An Ecological Economic Valuation of Forest Ecosystem in Dindigul District of Tamil Nadu, India

Objectives: To evaluate the total economic value of hill ecosystem by studying the direct, indirect, optional, existence values and the ecotourism.

Methodology: Direct use values were analysed using hill area, timber production, non-timber hill products, recreational value and employment generation. Indirect use value was measured with replacement cost. Option value was measured as the ratio of the usable income to the present use value. Contingent valuation was used to study the Existence value of the hill ecosystem. Travel cost was estimated by fitting the semi log function for consumer surplus estimation.

Findings: Sirumalai hill had higher direct use value of 311.22 lakh rupees as compared to Palani hill with 89.77 lakh rupees and it was higher by 246.68%. Sirumalai hill had higher indirect use value, option value and existence value than the Palani hill by 33.31%, 10.59% and 10.19% respectively. Sirumalai hill thus had higher total economic-ecological value than the Palani hill by 10.09%. Consumer surplus per trip per person was estimated as the inverse of the travel cost coefficient and it was ₹3704 for Sirumalai hill. The number of visits undertaken per person was 4 for Sirumalai hill and hence the consumer surplus per annum per person was ₹14816. Taking into account the number of persons visiting the site, the estimated total consumer surplus for Sirumalai hill was ₹86.90 crores.

Application: Such a comprehensive ecological- economic evaluation of hill ecosystem and application of travel cost model was not carried out in Tamil Nadu and the study is a novel one.