Economic Valuation and Benefit Transfer of Restoring the Teesta Riverine Ecosystem

Abstract

This study seeks to understand the socio-economic and ecological impacts of the hydroelectric power projects along the upper basin of the river Teesta in Sikkim. This study estimates the non-market benefits of restoring the Teesta riverine ecosystem and evaluates the transferability of welfare estimates. This study is a first of its kind undertaken in the Teesta basin which uses a unique dataset of 830 households obtained from the affected regions of the river basin. During the study, nine villages adjacent to the river Teesta, dams, and powerhouses were identified and surveyed. Double bounded dichotomous choice questions were used to elicit willingness to pay (WTP). Both the logistic and normal distribution models were fitted and the results were mostly similar. The median WTP was INR 373.00 and the variables that described the rating on dams, ownership of property, monthly expenditure of the household, informal employment status, and satisfaction about the state of the river Teesta were among the significant variables in the model. The benefit function value transfer estimated was INR 232.00 with the percentage transfer error (PTE) of 61.9%.