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5 Proposals for further research The Philippine case studies presented and the review of existing initiatives for MES development illustrate a certain dynamism that promises the achievement of conservation objectives in that country. There is enough room in the existing legal and policy framework for the creation and implementation of economic instruments. Institutional mechanisms likewise exist, albeit at varying levels of efficiency. Yet much remains to be done for MES development to create a significant impact on the Philippine environmental sector. The following are recommendations for further work. With respect to the IPAF, economic valuation studies need to be replicated in other parts of the country. There are numerous protected areas listed on paper, but because of various implementation problems such as lack of financial sustainability, some markets cannot seem to take off. One case study that can be replicated is the imposition of watershed-protection fees on a mineral water company benefiting from such protection, even if the company is located outside the protected area. Furthermore, although most revenue-generating PAs have only started to disburse their funds, early interventions – for example establishing a proper monitoring system within the PAWB-DENR – can ensure that such funds are used for programmes that can serve as payments to local communities for continuous provision of environmental services. Finally, assistance can be provided in setting up some sort of a ‘payment scheme’ for local communities, particularly in areas where revenues have been generated. The Balian case study can also be extended so that assistance is provided in securing the necessary rights over their water supply. Various forms of trading such rights can ensue, which will necessitate a cost-benefit analysis of the various options open to the community. Numerous lessons were learned from the Balian experience, which could be transferred to other areas where community-based organisations are present. Such organisations need not be currently active in watershed-protection efforts, but there should be an interest in pursuing such objectives. The implementation of the DOE Fund for Watershed Rehabilitation could be expedited and designed to be more efficient. Intervention can be done on both levels – at the DOE and at local level by providing advice and technical guidance on securing their share for environmental-enhancement projects. Even areas that have had environmental enhancement projects approved can be assisted in implementing their proposals. Finally, for further development of markets in watershed protection, studies on raw water pricing can be initiated. 59 Groundwater depletion must be addressed, one possibility being the institution of a user-fee policy based on the depletion cost of groundwater, added to the cost incurred by private well owners. This can contribute to groundwater conservation. In the event that the reduction in the volume of groundwater extraction still exceeds sustainable recharge rates, it will be necessary to determine and allocate the safe yield volume among existing users. This in turn will call for the establishment of a system for monitoring and metering groundwater use and the effective enforcement of a penalty system. To pave the way for a market for groundwater rights, the extent of private rights within the public domain will have to be redefined. 59 Proposal for raw water pricing contained in Bautista, G. and R. Tan (2001), Watersheds and Groundwater Depletion in the Philippines: The Cagayan de Oro Experience. Institute of Philippine Culture, Ateneo de Manila University, Quezon City, Philippines. 85
In the event that allocations of groundwater shares may not be enough to meet water requirements and the groundwater rights market takes time to fully develop, additional supply from surface water will have to be provided. This in turn will necessitate the estimation of the full economic cost of surface water, which will depend partly on the price of the existing groundwater technology and its depletion cost, and on the condition of the forest, headwaters, and rivers from whence it comes. If forest sources are degraded, and sedimentation levels will require treatment of surface water, rehabilitation and restoration expenditures will have to be allocated for. This will likewise need policies on river-water allocation to be formulated and enforced. Both groundwater and surface water use will have to eventually be linked to natural and ecological processes. Hence, providers of such services will have to be compensated in the process by downstream users. Needless to say, all this will be possible only if management responsibilities of all government bodies involved are rationalised and delineated accordingly. 86
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Developing pro-poor markets for env
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Acknowledgements The author would l
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MES Markets for Environmental Servi
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Contents 1 Introduction 1 1.1 Backg
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List of tables Table 2.1 List of en
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1.2 Purpose and objectives of resea
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2 Markets for environmental service
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Environmental service Watershed pro
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Environmental service Carbon seques
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Chronology of activities • Presen
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Results of the travel cost model, M
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Box 2.2 Case study of development f
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Accomplishments With ample resource
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workers in some reforestation activ
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have sole commercial bioprospecting
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2.6 Elevation services This last ty
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3 Institutional support mechanisms
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from the PA Profiles and from the P
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Region Protected area Northwest Pan
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Region Protected area Location Area
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Region Protected area Location Area
Page 43 and 44: Box 3.1 ‘Establishment and Manage
Page 45 and 46: In some areas, such issues are reso
Page 47 and 48: Figure 3.2 shows the flowchart summ
Page 49 and 50: • Initao National Park • Biak n
Page 51 and 52: Region Protected area Area (in hect
Page 53 and 54: in its entirety. To do so, a nation
Page 55 and 56: PAMB. 19 A broad set of guidelines
Page 57 and 58: streams and rivers for their domest
Page 59 and 60: Pangil. A company there was issued
Page 61 and 62: Much remains to be done. The LK cla
Page 63 and 64: placed some boundary markers in the
Page 65 and 66: Another lesson learned is it is nec
Page 67 and 68: 4 Socio-economic framework for eval
Page 69 and 70: during this period because of the r
Page 71 and 72: 4.1.2 Economic profile The populati
Page 73 and 74: Table 4.2 Schedule of fees and char
Page 75 and 76: group representative, the mayor of
Page 77 and 78: Table 4.4 Results of the key-inform
Page 79 and 80: 4.2 Reforestation, Watershed Manage
Page 81 and 82: within 15 days of submission of the
Page 83 and 84: Figure 4.3 Program for Granting Fin
Page 85 and 86: Table 4.5 Preferred development and
Page 87 and 88: Table 4.7 Total generating capacity
Page 89 and 90: Table 4.8 Approved reforestation, w
Page 91 and 92: Figure 4.4 Flowchart of funds, paym
Page 93: Results of the survey of 100 respon
Page 97 and 98: DENR Administrative Order No. 13, S
Page 99: Republic Act No. 9136 (2001), ‘El
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