Abstract

Paddy rice is the staple food in Taiwan, where rice farming always plays an important role in agricultural activities. The paddy fields and irrigation activities hold diversified functions, such as production, eco-environmental and living-associated functions. This paper is to provide information regarding the potential magnitude and monetary value of seven functions of paddy fields in Taiwan, including flood mitigation, fostering water resources, preventing soil erosion, purifying water, cooling air temperature, refreshing atmosphere and recreation. For quantification of the above values, replacement cost method (RCM), contingent valuation method (CVM), and the travel cost method (TCM) are adopted. In addition, the ratio of monetary value and their rice production commodity value (R) was also estimated. The results indicated that the flood mitigation function had a monetary value of US$ 389 million each year, and the ratio to the rice production value R was estimated at 37%. Water resource fostering function was US$ 501 million and R at 47%; soil erosion reduction function was US$ 433 million and R at 41%; water quality purification function was US$ 3 million and R at 0.3%; cooling air temperature function was US$ 961 million and R at 91%; refreshing air function was US$ 196 million and R at 19%, health and recreation function was US$ 987 million and R at 93%, respectively. Due to the significant importance of these externalities, it is recommended that the government should properly take into account the multifunctionalities in policy making to ensure sustainable development of agriculture.

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