Research Article
A Total Economic Valuation of Wetland Ecosystem Services:
An Evidence from Jagadishpur Ramsar Site, Nepal
Sony Baral,
1
Bijendra Basnyat,
2
Rajendra Khanal,
1
and Kalyan Gauli
3
1
International Union for Conservation of Nature, Kathmandu, Nepal
2
Institute of Forestry, Pokhara, Nepal
3
Multi Stakeholder Forestry Programme, Lalitpur, Nepal
Correspondence should be addressed to Sony Baral; sonybaral@gmail.com
Received 18 February 2016; Revised 1 August 2016; Accepted 2 August 2016
Academic Editor: Sunil Nautiyal
Copyright © 2016 Sony Baral et al. Tis is an open access article distributed under the Creative Commons Attribution License,
which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Wetlands are the most productive ecosystem and provide wide arrays of wetland ecosystems (goods and services) to the local
communities in particular and global communities in general. However, management of the wetland ofen does not remain priority
and recognized as the unproductive waste land mainly due to poor realization of the economic value of the wetlands. Taking
this into account, the study estimated the total economic value of the Jagadishpur Reservoir taking into account direct, indirect,
and nonuse value. Te study prioritized six major values of the reservoir which include wetland goods consumption, tourism,
irrigation, carbon sequestration, biodiversity conservation, and conservation for future use (existence and option value). Te study
used market and nonmarket based valuation techniques to estimate total economic value of the reservoir. Household survey, focus
group discussions, and interaction with the tourism entrepreneurs and district stakeholders were carried out to collect information.
Te study estimated the total annual economic value of the reservoir as NRs 94.5 million, where option/existence value remains
main contributor followed by direct use value such as wetland goods and tourism and indirect use value, for example, carbon
sequestration, biodiversity conservation, and irrigation. Te study reveals that the local communities gave high importance to the
future use value and are willing to make investment for conservation and restoration of reservoir given its conservation signifcance.
1. Introduction
Wetlands are amongst the most diverse and productive
ecosystems of the world and are of immense socioeconomic
importance [1]. Wetlands provide wide arrays of goods and
services to the local communities and also the people living
outside the periphery [2]. Wetlands provide numerous goods
and services to society, supporting millions of people around
the world. Indeed, the goods and services help life support
system, conserve biological diversity, and act as safety net
and an environmental insurance against the impacts of
climate change and ecosystem degradation [3]. Ramachandra
et al. found that anthropogenic activities impact physical,
biological, and chemical processes of wetlands, which impair
the ecosystem functioning causing decline and degradation
of ecosystem services and also economic value of wetlands.
Te global values of direct goods from wetland and associated
ecosystems services have been estimated at US$14 trillion
annually [4]. Tey provide food, fodder, fuel, and water
for domestic, irrigation, and industrial purposes. Tey are
critical for contributing to poverty reduction. Furthermore,
it also serves as the kidney of the landscape because of
functions they perform in the hydrological and chemical
cycles [5]. Despite their signifcant role in maintaining the
healthy ecosystem and contribution to the local livelihoods
of the people, wetlands are under threat due to degradation
of catchments and water diversion leading to changes in
water regimes. Many parts of the world have experienced
loss or degradation of wetlands mainly due to agricultural
use, urbanization, excessive exploitation by local populations,
and poor planned developmental activities [6]. Globally,
several studies on economic valuation of wetlands have been
carried out; however very few studies which focus on the
total economic contribution of wetlands have been carried
Hindawi Publishing Corporation
e Scientific World Journal
Volume 2016, Article ID 2605609, 9 pages
http://dx.doi.org/10.1155/2016/2605609