By: |
Verghese, Shalet;
MG, Chandrakanth |
Abstract: |
Conceptual development in the theory of externalities have opened up several
policy options for their internalization including payment towards
environmental services. Hence as externalities are social costs,
accountability is crucial in increasing environmental awareness and for
collective action through education and extension more so in developing
countries. Here a modest attempt has been made to estimate externalities in
water, forests and environment with field data from peninsular India to refl
ect on the economic perception of externalities by farmers and users of
environment for the consideration of policy makers to devise institutions for
payment towards environmental services. The methodology largely used here in
estimation / valuation of externalities is by considering €طith
Â€Ó without€٠situations (including €آefore Â€Ó after€٠in some cases)
akin to €ذroject valuation€ٮ Studies cover empirical estimation of
externalities inter alia due to over extraction of groundwater , sand mining,
watershed development, conservation of forests, sacred groves, cultivation of
organic coffee, use of medicinal plants as alternate medicines and the annual
values presented are in 2008 prices. The negative externality due to sand
mining 24 Â‚Ì per acre, that due to distillery effluent pollution is 34
Â‚Ì per acre. The positive externality due to watershed program is around 51
Â‚Ì per acre, and that due to rehabilitation of irrigation tanks is 26 Â‚Ì per
acre. The positive externality due to cultivation of shade coffee is 9 Â‚Ì per
acre and that due to forest conservation 27 Â‚Ì per acre. The positive
externality due to sacred grove conservation was 12 Â‚Ì per family. The impact
of forest conservation on Non timber forest products was 88 Â‚Ì / per tribal
household. The positive externality due to use of medicinal plants as
alternate medicine is equal to 35 Â‚Ì per patient suffering from
osteo-arthritis and 19 Â‚Ì per patient suffering from peptic-ulcer. While
these estimates are not sacro sanct as the methodologies for valuation of
externalities are subject to further review and improvement, they however
serve as initial indicators of spillovers. And they signal possibilities for
consideration of policy makers for devising alternate institutions for
potential payment towards environmental services. |
Keywords: |
Consumer/Household Economics, Demand and Price Analysis, Environmental Economics and Policy, Research and Development/Tech Change/Emerging Technologies, Research Methods/ Statistical Methods, Externalities, Environmental services, Sustainable development, |
Date: |
2008–08–25 |
URL: |
http://d.repec.org/n?u=RePEc:ags:uasbcp:43617&r=tur |