ECONOMIC VALUATION OF WATER CATCHMENT SERVICES IN ULU BENDUL ECO-FOREST RESERVE, MALAYSIA: A CONTINGENT VALUATION APPROACH FOR SUSTAINABLE PAYMENTS FOR ECOSYSTEM SERVICES
DOI:
https://doi.org/10.18623/rvd.v23.7387Keywords:
Forest Park, Nature Capital, Economic Valuation, Sustainable Financing, Willingness to PayAbstract
Forested ecosystems constitute vital natural capital by functioning as water catchment systems that provide clean water, regulate hydrological processes, sustain biodiversity, and deliver essential ecosystem services that support human well-being. However, increasing environmental pressures, including land-use change, habitat fragmentation, and ecosystem degradation, threaten these functions, highlighting the need for effective and financially sustainable conservation strategies. Economic valuation offers a practical approach to supporting sustainable financing by quantifying societal preferences for ecosystem conservation. This study evaluates the economic value of water catchment services in Ulu Bendul Forest Reserve, Malaysia, using the Contingent Valuation Method (CVM) to estimate public willingness to pay (WTP) for enhanced conservation under a Payments for Ecosystem Services (PES) framework. A questionnaire survey involving 300 local residents was conducted to assess their willingness to support initiatives for protecting water quality and conserving forest ecosystems. The log-logistic model estimated an annual mean WTP of RM25.30, while the lognormal model estimated RM10.34. The findings demonstrate strong public support for water catchment conservation and highlight the substantial value placed on ecosystem services that safeguard water security, public health, and livelihoods. Integrating economic valuation into forest and water resource management can strengthen community-supported PES initiatives and promote long-term ecological resilience and sustainable resource management.
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