Publisher :
Place of publication :
Publication year : 1986
Thematic : TEEB
Language : English
Note
The island of Palawan covers some 12000km2 and is
located in the southwest of the Philippines archipelago.
It is a beautiful and as yet relatively unspoilt island but
in recent years the social and economic pressures on its
natural resources and environment have begun to
mount. Ifpresent trends continue, severe environmental
damage will result. In recognition of this danger, the
Philippines government and the European Economic
Community have commissioned the preparation of an
~ntegrated Environmental Program (IEP) for the
lsland, as part of an overall economic development
program. Phase one of the IEP study comprised an
assessment of the island's resources and present situation
and the formulation of a plan for the future
protection ofits environment, taking due account of the
need for continuing economic development.
An analysis was made of the likely economic returns
from the proposed environmental protection program,
using conventional benefit-cost analysis methodology.
Due to the inadequate data base and the wide-ranging
assumptions which had to be made, this was inevitably
very approximate in nature. It was carried out in terms
of the three main types of conservation activity proposed,
namely land-based conservation, mangrove conservation
and inshore marine conservation, and the
program as a whole. The main benefits and costs were.
identified and, where appropriate, quantified for inclusion
in the analysis.
Choice ofdiscount rate and length ofanalysis period are critical factors affecting the economics of environmental
protection, which essentially involves the pursuit
~f long~term rather than short-term gains, output in the
lmmed,ate future being restricted to the level of long((~
rm sustained yield for the benefit of future generatlons.
Use ofthe high discount rates customarily applied
for project analysis in countries such as the Philippines
(typically, 10-15 percent) places a heavy premium on
short-term gains and attributes little or no value to
benefits and costs further in the future. To take account
of this problem the present values of costs and benefits
were calculated using low discount rates of zero and 5
percent. Though this was a necessarilv crude and arbitrary
method of adjustment it was c~nsidered to be a
better alternative than that offollowing normal convention
and applying the high rates ofdiscount customarily
used in the Philippines.
The analysis indicated that the various conservation
activities could be .expected to produce acceptable,
though not spectacular, levels ofeconomic return. Mangrove
conservation would be particularly beneficial and
the irrigation benefits from preserving river base flows
and preventing an increase in peak floods, by means of
catchment protection, would be high. The unquantifiable
ecological and social benefits would also be substantial.
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Keywords : MPA
Encoded by : Pauline Carmel Joy Eje
