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The Mechanism of Assessment of Payment for Ecosystem Services-a Case Study of Phewa Wastershed

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The Mechanism of Assessment of Payment for Ecosystem Services-a Case Study of Phewa Wastershed
ABSTRACT

Ecosystem service is a new term in the context of our country. The concept of payment to environmental services is a broad umbrella for the conservation of watershed. Watershed is the important part in the livelihood of people. With the watershed people survive and help it thrive. People here are the makers as well as destroyers. Within the watershed there are upstream dwellers that mainly provide the service to the dwellers living downstream. Hence this project is for the conservation of watershed which is mainly based on the payment mechanism where the downstream dwellers receiving the services are paying to the upstream dwellers that provide services. The intention is to encourage upstream farmers, pastoralists and land managers to maintain practices that ensure and improve environmental services. Incentives can include both direct monetary payments as well as other indirect benefits such as secure land tenure and targeted development aid. Such incentive mechanisms are often referred to as Payment for Environmental (or Ecosystem) Services or PES. Phewa watershed is a serene and beautiful place which annually attracts hundreds of thousands of tourists. There are multiple benefits to the downstream dwellers with tourism, hotel, irrigation, hydropower etc. but there is constant degradation of watershed and with that the Phewa lake which is the heart of Pokhara is also decreasing. If this trend continues then Phewa Lake shall be a history to our children. Hence by establishing the relation between upstream and downstream for conservation purpose we will be able to restore the natural landscape of the watershed. The study was conducted using Contingent valuation method (willingness to pay/accept) for environmental services. On that basis 83% of the respondents were ready to accept and 75% were ready to pay 0.5- 2 % of their income. Hence with this WTP and WTA we found that the establishment of conservation council was supported by most of the people for

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