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SANDEE….The South Asian Network forDevelopment and EnvironmentalEconomics is a regional network thatbrings together analysts from acrossSouth Asia to address itsenvironment-developmentproblems. SANDEE’s mission is tostrengthen the capacity ofindividuals and institutions toundertake research on theinter-linkages among economicdevelopment, poverty, andenvironmental change and todisseminate practical informationthat can be applied todevelopment policies.

In This Issue

From the Editors 1

Research News 2

New SANDEE Grants 2

Research Completed 3

Publications and Presentations 6

Focus 8

Discussion 9

Eco-news 12

SANDEE Activities 13

Other News 14

Editorial:

Dear Friends and Colleagues

You will notice that our newsletter has a new look. We hopeyou like it and are motivated to read the newsletter fromcover to cover. This change isn’t just cosmetic– we havealso changed the way we plan to deliver news to you. Weare gradually moving towards a topic focused newsletterand the next few editions will carry information on differenteco-systems.

Mountain ecosystems, their wealth and fragility, are at thecenter of this edition. Our “Focus” is written by AndreasSchild, the Director General of ICIMOD, who discusses theHindu Kush Himalayan region and the challenges it faces.We follow this with various discussions from SANDEEites fromaround South Asia. Is Bhutan converting its water to gold?What can be done about forest degradation in Nepal? Howare the hill tribes in Bangladesh surviving? Read on to learnmore.

Over the last years we have increased our emphasis onclimate change. How then, we asked, can we reduce our

No. 17 Fall 2008

South Asian Network for Developmentand Environmental Economics NEWSLETTERNEWSLETTERNEWSLETTERNEWSLETTERNEWSLETTER

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own contribution to global warming through workshops and other activities?An innovative solution was to have Prasad Kasibhatla, of Duke University, presenta lecture on the global carbon cycle from Durham, North Carolina, while welistened in Bangkok, Thailand. Duke has new technology that makes this feasible.It is, completely interactive and costs very little – all we needed was a broadbandinternet connection, mikes, a computer and an overhead projector. We hopethis is the wave of the future. We are also, of course, hoping to make a differencewith good research on climate change. If you are interested in working onclimate issues, please send us a proposal.

Finally, some news on our faculty and staff. SANDEE advisor SubhrenduPattanayak has become an Associate Professor at Duke University and theSANDEE team has grown. Mani Nepal, who returned to Nepal recently from theUniversity of New Mexico, has joined SANDEE, while Pranab Mukhopadhyay,who has been so instrumental to SANDEE’s growth over the last years, has returnedto his teaching responsibilities at Goa University. Pranab, will continue, to workpart-time for SANDEE.

Enjoy this edition of the newsletter and we look forward to your comments asalways.

- Priya, Rucha and everybody else at the SANDEE Secretariat

Economics of adopting Bt cotton: evidence from Pakistani Punjab

- Khuda BakshKhuda Baksh will analyze the economic performance of both Bt cottonseedand traditional cottonseed to determine possible reduction in pesticide use dueto adoption of Bt cotton in the irrigated districts of Punjab, Pakistan. He willcompare cost, yield and income of cotton growing farmers who use both Btand traditional cotton. The study aims to understand farm level differencesbetween new and traditional varieties and whether sowing Bt.cotton actuallyreduces the amount of pesticide typically used in cotton cultivation.

Social Cost Benefit Analysis of Informal Waste Sector: A Study of Delhi(conditional grant)

- Yamini GuptThis study proposes to conduct an economic analysis of the recycling activitiesin the city of Delhi, India. Gupt will examine the various social, economic andenvironmental costs, benefits, and incentives associated with wastemanagement. This is a conditional grant that is being further refined based oncomments received.

Research News

New SANDEE Grants

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Storm Protection by Mangroves in Orissa: AnAnalysis of the 1999 Super Cyclone

Saudamini DasSANDEE Working Paper 25

This study assesses how mangroves provideprotection against storms. It uses data on humancasualties, damages to houses and livestock lossessuffered in the Kendrapada district of the Indianstate of Orissa during the super cyclone of October1999. The cyclone devastated 12 of the state's 30districts causing 9,893 human casualties and 441,531livestock deaths, and damaging 1,9 million housesand 1,8 million hectares of crop. The analysisincorporates meteorological, geo-physical andsocio-economic factors to assess the impact ofmangrove vegetation on cyclone damage. Theresults indicate that the presence of mangrovessignificantly reduced the number of human deathsand saved lives (both human and animal).Mangroves caused a significant reduction ofdamage to residential houses and to large animalslike cattle and buffalo. The study finds that if thewidth of the mangrove forest was 10 per cent morethat what it was at the time of the cyclone, humancasualties would have been lower by 12.48 per cent,buffalo loss by 6.6 per cent, cattle loss by 2.23 percent and fully collapsed houses by 2.21 per cent.Factors like land elevation, immovable assetholdings, etc., too, had decisive effects on humancasualties in the storm surge affected areas.

Research Completed

This section presents abstracts from SANDEE’s working paper series. Full papersare available online at www.sandeeonline.org

Pesticide Use in Nepal: Understanding HealthCosts from Short-term Exposure

Kishor AtreyaSANDEE Working Paper No. 28

Occupational health remains neglected as asubject in developing countries. Atreya focuses onacute health impacts associated with pesticideexposure in rural Nepal. Using data from 291households, this study finds that the level of exposureto insecticides and fungicides can significantlyinfluence the occurrence of health symptoms. Onefinding: the predicted probability of falling sick frompesticide related symptoms is 133 per cent higheramong individuals who use pesticides comparedwith individuals in the same household who are notdirectly exposed. Households bear an annual healthcost of NPR 287 (US$4) as a result of pesticideexposure. These costs vary with exposure: anincrease by 10 per cent in hours of exposure raisescosts of treatment by about 24 per cent. Atreya findsthat exposure to pesticides imposes a health burdenof NPR 1,105,782 (US$15,797) per year in the studyarea. Although pesticide use in Nepal is low relativeto many other countries, this study, which is the firstof its kind in Nepal, suggests that farmers and policymakers need to become aware of the healthimpacts of pesticide use as they continue topromote its use in Nepal.

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Evaluating Gains from De-Eutrophication ofthe Dutch Canal in Sri Lanka: A Cost BenefitAnalysis

W. R. RohithaSANDEE Working Paper No. 29

Sri Lanka’s Dutch canal system is an importantwetland area for shrimp farming and has becomea promising foreign exchange earner. Rohitha findshowever that with more than 1,300 farms workingin an area of 3,750 hectares, shrimp farming in theDutch Canal is largely unplanned and un-coordinated. The absence of controls has resultedin eutrophication of the lagoon system at a levelhigh enough to cause a decline in the shrimpindustry’s output and also in the lagoon’s fish harvest.A plan to rehabilitate the Dutch Canal to its originalwater quality status has been drawn up, with anestimated cost (in 1999) of LKR 180 million. This studyestimates the increase in shrimp productivity that islikely to occur if the Canal is cleaned. The key findingis that the gains from reducing pollution in the DutchCanal would far outweigh the cost of clean-up andthe government could potentially recover the costswithin two years.

Call for Research Proposals — Economics of ClimateChange

Human activity is altering the earth’s climate with seriousimplications for food security, health, biodiversity and naturaldisasters. South Asian countries will need to respond with strategiesto both mitigate green house gases and adapt to climate change.SANDEE would like to increase its support research on theeconomics of climate change.

We are soliciting concept notes on the following topics: a)Understanding the benefits, costs and distributional impacts ofspecific adaptation or mitigation strategies. b) Examiningeconomy wide impacts of climate change policies through theuse of macro-economic models. c) Analyzing incentives relatedto international climate mitigation/adaptation instruments andclimate negotiations. d) Economic analyses of local and regionalclimate problems such as haze and black carbon and strategiesto mitigate these. e) Increases in extreme events and theeconomic viability of ‘adaptation instruments’ such as insurance,increased natural barriers or institutional responses.

While we will collect proposals throughout the next 12 months, inorder to be considered for our next research competition, we willneed concept notes by December 31st 2008. Grant requests canrange from 15 to 40,000 USD, but larger proposals need to includeteams of natural and social scientists. If interested, please send ina 3 page concept note to application.sandee@gmail.com

Taxing Pollution: A Case for Reducing theEnvironmental Impacts of Rubber Productionin Sri Lanka

Jagath Edirisinghe, Susantha Siriwardana, SarathSiriwardana and Punsara Prasandith

SANDEE Working Paper No. 30

Most firms that process rubber in Sri Lanka do notcomply with national water pollution controlstandards. This study estimates a pollution tax that

can motivate firms to meetthese standards. Using datafrom 62 rubber producing firmsin Sri Lanka over three years,the authors estimate amarginal cost function forpollution abatement. Theyestimate the tax rate that canhelp bring firms intoenvironmental compliance: 26Sri Lankan rupees per 100grams of Chemical OxygenDemand (COD) per year.While the burden of a pollutiontax on the average firm wouldbe 8.6 per cent of annualturnover, the tax burden varieswith the size of the firm. Theauthors suggest that the use ofsuch an economic instrumentmay motivate the country'sCentral EnvironmentalAuthority to monitor effluentsmore stringently.

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Natural Resource Management in WestBengal – Informing Policy Makers

SANDEE and the Global Change Program, Centrefor Rural and Cryogenic Technologies, jointlyorganized a policy discussion on natural resourcemanagement in West Bengal at JadavpurUniversity, Kolkata, on 13th June 2008. Theoccasion was used to present results from twoSANDEE studies. Lekha Mukhopadhyaypresented her work on the Buxa Tiger Reserve inNorth Bengal entitled ‘An Institutional Questabout People’s Low Participation in BiodiversityConservation Program’ and Indrila Guha andSantadas Ghosh’s study, ‘Can tourism be avehicle for conservation? An investigation fromthe Mangrove Forests of the Indian Sundarban’was also discussed. The workshop was attended

Nepal's Community Forestry Funds: Do TheyBenefit the Poor?

Ridish K. PokharelSANDEE Working Paper No. 31

Funds generated through community forestry areimportant resources for rural communities in Nepal.Pokharel examines forestry funds in 100 communitiesin three districts to assess how large these funds areand how they are used. The study finds that theincome from community funds increases localdevelopment resources by about 25 per cent. Thisincome is invested in schools, temples, roads, andwater reservoirs, which aids rural development.However, the 'pro-poor program' - an effort toreduce poverty through the resources generatedfrom community forestry - continues to behampered by problems. Pokharel's study finds thattimber is subsidized and the subsidies accrue mainlyto the non-poor. Furthermore, income spent on loanstends to favor the non-poor. Overall some 74 percent of the benefits of community forestry fundsaccrue to the non-poor in rural communities inNepal. Two courses of action are suggested by thestudy findings: a) permitting all households an equalshare in timber that is harvested; and b) bringingmore poor and less advantaged members into theexecutive committees which manage forestryfunds.

The Environment as a Production Input: ATutorial

Jeffrey VincentSANDEE Working Paper No. 32

Most research on the value of changes inenvironmental quality focuses on direct impacts onindividuals or households. Yet environmental qualitycan also affect welfare indirectly through its impactson environmentally sensitive industries such asagriculture, forestry, and fisheries. In developingcountries, whose economies tend to be moreresource-based, production-related impacts areespecially important. Vincent reviews therelationships among three key functions inproduction economics - production, cost and profit-and explains how these functions can be used tovalue changes in environmental quality. This paperis primarily conceptual, discusses implications forapplied work and includes an empirical examplethat illustrates how production and profit functionscan be used to value environmental inputs to riceproduction in India.

by more than 100 participants, including the Pro-Vice Chancellor of Jadavpur University, theChairman of the Pollution Control Board,Secretary, Sundarban Affairs Department, JointDirector, Sundarban Biosphere Reserve, GeneralManager of VIVADA, a tour operator in theSundarbans, Field Director of the SundarbanNational Park, many academics and the press.The workshop resulted in a lively discussion onnatural resources management, on park pricingand the capacity to manage tourism, which wasdisseminated in regional media outlets. TheSunderbans study is likely to form the basis for abroader research agenda being developed bythe state.

Karl Maler & Jeff Vincent – Advisors in discussion

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Discounting Climate Change

Partha DasguptaSANDEE Working Paper No. 33

This paper discusses the idea of social discount ratesas applied to public policy analysis. Dasgupta showsthat those rates are neither ethical primitives norobservables as market rates of return on investment.Instead, they ought to be derived from economicforecasts and society’s conception of distributivejustice concerning the allocation of goods andservices. The welfare theory is developed in thecontext of three empirical studies on the economicsof global climate change. Dasgupta argues thatthe theoretical foundations of intergenerationalwelfare economics are still unsettled even indeterministic models. The paper shows that if theuncertainties associated with climate change andbiodiversity losses are large, the usual formulationof intergenerational well-being could lead to ethicalparadoxes. Various modeling avenues that offer away out of the dilemma are discussed, and noneof them is shown to be satisfactory.

Publications and Presentations

K. Atreya (2008), 'Health costs from short-term exposure to pesticides in Nepal',Social Science and Medicine, 67, 511-519

K. Atreya (2008), 'Probabilistic assessment of acute health symptoms related topesticide use under intensified Nepalese agriculture', International Journal ofEnvironmental Health Research, 18 (3): 187-208

M. Jahangir Alam Chowdhury (2008), 'Does Participation in Microcredit basedSocial Forestry Program Enhance Environmental Literacy? Experience fromProshika in Bangladesh', presented at the 23rd annual general meeting andconference (AGM) of the Pakistan Society of Development Economists (PSDE),12th - 14th March, 2008

Krishna Prasad Pant (2008), 'Valuing Interventions to Reduce Indoor Air Pollutionby addressing Endogeneity - Fuelwood Use, Deforestation and Health in RuralNepal', presented at the 23rd annual general meeting and conference (AGM)of the Pakistan Society of Development Economists (PSDE), 12th - 14th March,2008

Rucha Ghate presented the SANDEE book 'Promise, Trust and Evolution' at aRound Table organized by the Environmental Studies Program, University ofKansas, US, in August, 2008. The faculty and students participated in the discussion.

Das, Saudamini (2008). "Mangroves provide protection during cyclones: Evidencefrom the super cyclone for October 1999 in India. FEEM working paper/doctoralseries 2.08, Italy. Saudamini's SANDEE research was among 3 chosen from 16presentations made at a summer school in Venice.

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International Trading of Emission Rights and Its Implications forIndia - A Climate Change Workshop organized by the NationalCouncil for Economic Research, India and SANDEE.

Vijay Prakash Ojha presented the findings of his Working paper at aseminar at the NCAER on March 7, 2008. In a crowded conference room,Director, Suman Berry, welcomed the participants and members of theaudience. Kanchan Chopra, Director, IEG, was the Chief Guest. E.Somanathan, Sanjib Pohit and Surya P. Sethi (Principal Advisor, PlanningCommission) discussed the findings of the paper.

Ojha described his findings and placed the different options that werefeasible for India. Somanathan and Pohit discussed technical issues andmade suggestions on how the model could be improved. Sethi discussedenergy options and the limits to carbon emissions for India. There was aninvolved discussion on the position that India should take at the Climatechange negotiations and there were conflicting views on the matter. Atthe end, Pranab Mukhopadhyay, SANDEE, briefly described the work onClimate Change that SANDEE was initiating.

The audience had representatives from the academia, press, theConfederation of Indian Industries (CII), international organisations likeWinrock & Oxfam as well representatives of the Norwegian Embassy.Please see media coverage at:http://economictimes.indiatimes.com/articleshow/msid-2863777,flstry-1.cms

Strong SANDEE presence at theEuropean Association forEnvironmental and ResourceEconomics (EAERE) Congress

- Saudamini Das

The 16th EAERE conference was heldat Gothenburg University,Gothenburg, Sweden from 25 to 28June, 2008. A pre-conference wasorganized on Environment andDevelopment on June 25th withplenty of participation fromresearchers, practitioners andstudents from around the world. PriyaShyamsundar participated in apanel on 'the role of environmentaleconomics for implementation ofsustainable development'. The three-

day conference was structured around eight broad themes; each ofwhich had 13-14 parallel sessions and every parallel session comprised 4-5 presentations. SANDEE was very well represented in the conferencewith more than 15 members of the SANDEE family including 10 granteesand several resource persons, who made presentations in differentsessions. The grantees were Bhim Adhikari, Jahangir Alam Choudhary(Jac), Jahangir Alam, Jagath, K. P. Pant, Kavi Kumar, LekhaMukhopadhyay, Min Malla, Saudamini Das and Vinish Kathuria. It was agreat opportunity to learn about all the work that is going on in Europeand to be with friends. Many thanks to SANDEE advisor and currentPresident of EAERE Thomas Sterner.

SANDEE Participants at EAERE, 2008, Sweden

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Focus

Emerging Challenges and ICIMOD's Role inthe Hindu Kush-Himalaya Region

-Andreas SchildDirector General ICIMOD

aschild@icimod.org

Emerging ChallengesThe Hindu Kush Himalaya (HKH) region extendsacross a stretch of some 3,500 km running througheight countries: Afghanistan, Bangladesh, Bhutan,China, India, Myanmar, Nepal and Pakistan. Thetotal area covered by the HKH region is about3,566,473 square kilometers, of which about 37 percent consists of pastures, 24 per cent forests, 3 percent protected areas, 5 per cent agriculture and30 per cent other land uses. The world's mountainpeaks above 8,000 meters, the deepest gorge andthe deepest valley all lie in the HKH region.

Over the last several decades the 210.53 millionpeople that live in this vast landscape areexperiencing enormous changes due to globalwarming, globalization and population growth andmigration. Mountain people are finding it difficultto cope with the variety and scale of emergingchanges. As is so often the case, it is the poor,women, children and other vulnerable groups whobear a disproportionate impact of these changes.

The HKH region has the third largest concentrationof snow and ice after the two polar regions. Alsoknown as the water tower of Asia, the regionregulates the flow of nine major river systems andprovides varied water related services to about twobillion people downstream. As population growsand the pace of development accelerates in theregion, water demand is also increasing. Water, atdifferent times of the year, is also a hazard in theform of floods, which lead to loss of lives andproperty, as was seen this year in Bihar, India. Theseproblems are expected to worsen as glaciers meltfaster and precipitation (snow and water) becomesmore erratic due to climate change.

This region contains a unique array of flora andfauna of global importance, including four of theworld's 34 biodiversity hotspots. But these naturalecosystems in the region are undergoing dramaticchanges. For the most part, ecosystem serviceshave degraded and this in turn is deepeningpoverty among many people who depend onnatural resources for their livelihoods. Globalizationand climate change are already affectingbiodiversity in ways that are still being understood.

What is certain is that this unique asset needs to bebetter managed to improve the livelihoods for thepresent and future generations of mountainsdwellers and for those in the plains who depend onwater from the HKH for their survival.

The HKH is becoming relatively more accessible withglobalization having brought new benefits andopportunities even in remote parts of the region.At the same time, the same forces have alsodisrupted traditional farming and cottage industrypractices, traditional livelihoods and copingmechanisms of many mountain communities.Migration is one such important coping mechanismwhich channels remittance income to the mountainareas. However, it has also increased drudgery,workload, and responsibilities of the mountainwomen and marginalised minorities in many places.Generating options for sustainable livelihoods toreduce poverty is the most effective way to adaptto the emerging challenges that confront the HKHregion.

ICIMOD's RoleThe problems and challenges confronting the HKHregion are formidable, but the region has enormouspotentials of development given its huge resourcebase. Despite the vastness and diversity of the HKH,common characteristics link the countries itbestrides. While the region lacks a tradition ofregional cooperation, the impacts of globalization,climate change and population dynamics aretrans-boundary matters. This is where ICIMOD can:

Play a catalytic role to integrate mountain speci-ficities into an agenda of mountain developmentof the member countries.Provide an enabling environment for membercountries to come together with representativescientific information necessary for developing acomprehensive understanding of the region.Serve as a regional hub and facilitate trans-boundary dialogue and thus become a regionalknowledge hub for sharing knowledge gener-ated in the region and beyond. ICIMOD can fa-cilitate the transfer of good practices around theHKH.

The challenge for ICIMOD is to bring together policymakers, scientists and scholars, people from civilsociety and from academia to share experiencesand find solutions.

1 These river basins are Indus, Ganga, Brahmaputra, Irrawaddy, Salween, Mekong, Yangtze, Yellow and Tarim

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Discussion

Jhum Farming in the Hills of Bangladesh Case

- M A Monayem MiahSenior Scientific Officer, BARI, Bangladesh

monayem04@yahoo.co.in

About a tenth of Bangladesh is hilly. The country’shill regions are rich in natural resources includingtimber, several species of bamboo, medicinalplants, and a variety of other flora. Besides rice,sugarcane, maize, and tuber crops, fruits andvegetables are also grown. More than half theinhabitants of the hill region belong to ethniccommunities (12 tribes) while the rest are Bengalimigrants from the plains. The hill people are, ingeneral, very poor and illiterate, and their livelihoodsdepend on wage earnings and jhum (slash andburn) cultivation. Collection of timber, firewood, andhouse-construction material remain importantsources of income for hill people. Livestock andpoultry provide additional income. Jhum continuesto be practiced because of both historical andpoverty-related reasons.

Land ownership is a complex issue in the hill areas.Over time an increasing proportion of land isprivately owned, creating private property rightsover land. Due to demographic pressure and arelative shortage of land, land under jhum hasshrunk. Jhum cultivation is characterized bycultivation of upland rice and other mixed crops,and has been the dominant cultivation system ofmost tribal people in the hills. The dry vegetation isburnt and the hill is cleaned for sowing seeds ofmajor jhum crops – vegetables, rice and some cashcrops.

Jhum cultivation is becoming increasinglyunsustainable because of a contracting fallowperiod between cultivation cycles. In the past, jhumwas practiced with a fallow period of 15-20 yearswhich ensured the long-term sustainability of soilfertility. However, due to rapid growth in localpopulation and commercialization of agriculture,this cycle has been abbreviated to between threeand four years. The effects are manifold:regeneration of secondary forest is retarded, soilerodes more quickly and biodiversity decreases.

Empirical evidence shows that the annual loss oftopsoil ranges from 39.70 to 45.00 ton/ha. Erosion atthis rate causes a loss of water-holding capacity, ofnutrients needed for crop production and affectscrop productivity. Jhum cultivation relies largely onown inputs and the natural fertility of the soil. About80 per cent of the total cost of production was

domestically supplied in which 75 per cent of thelabor and all the seed was from family sources.

Viable alternatives such as agro-forestry andplantation are being practiced on a very limitedscale in some hill areas. Several agro-forestryproduction techniques, designed with locallyadapted trees and crops for different slopeconditions, are found to optimize the production ofagro-forestry crops and minimize environmentaldegradation in the hill areas. One promisingtechnique is the multi-strata fruit orchard, promotedby Bangladesh Agricultural Research Institute.Evidence shows that the method checks up to 77per cent of topsoil loss and that jhum farmers wouldreceive up to 190 per cent higher return if theyadopted the technique. The high initial cost ofestablishment, longer gestation period, and unclearcustomary rights are deterrents to the adoption ofsuch farming in Bangladesh, problems that can beovercome with financial support and technicalassistance.

Fragile Mountain Ecosystems: The Socio-economic Spine of Bhutan

- Sonam ChoidenLecturer, Sherubtse Collegechoidensonam@yahoo.co.in

Bhutan has kept its natural ecosystem intact,perhaps more than any other country in Asia. Witha population of about 630,000, development inBhutan is guided by the national vision of GrossNational Happiness aimed at balancing itseconomic development with the protection ofenvironment and culture.

The country is heavily dependent on its mountainecosystem for agricultural production andhydropower. Almost 75 per cent of its population

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depends on subsistence agriculture and forestryresources for livelihoods. These sectors contribute themost to Bhutan’s GDP, but their share has declinedto 22.5 per cent in 2006 from 36 per cent in 2001.The ecosystem, although fragile, has well-conservedwatersheds and multi-layered forests.

Bhutan has the highest proportion of forest cover inAsia of 72.5 per cent, and protected areas coverover 26 per cent of the country. Such a highproportion is not without its own problem, for thepolicy of increasing forest cover is beingimplemented at the expense of agricultural land.Due to its extensive forest cover Bhutan has netsequestration of greenhouse gas and carbontrading may generate revenues. These forests arerich in non-timber forest products that are collectedby rural populations for whom they provide analternate source of livelihoods: lemon grass oil, lichenspecies, mushrooms and medicinal herbs are high-value products.

Water is an abundant resource. Fed by numerousglacial lakes Bhutan has four major river systems.Their importance for hydropower is seen by thepower sector’s contribution to GDP (14 per cent in2007 and growing) with revenue from electricitysales amounting to 48 per cent of the country’s totalexports. Part of our future plan is to groweconomically by providing electricity to our giantneighbors India and China.

Our biggest challenge ahead is in understandingthe trade-offs between good stewardship andeconomic well-being. Some of the resourcedecisions we make over the next decade will havefar reaching consequences for our culture andeconomic growth.

From Glaciers to Humans: Combating ClimateChange in the Sikkim Himalayas

- Sandeep TambeJoint Secretary, Rural Management and Development

DepartmentGovernment of Sikkim, India

sandeep_tambe@yahoo.com

The Himalayan region is a global biodiversity hotspotand home to 10,000 species of vascular plants, 300mammal species, 979 bird species, 177 species ofreptiles, 124 species of amphibians and 269 speciesof fishes. These mountain ranges are also a sourceof freshwater, firewood, fodder, timber, non-timberforest produce and other bio-resources all of whichsustain livelihoods. Biotic interference and climatechange have recently emerged as major causesof degradation in the region. A number of studieson climate change have been conducted which

highlight the rapid rate of decline of the glaciers,rise in temperatures and altered weather patterns.

The Himalaya is also a source of freshwater,firewood, fodder, timber, NTFP and other bio-resources and the associated traditionalknowledge, which sustains livelihoods. Bioticinterference and climate change have recentlyemerged as the major causes of degradation in theregion. Various research institutions haveconducted studies on climate change whichhighlight the rapid rate of decline of the glaciers,potential hazard posed by GLOFs, rise intemperatures, weather patterns, impacts onvegetation communities and other indicators ofclimate change. Over the years a lot of valuableinformation has been generated on the impacts ofclimate change on glaciers, vegetation etc, aboutwhich unfortunately not much can be done at thelocal level to change the trend. The gap in theinformation is in areas related with mitigation andadaptation methods at the local level. Emergingquestions of today are - what are the impacts ofclimate change on mountain springs which ensurewater security in the mountain villages, onsustainability of mountain niche crops which are themajor cash earners, on vulnerability of geographicpoverty hotspots, on health issues related to vectorborne diseases and so on.

In this regard some activities at the local level thatneed to be taken up urgently are:

Identifying varieties or cultivars of mountain nichecash crops like apple, orange, large cardamomand other indigenous crops and their associatedbest practices which can make them resilient toclimate changePrioritize spring water conservationConstitution of a hydel power developers con-sortium for GLOF monitoring

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Promotion of rain water harvestingProviding capital subsidy on solar water heatersto reduce firewood useInclude climate change in school curriculumSensitize policy makers for mainstreaming climatechange sensitivity in ongoing government pro-grams, andPreventive care for vector borne diseases.

The Himalayas are changing fast; it is time to shiftthe focus back on humans.

Deteriorating Mountains in Nepal

- Bishnu Prasad SharmaLecturer, Patan Multiple Campus, Nepal

bisunita@wlink.com.np

Nepal consists of layers of elevated terrain: low hills,the midlands, the Himalayas and the innerHimalayas. The mountains and the high lands(above 3,000 meters) are a resource supplier tonumerous natural ecosystems downstream. Themountains and the hills alone cover 86 per cent ofthe total land area of Nepal. The mountain regionis home to 7.3 per cent of Nepal’s population, withabout only 4 per cent of its land area undercultivation. Low average temperatures permit onlya single crop to be harvested in small quantities andmost of the region (13 of the 16 mountain districts) isseverely food deficient.

People secure their livelihoods by raising livestockfor fiber, milk, meat, manure and draft power. Someseasonal income accrues from the tourism industrythrough work as mountaineers and porters to foreigntrekkers and expedition teams. Collection of highaltitude medicinal herbs, particularly in the westernmountains, is another alternative. Even so, migrationfrom the hill districts has been steady: the populationin the mountains was 9.9 per cent of the total in1971, and has fallen to 7.3 per cent in 2001.

Forest, agriculture and livestock constitute thecombined basis of traditional mountain livelihood.The average temperature increase in the region,and the expected rise to between 3.5 and 5.5degree Celsius by 2100 in the sub-continent makesforests particularly vulnerable. Due to the absenceof alternatives, regenerating forests in the mountainsare threatened by growing demand for firewoodand timber both locally and across the border inTibet. Community forestry and leasehold forestry arenew policy initiatives for the protection of forests andto improve livelihoods in the mountains and hills ofNepal. Community forests are forests managed bythe communities as users, while leasehold forestry isa program that provides land on a 40-year-lease to

targeted poor and the landless householdsendowing them with full extraction right. Theseprograms have been successful in the hills, but inthe mountain regions they are constrained byclimatic factors that restrict plant growth, while theproblem of physical access imposes higherimplementation costs. These are challenges thatwe need to recognize and find solutions for as werespond to climate change.

Economic Prescriptions for MountainEcosystems in Pakistan

- Ali Dehlavi and Meherunissa HamidProgram Economist and Program Management Officer

WWF-Pakistan’s Indus For All Program adehlavi@wwf.org.pk

Among the 72 million inhabitants of Pakistan’snorthern mountain ecosystem are some ofPakistan’s poorest farm households, living in rivervalleys where irrigation is fed by glacier melt andsnow melt. These households may already bereceiving snowmelt earlier than usual each year,making water availability less synchronized with thesummer growing seasons. Downstream, the IndusIrrigation Scheme depends on about 50 per centof its runoff originating from snowmelt and glacialmelt from the (eastern) Hindu Kush, Karakorum andHimalayan ranges: it forms the world’s largestcontiguous irrigation system, the Indus basin, whichis home to over 100 million people, two million farms,and the Punjab province which alone produces 90per cent of Pakistan’s food.

Pakistan must quickly address an alarming resourcedegradation trend in the northern mountain ranges:rising Himalayan temperatures (exceeding theglobal average of 0.74 °C in the past 100 years) arecausing permafrost and glaciers to retreat, withmost precipitation falling as rain, causing earliersnowmelts and shorter winters which in turn affect

Flying to view Nepal’s Mountains– SANDEE Group, 2008

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river regimes. Snow avalanches and glacial lakeoutburst floods are expected at high elevations(above 3,500 meters). Lives and properties of middlemountain communities (500-3,500 meters) areexpected to be endangered by landslides, debrisflows, and landslide dam outburst floods. In the Induslower valleys and plains, annual discharge possiblyin all five major tributaries of the Indus basin (Sutlej,Beas, Ravi, Chenab, Jhelum) would increase, and,as peak flows rise, glacio-fluvial sediments are likelyto damage dams, barrages and watercourses. Inthe long run, a decrease in dry season discharge isexpected, thereby limiting communities’ access towater supply.

In response to this threat to Pakistan’s northernmountain ecosystem, scientists’ help is needed todevelop missing or absent baseline socioeconomicand ecological data, Environmental and resourceeconomists need to question the short term natureof decision-making in the Indus basin andconcentrate their research on tangible economicresults for the long term.

BhutanThe environment-friendly policies of Bhutan haveencouraged the country to participate in globalcarbon trade. The Agriculture Ministry is consideringearning carbon credits under the provisions of theKyoto Protocol on the basis of the country’s morethan 70 per cent forest cover, large natural reservesand hydro projects. Since the Kyoto Protocol doesnot recognize standing forest or country’s efforts toprotect them, Bhutan plans to undertake plantationon 8 per cent of its degraded forests and shrubareas.

Eco News

Sri LankaThe Sri Lankan government has imposed anEnvironmental Conservation Tax on thecommunication and transportation sectors. TheTelecommunication Regulatory Commission is to beresponsible for collection of these taxes. An annualtax of LKR 50,000 will be levied on institutions owningtelevision and broadcasting transmission towers. Anenvironmental conservation tax has been imposedon CFL bulbs, and on motor vehicle revenue licensesdepending on the weight of the vehicle and thetype of fuel used. The Central Environment Authorityintroduced the levy under the EnvironmentalConservation Tax Act 2008, on the polluter paysprinciple in keeping with the Rio Protocol of the firstEarth Summit (1992) to which Sri Lanka is a signatory. Thefunds collected through the EnvironmentalConservation Tax are to be used for collecting,recycling and safe disposal of mobile phones.

- Contributed by Manoj Thibbotuwawa.IndiaThe Cabinet Committee on Economic Affairs hasapproved the Water Resources Ministry’s plan tocreate a data bank to coordinate and processinformation regarding water resources. The schemecalled ‘Development of Water ResourcesInformation System’ is being implemented duringthe Eleventh Five Year Plan (2007-12) at a cost ofINR 2,343 million.

NepalA rapid food security assessment mission has beenput in place to help government deal with thesituation of severe food insecurity in several districtsof Nepal. Over 250,000 people in nine districts inNepal’s mid- and far western regions are facing aprecarious food security situation due to crop failure.This is even while the country reports an increase inagriculture production: 16.8 per cent for paddy, 3.8per cent for wheat and 3.2 per cent for maize,According to the Ministry of Agriculture, Nepal facesa serious risk of stagflation – a condition of loweconomic growth, high employment and risingprices.

Researchers Rafiq & Joga – enjoying the moment,Kathmandu

Participants environmental economic course , Bangkok

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SAANDEE Activities

SANDEE organized its first interactive distancelearning seminar given by Dr. Prasad Kasibhatla,Associate Professor of Environmental Chemistry, andAssociate Dean for International Programs, NicholasSchool, Duke University. Dr. Kasibhatla delivered apresentation on "The Global Carbon Cycle" to 35workshop participants. From an atmosphericchemist's viewpoint, Dr. Kasibhatla focused his talkon the policy need to understand and quantify theanthropogenic carbon dioxide (CO2) budget inorder to predict future climate change. Keymessages from the presentation were:1. While it is clear that the rate of change and ab-

solute concentrations of CO2 are unprec-edented in the recent past, controlling mecha-nisms for large natural variations in atmosphericCO2 are not understood.

2. The carbon budget's decadal timescale input/output accounting must reduce uncertainties inlanduse change flux - of the order of 0.5-2.7 mil-lion tonnes of carbon a year - through mappingthe extent and spatial distribution of tropical de-forestation. A solid mechanistic understanding ofterrestrial sinks is essential for estimating future cli-mate change paths.

3. Although reducing deforestation is a step towardsstabilizing atmospheric CO2, concentrationsthrough 2100, it was argued that achieving sta-bilization near 450 ppm in 2050 must be princi-pally shouldered by fossil fuel emission reductions.

- Ali Dehlavi

Dr Andreas Schild, Director General of ICIMODdelivered a plenary talk on the challenges facingHindu Kush Himalayan Management and the roleof ICIMOD. He highlighted the importance of themountain ranges, which spread from Afghanistanto Bhutan. These mountain ranges are sanctuariesfor various flora and fauna. He illustrated how theseranges are sources of various important rivers in theregion such as the Indus. Consequently, theirsignificance as a provider of water for the verysurvival of the people is critical. He pointed out thatclimate science studies measure the extent of forestcover of North America and Europe, which arestrategic assets for the global climate. However, theroles of the forest of Himalayan ranges are notconsidered because of the non-availability of data.Dr Schild suggested a partnership with SANDEE toconduct joint studies for a better understanding inthis area.

- Rafiq Muhammad

Three plenary talks at the 16th BiannualResearch and Training WorkshopJuly 2008, AIT, Thailand

Dr. Herath Gunatilake, Senior Economist, EconomicsResearch Department, Asian Development Bank,gave a talk on 'Privatization Revisited: Lessons fromPrivate Sector Participation in Water Supply &Sanitation (WSS) in Developing Countries'. He saidthat the role of the public sector in a marketeconomy includes framing regulations for creatingand maintaining an enabling environment for themarkets to function, correcting market failures, andensuring the equitable distribution of economicoutcomes. Based on his study, Dr. Gunatilake saidthat piped water has many characteristics of aprivate good. Nevertheless, privatization has failedmostly in developing countries as this was oftencarried out without the support of sufficientplanning, analytical work and public consultation.The success of privatization largely depends onsupply side norms like an enabling environment,innovative schemes for product marketcompetition, effective regulatory mechanism andenforcement. It also requires strong institutionalfactors and demand side norms like adequatewillingness to pay for improved WSS services,feasibility of metering, cost recovery tariffs andcontext-specific measures. Selective private sectorparticipation in the water sector is necessary giventhe fact that changing ownership structure alonedoesn't necessarily enhance the water supplyefficiency. Moreover, a reasonably well functioningpublic sector is a precondition for the success ofthe private provision.

- Manoj Thibbotwawa

Program Evaluation for Environment andResource Economists

4th July, 2008AIT CC, Pathumthani, Thailand

Evaluation of programs, either before they aredesigned or after they are implemented, areincreasingly viewed as critical for learning andimproving accountability of public policies. Manyargue for an expanded role for rigorous impact

Laughter with Kavita , Ratna & Prakash

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Research and Writing Workshop atKathmandu, September 13-17, 2008

From past experience I am sympathetic to theunenviable position of a young researcherdefending a research proposal in front of SANDEE'sfull R&T audience. Just before the presentationone is confident, knowing the content well andfeeling assured about the quality, having put inso much hard work. Being invited to R&T is enoughto feel privileged! But once the presentation is overand experts begin their discussion, pointing out thegaps in the proposal, one often wishes the

invitation had not come at all!! This Pre-R&T Workshop concept -another example of SANDEE's dynamic and evolutionary ways -delivered a great service to prospective researchers. A smallgathering with 12 presenters and four experts turned out to beso effective that all the presenters substantially changed theircontent and research questions after the first day of presentation.It was hard work for all of us for four days, but the idyllic setting ofthe mountain resort at Nagarkot near Kathmandu, and the viewof snow-clad peaks relieved our pressure to a great extent.- Santadas Ghosh

evaluation of development projects, programs, andpolicies and the development communityincreasingly recognizes the need for evidence ofeffectiveness. Unfortunately, resource andenvironmental economists have little or no trainingor guidance on how to conduct such evaluationsusing sound and rigorous empirical methods. Whilethere are many texts explaining the how and whyof impact evaluations, these ideas have not beenmapped into the 'environment and development'context and terminology. This day long courseserved as an introduction and a refresher forevaluation of programs, projects and policies in theenvironment and development arena. Participantsincluded some 25 SANDEE researchers and thecourse was taught by SANDEE Advisor, Dr. SubhrenduPattanayak.

A Training Course in Environmental andNatural Resource Economics

AIT CC, Pathumthani, Thailand5th - 23rd May, 2008

SANDEE organized a three-week training course inEnvironmental and Natural Resource Economics forEconomists from 5-23 May, 2008. The course wasmeant for practicing South Asian economistsinterested in upgrading their skills and learningrelated to Environmental and Natural ResourceEconomics. The workshop provided economists withthe basic skills necessary to teach environmental

Other News

Vacancy

Fellowship in Environmental EconomicsCORE, Université catholique de Louvain(Belgium)

The Center for Operations Research andEconometrics of the Université catholique deLouvain is offering one research fellowship inenvironmental economics starting September 1,2009. The position is for one or preferably two yearsat the assistant professor level and is open tocandidates with a PhD degree. Applications(personal data, CV, degrees, current position,research interests with sample papers and nameof three referees) must be filled through the websitehttp://pdc.core.ucl.ac.be/FELLOWS/index.php,before November 30.

and natural resource economics and to undertakeresearch in this area. The course covered economicissues underlying sustainable development, poverty-environment interactions, and natural resource useand pollution management. Participants wereexposed to basic theoretical issues and economictools and methodologies for analyzingenvironmental problems in developing countries.

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Congratulations

Janaranjan Herath has joined West VirginiaUniversity, Morgantown, USA, for doctoral studieson Natural Resource Economics (NRE) with ascholarship. He started his work from September2008.

Krishna Pant's proposal, "Developing Market forCarbon Sequestration in Agriculture", was amongthe 100 finalists of the Global Development MarketPlace 2008 of the World Bank. He was invited toWashington to share his innovative ideas.

Indrila Guha has been selected as a climatechange leader by the Climate Change LeadershipProgram of LEAD India. She is one of the 30candidates selected in the Western and EasternHimalayan regions to tell the world of theirendeavors in facing the challenges of climatechange.

INSEE recently declared its executive committeeof 10 members. All the members were electedunopposed. Including the President, five membershave direct a SANDEE connection. While PurnamitaDasgupta, Seema Purshottaman and Amita Shahare former SANDEE grantees, PranabMukhopadhyay was SANDEE's EnvironmentalEconomist for the past two years. SudarshanIyangar, President of INSEE, has worked as advisor.

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Information about SANDEE and our activities are available online at www.sandeeonline.org. Our mailing addressis IUCN Nepal, PO Box 8975 EPC-1056 Kathmandu, Nepal. Telephone: 977-1-552 8761; Fax 977-1-553 6786. If youhave any questions about out program, please write to Anuradha Kafle at anuradhak@sandeeonline.org

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Priya, Anu, Bharati – Nagarkot workshop, September 2008

Our mailing address:SANDEE, c/o IUCN NepalP.O. Box: 8975 EPC-1056Kathmandu, NepalTelephone: 977-1-552 8761Fax: 977-1-553 6786E-mail: info@sandeeonline.org Informationabout SANDEE and our activities can beobtained online at www.sandeeonline.org

Banking on Mangroves: A Case for Investing in Coastal EcosystemsKarachi, Pakistan27th – 29th Nov. 2008

17th Biannual Research and Training WorkshopKathmandu, Nepal9th Dec - 13th Dec, 2008

A Training workshop on the Economics of Eco-system ServicesThailandMarch, 2009

A Training Course in Environmental and Natural Resource EconomicsAIT CC, Pathumthani, Thailand5th - 23rd May, 2009

Events

SANDEE Secretariat Staff, September 2008