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

Nancy Olewiler • Herminia A. FranciscoAlice Joan G. Ferrer

Editors

Marine and CoastalEcosystem Valuation,Institutions, and Policyin Southeast Asia

EditorsNancy OlewilerSchool of Public PolicySimon Fraser UniversityVancouver, Canada

Herminia A. FranciscoEconomy & Environment Program

for Southeast AsiaWorldFishLos Banos, Philippines

Alice Joan G. FerrerDivision of Social SciencesUniversity of the Philippines VisayasIloilo, Philippines

ISBN 978-981-10-0139-0 ISBN 978-981-10-0141-3 (eBook)DOI 10.1007/978-981-10-0141-3

Library of Congress Control Number: 2016931420

Springer Singapore Heidelberg New York Dordrecht London© Springer Science+Business Media Singapore 2016This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part ofthe material is concerned, specifically the rights of translation, reprinting, reuse of illustrations,recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmissionor information storage and retrieval, electronic adaptation, computer software, or by similar ordissimilar methodology now known or hereafter developed.The use of general descriptive names, registered names, trademarks, service marks, etc. in thispublication does not imply, even in the absence of a specific statement, that such names are exemptfrom the relevant protective laws and regulations and therefore free for general use.The publisher, the authors and the editors are safe to assume that the advice and information in thisbook are believed to be true and accurate at the date of publication. Neither the publisher nor theauthors or the editors give a warranty, express or implied, with respect to the material containedherein or for any errors or omissions that may have been made.

Printed on acid-free paper

Springer Science+Business Media Singapore Pte Ltd. is part of Springer Science+Business Media(www.springer.com)

Foreword

With 30 % of the world’s coral reefs and 33 % of the world’s mangroves, Southeast

Asia (SEA) hosts some of the richest coastal marine systems in the world and is

responsible for about 25 % of the global fish production.

However, SEA’s highly diverse coastal marine resources are under stress.

Overfishing, destructive fishing practices, pollution, and coastal development are

all causing resource decline and degradation. Additionally, pressure from popula-

tion growth and rising income inequality threatens the region’s food security and

social stability. For millions of Southeast Asians, fish is an important source of

dietary protein, and the marine coastal environment provides an important source of

livelihood and income. Continuous degradation and decline of coastal marine

systems has adversely affected fisher incomes, fisheries employment, revenues,

and trade.

Protecting the marine coastal environment and the livelihoods of the people

dependent on these resources is a must, but it is not easy. The environmental

damages and the impacts on the welfare of the people dependent on these resources

must be quantified; appropriate formal and informal institutions for efficient man-

agement must be fostered and financing for needed changes must be found.

For the past two decades, the Economy and Environment Program for Southeast

Asia (EEPSEA) has captured, shared, and enabled the use of knowledge on the

economy and the environment of SEA. This book is a significant addition to body of

knowledge EEPSEA has generated. Containing contributions from research pro-

jects on coastal resources funded by EEPSEA from 2003 to 2014, the book contains

16 studies from five SEA countries (Indonesia, Malaysia, Philippines, Vietnam, and

Thailand). The book’s editors and authors have assembled a body of knowledge that

provides valuable guidance on how to conserve, protect, and develop coastal

marine systems in ways that enhance social welfare. Of benefit to students,

researchers, academics, nongovernment organizations (NGOs), resource managers,

and policymakers, it is a seminal reference work.

The book groups the studies into three areas: (1) conservation financing,

(2) estimating damages to marine coastal resources and impacts on people,

v

and (3) the role and importance of institutions in and policies on coastal resource

management. The first set of six studies focuses on valuing key marine ecosys-

tem services in SEA using three valuation methods commonly used to measure

ecosystem benefits: travel cost method, contingent valuation methodology, and

choice modeling. The next set of four studies offers multiple methods to analyze

and quantify the damages brought by pollution and land degradation to marine

coastal resources and to determine the best package of policy reforms to reduce

emissions and help sustain coastal resources. The last set of six studies focuses

on tools and policies to achieve the sustainable management of fisheries and

coastal resources such as establishing marine protected areas (MPAs);

employing a set of management tools, which may include MPA establishment;

establishing artificial reefs; and setting fishing effort controls, including indi-

vidual transferable quotas.

WorldFish greatly appreciates and welcomes this book because it will help us

better achieve our mission to reduce poverty and hunger by improving fisheries and

aquaculture.

My personal hope for the future is for protected, better managed, and more

sustainable coastal marine systems that are able to sustain fish supplies and deliver

food and nutrition security, income, and livelihood benefits to those that need them

most, especially poor women and young adults. The chapters of this book provide

important insights on what can be done to achieve such a state.

For anyone interested in coastal marine resource conservation and protection

and the application of existing knowledge in this area toward promoting sustainable

coastal systems, food security, and poverty alleviation in SEA—be it through the

efforts of the government, NGOs, civil society, or academia—this book is a must.

WorldFish, Penang, Malaysia Stephen Hall

vi Foreword

Preface

This book is one of several publications of the Economy and Environment Program

for Southeast Asia (EEPSEA). EEPSEA’s mandate is to support capacity building

in the field of environmental economics in Southeast Asia (SEA). The Program was

set up by the Canadian International Development Research Centre in 1993, with

co-funding provided by the Canadian International Development Agency (CIDA)

and the Swedish International Development Cooperation Agency (SIDA). In

November 2012, IDRC and SIDA devolved EEPSEA’s management to WorldFish,

with funding support for another 4 years.

EEPSEA’s end goal is to develop in each country the needed expertise to supportSEA governments to improve the management of their environment and natural

resources. The Program relies on a pool of international and regional experts who

provide researchers with mentoring support and who serve as resource persons in its

various training courses.

EEPSEA has supported more than 400 research projects on various topics

related to the economics of environment and natural resource management. The

results of these projects are published as Research Reports, with some accompanied

by Policy Briefs that summarize key policy-relevant findings. The various studies

produced through EEPSEA research grants are grouped into the following areas:

Ecosystem Valuation, Pollution and Waste Management, Climate Change Issues,

Natural Resource Management, and Fisheries and Coastal Resources.

To make the results of these various studies more accessible to end users,

EEPSEA is now compiling studies on common themes into books. We believe

that the materials in these books will continue to contribute to capacity develop-

ment of students who are enrolled in resource and environmental economics. They

can also serve as source materials of environmental service values that could be

used by natural resource managers to analyze environmental problems and evaluate

alternative solutions to address those problems.

This book is the second that EEPSEA is producing under this book project. A

collection of studies on fisheries and coastal resources, the book demonstrates how

ecosystem values of marine resources can be derived, shows how to value the

vii

damages to coastal and marine ecosystems as a result of pollution and development

projects, and evaluates institutions and policies to manage overfishing in marine

resources.

The writing of this book took off in 2014 when the editors had a week-long

writing workshop in Manila, Philippines. We are appreciative of the hard work of

all the study authors who have responded to our multiple requests in the process of

putting together this book. More importantly, this book will not be possible without

their contributions through their research projects. As teachers of environmental

economics courses, they too hope that students will learn from their work. Ms. Noor

Aini Zakaria, who patiently coordinated with the authors and also helped in making

sure that the publication format is compliant with the Springer requirements,

deserves our gratitude. Our thanks also go to Ms. Julienne Bariuan-Elca who liaised

with Springer to get this book published and Ms. Kei Cuevas who also helped to get

this book done. Finally, our appreciation goes to the three external reviewers who

shared their precious time in reviewing various parts of the book. We continue to be

responsible for whatever errors may remain in the book.

Vancouver, BC, Canada Nancy Olewiler

Los Banos, Philippines Herminia A. Francisco

Iloilo, Philippines Alice Joan G. Ferrer

viii Preface

Contents

1 Introduction: Marine and Coastal Ecosystem Valuation,

Institutions, and Policy in Southeast Asia . . . . . . . . . . . . . . . . . . . . 1

Herminia A. Francisco

Part I Coastal Marine Ecosystem Services in Southeast Asia:

Support for Conservation InitiativesHerminia A. Francisco

2 Economic Valuation of the Philippine’s Caramoan Beachscape . . . 17

Raul G. Bradecina

3 An Economic Analysis of Coral Reefs in the Andaman Sea

of Thailand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Udomsak Seenprachawong

4 Conservation Versus Development: Valuation of Coral Reefs

Questions Port Expansion Plan in Vietnam . . . . . . . . . . . . . . . . . . 47

Pham Khanh Nam and Tran Vo Hung Son

5 An Economic Valuation of Coastal Ecosystems in Phang Nga Bay,Thailand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

Udomsak Seenprachawong

6 Willingness to Pay for Whale Shark Conservation in Sorsogon,Philippines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

Anabeth L. Indab

7 Mobilizing Resources for Marine Turtle Conservation

in Asia: A Cross-Country Perspective . . . . . . . . . . . . . . . . . . . . . . 129

Orapan Nabangchang-Srisawalak, Jin Jianjun, Anabeth L. Indab,

Truong Dang Thuy, Dieldre Harder, and Rodelio F. Subade

ix

Part II Pollution and Land DegradationNancy Olewiler

8 Pollution Control and Sustainable Fishery Management

in Southern Songkhla Lake, Thailand . . . . . . . . . . . . . . . . . . . . . . 155

Kunlayanee Pornpinatepong, Sakchai Kiripat, Sinad Treewanchai,

Sukampon Chongwilaikasaem, Chotima Pornsawang, Pathomwat

Chantarasap, and Chantip Chandee

9 Productivity Effects of Water Pollution Due to Excessive

Aquaculture Structures and Overstocking . . . . . . . . . . . . . . . . . . . 185

Zenaida M. Sumalde, Karen Lou A. Francisco, and Mildren Pe~nales

10 Reverting Disused Fishpond Lease Agreement Areas

to Mangrove Forests in Region VI (Western Visayas),

Philippines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201

Alice Joan G. Ferrer, Jinky C. Hopanda, Michael Q. Orquejo,

Alan Dino E. Moscoso, and Resurreccion B. Sadaba

11 Environmental Trade-Offs from Coastal Reclamation:

The Case of Cebu, Philippines . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225

Lourdes O. Montenegro

Part III Institutions and Policies in Fisheries ManagementAlice Joan G. Ferrer

12 A Fishery in Transition: Impact of a Community Marine Reserve

on a Coastal Fishery in Northern Mindanao, Philippines . . . . . . . . 249

Asuncion B. de Guzman

13 Do Institutions Affect the Performance of Marine Protected

Areas? Evidences from the Philippines . . . . . . . . . . . . . . . . . . . . . . 267

Esmyra P. Javier

14 Fisheries Management Options for Visayan Sea,

Philippines: The Case of Northern Iloilo . . . . . . . . . . . . . . . . . . . . 287

Alice Joan G. Ferrer

15 Response of Fishermen to Fishing Control Policies in Southern

Songkhla Lake, Thailand: A Field Experiment . . . . . . . . . . . . . . . . 311

Kunlayanee Pornpinatepong, Pathomwat Chantarasap, Jumtip

Seneerattanaprayul, Wittawat Hemtanon, and Papitchaya Saelim

16 The Impacts of Artificial Reefs on the Income

of Artisanal Fishers in Terengganu, Malaysia . . . . . . . . . . . . . . . . 329

Shaufique Fahmi Sidique, Kusairi Mohd Noh, Gazi Md Nurul Islam,

and Aswani Farhana Mohd Noh

x Contents

17 Economic Evaluation of Implementing Minimum Legal

Size on Blue Swimming Crab Fishery in Indonesia . . . . . . . . . . . . 341

Rizal Bahtiar, Nuva, Dessy Anggraeni, and Nia Kurniawati Hidayat

18 Conclusion: What We Have Learned . . . . . . . . . . . . . . . . . . . . . . . 365

Nancy Olewiler

Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 369

Contents xi

?

Contributors

Dessy Anggraeni Sustainable Fisheries Partnership (SFP), Bogor, Indonesia

Rizal Bahtiar Department of Resource and Environmental Economics, Faculty of

Economics and Management, Bogor Agricultural University (IPB), Bogor,

Indonesia

Raul G. Bradecina Partido State University, Goa, Camarines Sur, Philippines

Chantip Chandee Faculty of Economics, Prince of Songkla University, Songkhla,

Thailand

Pathomwat Chantarasap Faculty of Economics, Prince of Songkla University,

Songkhla, Thailand

Sukampon Chongwilaikasaem Faculty of Economics, Prince of Songkla Univer-

sity, Songkhla, Thailand

Alice Joan G. Ferrer Division of Social Sciences, University of the Philippines

Visayas, Iloilo, Philippines

Karen Lou A. Francisco Private Consultant, Bay, Laguna, Philippines

Herminia A. Francisco Economy & Environment Program for Southeast Asia,

WorldFish, Los Banos, Philippines

Asuncion B. de Guzman Gaia Resource and Environmental Consultancy Services,

Naawan, Misamis Oriental, Philippines

Dieldre Harder Department of Economics, College of Economics &Management,

University of the Philippines Los Ba~nos, Laguna, Philippines

Wittawat Hemtanon Faculty of Economics, Prince of Songkla University,

Songkhla, Thailand

xiii

Nia Kurniawati Hidayat Department of Resource and Environmental Economics,

Faculty of Economics andManagement, Bogor Agricultural University (IPB), Bogor,

Indonesia

Jinky C. Hopanda University of the Philippines Visayas Foundation, Inc., Iloilo,

Philippines

Anabeth L. Indab Resources, Environment and Economic Center for Studies, San

Juan City, Philippines

Gazi Md Nurul Islam School of Economics, Finance and Banking, College of

Business, Universiti Utara Malaysia, Kedah, Malaysia

Esmyra P. Javier Part of an MSc Thesis, University of the Philippines, Los

Banos, Laguna, Philippines

Jin Jianjun College of Resources Science & Technology, Beijing Normal

University, Beijing, China

Resources, Environmental & Economic Center for Studies, Beijing, China

Sakchai Kiripat Faculty of Economics, Prince of Songkla University, Songkhla,

Thailand

Lourdes O. Montenegro Lee Kuan Yew School of Public Policy, National

University of Singapore, Singapore, Singapore

Alan Dino E. Moscoso School of Technology, University of the Philippines

Visayas, Iloilo, Philippines

Orapan Nabangchang-Srisawalak School of Economics, Sukhothai

Thammatirat Open University, Bangkok, Thailand

Pham Khanh Nam School of Economics, University of Economics Ho Chi Minh

City, Ho Chi Minh City, Vietnam

Kusairi Mohd Noh Institute of Agricultural and Food Policy Studies, Universiti

Putra Malaysia, Serdang, Malaysia

Aswani Farhana Mohd Noh Institute of Agricultural and Food Policy Studies,

Universiti Putra Malaysia, Serdang, Malaysia

Nuva Department of Resource and Environmental Economics, Faculty of

Economics and Management, Bogor Agricultural University (IPB), Bogor,

Indonesia

Nancy Olewiler School of Public Policy, Simon Fraser University, Vancouver,

BC, Canada

Michael Q. Orquejo University of the Philippines Visayas Foundation, Inc.,

Iloilo, Philippines

xiv Contributors

Mildren Pe~nales One Global Place, World Bank (Philippines), Taguig, Metro

Manila, Philippines

Kunlayanee Pornpinatepong Faculty of Economics, Prince of Songkla University,

Songkhla, Thailand

Chotima Pornsawang Faculty of Economics, Prince of Songkla University,

Songkhla, Thailand

Resurreccion B. Sadaba Division of Biological Sciences, College of Arts and

Sciences, University of the Philippines Visayas, Iloilo, Philippines

Papitchaya Saelim Faculty of Economics, Prince of Songkla University,

Songkhla, Thailand

Udomsak Seenprachawong School of Development Economics, National Institute

of Development Administration, Bangkok, Thailand

Jumtip Seneerattanaprayul Faculty of Economics, Prince of Songkla University,

Songkhla, Thailand

Shaufique Fahmi Sidique Institute of Agricultural and Food Policy Studies,

Universiti Putra Malaysia, Serdang, Malaysia

Tran Vo Hung Son School of Economics, University of Economics Ho Chi Minh

City, Ho Chi Minh City, Vietnam

Rodelio F. Subade Division of Social Sciences, University of the Philippines

Visayas, Iloilo, Philippines

Zenaida M. Sumalde Department of Economics, College of Economics and

Management, University of the Philippines, Los Ba~nos, Laguna, Philippines

Truong Dang Thuy Faculty of Development Economics, Environmental &

Natural Resources Unit, University of Economics, Ho Chi Minh City, Vietnam

Sinad Treewanchai Faculty of Economics, Prince of Songkla University,

Songkhla, Thailand

Contributors xv

Abbreviations

ADB Asian Development Bank

AFMA-DMEQCMA Agriculture and Fisheries Modernization Act—Database

on Monitoring of Environmental Quality for Coastal

Management and Aquaculture

AIMS Apo Island Marine Sanctuary

ANOV Annual net operating values

APRI Indonesia Crab Processors Association

AR Artificial reefs

ARMNP Apo Reef Marine Natural Park

AS Activated sludge

AUU Abandoned, underdeveloped, and undeveloped

B-C Benefit-cost

BDFI Batanes Development Foundation Inc.

BFAR Bureau of Fisheries and Aquatic Resources

BFAR-FRQD Bureau of Fisheries and Aquatic Resources-Fisheries

and Quarantine Division

BIPLAS Batanes Islands Protected Landscape and Seascape

BLCC Biri-Larosa Coastal Community

BOD Biological oxygen demand

BPLS Baliangao Protected Landscape and Seascape

BSC Blue swimming crab

CAC Command and control

CBA Cost-benefit analysis

CBRMP Community-Based Resource Management Program

CDP Coastal Development Plan

CEA Cost-effectiveness analyses

CEP Coastal Environmental Program

CF Conservation fee

CIDA Canadian International Development Agency

CM Choice modeling

CPPAP Conservation of Priority Protected Areas Project

xvii

CPR Common pool resources

CPUE Catch per unit of effort

CRM Coastal resource management

CRP Cordova Reclamation Project

CS Consumer surplus

CSRP Cebu South Reclamation Project

CVM Contingent valuation method

DA Department of Agriculture

DAO Department of Environment and Natural Resources

Administrative Order

DB-REMO Danao Bay Resource Management Organization

DENR Department of Environment and Natural Resources

DENR-CMMO Department of Environment and Natural

Resources—Coastal and Marine Management Office

DLA Department of Local Administration

DO Dissolved oxygen

DOF Department of Fisheries

DOSTE Department of Science, Technology and Environment

DR Discount rates

DTCP Department of Public Works and Town and Country

Planning

EC Emission charges

ECNQA Enhancement andConservation ofNationalQualityAct (1992)

ECS Emission Charge System

EEPSEA Economy and Environment Program for Southeast Asia

FADs Fish aggregating devices

FAO Food and Agriculture Organization

FARMC Fisheries and Aquatic Resources Management Council

FGD Focus Group Discussion

FIES Family Income and Expenditure Survey

FIRR Financial internal rate of return

FLA Fishpond Lease Agreement

GEF Global Environment Facility

GNI Gross national income

GSECI Ground Structures Engineering Consultants, Inc

GSO General Statistical Office

HCMC Ho Chi Minh City

HH Households

IADP Itbayat Integrated Area Development Program

IDRC International Development Research Centre

IEC Information and education

IID Independently and identically distributed

INTAQ Integrated aquaculture

IPAF Integrated Protected Area Fund

IQ Individual quotas

xviii Abbreviations

IRR Internal rates of return

ITCM Individual travel cost method

ITQ Individual transferable quotas

ITWG Interagency technical working group

IUCN International Union for Conservation of Nature

JICA Japan International Cooperation Agency

KII Key informant interviews

LGC Local Government Code

LGCAMP Lingayen Gulf Coastal Area Management Plan

LGU Local Government Unit

LKIM Fisheries Development Authority Malaysia

MARINA Maritime Industry Authority

MEA Millennium Ecosystem Assessment

MEY Maximum economic yield

MFO Municipal Fishery Ordinance

MFRMP Marine Fisheries Resource Management Program

MFRS Marine Fishery Reserve-Sanctuary

MIIC Malayan Integrated Industries Corporation

MLS Minimum legal size

MMAF Ministry of Marine Affairs and Fisheries

MMC Marine Management Committee

MMEA Malaysian Maritime Enforcement Agency

MOA Memorandum of agreement

MOAC The Ministry of Agriculture and Co-operatives

MOI Ministry of Industry

MOINT Ministry of Interior

MONRE Ministry of Natural Resources and Environment

MOP Macao pataca

MOPH Ministry of Public Health

MPA Marine protected area

MSY Maximum sustainable yield

MWTP Mean willingness to pay

NAV Net annual values

NEM Northeast monsoon

NESDB National Economic and Social Development Board

NFI National Fisheries Institute

NFRDI National Fisheries Research and Development Institute

NGOs Nongovernment Organizations

NIACDEV Northern Iloilo Alliance for Coastal Development

NICA National Institute of Coastal Aquaculture

NIPAS National Integrated Protected Areas System

NOAA The National Oceanic and Atmospheric Administration

NPV Net present values

NSO National Statistics Office

Abbreviations xix

OA Open access

OECF Overseas Economic Cooperation Fund

OLS Ordinary least square

ONEB Office of the National Environment Board of Thailand

ONEP Office of Nature and Environmental Policy and Planning

ORRAF Office of the Rubber Replanting Aid Fund

PR Pag-ro

PAMB Protected Area Management Board

PASU Protected Area Supervising Unit

PDI Philippine Daily Inquirer

PEMSEA Partnerships in Environmental Management for the Seas

of East Asia

PENRO Provincial Environment and Natural Resources Officer

PES Payment for environmental services

PHP Philippines peso

PI Panggangan Island

PO People’s organizationSACRED Samar Center for Rural Education and Development

SEA Southeast Asia

SEAFDEC South East Asian Fisheries Development Center

SEC Securities and Exchange Commission

SEDF Surigao Economic Development Foundation Inc.

SIDA Development Cooperation Agency

SIPLAS Siargao Islands Protected Landscape and Seascape

SMR Sagay Marine Reserve

SMU Special management unit

SSDP Southern Seaboard Development Project

SWM Southwest monsoon

TAC Total allowable catch

TB Total benefit

TCM Travel cost method

TDP Tradable discharge permit

TEV Total economic value

THB Thai baht

THIPA Turtle Islands Heritage Protected Area

TKN Total Kjeldahl nitrogen

TRMNP Tubbataha Reef Marine National Park

TSS Total suspended solids

UASB Upflow anaerobic sludge blanket

UNDP United Nations Development Programme

UNEP United Nations Environment Programme

UP–MSI University of the Philippines–Marine Science Institute

USAID United States Agency for International Development

USC University of San Carlos

xx Abbreviations

USD US dollar

USEPAERL US Environmental Protection Agency’s Environmental

Research Laboratory

UT U-Tapao

VISSEA Visayan Sea Coastal Resources and Fisheries Management

VND Vietnamese dong

WB World Bank

WEPA Water Environment Partnership in Asia

WQCI Water Quality Composite Index

WTP Willingness to pay

WWF World Wildlife Fund

ZTCM Zonal travel cost method

Abbreviations xxi