VALUATION OF LAKE BIODIVERSITY –ESSENTIAL TO CONTROL WATER POLLUTION IN LAKESLAKES

A Paper presented at lake 2008,Dec 22 24 2008 IISc BangaloreDec 22-24 2008 , IISc, Bangalore

H. R. UMAReader in Economics

Department of Studies in Economics and Co-Operation, Manasagangotri, Mysore

ABSTRACT:The valuation of environmental resources and biodiversity as a whole has become an increasingly necessary topic of research as our understanding of the importance and benefits of the proper functioning of the environment increases. This paper is an effort towards the p psocioeconomic importance of Lake Biodiversity and the importance of economic valuation to conserve the same. Due to high rate of industrialization and also lack of awareness of the people about the relevance of conserving wetlands for sustainable development, more than 50% of the lakes all over the world have extinct during thethan 50% of the lakes all over the world have extinct during the previous century. Many are dying slowly. There is an urgency to protect and conserve them irrespective of the economic status of the country. Economic valuation is highly recommended as a means to achieve it.This paper tries to explain this point with comparative case study of two lakes in Mysore District by applying Contingent Valuation Method

Introduction

Biodiversity is not a market good and does not have any evident price. Biodiversity is a good example of what economists call agood example of what economists call a public good. A public Good has two peculiar characteristics, 1. One person’s enjoyment or use of it does not preclude anyone else’suse of it does not preclude anyone else s enjoyment or use of it. 2. It is impractical to exclude other person from enjoying or using it Public goods are typically under suppliedit. Public goods are typically under supplied since there is no market mechanism to stimulate its supply.

Contingent valuation Method (CVM)

Contingent valuation Method (CVM) has been put forward as a way to determine the willingness to pay for various goods/functions for a sample of individuals. The contingent

l ti th d i b f th t dvaluation method is by far the most used method. An important reason is that the other valuation methods are unable toother valuation methods are unable to identify and measure passive or non-use values of biodiversity. y

Cont…At first sight, the resulting monetary value estimates seem to give unequivocal support to the belief that biodiversity has a significant positive social valuebiodiversity has a significant, positive social value. Nevertheless, most studies lack a uniform, clear perspective on biodiversity as a distinct concept from biological resources In fact the empirical literaturebiological resources. In fact, the empirical literature fails to apply economic valuation to the entire range of biodiversity benefits. Although monetary valuation of natural ecosystems isAlthough monetary valuation of natural ecosystems is difficult, such valuation helps to draw attention to their importance, and highlight conservation needs, especially in developing countriesespecially in developing countries.

Non market value of environmental goods

The non market value of environmental goods is categorized into three components, existence, option and bequest values. p qAn existence value is the value the public are willing to pay to some specific environmental amenities or scenic resources in order to keep them from being

ti t d d (K i ht d B t 1995)extinct or damaged. (Knight and Bates, 1995). A bequest value is, on the other hand, the value that public gives to preserving the quality environment for th i hild t ti t j it ththeir children or next generations to enjoy it as they do now. The case of endangered species preservation has illustrated the concern of this value.

Kukkarahalli Lake:

Kukkarahalli Lake: is located in the heart of the Mysore city, adjoins Manasgangotri, University of Mysore, the Kalamandir and the Central Food Technological Research Institute (CFTRI) campus. It provides lung-space to the city Mummadi krishnaraja Wodeyar (1794 1868) of the Mysore Dynasty wascity. Mummadi krishnaraja Wodeyar, (1794 – 1868) of the Mysore Dynasty was responsible for getting the lake created, in the year 1864, to provide water for irrigation to about 10,000 acres of land outside the city. The Lake drains a catchments area of more than 414 square kilometers and the water body spreads over 150 acres .The Lake also used to be a source of water supply to the city of Mysore but over the years sewage and excessive landthe city of Mysore but over the years, sewage and excessive land encroachments (mostly illegal) and blockage of water flow sources almost led to the eutropohication of the lake. The University of Mysore and the citizen forums of Mysore continue to make efforts to preserve the lake by implementing several remedial measures. A detailed study of the physico-chemical and bio-chemical parameters of the lake waters carried out in the period 1981 2001 confirmedparameters of the lake waters carried out in the period 1981-2001 confirmed the deteriorating status of the lake necessitating action for restoration. There was a high percentage of chemicals but low percentage of total plankton (43%). The activity of chemicals leads to the liberation of extra quantity of cellular products which increased to 53.19%.

Nature of the lake Lake indicated high productivity of bio-chemical products; with death and decay of algal blooms adding to the biochemical concentration. The lake waters showed high electrolytes, low dissolved oxygen, high phosphate and nitrogen content with abundance of plankton blooms, all of which have contributed to a high degree of eutrophication The non potability of the water body is indicatedhigh degree of eutrophication. The non potability of the water body is indicated by the high degree of fecal contamination with organisms that produce H2S that may include forms of Salmonella Proteus, Citrobacter and some strains of klebsiella. During the year 2003-2004, with grants of about US $ 0.2 million (Rs 91 lakhs) provided by the Asian development Bank, Karnataka Urban Infrastructure Development Corporation (KUIDFC) in association with theInfrastructure Development Corporation (KUIDFC) in association with the University of Mysore under whose jurisdiction the Lake falls and citizens groups, carried out the restoration works of the lake. Adopting rainwater harvesting methods to improve the quality and quantity of water inflows, augmenting supply to the lake with fresh water inflow with filtered municipal back water wash Adopting aeration of water techniques removal of algae by manualwash, Adopting aeration of water techniques, removal of algae by manual methods, engineering methods to clean the boundary conditions of the lake such as desilting and opening of the intake channel, ban on immersion of idols during festivals, banned dumping of medical waste in the lake, Increased security system to restrict human influence, increased aquaculture, stakeholders participation for collective ownership and responsibility to restoration activitiesparticipation for collective ownership and responsibility to restoration activities.

Karanji LakeKaranjee Lake is another lake located in the city of Mysore. The lake is surrounded by a nature park consisting of a butterfly park and a walk-through aviary. This aviary is the biggest 'walk-through aviary' in India There is also a museum the regionalthrough aviary in India. There is also a museum, the regional Museum of natural History which is located on the banks of this lake. The total area of Karanjee Lake is 90 hectares. While water spread area is about 55 hectares, the foreshore area measures about 35 hectares Karanjee Lake is owned by themeasures about 35 hectares. Karanjee Lake is owned by the Mysore Zoo Authority. Mysore Zoo gets revenue of an average of Rs. 50000 per day from ticket sales to enthusiasts who visit this lake. Karanjee Lake was one of the favorite haunts of migratory birds like herons and egretsmigratory birds like herons and egrets.

But the lake started getting polluted when sewage from the nearby residential areas were let into the lake. This pollution led to the destruction of aquatic life in the lake and with the food-source getting depleted the migratory birds started to avoid thesource getting depleted, the migratory birds started to avoid the lake. Just like Kukkarahalli Lake in order to prevent the destruction of this lake and to renovate it, help was sought from the Asian Development Bank (ADB). And also Karnataka Urban Infrastructure Development Finance Corporation (KUIDFC) andInfrastructure Development Finance Corporation (KUIDFC) and Zoo Authority of Karnataka (ZAK). These three organizations came together and undertook the restoration activities of this lake. Financial help to the tune of Rs. 12 million was provided by ADB and ZAK undertook the restoration work with the co-by ADB and ZAK undertook the restoration work with the coordination of KUIDFC.

Both kukkarahalli and Karanji lakes are urban Lakes and have more recreational values. K kk h lli l k h b d bKukkarahalli lake has been managed by University of Mysore where as KaranjeeLake is handed over to Zoo authority of Mysore. y yKukkarahalli Lake is more popular among localities that use it regularly for morning and evening walk purpose where as Karanjeeevening walk purpose where as Karanjee Lake has been a tourist spot attracting more number of outsiders.

Though both the lakes are getting sewage continuously and both are polluted, since the Karanji Lake is situated at the bottom of Chamundi Hills the water from the Hill is making the pollution level very low by diluting the water According to thepollution level very low by diluting the water. According to the observations made by Pollution Control Board in Mysore, Kukkarahalli Lake seems to be comparatively more polluted than Karanji Lake. Both lakes are considered for assistance under NURM project and have got good ADB assistance KukkarahalliNURM project and have got good ADB assistance. Kukkarahalli Lake is not maintained properly though placed inside a university where the awareness towards biodiversity conservation is more. Karanji Lake seems to be maintained well and the income in the form of user pay also contributed for thisand the income in the form of user pay also contributed for this maintenance. We tried to look for the User pay as a variable in deciding the pollution level in this Lake. That is the reason for selecting theses two Lakes.

Contingent valuation Method (CVM) has been put forward as a way to determine the willingness to pay for various goods/functions for a sample of individuals. The contingent valuation method is by far the most used method An importantvaluation method is by far the most used method. An important reason is that the other valuation methods are unable to identify and measure passive or non-use values of biodiversity. At first sight, the resulting monetary value estimates seem to give unequivocal support to the belief that biodiversity has agive unequivocal support to the belief that biodiversity has a significant, positive social value. Nevertheless, most studies lack a uniform, clear perspective on biodiversity as a distinct concept from biological resources. In fact, the empirical literature fails to apply economic valuation to the entire range of biodiversityapply economic valuation to the entire range of biodiversity benefits. Therefore, available economic valuation estimates should generally be regarded as providing a very incomplete perspective on, and at best lower bounds, to the unknown value of biodiversity changesof biodiversity changes.

This work tries to evaluate these two urban lakes with the help of CVM. For this work a sample of 100 people were selected randomly and questionnairespeople were selected randomly and questionnaires were distributed among them the walkers on the bund of Kukkarahalli Lake, tourists of Karanjee lake and Students and faculty of Manasagangotri areand Students and faculty of Manasagangotri are considered. We just want to know the users awareness toward water pollution in these two lakes and their concern towards biodiversity conservationand their concern towards biodiversity conservation and their WTP i.e. Willingness to Pay.

Results

The main observations made in this work are, majority of the visitors of Kukkarahalli Lake are walkers where as majority of the Karanjee Lake visitors are tourists Majority have a goodthe Karanjee Lake visitors are tourists. Majority have a good educational background which has reflected in their knowledge of conservation of biodiversity including Lakes.For this comparative study we asked them about the pollution level their awareness as well as the severity of pollution Majority,their awareness as well as the severity of pollution. Majority feels that Kukkarahalli Lake is more polluted than karanjee Lake. They feel that Kukkarahalli Lake is not getting the needed financial feedback in the form of user pay and feels that if user pay is introduced in Kukkarahalli Lake it may also contribute inpay is introduced in Kukkarahalli Lake it may also contribute in lessening the pollution level by maintaining the lake properly.

Cont..Out of the people surveyed 72% said they are willing to contribute towards the conservation of the lake in the form of user pay. About 40% are ready to pay less than Rs50/visit and 20% are ready to pay more than Rs50/visit More than 53% felt20% are ready to pay more than Rs50/visit.More than 53% felt that user pay play a significant role in controlling the pollution level. They feel that the authorities feel more accountable when they collect user pay and that may reflect on the cleanliness of the people 30% suggest to use the collected money for cleaningthe people.30% suggest to use the collected money for cleaning and maintaining the lake, 20% felt conservation of biodiversity in the lake should be given more priority and 28% suggested to develop Kukkarahalli lake just like Karanji lake as tourist spot. That will definitely improve the over all picture of the lake AllThat will definitely improve the over all picture of the lake. All are of the opinion that the main culprit of pollution in theses lakes is sewage entry and they stressed the need to stop this sewage entry.

Limitation of the studyHowever, the fact that the contingent valuation method is based on asking people questions, as opposed to observing their actual behavior, is the source of enormous controversy. The conceptual, empirical, and practical problems associated withconceptual, empirical, and practical problems associated with developing dollar estimates of economic value on the basis of how people respond to hypothetical questions about hypothetical market situations are debated constantly in the economics literature. CV researchers are attempting to addresseconomics literature. CV researchers are attempting to address these problems, but they are far from finished. Meanwhile, many economists, as well as many psychologists and sociologists, for many different reasons, do not believe the dollar estimates that result from CV are valid.dollar estimates that result from CV are valid.

conclusionThe fact that contingent valuation 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 Contingent valuation is one of the only ways toweaknesses. Contingent valuation is one of the only ways to assign dollar values to non-use values of the environment—values that do not involve market purchases and may not involve direct participation. These values are sometimes referred to as “passive use” values They include everythingreferred to as passive use values. They include everything from the basic life support functions associated with ecosystem health or biodiversity, to the enjoyment of a scenic vista or a wilderness experience, to appreciating the option to fish or bird watch in the future or the right to bequest those options towatch in the future, or the right to bequest those options to your grandchildren. It also includes the value people place on simply knowing that giant pandas or whales exist.