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Cost Benefit Analysis of Participatory Natural Resource Management: A study of watershed development initiative in Indian village

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  • Sahu, Santosh

Abstract

Following the Hanumanth Rao committee report Government of India initiated Watershed Development Programmes (WDPs) to improve and sustain productivity of the semiarid regions of the country at higher level. The aim of such initiatives are also to fulfill the needs of rural communities for food, fuel, fodder, and timber as majority of rural people are depending on the natural resource for their livelihood. WDPs are being given importance in the development plans for India and by donor agencies as they promote sustainable use of natural resources and improve the rural economy of India. This paper presents a social cost-benefit appraisal of a watershed development project in Rajasthan, India. The analysis has been done by the primary data collected from the Bichhiwada village and using Net Present Value (NPV), Benefit-Cost Ratio (BCR) and sensitivity analyses. The results show that if expected full benefits are realized, the benefits derived from the watershed project are quite high. The findings of this study suggest that watershed development projects initiated to improve the economy and ecology of India's dry and semiarid regions are economically viable and socially desirable.

Suggested Citation

  • Sahu, Santosh, 2008. "Cost Benefit Analysis of Participatory Natural Resource Management: A study of watershed development initiative in Indian village," MPRA Paper 17134, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:17134
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    References listed on IDEAS

    as
    1. Deshpande, R. S. & Reddy, V. Ratna, 1991. "Differential Impact of Watershed Based Technology: Some Analytical Issues," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 46(3), July.
    2. Dasgupta, Partha, 1996. "The economics of the environment," Environment and Development Economics, Cambridge University Press, vol. 1(4), pages 387-428, October.
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    Cited by:

    1. Khan, M.T. & Joshi, P.K. & Khurana, R. & Kishore, A., 2018. "Evolving Watershed Clusters into Drought-Proof, Climate-Resilient Areas: An Impact Evaluation Study in Maharashtra, India," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277385, International Association of Agricultural Economists.

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    More about this item

    Keywords

    Watershed Development; Net Present Value; Cost Benefit Analysis; Sensitivity Analysis;
    All these keywords.

    JEL classification:

    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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