Valuing ecosystem services flowing from the indian himalayan states for incorporation into national accounting

Abstract

The degradation of ecosystems has resulted in adverse impacts on 60 % of ecosystems services globally (MEA 2005). This is a matter of great concern as humans heavily depend on these life supporting services (Costanza et al. 1997). While not generally recognized, India is unique among developing countries in having incorporated the value of forest ecosystem services of its states in national accounting. As per the recommendations of the 12th and 13th Finance Commissions of the country, grants are transferred to forest-rich states in amounts corresponding to their forest covers (Singh 2007). However, funds allocated based on forest cover are not an accurate indicator of ecosystem services flowing from these states.