Linking Regional Land Use and Payments for Forest Hydrological Services: A Case Study of Hoa Binh Reservoir in Vietnam

45 Pages Posted: 12 May 2016

See all articles by Trung Thanh Nguyen

Trung Thanh Nguyen

Leibniz Universit├Ąt Hannover

Van Pham

Vietnam Forestry University

John Tenhunen

University of Bayreuth

Date Written: May 10, 2013

Abstract

We have calculated the economic value of forest hydrological services for Hoa Binh Hydroelectric Plant in Vietnam, which is a major power supplier for the capital Hanoi. Our valuation is based on measurements over a six year period from 2001 to 2006 in 240 permanent sample plots in different vegetation types distributed throughout the watershed. We have synthesized the information with GIS, and carried out simulations with derived empirical models for different land use, electricity price and payment proportion scenarios. Our findings indicate that the economic value of forest hydrological services for electricity production ranges from 26.3 million USD to 85.5 million USD per year; and that the longevity of the hydroelectric plant can be prolonged by about 35 to 80 years, depending on the state of forest cover in the watershed.

Keywords: economic valuation, forest, hydrological services, Hoa Binh watershed, Vietnam

Suggested Citation

Nguyen, Trung Thanh and Pham, Van and Tenhunen, John, Linking Regional Land Use and Payments for Forest Hydrological Services: A Case Study of Hoa Binh Reservoir in Vietnam (May 10, 2013). Available at SSRN: https://ssrn.com/abstract=2777985 or http://dx.doi.org/10.2139/ssrn.2777985

Trung Thanh Nguyen (Contact Author)

Leibniz Universit├Ąt Hannover ( email )

Welfengarten 1
D-30167 Hannover, 30167
Germany

Van Pham

Vietnam Forestry University

Hanoi
Vietnam

John Tenhunen

University of Bayreuth

Bayreuth, 95447
Germany

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