Value of Time
Attributes
Medium: Water
Country: Philippines
Analytical Framework(s): Marginal Opportunity Cost Concept
Study Date: 2000
Publication Date: 2001
Major Result(s)
| Category | Resource/Environmental Good | PHP (2000) |
PHP (2014)1 |
USD (2014)2 |
|---|---|---|---|---|
| CRM Activity | Artifical reef3 | 6,153.00 | 10,297.17 | 230.23 |
| CRM Activity | Bangus culture | 25,652.00 | 42,929.14 | 959.83 |
| CRM Activity | Billboards | 1,587.00 | 2,655.88 | 59.38 |
| CRM Activity | Cleaning of seashore | 9,781.00 | 16,368.70 | 365.98 |
| CRM Activity | Lapu-lapu culture | 4,307.00 | 7,207.85 | 161.16 |
| CRM Activity | Law enforcement | 14,825,000.00 | 24,809,934.00 | 554,714.39 |
| CRM Activity | Lobster culture | 27,083.00 | 45,323.94 | 1,013.38 |
| CRM Activity | Mangrove reforestation | 105,985.00 | 177,368.02 | 3,965.69 |
| CRM Activity | NFA rice retail | 5,587.00 | 9,349.96 | 209.05 |
| CRM Activity | Seaweed culture | 452,490.00 | 757,251.06 | 16,931.04 |
| CRM Activity | Tree planting | 69,878.00 | 116,942.23 | 2,614.66 |
| CRM Activity | Total | 15,532,900.00 | 25,994,618.81 | 581,202.24 |
About the Inflation Adjustment: Prices in Philippines (PHP) changed by 67.35% from 2000 to 2014 (aggregated from annual CPI data), so the study values were multiplied by 1.67 to express them in 2014 prices. The study values could be expressed in any desired year (for example, to 2025) by following the same inflation calculation and being sensitive to directional (forward/backward) aggregations using your own CPI/inflation data.
Study Note: This study generally aims to estimate and analyze the TC associated with the implementation of a multi-level and multi-stakeholder program such as a CBCRM program. TC are indirect costs incurred in reaching and enforcing agreements. Tools for analysis used in this study included the estimation of direct project costs (DPC) and TC at each phase of the San Miguel Bay Coastal Resource Management Program (SMB-CRMP) and their distribution among the different stakeholders; determination of transaction costs share (TSC) and analysis of factors affecting TC. Similarly, effect of TC on performance of people's organizations (POs) was analyzed.
Study Details
Summary: This study was conducted in the San Miguel Bay coastal area which is one of the pilot sites of the FSP. Thirty-eight POs in various barangays from seven municipalities with jurisdiction over San Miguel Bay were the focus of the study. The POs were classified as successful or less successful based on the success index developed from the criteria and indicators (C&I) that were adopted, modified and field-validated for applicability. Transaction costs incurred by the POs, local government units (LGUs) and the other stakeholders at the different phases (i.e., institutionalization, capability building and implementation) of the SMB-CRM were accounted for. Results of the study show that TC accounted for 37% of the total project cost (TPC). The instability of financial support resulted in high TC, which was estimated to be 86% of the TPC during the implementation phase. Further analysis of TC by phase as a share of the total TC show that the implementation phase contributed the highest share of 74% to the total TC. This may be attributed to the minimal budgetary allocation for the DPC during the implementation phase. The share to the total TC was highest among the POs (especially the successful ones) who were beneficiaries of the program. A large part of the TC represents the value of their time spent in CRM activities. The number of people involved in the transactions, number of activities undertaken and performance of the POs were among the factors found to have significant effect on the TC. Results of the analysis also show that while higher TC led to better performance of the stakeholders at the initial stage of project implementation, an increasing level of TC eventually slowed down the performance of the parties involved in the project.
Site Characteristics: The study was conducted in the San Miguel Bay coastal area covering seven municipalities, namely: Mercedes and Basud in Camarines Norte and Cabusao, Calabanga, Sipocot, Siruma and Tinambac in Camarines Sur. The San Miguel Coastal Zone consists of the following: all water areas and islands encompassed by the mean high water spring tide (MHWST) level of the mainland shore and a line running eastward from Grove Pt., Camarines Norte (122°18'14"E, 14°08'06"N) and southeast to Quinabusan Pt., Camarines Sur (123°20'23"E, 14°06'19"N); and all land areas from MHWST level of the shore going inland to a distance of 5 km or from the outer boundary of the adjoining watershed, whichever comes first. The coastal zone's inland boundaries were selected to include areas with a high population dependence on coastal areas where land activities have an immediate impact on the coastal resource. The coastal zone covers roughly 1,919 km2 consisting of 1,115 km2 of water area and 18 km2 of coastal land area. This zone encompasses portions of the seven coastal municipalities, as listed above.
Comments: Community-based coastal resource management (CBCRM) is a scheme that gives a community a certain degree of management responsibility, such as the ability to supervise access and use of the coastal resource. The Fisheries Sector Program (FSP) is one of the government-initiated CBCRM programs intended to augment the income of small-scale fishermen and preserve the coastal resource. However, despite the numerous studies carried out relating to CBCRM programs, none dealt with the transaction costs (TC) associated with their implementation.