The Existence Value of Peat Swamp Forest in Peninsular Malaysia By Mohd Azmi, M.I., Cullen, R., Bigsby, H. & Awang Noor, A.G. Faculty of Commerce 1
PSF of Malaysia 60% of PSF worldwide located in SEA Important in providing variety goods and services and reservoirs for biodiversity Many species endemic only to PSF environments Malaysian PSF : 75% of total wetlands Total area (2006) = 1.54 million ha 2
Estimated extent of peat swamp cover in Malaysia (2006) State Selangor Johore Terengganu Pahang Sabah Sarawak Total area (hectares) 76,000 13,000 13,000 200,000 120,000 1,120,000 Total 1,542,000 Source: UNDP (2006) 3
The issues.. - PSF in PM has undergone rapid reduction since 1980s: 0.67 million ha (1981), 0.34 million ha (1990s), 0.30 million ha (2006) - Cleared for agriculture, aquaculture, industries & residential schemes - 67% of 0.30 million ha has been protected within Permanent Forest Reserves 4
The conservation and sustainable use of PSF is an important & urgent issue which needs attention, consideration and proper planning. This will involve various stakeholders Economic valuation: important task to provide information on the benefits derived from direct & indirect uses of forest resources The economic values could be used in economic evaluation of alternative forestland use options 5
Total Economic Value and Methods of Valuation Total Economic Value Use Values Non-use Values Direct Use Value Indirect Use Value Option Value Bequest/ Existence Value Timber, Rattan, Bamboo Medicinal plants, Recreation, Wildlife, Water Microclimate regulation, Nutrient cycle, Flood control, Biodiversity, Hydrological functions Potential future uses, Future value of information, Future research Biodiversity, Culture, Heritage, Conservation Market-based, Travel Cost, CVM, Input Substitute, Indirect Opportunity Cost CVM, Choice Model, Hedonic Pricing, Production Function, Replacement Cost CVM, Choice Model CVM Choice Model Source: Pearce & Turner (1990); Turner (1999), Fromm (2000); Pearce (1993); Randall (1987); Awang Noor et al. (1998) 6
Objectives of study 1) To examine Kuantan s residents understanding of forestry issues in Malaysia 2) To estimate the existence value of SEPPSF based on Kuantan s residents WTP to conserve the forest Kuantan capital of Pahang, 1m population, 70km from largest peat swamp forest 7
Map of Malaysia 8
Pahang State 9
SEPPSF 10
SEPPSF 11
Details on SEPPSF 200,000 ha (66% of PSF in Peninsula Malaysia) 87,045 ha (44% of the area) is Permanent Forest Reserve Has unique peat swamp flora & fauna Provides multiple benefits and services to local communities and environment 12
Status of flora and fauna in SEPPSF Total area of SEPPSF Common timber species Commercial fish species 87, 045 hectares Kempas (Koompassia malaccensis) Ramin Melawis (Gonystylus bancanus) Tapah, Toman and Baung Number of plant species 216 Number of mammals species 62 Number of bird species 192 Number of fish species 56 Number of frogs species 17 Number of tortoises, lizards and snakes species Animal species under serious threat Malayan sun bear, flat-headed cat, white-handed gibbon, small-clawed otter and Malayan porcupine Animal species critically endangered 21 Painted terrapin, Malayan tiger, Asian elephant, Sunda otter civet, hairynosed otter, panther, leopard, lesser adjutant stork, wrinkled hornbill, large green pigeon, short-toed coucal, Wallace s hawk-eagle, false gharial (Buaya Julung) and Malayan giant turtle. Source: Anon (2004) 13
Research Method Survey using structured questionnaire to selected Kuantan residents during January April 2009 Questionnaire: 5 sections Open-ended and close-ended questions were used 433 residents approached, 279 willing to participate (64%) 14
Contingent Valuation Method (CVM) Purpose : to elicit value that are as close as possible to what would be revealed if a market actually existed Generally measures based on WTP or WTA Section four in the questionnaire 15
Question to elicit WTP To manage and conserve SEPPSF ecosystems will require substantial amount of financial expenditure each year Assume that the state government of Pahang decided to organize a special trust fund to support the conservation and protection of SEPPSF Residents of Kuantan are urged to participate in the programme Are you willing to contribute? Yes (go to question x) No What is the maximum amount that you are WTP? RM per year? 16
Results & Discussion Socio-demographic data (274 respondents) - 81% male ; 93% Malays - Aged between 23 to 28 years old (23%) - 75% married; average household size = 4 people - 46% university graduate; 62% worked in public sectors - Average years of schooling: 14 years - Average monthly income : MYR 2,500 (NZD 1080) - Average distance from SEPPSF : 73 km 17
Statistical results of socio-demographic variables 1 Variable Mean Standard deviation Minimum Maximum Age (years) 36.8 10.23 18 60 Size of the household Years of schooling 3.85 2.30 1 12 13.82 2.39 6 16 Gross monthly 2468.98 1241.94 650 7000 income (MYR) 2 Distance from SEPPSF (km) 72.63 11.12 53 109 Notes: 1 Total number of respondents = 274 2 MYR = Malaysian Ringgit MYR1 = USD0.29 as of August, 2 nd 2009 (Anon, 2009) 18
Awareness on information regarding forest conservation % 80 70 60 50 40 30 20 10 0 Always pay attention Occasionally concerned Never pay attention 19
Opinion on forest management and conservation % 50 45 40 35 30 25 20 15 10 5 0 Satisfied with the current management of forest conservation Don t know about the management of forest conservation Respondent's opinion Needs improvement 20
WTP to conserve SEPPSF 78% agreed to participate Maximum WTP range, MYR 1 (USD0.29) to MYR 50 (USD14.50) Average : MYR 11.50 (USD 3.34) 50% willing to pay between MYR 1 (USD0.29) and MYR 10 (USD 2.90) 22% willing to pay MYR = 0 21
Reason not interested to pay I cannot afford to pay I do not believe that paying such amount will result in improved forest conservation Cost of forest conservation should be borne by the government I prefer giving money to humanitarian causes instead Only people who directly benefit from the existence of SEPPSF should pay for the fund 22
Existence value of SEPPSF Arithmetic Mean value of WTP = MYR 11.50 (USD 3.34) Population Kuantan District Pahang State Total Population (2008) Adults Population No. of household 420,300 239,571 105,075 1,483,600 860,488 370,900 23
Estimated value Annual Existence Value Economic value Kuantan district Pahang state Economic value based on total population Economic value based on adults population Economic value based on number of household MYR4.8 million (USD1.4 million) MYR2.8 million (USD0.8 million) MYR1.2 million (USD0.4 million) MYR17 million (USD4.9 million) MYR9.9 million (USD2.9 million) MYR4.3 million (USD1.3 million) 24
Conclusion PSF is the largest wetland area in Malaysia Most indirect benefits of PSF are unpriced, but we need value to determine overall TEV For SEPPSF, only 26% of respondents knew of the existence of the forest 79% WTP to support the programme of conserving SEPPSF for future generations 25
Conclusion (continued) Estimated existence value: MYR 1.2 million MYR 4.8 million per year The value can be used as indicator of the value of unpriced forest resources or forest ecosystems as a whole in monetary terms Public preferences for forest conservation are an important element to achieve more sustainable management of the forest 26
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