Economics of Peatland Ecosystem Services: A Study of Use and Non-Use Values and People Interplays in Sumatra, Indonesia

Mohammad Yunus, Adcharaporn Pagdee () and Himlal Baral
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Mohammad Yunus: Department of Integrated Science, Faculty of Science, Khon Kaen University, Khon Kaen 40002, Thailand
Adcharaporn Pagdee: Department of Environmental Science, Faculty of Science, Khon Kaen University, Khon Kaen 40002, Thailand
Himlal Baral: Center for International Forestry Research (CIFOR), Situ Gede, Sindang Barang, Bogor 16115, Indonesia

Land, 2024, vol. 13, issue 6, 1-21

Abstract: Peatlands play an important role in the global environment and the well-being of humans by providing valuable ecosystem services. Yet, anthropogenic activities pose significant hazards for peatland management, including low levels of community participation due to lack of awareness and financial incentives. Understanding the social–cultural and economic value of these ecosystems will raise awareness to protect these important ecosystems. Here, we estimated a total economic value (TEV) of peatland ecosystem services and examined relationships between the TEV and landscape characteristics in Riau province, Indonesia. A questionnaire was used to investigate household socioeconomics, perception of peatland importance, peatland product collection, and willingness to pay for habitat and biodiversity protection from May to June 2023. A total of 200 household individuals (92% confidence) in five villages across distinct landscapes in the Sungai Kiyap-Sungai Kampar Kiri Peatland Hydrological Unit participated in the survey. The respondents obtained numerous advantages from the peatlands with an estimated TEV of USD 3174 per household per year (about 1.3 times their annual income). Approximately 81% showed a use value, especially food provisioning from fish and soil fertility. To a lesser extent, non-use values included a habitat for endemic and endangered species, biodiversity conservation for future generations, and community bonds with sacred forests. The landscape characteristics, illustrating habitat types, biophysical conditions, and property rights regimes, interplay with the relative benefits derived from the peatlands. Proximity to secondary peat swamp forests and riparian zones, especially within protected areas, enhanced economic value. Protected area co-management is essential to balance peatland conservation with sustainable livelihoods. Primary forests need restrictive protection. Meanwhile, buffer zone designation and agroforestry practices, especially in the peatland–farm interface, reduce land use tensions and promote local stewardship. This study can be used as a reference by planners and policymakers to recognize factors that promote effective peatland management, especially those that balance ecosystem protection and livelihood maintenance.

Keywords: total economic value; peatland ecosystem services; landscape; Indonesia (search for similar items in EconPapers)
JEL-codes: Q15 Q2 Q24 Q28 Q5 R14 R52 (search for similar items in EconPapers)
Date: 2024
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