Presentation from 2016 World Water Week in Stockholm. The authors, all rights reserved. SIWI siwi.org

Presentation from 2016 World Water Week in Stockholm www.worldwaterweek.org © © SIWI | siwi.org The authors, all rights reserved Impact of Wetla...
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Presentation from

2016 World Water Week in Stockholm www.worldwaterweek.org

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© SIWI | siwi.org

The authors, all rights reserved

Impact of Wetland Conservation on the Livelihoods: A Case Study – Oussudu Wetland in Puducherry region Lingappan Venkatachalam Madras Institute of Development Studies (MIDS), Chennai E-mail: [email protected] &

Zareena Begum Madras School of Economics, Chennai E-mail: zareena @mse.ac.in

Oussudu wetland in Puducherry region –A Case Study

Oussudu wetland • Wetland occupied 800 ha and the water spread area is 700 ha • Inter-state wetland, managed by Tamil Nadu government (410 ha) and Puducherry Union Territory (390 ha)

• One of the 93 nationally important wetlands of India due to the nature of biodiversity and ecosystem ervices

• Trade-off 1: • Stakeholder analysis revealed that prior to 2006, the wetland generated significant ecosystem benefits to the local economy (10 villages)

• Irrigation (surface and groundwater), grazing, fishing, recreation, collection of fodder, fuelwood, wood for agricultural and household activities, medicinal plants, lotus flower, etc. • Land-use change after 2006, where 2800 acres land in the command area had been converted for non-agricultural purpose

• Dry-land (ecosystem) benefits are no longer available and wetland ecosystem brought a different regime

Trade-off 2: • Conservation efforts by both Puducherry government (in 2008) and by Tamil Nadu government (in 2014) resulted in denying access to many ecosystem benefits to households in the 10 villages

Trade-off 3: • Despite conservation measures, negative externalities (encroachment, industrial pollution, solid waste dumping, etc) continue to cause deterioration to the wetland • E.g. There are 250 industrial units located in the Sedurapet industrial estate in the upstream of the wetland which are listed as RED CATEGORY units by the PCB • Medical college and water amusement park on the souther bank of the wetland causes problems such as, waste dumping, groundwater exploitation, etc.

Issues addressed: • Who benefited and who lost –did conservation efforts resulted in zero-sum outcomes? • How much benefit and how much loss in economic terms? • How to bring institutional arrangements that can generate win-win outcomes for all the stakeholders?

Total Economic Value: Three Benefits • Recreational Benefit

: Rs.57,22,105.00 per year (Rs. 5.73 million or US $ 95,333) • Agricultural Benefits : Rs. 1,14,96,813.00 per year (Rs. 11.5 million or US$191,667) • Biodiversity Protection : Rs. 24,47,144.00 per year (Rs. 2.44 million or US$40,000) • TOTAL

: Rs. 1,96,66,062.00 per year (INR 19.66 million)

• NPV 1.4 million)

: Rs. 8,28,80,098.21 (8.28 million) (r=6, N =5) (US$

(US$327,834)

Policy Implications and recommendation • Scenario-A: Business-as-usual scenario: • Conservation denying access to ecosystem benefits • Industrial pollution causing deterioration to wetland • Medical college and water theme park –causing negative externalities such as solid waste dumping and groundwater exploitation • Action needs to be taken on the above issues; otherwise, a significant amount of ecosystem benefits will be lost

Scenario –B: Middle Path: • Pollution is controlled –there is a willingness among the industrial units too • Conflict between PCBs of both the states needs to be addressed

• Regulated access to ecosystem benefits to the villagers • 50 MLD water supply scheme is implemented

Scenario-C: • Tourists are willing to pay more for improved tourism facilities – ecotourism practices • Opening up tourism facility in Tamil Nadu side • Farmers are willing to adopt best practices that can minimise nonpoint source pollution from agriculture

Scenario D: • Incentive-based institutional arrangements for managing the wetland by brining cooperation between community, governments, NGOs and markets. • Payment for Ecosystem Services (PES): • Involve people in conservation measures to reduce the transaction cost and minimse ecosystem loss • Regulated access to ecosystem benefits (fishing, collection of medicinal plants and lotus, bathing, etc) • Share benefits with village panchayats (revenue from sale, revenue from water supply, etc).

Thank you

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