Ecosystem services from the forests of India; valuing it for rational , decentralized fiscal compensation and pioneering it to a model for REDD. H.S. Gupta and AnkitaSinha
DOI:
https://doi.org/10.36808/if/2022/v148i12/169497Keywords:
Ecosystem services, Ecological fiscal transfer, Forest, finance commission of India, Intergovernmental fiscal transfer, REDD, Sustainable forest management, Valuation.Abstract
Abstract: Ecosystem services (E.S.) are the outcome of ecosystem functions of the forests, benefitting society and their economies immensely. Accounting and Valuation of ecosystem services emanating from forests is not only necessary to get its due importance among stakeholders, but it also helps designing the environment friendly and sustainable policies. This paper approximates the E.S. worth of forests of Indian states, on the basis of different frameworks and further shows how; such valuation of E.S. of forest has been used as “evidence” in argument for ensuring equitable fiscal redistribution from the national budget to forest rich states- which is important step for “Sustainable Forest Management” and optimal land use planning at national/regional level, by this tool IFT/EFT.
Further, the available data on “actual monetary dispensation to states” and resultant “forest cover change” have been used to analyze how it has led to paradigm shift towards pro-forest/environment- financial decentralization, ensuring equitable distribution of economic resources in a federal setup and that has resulted in enhanced forest coverage. Beyond this; the evolved “fiscal redistribution mechanism” has also led to “default design” of a “pioneer”, model of REDD plus mechanism in the Indian context; which can further incentivizes, the states for their action to regulate “deforestation and degradation of forest”. A suggestion has also been made to make present EFT/IFT dispensation scheme more effective by using the both principles of dispensation i.e. “Derivation” and “cost-reimbursement” in combination;which is expected to make it a more “effective” and “efficient” model of REDD, ensuring equitable and efficient Forest/Environmental conservation.
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