This document outlines LOK NATH LAMSAL's presentation on valuing soil conservation. The presentation will include an introduction, conceptual framework, methods of soil valuation, total value of conservation, appropriate valuation techniques, and analysis of different methods. It will discuss how soil degradation in Nepal was recognized, and factors responsible like steep slopes, fragility, and rainfall. Valuing conservation considers private and social worth. Total economic value includes direct use, indirect use, option and existence values. Methods assessed are market-based, production functions, preventative expenditures, damage avoided, replacement costs, and contingent valuation which estimates willingness to pay. No single technique is sufficient due to soil's complex roles, but contingent valuation can consider all functions though results

1. LOK NATH LAMSAL
M. Sc First Year
Roll no 03
Lamsal
2/7/2014

2. Outline of the presentation
 Introduction
 Conceptual framework
 Soil valuation
 Total value of soil conservation
 Appropriate valuation method for soil
conservation
 Analysis of different methods
 Conclusion
Lamsal
2/7/2014

3. 

The deteriorating condition of soil in Nepalese hills and
mountains first came in to the picture after Eckholm
(1975) wrote the ‘Theory of Himalayan Environmental
Degradation’ referring that anthropogenic factor is the
main causes of accelerated erosion and subsequent
degradation across the Himalayan region.
Active geology, steepness, fragility, high rainfall etc are
also equally responsible for the soil degradation in the
Nepalese hills (Ives, 2004; Blaikie, 2001).
Lamsal
2/7/2014

4. 
Valuation of the stream of benefit and cost with and
without conservation cases would give more accurate
picture of the private and social worth of these
improved conservation technologies.
Lamsal
2/7/2014

5. 

The concept of the conservation of soil takes into
account, the strategies for preventing the soil from
getting eroded and preventing it from losing its fertility
due to an adverse alteration in its chemical
composition.
Valuation means the act of valuing, esp a formal
assessment of the worth of property, jewellery, etc. an
appraisal of the value of something. Economic
valuation: The process of expressing a value for a
particular good or service in a certain context (e.g., of
decision-making) in monetary terms.
Lamsal
2/7/2014

6. 

The value of soil is determined by the stream of
benefits it provides to society. Benefits are reflected in
people’s willingness to pay (WTP) as indicated by real
market transactions or through evidence on preferences
from which values can be derived.
However, some soil services, and especially the support
of landscapes and biodiversity and the protection of
archaeological interest, are not valued in markets.
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2/7/2014

7. 
Total Economic Value (TEV) =Direct-use value +
Indirect-use value + Option value + Existence value
Use value
Non use
value
Direct use
Indirect use
Option value
Food , Timber,
NTFP.
Habitat for animal
and micro
organism
Carbon sequestration and
future direct and
storage, water storage and
indirect uses
flow mediation, Nutrient
cycling, support construction,
support for ecology and
biodiversity, climate
regulation
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2/7/2014
1)Existenc
e value.
2) Bequest
value.

8. Function
Value
Method
Food, Timber,
Direct use value
Carbon sequestration and
storage
Water storage and flow
mediation
Support for construction
Direct and indirect use value
Market based approaches,
production function
approaches
Market based and cost based
approaches
Cost based approaches and
stated preference method
Cost base approaches ( WTP
of buyers )
Production function
approaches, contingent
valuation method
Stated preference method
Use and non use value
Use value
Support for ecological habitat Use and non use value
and biodiversity
Archaeological site/artifact
protection
On site and offsite
conservation
Use and non use value
Use and non use value
Cost based and stated
Lamsal 2/7/2014
preference method

9. Valuation
method
Description
Strength and
Weakness
Example
Market based
approaches
Interaction between consumers
and producers with regards to
the demand and supply of goods
and services.
Standard, accepted
economic techniques.
Does not measure TEV.
Gross value
of crop
production.
Production
function/change
in productivity
method
Estimate the economic value of
ecosystem products or services
that contribute to the production
of commercially marketed goods
Single use systems
Soil fertility
easier.
improves
Multiple use production crop yield
function approach are
more problematic.
Risk of double counting
Cost Based
approach
1) preventive
expenditure
approach
Environmental services can be
valued by looking at how much
it would cost to set in place
measures to prevent the damage
arising from their loss.
Easy, simple. Do not
directly measure WTP
for environmental
goods and services
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2/7/2014
Flood
control,
siltation
barriers

10. Valuation
method
Description
Strength and
Weakness
Example
ii)Damage
avoided
approaches
Environmental services
help to avoid economic
costs
Easy, simple.
The costs of destruction to
Do not directly
houses, roads, bridges and
measure WTP for
farms caused by flooding.
environmental goods
and services.
iii)
Replacement
or repair
expenditure
Examining the potential
costs of restoring or
replacing productive
assets lost or degraded
due to project impacts or
improper management.
Easy, simple.
Do not directly
measure WTP for
environmental goods
and services.
The benefits of
implementing improved
agricultural practices in
upland soil areas can be
reflected in the cost of
replacing soil and
nutrients that would be
lost through erosion.
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2/7/2014

11. Valuation
method
Stated
preference
method
Description
Contingent
valuation
a random sample of
respondents for their WTP
(or WTA) for a clearly
defined good. Respondents
must be reminded of
substitute goods, budget
constraints.
strength and weakness
Example
'constructed market' - i.e. a
we can obtain use and non-use
hypothetical market which is values.
presented to a respondent in
a questionnaire.
Only generally-accepted
method for estimating non-use
values, which are not traded in
markets.
CV 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.
Doubts about their reliability
for estimating willingness to
pay.
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Especially for
ecological
services and
biodiversity.

12. 


No single method is enough for appropriate valuation
of soil conservation due to its multidimensional role.
Cost based approaches and market based approaches
are easy and simple but not capture the ecological,
biological role of soil and people's willingness to pay.
Production function approaches which is complex and
tedious for multiple output but gives accurate if data
were put appropriately.
Lamsal
2/7/2014

13. 

Contigent valuation provides both use and non use
value of soil conservation and gives a appropriate
valuation which consider all the function that relate on
a soil conservation.
But due to its hypothetical market. respondent biasness,
validity of output may not be reliable.
Lamsal
2/7/2014

14. Lamsal
2/7/2014