The monetary facilities payment for ecosystem services as an approach to restore the Degraded Urmia Lake in Iran

Abstract

This study analyzed the potential use of Payment for Ecosystem Services (PES) as a strategy for improving water supply management. This study focused on the Siminehroud Sub-basin due to its high importance to the Basin of Urmia Lake (UL). Siminehroud is the second provider of water (by volume) to Urmia Lake. To evaluate the technical and economic feasibility of a PES scheme, the current land use map was extracted using satellite imagery. In addition, the two algorithms of Support Vector Machines (SVMs) and Maximum Likelihood (ML) are used for Landsat images classification, rather than analyzing the relationship between land use and ecosystem services. Then, the most relevant ecosystem services provided in the region were evaluated using the Benefit Transfer Method. In the last step, by designing and implementing a survey, on the one hand, the local farmers' Willingness to Accept (WTA) cash payments for reducing the area they cultivate, and on the other hand, the farmers' Willingness to Pay (WTP) for managing the water consumption were determined. The results illustrated that the WTA program is more acceptable among the beneficiaries. It is also notable that this program needs very high governmental funding. Furthermore, the results of the program indicate that the land area out of the cultivation cycle will gradually increase while the price of agricultural water will also increase.

Keywords: Economic analysis; Payment for ecosystem services; Water management; Willingness to accept; Willingness to pay.