Institute for Social and Economic Change

Established in 1972 by Professor V K R V Rao, ISEC is an All-India Institute for Interdisciplinary Research and Training in the Social Sciences

Social Forestry in Karnataka: Cost-Benefit Appraisal of A Project – isec

Social Forestry in Karnataka: Cost-Benefit Appraisal of A Project

Abstract

This paper reviews the development of the social forestry programme in India, followed by an economic evaluation of a social forestry project in Karnataka. The analysis notes that at full benefits net of all costs, including the opportunity cost of grazing benefits foregone, the project reports a high profit with the IRR exceeding 16 per cent. If benefits were to fall short by 50 per cent, the project still reports profits with the IRR exceeding 12.5 per cent. The study illustrates that social forestry projects are economically viable and socially desirable.

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