benefit transfer ecosystem services valuation of the mining area
TRANSCRIPT
Benefit-Transfer Ecosystem Services Valuation of the Mining Area in Mt. Hamiguitan Ranges and its Environs
Ponce, R. & Tabora, J.
Rationale
Failure to account for the natural ecosystem services in any benefit-cost exercise of an economic activity may undervalue or even neglect the said services to the point of compromising sustainability of humans in the biosphere.
Rationale
Mt. Hamiguitan, a tropical mountain range in Southeastern Philippines is rich in biodiversity and mineral resources. But it is confronted with ecological and economic issues over an approved mining area of significant scale relative to the remaining forest cover of the mountain range (57% of Mt. Hamiguitan area).
Objective
This paper tries to establish information on the value of the Mt. Hamiguitan ecosystem services that maybe reduced or lost when renewable ecosystem services are compromised in favor of extracting non-renewable mineral resources.
Conceptual Framework
Holistic Benefit-Cost
Analysis
Economic Efficiency &
Equity
Economic Value of Ecosystem
ServicesBenefit Transfer
Valuation
BiodiversityResearch
Methodology
This study uses the benefit value approach (Pattanayak, Smith & Van Houtven, 2003) using single point estimates by a synthesis of valuation studies done by Constanza et al in 1997
Uses Constanza et al (1997) estimates of ecosystem services
Methodology
The following steps were undertaken in this benefit value approach:
(2) Identification of existing studies where the benefit has been estimated;
(3) Identification of the resource and relevant values to be applied;
(4) Substitution of the values to calculate benefits; (5) and calculation of the present value.
Limitations
Credibility of Constanza et al (1997) estimates
No information as to the health status of ecosystems when the estimates were derived
Results and Discussions
Table 1 Ecosystem Services
Aesthetic information**RecreationCultural and artistic information**Spiritual and historic information**Science and education**
Information Functions
Food productionRaw materialsGenetic resourcesMedicinal resources*Ornamental resources*
Production Functions
RefugiaNursery
Habitat Functions
Gas regulationClimate regulationDisturbance preventionWater regulationWater supplySoil retentionSoil formationNutrient regulationWaste treatmentPollinationBiological control
Regulation Functions
Ecosystem ServicePrimary Category
Table 2 Summary of global value of annual ecosystem services grouped by primary category as applicable to Mt. Hamiguitan and its environs
8,49820,945
230567
41101
-8,22720,277
Lakes/Rivers
9,99024,624
6581,622
6281548
169417
8,53521,037
Mangroves
244*601
25
67165
-175431
Grass/Rangelands
2,008**4,949
114281
388956
-1,5063,712
Tropical forest
6,076**14,975
3,0097,416
247609
717
2,8136,933
Coral reefs
19,00446,840
-25
-19,00246,835
Seagrass/Algae beds
22,83256,276
4101,011
5461,346
131323
21,74553,596
Estuaries
Total ValueInformation Function
Production Function
Habitat Function
Regulation Function
Average Ecosystem Services per Hectare per Year in 1994 US$ and 2010* US$
Biome
Table 3 Mt.Hamiguitan EcosystemsMajor Biome Approximate Area in the
Approved Mining Permits1 and Environs (Ha)
Sea grasses
137.310
Sea weeds 10.700 Corals 424.170
Coastal
Sandy Floor 316.680 Estuaries 33.000 Mangroves 3.470
Tropical Forest 10,207.335 Closed canopy 5,342.390 Open canopy 4,864.945
Terrestrial
Grasslands 5,681.697 Grasslands 5,598.670 Brushlands 8.079 Bush areas 74.948 Croplands 4,092.104 Tree plantation
and perennial crops 1,243.441
Cultivated area 2,848.663 Lakes & Rivers** 35.020
Total
20,941.488
Table 4 Valuation of Ecosystem Services of Mt. Hamiguitan Mining Area and its Environs by Primary Function in 2010 US$
Major Biome Reg
ula
tion
Func
tion
Pro
duc
tion
Func
tion
Ha
bita
t
Func
tion
Info
rma
tion
Func
tion
Ecosystem
Services
Estimate in
US $
Estuaries
1,768,668
44,418
10,659
33,363
1,857,108
Seagrasses 6,430,914 687 - - 6,431,600
Sea weeds 501,135 54 - - 501,188
Corals 2,940,771 258,320 7,211 3,145,645 6,351,946
Coastal
Mangroves 72,998 5,372 1,447 5,628 95,445
Sandy Floora 16,972,781 426,251 102,288 320,163 17,821,484
Subtotal 33,048,771
Tropical
Forest
37,889,628
9,758,212 10,207b 2,868,261 50,526,308 Terrestrial
Grasslands 2,448,811 937,480 5,682b 28,408 3,420,382
Cropland 380,566 544,250 4,092b - 928,908
Subtotal 54,875,598
Lakes & Rivers 709,695 3,535 35b 19,845 733,110
Total 70,115,966 11,978,578 141,621 6,421,314 88,657,479
Other Studies (Coral Reefs)
US$ 4,238 (Economic Value of Corals, 2008)
US$ 15,118 (Seenprachawong, 2004)
US$ 14, 975 (This Study)
No Estimates
Sandy Floor Crop lands Habitat Function
Seagrass Seaweeds Tropical Forests
Discussion Points
US$ 88.6M/year of the 18,000 hectares is a floor estimate
An underestimate How would it fare to
mining income projection? Tangible value vs
intangible value (incentives approach)
How do we estimate ‘habitat function’?
Conclusion
The total value of ecosystem services of Mt Hamiguitan and its environs, across 21,941 hectares in 2010 US Dollars per year amounts to US$88,657,479.00.
This estimate accounts 79% for regulation function value, 13.5% for production function value, 1% for habitat function value, excluding most of the ecosystem areas, and 7% information function value.
Conclusion
This value can be set as the minimum value of Mt. Hamiguitan ecosystem services.
This value represents the ‘forgone’ or ‘reduced’ benefits once mining activities are in full operation.
It is the regulation function of the ecosystem services which will be directly affected once mining operations are made.
Conclusion
These values are underestimates since some ecosystem are not valued including the infrastructure value of the entire ecosystem.
The habitat function being the least valued need further study specially on the values of endemic and rare species.
Conclusion
These values can serve a basis for studying the possible loss or reduction made on the ecosystem once compromised.
These could also represent the minimum replacement value if the ecosystem services lost be reconstructed or restored once damaged
Recommendations
Estimate habitat function value using proxy secondary data on existing conservation cost of rare and endangered species. (e.g. Philippine eagle, tarsier & butterflies)
Update calculation of estimate on crop lands. Need of robust biophysical data as estimation basis Possible Journal Publication (Asian Journal of
Biodiversity)
Thank You