The monetary value of freshwater conservation.

The fertility of forest cover plays a crucial role in enhancing precipitation and freshwater availability, thereby significantly influencing ecosystem services. With global attention increasingly focused on ecosystem conservation, this article aims to estimate the monetary value of freshwater availability provided by forests, a vital component of provisioning services. The production function approach was used including the replacement cost method and market price method. The values obtained by the replacement cost method ranged from 59 to 129 US dollar per hectare per annum, which is lower than the market price method (191-424 US dollar per hectare per annum). The market price method, which requires less data and has been more commonly used in the literature, tends to overestimate the value of freshwater conservation due to the inclusion water treatment cost and value added tax which may not be relevant. The replacement cost method, which focuses directly on the forest ecosystem service, helps achieve a more accurate valuation of freshwater conservation efforts associated with forest preservation.