Economic valuation of forest soils - Study published in Current Science

The study area was located in Halol Range,Panchmahal District, Gujarat, stretching between long. 22°25′41″N and 22°29′06″N, and lat. 73°31′23″E and 73°35′35″E. Preservation plots present in the study area were selected for the current study.

It is gradually being realised in recent years that the forests have many indirect benefits such as improvement in the quality of forest ecosystem, besides playing a key role in maintaining and sustaining the livelihoods of the local people in the area. However, the status of the forests is deteriorating over the last few decades.

Under-estimation of the contribution of forests, lack of awareness regarding the important role of the forests in maintaining the ecosystem and lack of presence of systematic means or methods for valuation of forest products and services have led to gradual degradation of the forests.

Estimating the values of forests, i.e. economic valuation and understanding how different components of this ecosystem interact with the income and welfare of rural households is a key step towards sustainable use and management of forests.

The principal motivation for economic valuation of the environment is to make it possible to include environmental impacts in terms of cost–benefit analysis (CBA). In the case of forests, the economic  valuation of this resource can enable decision-makers to include the impact of restoration activities in terms of CBA.

This will make it possible for organisations who are carrying out forest conservation activities to accurately identify and measure investments and costs related to such activities, generate data and analyse the data. This will not only help in developing better insights into the potential benefits of these investments and costs, but will also improve the efficiency of activities and play an important role in supporting rational decision-making.

Studies on economic valuation of forest soils in India are sparse. The present work on environmental accounting of forest soils of Halol Range, Gujarat highlights the cost and benefit related to the resources. The work reflects the real contribution of different forest restoration activities carried out in this area.

For the present study, soil samples were collected in 2009 from different forest sites (which are at present established as forest preservation plots and in the past were open forest area) in the Halol Range, viz. CSO Plot,Semialata Plot with lac, Semialata Plot without lac, Pavagadh P.P. Plot (lower part) and Pavagadh P.P. Plot (middle part). The soil nutrient data for 1997 were acquired from the Forest Department (FD).

The soil samples thus collected were dried and sieved using a 2 mm sieve. Soil parameters like pH, electrical conductivity (ECe), carbon (C), nitrogen (N), phosphorus (P) and potassium (K) were tested following standard methods of analysis. The fertility of the soils was measured based on the NPK content, ECe and pH value of the soil, and any change in the soil fertility status of the different sites was calculated based on the replacement value method of NPK10.

The CBA of forest soils of the Halol Range as a result of changes in soil fertility status over period of 12 years highlighted the importance of restoration activities of the forest department. Economic valuation of a single nutrient showed that there was economic loss of Rs 948.29/ha in case of N and economic benefit of Rs 2123.99/ha and Rs 5112.28/ha in case of P and K respectively (during a period of 12 years). Thus economic valuation of a single nutrient during both 1997 and 2009 respectively, highlighted the benefit occurred due to P and K and loss due to N.

The paper ends by arguing that these facts have highlighted the importance and relevance of the forest development activities. The CBA of changes in fertility of forest soils of the Halol Range can be taken under the category of indirect cost of environmental cost category in the forest management accounting system. However, such studies and the values generated from them can prove to be useful in strategic planning and decision-making processes of the forest department.

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