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    Paying the forest for electricity: A modelling framework to market forest conservation as payment for ecosystem services benefiting hydropower generation (2011)

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    12630974_PES-Arias-Cochrane 2011.pdf (927.0Kb)
    Type of Content
    Journal Article
    UC Permalink
    http://hdl.handle.net/10092/5627
    
    Publisher's DOI/URI
    https://doi.org/10.1017/S0376892911000464
    
    Publisher
    University of Canterbury. Civil and Natural Resources Engineering
    ISSN
    0376-8929
    Collections
    • Engineering: Journal Articles [1528]
    Authors
    Arias, M.E.
    Cochrane, T.A.
    Lawrence, K.
    Killeen, T.J.
    Farrell, T.A.
    show all
    Abstract

    The operation and longevity of hydropower dams are often negatively impacted by sedimentation. Forest conservation can reduce soil erosion, and therefore efforts to maintain upstream forest cover within a watershed contribute to the economic life span of a hydropower facility. The cost of forest conservation can be viewed as an investment in hydropower and be financed via a payment for ecosystem services (PES) scheme. A novel modelling framework is used to estimate payments for forest conservation consisting of: (1) land-use change projection; (2)watershed erosion modelling; (3) reservoir sedimentation estimation; (4) power generation loss calculation; and (5) PES scheme design. The framework was applied to a proposed dam in Cambodia (Pursat 1). The estimated net present value of forest conservation was US$ 4.7 million when using average annual climate values over 100 years, or US$ 6.4 million when considering droughts every eight years. This can be remunerated with annual payments ofUS$ 4.26ha-1 or US$ 5.78ha-1, respectively, covering forest protection costs estimated at US$ 0.9 ha-1 yr-1. The application of this type of PES represents a rational option that allows for conservation and development of hydropower watersheds susceptible to erosion and sedimentation.

    Citation
    Arias, M.E., Cochrane, T.A., Lawrence, K., Killeen, T.J., Farrell, T.A. (2011) Paying the forest for electricity: A modelling framework to market forest conservation as payment for ecosystem services benefiting hydropower generation. Environmental Conservation, 38(4), pp. 1-12.
    This citation is automatically generated and may be unreliable. Use as a guide only.
    Keywords
    forest conservation; payment for ecosystem; services; reservoir sedimentation; sediment yield; soil erosion; sustainable hydropower; watershed management
    ANZSRC Fields of Research
    09 - Engineering::0905 - Civil Engineering
    41 - Environmental sciences::4104 - Environmental management::410401 - Conservation and biodiversity
    Rights
    https://hdl.handle.net/10092/17651

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