Indirect-use Value Research Articles

Unveiling the Value of Nature: A Comprehensive Analysis of the Ecosystem Services and Ecological Compensation in Wuhan City’s Urban Lake Wetlands

Urban lake wetlands play an essential role in providing ecological services, promoting urban sustainability, and enhancing the quality of urban life. This study quantitatively assesses the ecosystem services value (ESV) of the Zhangdu, East, and Ziyang urban lake wetlands in Wuhan, China, based on primary survey data and methodologies, including the market price, shadow engineering, and travel cost methods. The ESV is categorized into direct use value (DUV), indirect use value (IUV), and non-use value (NUV). Our findings reveal that the non-use value proportion is significant, amounting to 1.569 × 108 CNY × yr−1 for Zhangdu Lake, 1.527 × 108 CNY × yr−1 for East Lake, and 1.060 × 108 CNY × yr−1 for Ziyang Lake. This indicates a high willingness to pay among respondents, reflecting a recognition of the value of wetland services. In addition to the non-use value, this study underscores the considerable material production, water conservation, and leisure tourism value that these urban lake wetlands provide. The assessment of ESV delivers a scientific basis for the management and protection of urban lake wetlands. It also highlights the challenges faced, such as pollution and fragmented management approaches due to unclear property rights and insufficient funding. This study concludes by emphasizing the need for future research to explore mechanisms that promote social participation in wetland management, with the aim of enhancing the overall ecological health of urban lake wetlands.

Economic valuation of Pade'an Hamlet mangrove forest, Jarangan Village, Rejoso District, Pasuruan Regency, Indonesia

The mangrove ecosystem has enormous benefits for the community, especially for people who live on the coast, including the mangroves in the Pade'an Hamlet, Jarangan Village, Rejoso District, Pasuruan Regency. This study aims to determine the economic value of mangrove forest in Pade’an Hamlet area using total economic value approach. This study used descriptive analysis to explain the activity of utilizing the natural resources of the mangrove ecosystem and quantitative analysis to calculate the total economic value of the mangrove ecosystem. The economic value of mangrove forests in the Pade'an Hamlet area per year is IDR 10,092,881,400.00. The total economic value obtained from the direct-use value (utilization of the fisheries sector) amounted to IDR 7,593,550,000.00/year, indirect-use value (abrasion restraints) amounted to IDR 2,335,952,000.00/year, option value (biodiversity) amounted to IDR 13,379,400.00/year, and existence value calculated from the willingness to pay of the local community is IDR 150,000,000.00/year. The magnitude of the total economic value of the mangrove ecosystem in Pade’an Hamlet area indicates that the mangrove ecosystem provides huge of essential benefits to the community.

KAJIAN ASPEK EKONOMI PENGELOLAAN HASIL HUTAN DI HULU DAS WAE RIUPA KABUPATEN SERAM BAGIAN BARAT

Forest assessments to quantify Total Economic Valueave been carried out in many countries. The development of forest valuation, apart from forest products that have a market goods. Nowdys various methods of calculating forest product economic value that cannot be determined by the market system (non market goods) have developed. This study examined the economic aspects of forest product management in the upper watershed of Wae Riupa, West Seram Regency. The results showed of calculating the value of direct use Direct use Valuethe value of indirect use (indirect use-value) of Rp. 1. 645,920.00, -, the option value is Rp. 458.642,449, -, optional benefits of Rp. 11. 384,651,002, and the total economic value (TEV) of 13.489,213,451, -.ost of the potential forest products used and managed by the community in Rambatu Village come from forests, including timber forest products, various kinds of rich animals, non-timber forest products, and environmental services.

Economic valuation of mangrove ecosystem in Cilamaya Wetan, Karawang, West Java

Cilamaya Wetan has 738 hectares (ha) mangrove forest which provides real functions and benefits to the local community ecologically, physically and economically. The ecosystem is typically crucial, hence the benefits and values need to be identifed and estimated economically. The purpose of this study was to estimate the economic value as the basis of the conservation program. Research on economic valuation was conducted in March-May 2019. The method was applied to estimate total economic value (TEV) consisted of direct-use value (fuelwood collection, seed collection, and nearby fishing activities); indirect-use value (natural barrier to shoreline erosion, food source for animal and carbon potency for sequestering CO2), option value (biodiversity benefits), and existence value (willingness to pay). Results showed that the TEV of mangrove ecosystem in Cilamaya Wetan per year accounted for 419 billion rupiah or equivalent to IDR 568,067,635/ha/year or equivalent to 39,753 USD/ha/year.

Total Economic Value of Mangrove Forest in Pangkah Kulon and Pangkah Wetan Village Areas, Ujungpangkah District, Gresik Regency, East Java Province

Mangrove ecosystems have enormous benefits for the community, especially for people living on the coast. The problems in the management of mangrove forests in Pangkah Kulon and Pangkah Wetan Villages are people did not consider the importance of mangrove ecosystems in terms of economics. The purpose of this study is 1) analysis community perceptions of the mangrove ecosystem; 2) estimating the total economic value of the mangrove ecosystem in Pangkah Kulon and Pangkah Wetan Villages. Data analysis in this study used descriptive and quantitative analysis. Descriptive analysis is used to explain the activity of utilizing mangrove ecosystem resources, while quantitative analysis is used to calculate the perceptions and total economic value of mangrove ecosystems. The method of selecting respondents was purposive and snowball sampling, with a total number of respondents 60 person. Perception analysis using a Likert scale, analysis of the total economic value for the direct-use value using the price of resources used, indirect-use value using replacement costs, and option value using benefit transfers. The average perception of respondents has a value between 3.60 to 4.60, this mean that respondents agree and strongly agree to the functioning of mangrove ecosystems, both in economic, socio-cultural, ecological and physical functions, and respondents have a high dependency on mangrove resources. Analysis of the potential total economic value of the mangrove ecosystem is Rp. 97,547,237,496/year. The total economic value obtained from the direct-use value (utilization of the fisheries sector) amounted to Rp. 51,672,497,300/year, indirect-use value (abrasion restraints and sea waves) amounted to Rp. 45,161,544,004/year, and option value (biodiversity) amounted to Rp.713,196,192/year. The total economic value of the mangrove ecosystem in Pangkah Kulon and Pangkah Wetan Villages shows that the mangrove ecosystem provides great benefits for the community. Keywords: direct-use value, existence value, indirect-use value, mangrove ecosystem, option value, total economic value

Does amazonian land use display market failure? An opportunity-cost approach to the analysis of amazonian environmental services

The article discusses whether deforestation in the Amazonian region should be considered a typical case of market failure and computes the opportunity cost of economic activities that promote deforestation relative to uses that keep the forest intact. For environmental resources threatened by Amazon deforestation, forms of productive land use (“opportunity” uses) are considered in terms of the net benefit values of primary land-based activities. The accounting exercise conducted in this study calculates the net benefit per hectare obtained from the direct use value (DUV) for different land use alternatives (timber, non-timber, livestock and agriculture); the indirect use value (IUV) related to carbon storage; and the non-use value (NUV) (existence value). The results show that the opportunity cost of deforestation in 2009 was positive for the most common land use, livestock activity. Such findings indicate a market failure. Nonetheless, this is not the only possible outcome when considering alternative land uses.

PRESERVATION MODEL FOR SUBAK IN BALI FROM ENVIRONMENTAL ECONOMICS PERSPECTIVE

: This study aims to determine the social benefits, the total economic value of Subak andpreservation models of Subak in terms of the environment economics aspect. The research was conducted inthree Subaks: Subak Sangeh in Badung, Subak Bungan Kapal in Tabanan and Subak Padang Tegal inGianyar. The social benefits value of Subak was determined by calculating the values of direct use, indirectuse value and the value of alternative uses (option value), while the Total Economic Value was determinedby the sum of use value and non-use value. The determination of Subak preservation model utilizedinvestment eligibility criteria, namely Net Present Value (NPV) and Net Benefit Ratio (B/C). The findingssuggest that, regarding to the environmental economics aspect, the Subak system is feasible and worthwhileto be preserved, as shown by social benefits NPV greater than zero and social benefits Net B/C greater thanone. Based on these findings, Subaks in Bali should be managed properly to sustain their environmentalfunctions and proper environmental economic assessment should be conducted as a reference for the effortsto avoid the conversion of Subak farmlands into other functions.

Analyzing preference heterogeneity for soil amenity improvements using discrete choice experiment

Understanding the soil’s economic value is essential in promoting stakeholder participation for its sustainable use and efficient management. However, its less tangible ecological functions have not been measured by conventional market-based valuation approaches. From the decision-making perspective, indirect-use value provides a robust apparatus for examining soil-use alternative and management options. In this study, we analyzed the value of specific soil ecosystem services as indicated by the stakeholders’ willingness to pay (WTP) for soil amenity improvements. Using a choice experiment in the Philippine town of Norzagaray, Bulacan, we analyzed the motivations and preferences in soil utility and conservation. Our results showed that in general, the respondents have a positive attitude toward spending for soil improvements. Preference heterogeneity was found to be influenced by spatial determinants and by the socio-demographic characteristics of individual respondents. The results revealed that the respondent’s education, income level, and environmental awareness had significant influence on stakeholders’ preference and WTP values. Spatial determinants including environmental risks and proximity to amenities were likewise found to explain preference heterogeneity. Despite methodological limitations, this study improves our understanding of soil’s explicit value, stakeholder perception, and preference variability, which is useful in designing and implementing more sustainable soil-use management and conservation initiatives.

What are Freshwater Mussels Worth?

Historically, little thought was given to the value of freshwater mussels when making decisions that affected these animals and their habitats, even though these values may be considerable, and may be greatly changed by environmental alterations. Here, I review several kinds of values provided by freshwater mussels. Direct-use (market) values of mussels were substantial when the mussels were harvested to provide buttons and pearls, amounting to about $10 billion (2017 dollars) in the USA alone. Current harvests are much smaller but still valuable. Mussels also provide indirect-use value through the ecosystem functions that they provide (water clarification, nutrient cycling, pathogen suppression, etc.). The monetary value of these functions may be substantial, but has not yet been estimated. As interesting, rare creatures, freshwater mussels may also have existence value to society. This value probably is small at present, but could be increased greatly through outreach and education, as could their option and bequest values (the value of saving them for the future). The total value of a freshwater mussel community would be the sum of direct use, indirect use, existence, option, and bequest values, and has not yet been estimated for any real mussel community. Alternatively, one could calculate the replacement value of freshwater mussels (the cost of replacing a mussel community that was damaged or destroyed); procedures for estimating replacement costs have been published. Despite uncertainty about the precise value of freshwater mussels, it is clear that they have substantial value to humans, possibly many millions of dollars in individual ecosystems, which should be taken into account in environmental decision making. Mussel ecologists and biologists can play important roles in helping society better value freshwater mussels.

DAMPAK REHABILITASI KAWASAN WISATA EKOSISTEM MANGROVE TERHADAP MASYARAKAT DI KELURAHAN BERBAS PANTAI KOTA BONTANG T

purpose of this study was to determine the impact rehabilitation of mangrove ecosystems. This study conduced during amonth in Berbas Pantai Village, Bontang District. The result showed that the negative and pasitivr impacts of the rehabilitation activites. The positive impact the rehabilitation is the area used as torist are and braek water erosion. Eventough the high cost and lack of success in the area for rehabilitation direct positive impact on the community as a tourist areas in based on the regression model and obtained values Rp1.310.168 the average value of visitor to the mangrove ecosystem in 2015 amounted 12,375 and the numbers trvel to mangrove ecosystem result is obtained Rp4.632.382 hectare/year.Indirect Use Value (IUV) are the benefits of mangrove ecosystems indirectly. The physical benefits are benefits of the mangrove ecosystem as a drag abrasion estimated by replacement cost of manufacture concrete beach for Breakwater (break water). Negative the impactofthis activityisa considerable costforthe rehabilitation of mangrove ecosystems that this Rp21.795.000 of replanting mangrove ecosystem. Then, from the manufacture of garden toursand a lack of supervision of the local government for the sustainability of this region. The total value of mangrove showed Rp-16.301.380 This shows the magnitude of the negative impacton the value of compare positive impact on mangrove ecosystem rehabilitation.

Factors explaining the use-value of sport event experiences

Purpose – The purpose of this paper is to propose and test a model explaining the value of event experiences. Design/methodology/approach – Three versions of the explanatory model are tested by regression analysis of data from a survey of 650 visitors to a sports event. Findings – The three model versions are significant and explain the value of event experiences with satisfactory R2 values (0.29, 0.46 and 0.68) using the concepts “Extent of visit”, “Experience intensity” and “Expenditure”. The measures of event experiences (Use-Value, Direct Use-Value as well as Indirect Use-Value) meet requirements for reliability and validity. Originality/value – The paper reveals that explanatory models are basic but novel in a sports event context and provide a basis for further research. Furthermore, the definition of Indirect Use-Value has been clarified and adapted for higher relevance to destination managers focusing on event tourism.

Use-Value of Music Event Experiences: A “Triple Ex” Model Explaining Direct and Indirect Use-Value of Events

To describe the value of event experiences remains a challenge for event research. Recently, use-value has been successfully applied to event valuation, drawing on extensive research and a validated methodology from environmental and culture economics. The objectives of this study are first to define direct and indirect use-value in an event context, second to suggest an explanatory model for direct and indirect use-value and third to test this model against data from 714 visitors to a three-day music festival. The results show that the concepts can be defined, measured and validated. The “Triple Ex” model gives a good fit to data and reveals significant influences from the three ex: experiences, extent of the visit and expenditure for the visit. Socio-economic variables are not significant. The model is suggested as a first step towards a better understanding of how use-value is created and more detailed studies of time and space dimensions of the three factors are proposed for further research.

Multi-Criteria Decision Modeling for Environmental Assessment. An Estimation of Total Economic Value in Protected Natural Areas

The conceptualization of Total Economic Value (TEV) associated with protected natural areasnecessarily requires an analytical reordering that ensures a simultaneous incorporation of natural, social andeconomic components. Based on this purpose, the present paper uses a multi-criteria decision modeling forthe economic valuation of environmental goods and services (EGS) in the Vinales National Park (PNV) basedon a combination of methods such as the Analytic Hierarchy Process (AHP) and the Goal Programming (GP)with other traditional such as the income updating method. The proposed procedure allowed estimate anindicator of Total Economic Value (TEV) and its different components: Direct Use Value (DUV), Indirect UseValue (IUV), Option Value (OV), Existence Value (EV) and Bequest Value (BV). The obtained results represent a contribution from economic science to the definition of environmental policies, allocation and distribution of financial resources, as well as the design and implementation of management plans or other strategic projections.

A Comparative Analysis on the Socio-economic Welfare of Dependents of the Anamalai Tiger Reserve (ATR) in India

Biodiversity is a valuable and yet poorly understood natural resource, depleting rapidly through human interventions. The economic value of biodiversity in a forest ecosystem includes its direct-use value and indirect-use value for the ecological regulatory services it provides. The Western Ghats is one of the world’s 25 biodiversity hotspots and forest ecosystem that are protected as the Anamalai Tiger Reserve (ATR). This study was undertaken with the objective of asserting the consumptive and passive use values of the ATR as well as to examine the people’s attitudes towards consumption and sustainable use of natural resources and forest biodiversity. To estimate the direct-use value, the sample respondents, namely, agriculture and forest dependents within the fringe areas and tourist dependents in urban areas, were selected. Education and income were positively related to per capita consumption expenditure and were highly significant. Family size and landholdings had negative influences on both agriculture and forest dependents and tourist dependents. It was concluded that the development of ecotourism will reduce forest dependents and enhance their income through tourism-related occupations by creating more employment and other related income-generating activities besides protecting the valuable natural resources through optimal and sustainable use.

Community and ecotourist perceptions of forest conservation benefits:a case study of Mabira Central Forest Reserve, Uganda

The different interests in forest resources by various stakeholders may result in differences in perceived value of forest conservation. In order to test this hypothesis, we compared the valuation by international ecotourists and local respondents of the perceived benefits of the Mabira Central Forest Reserve. The factors that influenced respondents’ valuation of forest conservation were also investigated. Describing a hypothetical scenario to elicit respondents’ willingness-to-pay (WTP) for forest conservation was the central part of the questionnaire. The WTP;income ratio was used to estimate respondents’ perceived value of forest conservation. A chi-square (χ 2) test indicated significant association between respondent category (local and tourist) and categories of perceived benefits (p-value = 0.001). The locals were more interested in direct-use values while the tourists showed greater interest in the indirect-use values. A Student's t-test showed that the WTP:income ratios of the locals were much higher than for the ecotourists (p-value < 0.001). This implies that the local communities had a higher valuation of forest conservation than the ecotourists. Regression analysis revealed that all other factors being constant, the WTP of respondents who perceived direct- and indirect-use value as the most important forest benefit was significantly higher (p < 0.05) than those who perceived no value by $5.8693 and $0.02628, respectively. The respondents who rated the contribution of the ecotourism project to community development as moderate had a significantly higher WTP compared to those who rated it as low by $6.6908. Overall, these results indicate that the benefits people derive from the forest either through direct or indirect uses influence valuation of forest conservation. Results also indicate that although ecotourismrelated benefits improved attitudes towards forest conservation, ecotourism alone may not be an adequate conservation tool because of the limited support it can provide to the local community.

Can we avoid overdevelopment of river floodplains by economic policies?: A case study of the Ouse catchment (Yorkshire) in the UK

River floodplains are significant environmental resources in that they provide multiple ecosystem services. However, river floodplains are/tend to be overdeveloped because indirect-use values linked with ecosystem services are overlooked by private landowners. In a case study of the Ouse catchment, it turns out that river floodplains tend to be overdeveloped in upstream areas because of a unidirectional spatial externality. We set a simple model that considers both direct- and indirect-use values to analyse the social optimisation. The essential point is that we must consider two types of environmental externalities related to the ecosystem services of river floodplains to make decisions on floodplain development. First, the development of river floodplains has opportunity costs in terms of lost ecosystem services. Second, the development of floodplains increases flood risks to people downstream (imposes a unidirectional spatial external costs). Theoretically, we can easily deal with the problem by zonal economic policies: zonal taxes or subsidies (price policies) and zonal marketable permits or transferable development rights (quantity policies). On the practical side, however, there are so many problems. Then, such approaches are too complex to use. First of all, we have to specify real complicated economic and physical systems which show non-linearity, irreversibility, site-specific relationships, and inter-dependency between systems and sites. Secondly such policies should be ‘zonal’, which might impose substantial transaction costs. In order to apply them to real situations, we have to determine the appropriate number of zones, their sizes and geographical shapes, and then set appropriate rates or amounts of permits in each zone. Furthermore, the determination of zones is difficult because of the trade-off between the internalisation of externalities and implementation costs of policies, which are also related to political frictions and market failure.

The projected costs and benefits of water diversion from and to the Sultan Marshes (Turkey)

The Sultan Marshes in the Develi Basin, Anatolia, one of twelve internationally important wetlands of Turkey, have been severely affected by the construction of an irrigation project in 1988. Intensive use of surface and ground water in irrigation has caused more than a 1 m decline in water levels and has affected the wetlands' ecological characteristics. Previous studies indicate that Sultan Marshes will need more water to restore viable ecological conditions. In this study, we analyze how economic benefits from agriculture and wetlands would be affected if moderate amounts of water were diverted from agriculture back to wetlands in the Develi Basin. By estimating total and marginal costs and benefits associated with water diversions, we determined the optimum or economically-efficient amount of water diversion. When only direct-use values of the wetland (animal grazing, plant harvesting, and ecotourism) were included in the analysis, the optimum amount of water diversion to the wetlands was found to be 5.2 million m 3 year − 1 (165 L sec − 1 ), which compares to about 62 million m 3 year − 1 (1,957 L sec − 1 ) used in irrigation. When wastewater treatment benefits (an indirect-use value) were added, the optimum amount rose to 7 million m 3 year − 1 . Overall, the analysis showed that water diversion from agriculture to the Sultan Marshes is economically preferable.

Conservation strategies for Africa's large mammals.

Africa's large mammals are conserved for their aesthetic, scientific and economic values. Many of these species face a gloomy future precipitated by a combination of factors directly and indirectly influenced by the activities of man, including habitat loss, overexploitation, poor management of designated protected areas, and the vulnerability of small isolated populations. Africa's designated protected areas and biodiversity hotspots are also under threat, highlighting the importance of embracing community participation to address accelerating poverty and malnutrition. Innovative strategies are required for the conservation of Africa's mammals, such as the integration of a wide range of species in the production landscape, including the farming community. Transfrontier conservation areas (TFCAs) have been established with the combined objectives of conserving biodiversity, creating new jobs in the tourism and wildlife industry, and promoting a culture of peace. These areas extend far beyond traditional national parks, providing opportunities for integrating large mammals into sustainable land-use practices, at the same time as addressing some of the continent's more pressing socioeconomic needs. Research on African mammals will inevitably have to change direction to accommodate the growing threats and changed circumstances. Priorities will include the identification of corridors associated with TFCA establishment, the determination of the economic value of certain species in consumptive use programmes, research on contraception as a management option in restricted areas, and further work on the indirect use value of species. There will also be worthwhile opportunities to be pursued with ex situ conservation programmes, but these need to be focussed more efficiently.

Economic Valuation of the Non-use Attributes of a Wetland: A Case-study for Lake Kerkini

Wetlands are an environmental feature which deliver a variety of market and non-market goods and services. Established environmental economic theory separates the value of these goods and services into direct-use values, indirect-use values and non-use values. Given appreciation of all three, measurements can be derived to demonstrate the amount of public money that it may be feasible to allocate to the sustainable management of wetlands. However, in many cases, non-use values are ignored and the total economic value of wetlands can be severely undervalued. As a result, inadequate resources are fed into their management and environmental degradation occurs due to inappropriate commercial exploitation of the natural resource. Lake Kerkini, in northern Greece, is one such wetland area threatened by undervaluation and overexploitation for commercial purposes, and a resource whose management would benefit from the realization of non-use values. This study therefore uses the contingent valuation method to place a value on the non-use attributes of Lake Kerkini. It also examines the relationship between the revealed non-use values and the distance people live from the lake, highlights the personal characteristics which appear important in determining total willingness to pay and breaks total non-use value down into its component parts to suggest the most important non-use elements. The paper concludes that sustainable management of the lake is justified and provides evidence that substantial public monies are potentially available to protect and enhance the environmental value of the resource.

Sustainable Use of Wetlands Valuing Tropical Wetland Benefits: Economic Methodologies and Applications

Tropical wetlands are increasingly disappearing as the result of development decisions. Common examples are the conversion of mangrove swamps to fishponds, diverting water away from river floodplains, draining wetlands for agriculture and other land uses, and over-loading wetlands with pollution. Too often, such development decisions are taken without considering the loss in wetland benefits arising from damages and conversion; the underlying assumption is often that the net benefits to society of any development option must presumably be greater. However, there is much evidence to suggest that this assumption is not always correct. Many tropical wetlands are being directly exploited, often through non-market, 'informal' economic activity to support human livelihoods, e.g. through fishing, hunting, fuelwood extraction and water supply. Some of the ecological functions of wetlands, such as flood control, storm prevention and groundwater recharge, may provide even wider benefits through protection or support of economic activity and property. Finally, some wetlands comprise unique natural environments and habitats, which are of considerable value. The basic methodology for assessing and valuing the economic benefits of tropical wetlands is relatively straightforward, but difficult to apply because of data and resource constraints. Preliminary applications in Central America suggest the importance of ranking wetland characteristics and distinguishing between direct-use values, indirect-use values and non-use values. A further application in a Nigerian floodplain shows how calculation of a few direct-use values alone - for agriculture, fuelwood and fishing - demonstrates that wetland benefits are significant, particularly when contrasted with the benefits from irrigation projects that are diverting water away from the floodplain. The analysis shows that sustainable use of the floodplain can yield substantial economic returns to local inhabitants, and these benefits should not be excluded as an opportunity cost of any scheme that diverts water away from the wetland system. Finally, a case study of a mangrove system in Indonesia illustrates how the degree of 'environmental linkages' between the components of the system are critical in determining the extent to which the mangrove forest can be exploited for woodchip production.