefits to the society and economy. Uttara Kannada region has an abundance of this species. The seeds of this species are used by househods to make butter. This species has acquired high commercia importance and hence has been expoited. The survey of communities indicated that the sustainabiity of the species has to be ensured and be panted in agricutura ands and other communa ands. The harvesting behaviors need to be reguated and the harvesting rights and regimes shoud be set in such a way that the conficts between the oca harvesters and the migrant harvesters (from different ranges) are minima. Coectors are mosty driven by necessity to harvest the species as it is an important source of iveihood for them. Therefore, they tend to extract eary, thus owering the quaity of Uppage and Kokum. There shoud be imits to extraction per harvester depending on the mean annua increment, which shoud be assigned by the Forest 58

73 Vauation of ecosystem services and biodiversity in the Western Ghats Departments. From our survey we found that 100% of the coectors cimb and puck fruits and aso coect faen fruits. They aso at times remove fruits by sticks and by shaking the trees, which is an unsustainabe practice. From our anaysis we found that price and per unit profit of Uppage is more, and thus of more commercia importance, which is posing a threat in the form of over-extraction of the species, so the avaiabiity is decining by 25 30%. Unpredicted variations in temperature and rainfa (cimate change) are affecting the outturn of the species. There is a need for training and awareness camps for sustainabe extraction. The roe of middemen shoud be minimized and the oca community shoud be given direct access to the market. The conservation and regeneration of NTFP species is not a priority for many of the species, so efforts shoud be made to ensure that NTFP yieding species are sustained. There is no restriction on coecting the products and no guideines for how the NTFPs are to be coected. Further, the ocas were of the opinion that ony few of the timber species are prioritized but not the NTFP yieding species which shoud be highy prioritized on a war footing basis. In the study region, there are few cooperative societies who procure NTFPs from s invoving rura dweers and create ot of vaue addition to these NTFPs. Some of the NTFPs commerciaized by these societies or groups incude wid honey, tamarind, Kokum, Ama, soapnut, etc. They invove women and generate ot of empoyment (for exampe Kadumani, Kadamba, LAMPs society). The Forest Department eases certain areas to such cooperative societies. For exampe, in Karnataka, 23 arge-sized Adivasi Muti-Purpose Co-operative Societies are working in the State with the objective of improving the socia and financia conditions of the Adivasis. Their prime aim is to coect and market produce by the triba peope and improve the financia position by providing empoyment. In , around 94,452 members are enroed in these societies and the societies make meagre profit. According to a study by Ambina Kudige (2011), tribas coud make as much as `200 per day by coecting and seing NTFPs to these societies, which is more profitabe than working in the coffee pantations. Such empoyment creation through primary cooperative institutions invoved in NTFP procurement, processing and sae shoud be encouraged. Even the ocas directy se the product to the traders at very ow prices. The traders often have very high margins. The Government coud think of a minimum support price so that the harvesters or the ocas can get an assured price and the conservation of NTFP species is encouraged. However, the househods and midde men fet that VFCs and the societies have contro over resources, and so they are given a very ow coection price. The community aso fet that they require technoogica support (e.g. driers). Government invovement is aso required to stop unsustainabe harvest of fuewood from the s. To make the sector ucrative, profitabe, and sustainabe, and encourage ocas to take up the job of primary coectors of NTFPs aong with being eaders in conservation, it woud benefit NTFP management to be inked to the NREGA scheme. More coordinated efforts are required to demonstrate the potentia vaue of NTFPs from the s in India and their roe in poverty aeviation, creation of empoyment, foods security, and income generating opportunities. The market potentia of the NTFPs is aso not known and the deveopment of markets is required for many species. Recognizing the demonstration and capture of NTFP vaues in the decision-making framework heps conserve the Western Ghats ecosystems. The government shoud pay an active roe in tapping the untapped potentia of the NTFPs in the Western Ghats and put a break on monocuture pantations. An excusive poicy on NTFPs shoud be impemented, recognizing their importance to oca iveihoods Vaue of Carbon Reguatory Service The benefits of carbon sequestration are estimated from the biophysica measures given in the earier section. Carbon sequestration ceary depends on the vegetation type, species mix, the organic matter content of the species, the age distribution, soi, cimate and the beowground biomass. Using the estimates that we derived earier, we vaued carbon sequestration in More coordinated efforts are required to demonstrate the potentia vaue of NTFPs from the s in India and their roe in poverty aeviation, creation of empoyment, food security, and income generation 59

74 THE ECONOMICs of ecosystems and biodiversity india initiative Box 5: Vaue Addition by Garcinia indica, Garcinia cambogia or Garcinia gumi-gutta Garcinia species are evergreen trees and shrubs unique to the Western Ghats area, as 17 of the 35 species found in India are endemic to this region. Two species commony used by househods incude Garcinia indica and Garcinia Cambogia, or Garcinia gummigutta. Garcinia indica, known as kokum butter tree, requires 7 to 8 years to bear fruit. The rind of the fruit is dried, stored and used for cooking. The species is very popuar, as it can be grown in homesteads and orchards as we, and does not require any fertiizers or pesticides. Garcinia Cambogia or Garcinia gummi-gutta, popuary known as Maabar Tamarind and Uppage Hui, is aso used as spice by the oca peope. Uppage and Kokum are harvested from reserved s, sopina betta, homesteads and orchards (usuay privatey owned) during the monsoon season. Among the 43 coectors that we surveyed in different viages of Uttar Kannada district, 23 of them coect Uppage and 20 coect Kokum. In a, 87% of uppage coectors and 70% of kokum coectors coect from s. The rest of the coectors get from homestead or orchard. After coection the fruits are deseeded by househods and the rind is dried for use. The processing has to be competed in a day due to funga infection. As the coection is done during monsoon when sun drying is not a feasibe option, fuewood is used to dry the rind. Approximatey 22 kg of firewood is required to get 1 kg dry Garcinia fruit rind with the traditiona open fire system. The temporary processing units are situated within the, which is a huge hidden cost to the ecosystem (Sma Grants Programme, MOEF). The firewood used for this is usuay coected from s itsef. This is a major concern for the Forest Department as the revenue earned from auctioning trade rights does not commensurate with the oss of biomass (Rai and Uh, 2004). The processed fruit and dry rind is sod by the coectors/harvesters to the agents appointed by the contractor at a pre-determined price. We have estimated from the survey that the coectors get on an average 28% of their income from sae of Garcinia. 100% of the coectors cimb and puck fruits and some coect faen fruits. Sometimes fruits are removed by sticks and by shaking the trees. The coectors are of the view that seing Garcinia directy to fina consumers instead of middemen yieds them better prices, up to an extent of 5-15%. The vaue addition at the contractor eve is `30/kg (US$ 0.48/kg). The agent charges commission for each kiogram bought. Our survey indicated that 52% of the Uppage coectors se to the retaier, whie 48% se to whoesaer. Among Kokum coectors, 65% of those surveyed sod Kokum to the retaier, whie 35% sod to whoesaer. According to our survey, in tota 1552 kg of Kokum was coected and sod at an average price of `66.25/kg (US$ 1.07/kg) and 9900 kg of Uppage was sod at an average price of `134.56/kg (US$ 2.17/kg). We have computed the average per unit profit of Uppage is `83.21 (US$ 1.34) and that of Kokum is `47.12 (US$ 0.76). The average cost of processing into dry rind is 46.75/kg (US$.75/kg) and `17/kg US$ (0.27/kg) for Uppage and Kokum respectivey. The 6 whoesaers from Siddapura Tauka of Uttar Kannada district that we surveyed deat ony with raw Garcinia or Garcinia processed in the form of dry rind, and are engaged in commercia trading in the oca markets as we as inter-state markets such as Bombay, Keraa, Bangaore, Dehi, Andhra Pradesh, Uttar Pradesh, Madhya Pradesh and Maharashtra. Forest was the main source of Garcinia for four of them whie the remaining two got from homestead and orchards. The average per unit profit was computed by us at `11.66 per kg (US$ 0.19) for Garcinia indica and `30 70 (US$ ) per kg for Garcinia Gummigutta. The four retaiers that we surveyed in Sirsi town of Uttara Kannada district engaged in seing processed (vaue added) Garcinia products such as kokum, kadi, squash, butter, seed, dry rind, white kokum jam, and terms of the socia cost of carbon. Varying estimates are avaiabe based on the emission scenarios, damage and abatement functions considered, and the choice of discount rate, since the Nordhaus (1991) and Cine (1992) studies. The most conservative estimate of socia cost of carbon used in iterature has been $20 per tc as the estimate (see the discussion summary in Atkinson and Gundimeda, 2006). However, there has been some discussion on the appropriate estimated socia cost of carbon, and the atest estimate of $37/tC seems an appropriate estimate (see Gundimeda and Atkinson, 2014, referred as UNU-IHDP and UNEP, 2014). The fied eve anaysis showed that in the district of Uttara Kannada, the tota stock of carbon is MtC, which is equivaent to 672 MtCO2. The annua carbon sequestered in s of Uttara Kannada is

75 Vauation of ecosystem services and biodiversity in the Western Ghats se these processed products directy to consumers. The profit depends on the product sod ranging from `5/kg (US$ 0.08/kg) in case of seeds to ` /kg (US$ /kg) in case of kokum butter. The average vaue addition at the contractor eve is approximatey `48 (US$ 0.77) per kg. Average proportion of income from sae of Garcinia products to tota annua income is 7.5%. Figure 24 gives the graphica representation of vaue addition by stakehoders in the Garcinia vaue chain Viage traders aso engage in seing uppage and kokum rind to other sma buyers from other regions that operate in the back market. The presence of back market ensures that the market price is kept high. The prices vary from region to region, as the viagers from different regions aso benefit from high prices. This difference in prices is due to ack of reguation after the auctioning of the contract, as a resut of which there are conficts between the contractors, agents and traders during the harvest season. Figure 24: Graphica representation of vaue addition (`/Kg) by stakehoder of Garcinia vaue chain Uppage 105 Avg. price Kokum Coectors NVA Avg. NVA Avg. NVA price price Coectors/ Whoesaers 105 Agents/ Retaiers Source: Author s representation of survey resuts. Note: The average price (`/kg) indicates the average seing price of each stakehoder and the NVA 105 tc/ha/year, based on the ecoogica samping of the study site. The vaue of this stock of carbon is based on the distribution of different types in Uttara Kannada district aone and has been estimated using avoided socia costs. Socia cost of carbon is the extra cimate change impact that woud be caused by the emission of one more tonne of carbon dioxide in the atmosphere. Thus the benefit of carbon sequestered in the s is the avoided socia costs, which is estimated at `756 crores (US$ 124miion) annuay, equivaent to `9673/ha/year (US$ /ha/year) which woud accrue to the goba community. The vaues accrue to the goba community as we, which can be appropriated and traded on vountary carbon markets. In India, the corporate sector can offset their emissions by investing in Western Ghat ecosystems The Economic Opportunity from Tourism In severa countries across the word ecotourism is gaining popuarity and contributes a ot to the economic growth of the countries. For exampe, in countries ike USA and Canada, the economic impact of tourism has been between US $236 US $370 biion in the year 1996 (Eages, P.F, 2010). In Brazi, tourism is responsibe for 5.3% of GDP through contributions from food services (22.6%), air transportation (17.9%), ground transportation (16.8%), hotes and other odging (12.9%), secondary residence (8.9%), and cutura services, recreation and eisure (8.5%) among others (Fecha, 2010). However, the exact roe of protected areas in attracting tourists has often been undervaued and not documented propery. The prime reason for the ack of vaue is because the data is not coected systematicay, eading to pacing a ow vaue on the parks. The ack of vaue or undervauation often eads to degradation of the natura areas. In India, despite a ot of investment in the parks, ack of funds eads to mismanagement of the resources. Due to the ecoogica importance of Western Ghats, Uttara Kannada can have high potentia tourism vaues. Panchmukhi et a. (2008) study shows that the tota recreationa vaue of s in Karnataka constituted 0.02% of GSDP at current prices for Using Dandei-Anshi Nationa Park and Sanctuary as a case study (Figure 26), the study tries to demonstrate the true economic vaue of the Park. Protected areas benefit the oca, regiona and nationa economies in severa ways. They have severa direct, indirect use and non-use vaues. The direct benefits from protected areas stem from the money injected into the economy directy as a resut of visitors spending. Some of the parks aso get funds from different internationa agencies, which coud benefit the oca economy significanty. The money is injected in the form of spending on entry fee, transportation, accommodation, food, attractions and oca shopping. Part of the expenditure goes in the form of tax revenues and some are absorbed by the oca, regiona or nationa 61

76 THE ECONOMICs of ecosystems and biodiversity india initiative Box 6: Honey Vaue Addition in Uttara Kannada District Honey bees provide two crucia ecosystem services in form of honey (Provisioning services) and poination services (Reguating services) which are both in direct and indirect form. Poination services are essentia for deveopment of fruits, vegetabes and seeds. According to FAO, food security, food diversity and human nutrition depend strongy on anima poinators, however, poination services have been very itte understood, as they are provided by biodiversity at essentiay no cost at a. FAO identifies cardamom in Western Ghats as a key crop for good poination practice managed by boom sequences to keep poinators in fieds. Beekeeping is a and agro-based industry that enabes humans to derive direct benefits. According to Environment Information System (ENVIS) Technica Report, 2012, Apis, of the famiy Apiade, is the main genus of honey bee that accounts for the buk of honey production. The genus Trigona from the same famiy is the minor producer of honey. The district of Uttar Kannada has three species of Apis and one species of Trigona. ENVIS made an attempt to survey across 83 viages in the district and surveyed about 105 bee-keepers. According to the survey resuts, the tota honey production from the district, based on househod surveys, was about 10,424 kg in 2011, at a district average of 6.68 kg/ per bee box. The study made an estimate of the vaue of beekeeping for the Uttara Kannada district. A survey was conducted in Coorg district (aso known as Kodagu) and Uttara Kannada. In tota we surveyed 7 respondents (2 from Coorg and 5 from Uttara Kannada), out of whom 5 were honey coectors and two were traders. The resuts here are based purey on the responses of the interviewed stakehoders. The coectors are engaged in coecting honey directy from s whie the traders purchased honey from the coectors; the marketing society purchases honey from the harvester s association. Figure 25 is a graphica representation of vaue addition by stakehoders in the honey vaue chain. The tota revenue earned by a the stakehoders engaged in honey coection and trading is `17,99,440 (US$ 28,985.87) for 16,476 kg of honey. This vaue was attained after adjusting for the costs of honey coection and processing. Processing costs `41,100 (US$ ) for that amount of honey. Empoyment aspects have been ignored. The rate approximates to `2,57,062 per househod per year (US$ 4,140.82/househod per year) or `110 per kg (US$ 1.77/kg) of honey produced. Figure 25: Graphica representation of vaue addition (`/kg) by stakehoders of honey vaue chain Cost Coectors Traders society Price at oca market (unprocessed) 140 Price at Traders society/contractors 265 Price at Loca market (processed) Net vaue added (unprocessed) 135 Net vaue added (processed) economies. The increased expenditure may generate more activity in other reated sectors in addition to providing income generating activities and empoyment for the oca peope. Thus the oca, regiona and nationa economy woud benefit depending on the extent of tourism and the type of tourists visiting the park. Some of the indicators can be the expenditure incurred by tourists, the number of businesses depending on tourism and their turn over, contribution of tourism to househod incomes, the number of jobs supported, and the extent of tax revenue generated by tourism. Some economic sectors in particuar benefit more from tourism, and these benefits coud accrue directy to the stakehoders, businesses and society. For exampe, the sector which woud have greater impact coud be Hotes and Restaurants. More overnight visitors means arger benefits to odges and resorts. The sector woud create temporary and permanent jobs resuting in fow of money in the economy through wages and saaries. These hotes and restaurants procure materias 62

77 Vauation of ecosystem services and biodiversity in the Western Ghats Figure 24: Dandei-Anshi Tiger Reserve in Uttara Kannada fee is evied, figures do not refect the rea consumer surpus that the tourists derive by visiting the park. These non-use vaues thus cannot be measured directy. Hence, one can use techniques ike the contingent vauation methods or trave cost modes to get the non-use vaues. In the contingent vauation method, a hypothetica market is created for the service generated by the protected area and a hypothetica demand curve is estimated for the good under consideration. The key criticism of this approach is the eve of understanding required by the respondent to be abe to propery vaue the good in question and aso the reevance in a Deveoping Country setup. The trave cost method approximates the vaue of the park using the expenditure incurred in visiting the park. Here the expenditures incurred are used as a surrogate for the price paid by that visitor for the site s use. The tota cost incurred in visiting the park in turn depends on the distance, famiy size, interest in environmenta conservation, income, etc., which impact the visitation rate. From the demand curve, one can estimate consumer surpus as a proxy for the vaue paced by tourists on the park. However, this method gives ony the use vaue and not the existence or intrinsic vaues. Source: viagemap from other businesses ocay or in adjacent areas resuting in further increase in economic activity. In addition the tourists hire transportation services, oca guides, etc., resuting in further income generating opportunities for the oca economy. Thus the tourism sector aso has some spiover effects through backward and forward inkages in the economy, which have to be taken into consideration whie estimating the vaue. The arger the inkage, the greater woud be the impact of tourist spending on the economy. In addition to the direct benefits, protected areas have ecoogica, intrinsic and spiritua vaues. Whie the direct and indirect use benefits coud be captured through the market transactions, these non-use vaues fa outside of the market pricing system. For exampe, some of the parks do not have entry fees and this is by no means a refection of the fact that tourists do not vaue the park. Ninan (2007) in his study estimates that the net resource benefits from Dandei Widife Sanctuary is 18.1 US$/ha/year at prices, at 1% discount rate. Moreover, where the entry Survey Methods and Description of Sampe Area Dandei Widife Sanctuary situated in the city of Dandei is spread over sq. km and is the second argest widife Sanctuary in Karnataka. Aong with Anshi Nationa Park, it has been named Dandei-Anshi Tiger Reserve (Figure 27). The Dandei Sanctuary and Anshi Tiger Reserve is mainy comprised of moist deciduous and semi-evergreen s and is a natura habitat for widife: the Sanctuary is home to tigers, eopards, back panthers, eephants, Gaur, deer, Anteopes and many kinds of Crocodies and snakes. Some of the birds found in Dandei widife sanctuary incude the goden-backed woodpecker, crested serpent eage, white breasted kingfisher, grey hornbi, great pied hornbi, and the Maabar pied hornbi. Recenty, it has aso been notified as a Hornbi Reserve. The area has a popuation of more than 20,000 peope iving within and on the periphery of the boundaries. In the Anshi Tiger reserve, there are pockets of revenue and where agricuture is practiced. The Sanctuary attracts many oca and foreign tourists. Adventure sports ike kayaking, canoeing, and mountain biking, white water rafting, and widife safaris, are the main attractions for the tourists in Dandei. According to the Panchmukhi et a. (2008) 63

78 THE ECONOMICs of ecosystems and biodiversity india initiative study, the recreationa vaue of the Sanctuary was about `1.8 crores in , which was more than the revenue earned by the state. Apart from the Sanctuary, Supa Dam, Syntheri Rocks, Kavaa Caves, Uevi tempe are some of the other spots that tourists visit often. Figure 25: Dandei-Anshi Landscape after decaration of Tiger Reserve Toos and Methods Used in Estimating the Vaue of the Dandei-Anshi Tiger Reserve We engaged in face-to-face interviews in Dandei Widife Sanctuary and Anshi Nationa Park by interviewing the park visitors present at the ocation at the time of our survey during June The tourists were interviewed outside the Sanctuary (as soon as they came out of the widife safari), in the resorts, homestays, and when they were resting. Most of the tourists surveyed came in groups, and hence we coud survey around 75 groups (450 individuas in a). The prime purpose of this survey is to understand visitors reason for visiting, their spending patterns, their socio-economic backgrounds, their attitudes towards the environment in genera and the Western Ghats in particuar, and their perceptions. Dandei-Anshi Tiger Reserve region is entirey scenic and has mutipe sites and attractions. Visitors may visit any one of these or a combination of them, so our survey is not for a singe site, but for the entire area spanning Dandei-Anshi Tiger Reserve. Hence, we have not made any attempt to vaue the site-specific characteristics of different sites. From the sampe surveyed we obtained a trip generating function, for which obtaining visitation rates is crucia. We used a variant of the trave cost method, wherein the number of hours spent on site per trip was used as a dependent variabe and the trave costs (onsite costs, off-site costs), time costs, socio-economic characteristics of study participants, distance from the pace of origin, trip type dummy and awareness dummy were used as expanatory variabes. We incuded time costs based on the individuas income or wage rate, however most said that they visit their site during their eisure time. We asked the tourists about the expenditure incurred on different activities, which were aggregated to get the on-site and off-site costs. If tourists came in a group and in their persona vehices, we computed per individua cost based on the mieage of the vehice, the distance traveed and the fue consumed. Group costs were a function of group size, number of aduts and chidren and distance traveed. We ooked at the average costs and then normaized the figures by distance traveed. Group size was not incorporated as a variabe into the econometric mode. We did ask the respondents about substitute sites, but some of them did Source: DATR ( ) not have any idea about the possibe expenditures that coud be incurred for the substitute site. Nonetheess, they mentioned that they woud visit a simiar natura park in another area. Based on this trip generating function, we obtained a demand curve for the site from which consumer surpus from recreation for the study period has been estimated. In the process of ensuring demand curve, we ensured that there is no oss in statistica integrity. That is, we seected suitabe variabes for the mode using standard procedures of regression and correation anaysis. As we found that the distance traveed and the expenditures are correated, we used the number of hours spent on site per every kiometer traveed by the tourist as the dependent variabe and the expenditure incurred per kiometre of trave as one of the independent variabe. In addition, we incuded distance as one of the expanatory variabes. To be abe to transfer the resuts from the sampe to the popuation we divided the visitors into three categories depending on their average expenditures and 64