Assessing the financial contribution and carbon emission pattern of provisioning ecosystem services in Siwalik forests in Nepal: Valuation from the perspectives of disaggregated users

Abstract

Provisioning Ecosystem Services (PS) from the forests contribute much to peoples’ livelihoods as well as to the national economy. Previous studies have been constrained by their primary focus on biophysical quantification of PS through modelling and mapping or aggregated monetary valuation, while little attention has been paid to the issues of the distribution of financial benefits among the different forest subgroups. Using market price and substitute good price methods, this paper assesses how local users exploit financial benefits and emit carbon from the use of PS in two dominant community-based forest management systems (community forestry—CF and collaborative forestry—CFM) based on proximity (nearby vs. distant users) and socio-economic class (rich vs. poor users) in the Siwalik region, Nepal. Results indicated that the wealth level of the users plays a key role in the amount of financial benefits generated from the use of PS: (1) users living near forests receive the highest economic benefits compared to those living long distances from the forest area. However the distribution of benefits differs according to management modality and socioeconomic status; (2) CF users, on average, receive higher economic benefits than CFM users; and (3) compared to poor households, rich households receive higher benefits. On average, a rich household adjacent to CF receives USD 1214/year while a poor household living in the same area receives almost half of that (USD 630/year). Similarly, a poor household living far from a forest area generates USD 189/year, slightly higher than that of a rich household in the same area (USD 109/year); and (4) an average CF user emits more carbon (7.4 tCO2/HH/year) from the consumption of PS than an average CFM user (5 tCO2/HH/year). Finally, we discuss the reasons behind these differences and draw policy implications for developing and refining constitutions and operational plans of forest user groups.