Economic valuation of restoring and conserving ecosystem services of Indian Sundarbans

Conservation of forest ecosystem is fundamental for economic-ecological sustainability. Indian Sundarbans provide several ecosystem services, which needs sustainable exploitation since forest dwellers are heavily dependent on the forest. In our study, we attempt to estimate the option value of the forest dwellers through a non-market based valuation technique. Using contingent valuation, we seek to estimate the contribution forest fringe dwellers are ready to provide for restoration and conservation of the ecosystem services. Assuming a random utility framework, mean willingness to pay is estimated from the forest dwellers’ responses to the Dichotomous Choice bidding as well as open-ended bidding question using socio-economic variables which determine the value towards forest ecosystem services. The results indicate that forest dwellers have a positive option value and hence are willing to forgo present extraction of forest resources for future use. This value the forest dwellers associate with non-use ecosystem services indicates their willingness to participate in forest conservation. The study therefore concludes that institutions like Joint Forest Management should be promoted for efficient management of the mangrove in providing livelihood and ecosystem services