Marine and Coastal Ecosystem Valuation, Institutions, and Policy in Southeast Asia

This study determined the tourists’ willingness to pay (WTP) for the conservation of Caramoan beachscape in Camarines Sur, Philippines, as inputs in establishing the appropriate payment for environmental services for the sustainable development of ecotourism and coastal resource management of the area. The study employed the contingent valuation method (CVM) using four analytical models.

Based on the results, majority of the Caramoan tourists are younger, adventurous, without familial obligations, and highly educated and earn a relatively high income. One half of the visitors are willing to pay to promote the sustainability of the beachscapes. The visitors’ WTP in the general model was estimated to be PHP 897. The average monthly visitors were estimated to be 1,000 tourists per month. Using these data, the total economic value of conserving the beachscapes in Caramoan was estimated to be PHP 10.76 million annually. Bid amount, age, and income were the only factors that consistently correlated with WTP in all of the analytical models. This indicates that younger visitors and those who have higher income are more likely to be willing to pay for conservation.

The estimated economic value of conserving the Caramoan beachscape justifies the relevance of investing public funds to pursue sustainable beachscape ecotourism development in Caramoan. This study is an attempt to contextualize PES for beachscape. It highlighted the priority concerns for sustainable source of fund for conservation and harmonized institutional arrangements for beachscape tourism and coastal resource management. It supported the potential of implementing PES within a community-based coastal resource management framework under a marine fishery reserve-sanctuary setting comanaged by the community and the Caramoan LGU or within a natural protected area framework managed by the Caramoan Natural Park Protected Area Management Board.

This study valued the benefits of coral reefs in the Andaman Sea in a proposed project development area known as the Southern Seaboard Development Project. The specific area of interest was the Phi Phi Islands, which is a highly valued group of islands both in terms of its use values and non-use values. Accordingly, this project calculated the recreational values of coral reefs in the Andaman Sea of Thailand. The specific objectives were (1) to estimate the recreational benefits of Phi Phi Islands, (2) to estimate consumer willingness to pay for improved coral reef quality at Phi Phi Islands and (3) to use these values to determine an appropriate entrance fee for visiting the reef sites at Phi Phi Islands. This study employed both travel cost method and contingent valuation method to generate estimates of the reef value at Phi Phi. The consumer surplus associated with visits to Phi Phi represents an annual value of THB 8216.4 million (USD 205.41 million).

Coral reefs in Nha Trang City have been threatened by human activities such as use of dynamite, illegal harvesting, shipping, and pollution from the nearby port development project. How much recreational benefit from coral reefs is lost if these activities are not held in check? Using travel cost method, this study estimated the recreational value of coral reefs in Nha Trang to be VND 259.8 billion (USD18.3 million) annually, of which Hon Mun’s consumer surplus was estimated to be VND 45.4 billion (USD3.2 million). If this coral reef benefits were to be reduced by 20 % due to increased pollution created by the nearby expanded port, the resulting decrease in the recreational value would be more than the projected annual revenue of the port. The proposed port expansion plan needs to be seriously reconsidered.

Conserving mangroves and coral reefs has become an increasingly important topic of public debate in developing countries like Thailand. This is particularly important to the mangroves and coral reefs in areas such as Phang Nga Bay, a bay along the coast of the provinces of Phuket, Phang Nga, and Krabi, Thailand. This study estimated the economic value of the changes to the quality of the mangroves and coral reefs ecosystems in Phang Nga Bay by using a choice experiment to value the economic impacts of the changes to the quality of coastal ecosystems in Phang Nga Bay. The welfare estimate indicates a willingness to pay (WTP) of THB 1133 (USD 28) per year for improved diversity of flora and fauna. Local livelihood (e.g., income from fishery) and ecological function (e.g., flood protection benefits) are tied as the second most important attributes of Phang Nga Bay. The rare and endangered species attribute is held as the least important attribute of Phang Nga Bay. The aggregate benefits were computed by multiplying the number of people in the beneficiary groups with the welfare estimate of improving Phang Nga Bay ecosystem—THB 2263 (USD 57) per person—yielding THB 5784 million (USD 144.6 million) per year.

This study estimated the willingness to pay (WTP) of Sorsogon residents to preserve the continuous presence of whale sharks by using the contingent valuation methodology (CVM). CVM is a method for estimating the monetary value that a person places on a good or service that is not normally sold in markets. The approach directly asks people if they are willing to pay for the good rather than inferring this from observed behavior. Using the drop-off survey method, this study achieved a response rate of 98 %; out of the 600 questionnaires distributed, 588 usable questionnaires were retrieved. The results showed that Sorsogon residents had low positive WTP, which ranged from PHP 17 (USD 0.34) to PHP 35 (USD 0.70) per household per month. Furthermore, more than half of the respondents (60.71 %) strongly agreed that everyone is responsible for ensuring that plants and animals—as they are known today—will exist for mankind in the future. This suggests that the respondents hold a perceived bequest value. Overall, the survey results show that people are aware and concerned about environmental issues, including the precarious condition of whale sharks in Sorsogon. They are not, however, able or willing to pay for the implementation of a conservation program due to poverty, employment, and other economic concerns taking precedence over environmental issues.

This study reports the results of a comparative study conducted in China, the Philippines, Thailand, and Vietnam that assessed households’ willingness to pay for marine turtle conservation and the potential to mobilize funds. Results suggest that many people place a low priority on marine turtle conservation as compared to other public policy issues. When asked whether they would vote “for” or “against” a policy that would impose a monthly surcharge on residential electricity bill, majority of the respondents answered that they would only vote to support this policy if the surcharge is only USD 0.02 per month. If the poor were to be exempted, this modest surcharge would only generate a sum of USD 1.52 million per year (less than 8 % of the total global expense for marine turtle conservation). Nevertheless, there is some potential for voluntary contributions. Based on the percentages of respondents who would voluntarily pay USD 1 per month, the potential revenue could reach USD 50 million per year, but mobilizing these also presents problems. For example, the voluntary payment was explored by asking the respondents to check off the option to contribute to a marine turtle conservation program on their monthly electricity bills. While that might work once, it is unlikely that this can be repeated for other endangered species and environmental causes. The traditional prescription of raising awareness is unlikely to generate support, as urban Asians are already well informed about the existence and plight of marine turtles. Efforts to develop conservation-financing mechanisms should therefore be directed to a different, albeit more difficult, direction, that is, to improve people’s trust in the government tax collection and expenditure systems. Charities could explore the potential for voluntary contributions from the relatively small population segment willing to contribute voluntarily and develop cost-effective ways of collecting payments. Finally, until Asia develops higher per capita incomes and trustworthy payment vehicles, the international community will need to take on a significant role in financing conservation in the region.

This study explored resource-usage policy recommendations for sustainable fishery in Songkhla Lake, Thailand. The investigation began with problem recognition: decreasing fishery production. The profile of the existing usage and the economic value of the lake were identified and demonstrated in the study through a simplified conceptual model. The model illustrated the economic aspect of the ecosystem using theoretical and hypothetical concepts together with the available information. The policy options were specified next, after understanding the actual situation, using stakeholders’ opinions and expert judgment. The policy options concerning the management of the better level of water quality control were the first priority. By selecting appropriated criteria (public acceptability, legal feasibility, implementation complexity, effectiveness, capital costs, operating costs, transaction costs, impacts, equity, and decentralization), the analysis and evaluation were conducted under three alternative policy options, namely, the command and control system, emission charge system, and tradable discharge permit system. The results of this study are valuable for policy recommendations that aim to maintain fishery production on a sustainable level. In addition, the outcome is useful for understanding the general situation of resource exploitation in Songkhla Lake.

This study was conducted to assess the effects of excessive aquaculture structures and stocking density on water quality and aquaculture production given the policies in place in Bolinao, which is one of the major aquaculture producing municipalities in the Philippines. Results of the study showed that the average stocking density of the aquaculture operation fell within the optimal value, but there were operators whose stocking densities were more than double than that of the optimum. The aquaculture production analysis showed that stocking density affects production. Beyond a certain level, further increases in stocks result in decreasing productivity. Excessive number of fish pens and cages with overstocking may lead to fish kills due to deteriorating water quality and other associated damages that are detrimental to the aquaculture industry and to the greater community. The study suggests that several policy implications and better regulation of coastal aquaculture operation are needed.

This paper evaluated the reversion of disused Fishpond Lease Agreement (FLA) areas in Region VI (Western Visayas) to mangrove forests. A two-stage and five-step evaluation process and multiple data collection methods were used. This study covered 62 disused FLA areas in the region, representing 84 % of the total 74 canceled FLAs (regardless of whether reverted or not to the Department of Environment and Natural Resources), as well as FLA areas that had been abandoned or left undeveloped. Results showed a lower number of canceled FLAs and reverted FLA areas than what should ideally be. The suitable area for reforestation was only 23 % (284 ha) of the total area of FLA areas visited. The benefit of reforesting disused FLA areas suitable for reforestation far outweighs the cost of doing so. The option to place the responsibility of paying for reforestation efforts on the lessees (through performance bond, green tax/fine, fees reflective of economic rent, and beneficial use tax) will generate higher funds and will likely positively impact other desirable goals in aquaculture; however, this strategy is relatively difficult to implement. The option to place the responsibility of funding reforestation efforts on funding organizations (Department of Environment and Natural Resources (DENR) grant, foreign fund, private sector support) is relatively easy to implement but may generate lower amounts of funds and may be unsustainable. This study recommends (1) conducting an inventory of all FLA areas in the region, (2) formulation and approval of FLA cancelation and reversion rules and guidelines, (3) conduct of suitability assessment for reforestation of disused FLA areas in the region, and (4) actual reversion of suitable disused FLA areas to mangrove forests.

Coastal land reclamation—the process of creating new land by infilling coastal areas—is becoming a popular way of expanding the space available for economic activity in East and Southeast Asia. Although this method can provide more land for economic activity, these reclamation projects are not without their environmental trade-offs. These trade-offs are not often explicitly considered or valued when evaluating project feasibility. As a result, there is an absence of a clear conception of the types and magnitudes of the trade-offs that could be used to guide policy decision-making and implementation. This study fills this gap by investigating the case of a proposed large-scale reclamation project in Cordova, a town in Cebu, Philippines. Environmental impacts and costs were identified and monetized for use in a social cost-benefit analysis, which accordingly assessed whether the project would generate net social value to the appropriate reference community. The total potential environmental costs were estimated to be almost USD 60 million (PHP 3.3 billion). Among the environmental costs valued in the study, damage to corals and externalities from landfill quarrying were the most significant. The prevention of damages to the coral reef alone would reduce the estimated environmental costs by more than half. The relatively large value of forgone recreational benefits from the coral reef could be avoided if the reclamation activity would not be in the coastal areas where fair to good coral cover exists. This potentially high environmental cost also suggests an alternative development strategy that the municipality could pursue: one that has more to do with sustainable ecotourism than with attracting new industry.

Establishing marine reserves or marine protected areas (MPA) is a popular management tool to ensure the sustainability of nearshore fishery against the threats of overfishing and other environmental impacts. Fish biomass in MPAs builds up rapidly in the absence of fishing and eventually contributes to fishable biomass in the areas surrounding the reserve through adult migration or “spillover.” Improved ecological conditions allow MPAs to deliver more socioeconomic benefits to resource users and thus provide higher economic rent. Accordingly, this study investigated the impacts of a community-managed marine reserve in Baliangao, Misamis Occidental, on the fishery resources and fishers of Danao Bay over a 1-year period in order to demonstrate the ecological and economic benefits of a well-managed MPA.

The assessment of the biodiversity and physical conditions of the various ecosystems in Danao Bay showed improved coral and fish diversity. Monitoring of fish catch and fishing effort was conducted in six coastal villages across Danao Bay in order to obtain estimates of catch per unit of effort (CPUE), monthly and annual yields, and costs and revenues from capture fisheries. The results showed that fish production had moderate seasonality, with higher CPUE during the calmer summer months (February–May). To demonstrate whether or not the artisanal fishery of Danao Bay was generating rent, a cost-revenue analysis and estimation of the net and net present values of fishing activities were carried out. The estimated annual revenues suggest that some gear types are more profitable than others, known as that appears to be a function of CPUE and fishing costs. The calculated total annual net operating values (ANOV) and net annual values (NAV) for each gear showed differential profitability of fishing gear, with some earning zero or negative rents (e.g., gill net and handline) while a few others earning positive rents (e.g., fish corral). Net annual values are considered to be producer surplus, a profit over costs that accrues to the gear owner, and also represent the annual value of contribution of the marine ecosystem to the artisanal fishery of the bay. Summing up the NAV for all gear results in a range of values for total NAV, with a midpoint of PHP 104,317.12 (at a 10 % discount rate). This sum indicates the amount of fishery rent generated by the bay’s fishery resources. Many gears appeared unprofitable; however, the positive midpoints of the total NAVs indicate that some fishery rent is being earned, although it is probably below the rent that could be earned if the fishery were managed more efficiently. These results indicate that the coastal fishery surrounding the marine reserve in Danao Bay could be on a transition toward becoming a viable, sustainable industry.

This report investigated the effectiveness of different management regimes in the marine protected areas (MPAs) in the Philippines. It assessed how MPAs are performing – from an environmental, economic, and social perspectives – and determined what constitutes the key features of a successful management scheme. It determined that the type of institution in charge of an MPA makes little difference to its effectiveness. Instead, good leadership, adequate manpower and source of funding, and provision of sustainable livelihoods are the keys for effective management. The report also suggested a number of ways in which community involvement in MPA management can be strengthened and highlighted the need for community requirements to be taken fully into account in any MPA action plan.

The paper examined the nature of Visayan Sea and identified potentially viable options to protect the fish and help fishers earn a living. The focus was on the northern Iloilo fishery, which comprises almost half of the Visayan Sea. Ten management options, identified from various sources, were presented to stakeholders (i.e., fishers, fishery scientists, and fishery managers). These options consisted of status quo, input controls (ban of commercial fishing, ban of commercial fishing with safety nets, marine protected area, closed season, reduction in the number of commercial and municipal fishers, localization, and rotational fishing regime), output control (quota), and the creation of a special management unit. The evaluation was done in two stages: Stage 1 ruled out options with no or low impact on increasing fish stocks. The options that passed stage 1 advanced to stage 2, where each option was evaluated using a set of criteria (impact on fishers, impact on the resources, feasibility, cost to the government, and impact to the community). Feedbacks from the stakeholders were obtained through focus group discussions and in-depth personal interviews. The potentially viable options (fishing bans with and without safety nets, marine protected area, reduction in the number of municipal and commercial fishers, localization and the creation of a special management unit) were discussed. This study recommends using several combinations of management options (rather than a single one) and establishing a single management body (to be pilot tested in northern Iloilo) in the implementation of any management program in all portions of the Visayan Sea and for all its fishers.

This study used game theory to analyze the extraction behavior of fishermen around Southern Songkhla Lake, Southern Thailand. The field experiments were designed based on the concept of noncooperative game theory to investigate fishermen’s behavior in response to four management policy options: external regulations with individual transferable quotas (ITQ) and with individual quotas (IQ) and co-management with ITQ and with IQ.

The analysis examined fishermen’s responses under scenarios of high and low fish stocks, which arise due to the seasonal salinity of the lake. Results showed that higher fish stocks encouraged fishermen to increase their extraction. A co-management policy led to significantly better results than imposed external regulation in terms of reducing extraction, ensuring resource sustainability, and lessening violation behaviors. There were no significant differences between “with ITQ” and “with IQ” in terms of reduction of extraction and sustainability of resource use. However, there were significantly less violation behaviors in ITQ than in IQ. ITQ provided more flexibility for fishermen who wanted to increase their extraction while still following conservation guidelines. Therefore, this study recommends implementing ITQ but with appropriate penalties.

The marine fishery resources in Malaysia have declined considerably over the past decades primarily due to overfishing and overcapacity. In response, the government has deployed artificial reefs (ARs) to conserve and enhance the natural fish stocks in marine waters. Specifically, AR deployment was expected to rehabilitate the degraded fish stocks and secure the livelihoods of the fishers along the coastal villages. This study examined the impact of ARs on fisher households’ income in Terengganu, Malaysia. The data for this study was obtained from a survey involving 312 fisher respondents in 3 contiguous districts, namely, Besut, Setiu, and Kuala Terengganu. The results showed a difference in the value of catch of fishers fishing in an AR and those fishing in non-AR area. Fishers fishing near AR areas were found to benefit from higher monthly catch value. The regression models indicated that fishing in an AR area helps reduce the vessel operating costs. The catch value also significantly differed between fishers using an inboard-powered vessel and those fishers using outboard-powered vessels (on an average obtained MYR 5935 per month and MYR 3126 per month, respectively). Fishers using inboard-powered vessels were also less dependent on ARs as they were able to fish further to the sea.

This study used a bioeconomic model to assess and compare the consequences of unrestricted fishery (no regulation) and implementation of minimum legal size on the stock condition of BSC. The study determined how much the profit loss would be due to the smaller-sized crab catch and due to the decline in fish catch (overfishing) and how much the implementation of a minimum legal size will change the productivity and income of fishermen over time. The effect of this restriction policy was evaluated using cost-benefit analysis. In the considerably depleted area, the projection showed that implementing a minimum legal size (MLS) policy would increase the stock of BSC in the early years of the projection. The model also showed that for the next 10 years, crab stock with size bigger than 8.5 cm would increase in the early years of the projection and then achieve a stable condition in the following years. Thus, MLS policy can help crab stocks to recover. Meanwhile, in the area where stock condition is considerably good, the crab stock would stay stable in the next 10 years. From the profitability point of view, MLS would benefit those fishermen who catch the mature BSC. Likewise, implementing such policy would also benefit the miniplant industry (BSC-processing business) in the long run (assuming a 10-year period). However, their income would be slightly affected in the short term.

Sustaining healthy coastal ecosystems that provide for people dependent on their goods and services requires good resource management. The research presented in this book can help enhance resource management in the three theme areas, specifically in terms of providing better information on (1) how to value marine and coastal ecosystems, (2) how these values are affected by economic activity in the form of harvesting and land transformation, and (3) the design of institutions to provide for sustainable livelihoods and resources. The papers in this volume also point to research and knowledge gaps and, hence, opportunities to fill them. The book is very much a beginning rather than an end in terms of our understanding of the complexities of our natural environment and how best to ensure that it will continue to provide the essential goods and services that the planet needs to survive.