Willingness to Pay to Conserve Wetland Ecosystems : A Case Study of Vellayani Fresh Water Lake in South India

Freshwater ecosystems are most important functional unit that sustains human life in earth. But the de- terioration and degradation of these ecosystems is a universal phenomenon. The main reason for this is the lack of awareness among the people about the value of the ecosystem services provided by these ecosystems. Vellayani lake is an important fresh water lake in the humid tropics of South India. This pristine lake, is a source of drinking water, livelihood generation and other life supporting activities. The study attempts to estimate the economic value of the lake using a double bounded dichotomous choice contingent valuation method. A sample of two hundred and forty local residents residing around the lake, at a distance of 100m (Zone I), 200m (Zone II) and 300m (Zone III) were interviewed to elicit their Willingness to Pay (WTP) to conserve the lake. Maximum WTP was observed in Zone I (Rs 354.25) and minimum in zone III (Rs 174.37). Number of respondents willing to pay also had a similar trend. The econometric model for estimation of WTP revealed that the statistically important variables that affected the WTP were monthly income, marital status, education and dependence on lake. The economic value of the lake system estimated using CVM was Rs 2.91crore per year.