A Pricing Model for Value of Gas Regulation Function of Natural Resources Ecosystems (Case Study: Sheikh Musa Rangeland, Mazandaran Province, Iran)

Document Type: Research and Full Length Article

Authors

1 M.Sc.Student, Department of Agricultural Economics, Ardakan University, Iran

2 Associate Professor, Department of Agricultural Economics, Ardakan University, Ardakan, Iran

3 Assistant Professor, Department of Agricultural Economics, Ardakan University, Ardakan, Iran

Abstract

Rangeland ecosystems provide a wide range of services such as gas regulation function whose economic value has not been understood. The present study aimed to estimate the economic value of CO2 absorption and oxygen generation services using unit price in Sheikh Musa Rangeland, Mazandaran Province, Iran. In the study area, clipping and weight and photosynthesis methods were applied to estimate dry matter production, CO2 absorption, and oxygen production. Also, Shadow price, Replacement cost, and Social cost methods priced the economic value of gas regulation function differently. Finally, their means were compared and their geometric mean was used as the unit price; then, the economic value of the function was estimated in 2016. Results showed that Sheikh Musa Rangeland ecosystem annually produces 2081.4 t dry matters and 2454 t oxygen and absorbs 7294.15 t CO2. Given the estimated price, the value of CO2 absorption function was found to be 7264.6 million IRR and the economic value of oxygen production was calculated as 3,852 million IRR per year. In overall, the economic value of Sheikh Musa ecosystem was estimated as 11117.4 million IRR (318364 US $) per year and 1.06 million IRR per ha. Given the valuation that shows the minimum value of Sheikh Musa ecosystem and high importance of its gas regulation function, it is recommended to conduct further studies on pricing models for Rangeland ecosystems and to apply environmental management practices for the sake of Rangeland and local health.

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