Valuing non-market benefits of human dominated small mangrove forests in Sri Lanka

Abstract

The inabi lity of economists and policy makers to recognize the values of non-market benefits includingcritical ecological, socio-economic and non-use functions of mangroves has been one of the majorreasons for large scale conversion of mangroves into destructive uses. Recent attempts byenvironmental economists to put values to non-market benefits of ecosystems are far from complete.Non-market benefits of Sri Lankan mangroves have not been studied adequately. Using contingentvaluation method, this study estimated the economic values of non-use benefits of mangroves in SriLanka, local existence value at US$I.7/hh/yr (US$883 ha+yr'); global existence value at US$24/hh/yr (US$1398 ha+yr'); local option value at US$2.9/hh/yr (US$1491 halyr'); global option value atUS$18/hhiyr (US$l 039 hal/yr"); local bequest values at US$3 .3/hh/yr (US$1714 halyr"); foreignbequest value at US$l . I/hh/yr (US$562 halyr'). The socio-economic factors affecting the WTPwere established using tobit model. Using benefit transfer method, economic values of ecologicalfunctions of mangroves were estimated as fish breeding at US$0.55/hh/yr (US$218/ha'lyr'I); erosioncontrol at USO.O l/.hh/yr (US$3 .6/ha'ly['I); biodiversity maintenance at US$0.05/hh/yr (US$18/ha'lyr'I); carbon sequestration at US$0.19/hh/yr (US$75.5ha'lyr,l) and the storm protection at US$0.19/hh/yr (US$76.8/ha,1 yr"), Destruction of small mangroves can be reversed by recognizing the non-marketvalues in mangroves forest use decision making.