Valuation of ecosystem services: a case of panchase protected forest in the mid-hills of western nepal

Forests provide numbers of ecosystem services for human wellbeing. However, the importance of ecosystem services arising from forests is poorly recognized in developing countries like Nepal. The present study has estimated economic value of ecosystem services provided by Panchase Protected Forest of Nepal. Applying contingent valuation method, 364 people were surveyed for their willingness-to-pay to estimate indirect use value of ecosystem services. The analysis revealed that total annual economic value of the Panchase Protected Forest is NPR 52.2 million (USD 521,930) and the per hectare annual economic value is NPR 9037.75 (USD 90.37).The regression analysis concludes that people having higher income and people having access to executive positions in community based forest management are willing to pay more to conserve forests. Creation of economic opportunities for local people and strengthening community engagement in forest management decisions are crucial for better management of protected forests.