Willingness to Pay for Forest Conservation: An Empirical Investigation in Simlipal Forest

Abstract

Abstract The use and non-use values of environmental goods and services are often discussed in literature. This study shows suitability of using contingent valuation method (CVM) in forestry analysis, and applies both closed-ended and open-ended bidding formats to determine the willingness to pay of forest conservation cum non-use value of Simlipal forest in India, from the perspective of forest dwellers. Since the use value is market determined and non-use values go beyond market mechanism, this type of valuation exercise keeps relevance in natural resource conservation and management. Findings of the study clearly highlight eagerness of forest dwellers in natural resource preservation so as to enjoy its benefits in a sustainable manner. Analysis of the key factors affecting the valuation result recommends that development planning should be oriented towards reducing vulnerability of forest dwellers’ life which arises mainly due to miserable economic conditions in the absence of proper livelihoods. Though the forest dwellers get provisioning services from forests, they are also aware of the role of forest in supporting and regulating environmental balance. Hence the study is suggestive of the fact that government’s incentive-sharing mechanism within the ambit of existing participatory forest management system should need corrective measures so that the local communities can derive adequate economic benefits from it for their sustenance, which eventually would reduce forest dependence and ensure ecological integrity. JEL Classification: A14, C50, C81, I3, Q2, Q51