Economic valuation of medicinal plants in tirunelveli district

Abstract

Valuation of biodiversity is desirable, as this not only highlights the contribution of biodiversity to society but also helps in developing an efficient conservation strategy for this precious natural resource. Economic valuation of biodiversity and its different components in terms of use and option values induces efficiency in decision making criteria. Medicinal plants and herbs are one of the crucial components as far as the contribution of biodiversity to society is concerned. With a progressive loss of biodiversity all over the world, especially in the tropics, society is not only losing present benefits from current use but is being deprived of the option of future availability known as option value. Medicinal plants provide meaningful inputs for drugs. Their loss through extinction could lead to considerable loss to the society. Hence monetization of the components of biodiversity such as for medicinal plants in a cost benefit framework helps to understand how the conservation of biodiversity affects the level of human welfare. Medicinal uses of plant and animal species have been practiced for centuries in many parts of the world but valuation of such benefits by economists has commanded attention in the last two decades possibly due to the alarming rate of species extinction. Valuation can also help in devising a proper public policy for its conservation and sustainable use. Monetary benefits of biological resources through economic valuation in the context of bio-prospecting are a small part of total benefits.