1. LOK NATH LAMSAL M. Sc First Year Roll no 03 Lamsal
2/7/2014
2. Outline of the presentation Introduction Conceptual
framework Soil valuation Total value of soil conservation
Appropriate valuation method for soil conservation Analysis of
different methods Conclusion Lamsal 2/7/2014
3. The deteriorating condition of soil in Nepalese hills and
mountains first came in to the picture after Eckholm (1975) wrote
the Theory of Himalayan Environmental Degradation referring that
anthropogenic factor is the main causes of accelerated erosion and
subsequent degradation across the Himalayan region. Active geology,
steepness, fragility, high rainfall etc are also equally
responsible for the soil degradation in the Nepalese hills (Ives,
2004; Blaikie, 2001). Lamsal 2/7/2014
4. Valuation of the stream of benefit and cost with and without
conservation cases would give more accurate picture of the private
and social worth of these improved conservation technologies.
Lamsal 2/7/2014
5. The concept of the conservation of soil takes into account,
the strategies for preventing the soil from getting eroded and
preventing it from losing its fertility due to an adverse
alteration in its chemical composition. Valuation means the act of
valuing, esp a formal assessment of the worth of property,
jewellery, etc. an appraisal of the value of something. Economic
valuation: The process of expressing a value for a particular good
or service in a certain context (e.g., of decision-making) in
monetary terms. Lamsal 2/7/2014
6. The value of soil is determined by the stream of benefits it
provides to society. Benefits are reflected in peoples willingness
to pay (WTP) as indicated by real market transactions or through
evidence on preferences from which values can be derived. However,
some soil services, and especially the support of landscapes and
biodiversity and the protection of archaeological interest, are not
valued in markets. Lamsal 2/7/2014
7. Total Economic Value (TEV) =Direct-use value + Indirect-use
value + Option value + Existence value Use value Non use value
Direct use Indirect use Option value Food , Timber, NTFP. Habitat
for animal and micro organism Carbon sequestration and future
direct and storage, water storage and indirect uses flow mediation,
Nutrient cycling, support construction, support for ecology and
biodiversity, climate regulation Lamsal 2/7/2014 1)Existenc e
value. 2) Bequest value.
8. Function Value Method Food, Timber, Direct use value Carbon
sequestration and storage Water storage and flow mediation Support
for construction Direct and indirect use value Market based
approaches, production function approaches Market based and cost
based approaches Cost based approaches and stated preference method
Cost base approaches ( WTP of buyers ) Production function
approaches, contingent valuation method Stated preference method
Use and non use value Use value Support for ecological habitat Use
and non use value and biodiversity Archaeological site/artifact
protection On site and offsite conservation Use and non use value
Use and non use value Cost based and stated Lamsal 2/7/2014
preference method
9. Valuation method Description Strength and Weakness Example
Market based approaches Interaction between consumers and producers
with regards to the demand and supply of goods and services.
Standard, accepted economic techniques. Does not measure TEV. Gross
value of crop production. Production function/change in
productivity method Estimate the economic value of ecosystem
products or services that contribute to the production of
commercially marketed goods Single use systems Soil fertility
easier. improves Multiple use production crop yield function
approach are more problematic. Risk of double counting Cost Based
approach 1) preventive expenditure approach Environmental services
can be valued by looking at how much it would cost to set in place
measures to prevent the damage arising from their loss. Easy,
simple. Do not directly measure WTP for environmental goods and
services Lamsal 2/7/2014 Flood control, siltation barriers
10. Valuation method Description Strength and Weakness Example
ii)Damage avoided approaches Environmental services help to avoid
economic costs Easy, simple. The costs of destruction to Do not
directly houses, roads, bridges and measure WTP for farms caused by
flooding. environmental goods and services. iii) Replacement or
repair expenditure Examining the potential costs of restoring or
replacing productive assets lost or degraded due to project impacts
or improper management. Easy, simple. Do not directly measure WTP
for environmental goods and services. The benefits of implementing
improved agricultural practices in upland soil areas can be
reflected in the cost of replacing soil and nutrients that would be
lost through erosion. Lamsal 2/7/2014
11. Valuation method Stated preference method Description
Contingent valuation a random sample of respondents for their WTP
(or WTA) for a clearly defined good. Respondents must be reminded
of substitute goods, budget constraints. strength and weakness
Example 'constructed market' - i.e. a we can obtain use and non-use
hypothetical market which is values. presented to a respondent in a
questionnaire. Only generally-accepted method for estimating
non-use values, which are not traded in markets. CV is based on
what people say they would do, as opposed to what people are
observed to do, is the source of its greatest strengths and its
greatest weaknesses. Doubts about their reliability for estimating
willingness to pay. Lamsal 2/7/2014 Especially for ecological
services and biodiversity.
12. No single method is enough for appropriate valuation of
soil conservation due to its multidimensional role. Cost based
approaches and market based approaches are easy and simple but not
capture the ecological, biological role of soil and people's
willingness to pay. Production function approaches which is complex
and tedious for multiple output but gives accurate if data were put
appropriately. Lamsal 2/7/2014
13. Contigent valuation provides both use and non use value of
soil conservation and gives a appropriate valuation which consider
all the function that relate on a soil conservation. But due to its
hypothetical market. respondent biasness, validity of output may
not be reliable. Lamsal 2/7/2014
