Economic valuation of ranges forage production using Hedonic pricing method – Case study: Zemkan basin of Kermanshah Province

Forage is the main product of ranges. Through determining the economic value of ranges forage, managers can be directed towards the optimal management of productivity. The purpose of this paper is to estimate the economic value of forage production in the ranges of Zemkan basin located in Kermanshah province. Calculating the value of forage production per square hectare is one of the employed methods used for this purpose. This method involves the awareness of the status of various range types and the producible rate in each range type. Using the interpretation of IRS-P6 satellite images, Liss III and Liss IV sensors, there were determined the area and kind of range types in Zemkan basin. Also, the average forage production per hectare was determined in each range type using experts' attitudes, official statistics, and the information of native individuals. Forage prices are estimated using the Hedonic pricing method as they are economically heterogeneous. The results showed that the economic rents and the expected values of each hectare of ranges are 870 and 13594 Rials per hectare in moderately dense ranges and 580 and 9063 Rials per hectare in low-dense ones. Therefore, it can be inferred that the related ranges can play a significant role in both local and regional economy.