Value of Forest Conservation
Attributes
Medium: Land
Country: Cambodia
Analytical Framework(s): Economic Analysis
Unit(s): Net Benefit
Study Date: 2007
Publication Date: 2011
Major Result(s)
| Resource/Environmental Good | KHR, per ha (2007) |
KHR, per ha (2014)1 |
USD, per ha (2014)2 |
|---|---|---|---|
| Net benefit of forest conservation (USD 14,575.00)3 | 58,285,400.00 | 85,230,740.42 | 20,949.66 |
| Net benefit of large-scale rubber plantation (USD 15,690.00) | 62,744,300.00 | 91,750,989.89 | 22,552.33 |
| Net benefit of smallholder rubber plantation (USD 7,661.00) | 30,636,300.00 | 44,799,461.49 | 11,011.68 |
| Net benefit of orchard crop - cassava (USD 1,416.00) | 5,662,580.00 | 8,280,390.73 | 2,035.31 |
| Net benefit of orchard crop - soybean (USD 785.00) | 3,139,220.00 | 4,590,481.41 | 1,128.34 |
| Net benefit of orchard crop - maize (USD 584.00) | 2,335,420.00 | 3,415,084.67 | 839.43 |
| Net benefit of orchard crop - cashew (USD 2,270.00) | 9,077,730.00 | 13,274,364.58 | 3,262.83 |
About the Inflation Adjustment: Prices in Cambodia (KHR) changed by 46.23% from 2007 to 2014 (aggregated from annual CPI data), so the study values were multiplied by 1.46 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: Four sensitivity analyses were undertaken which demonstrated that despite varying key basic assumptions, the ranking of all crops and forest conversion schemes remained unchanged. The study clearly reveals that smallholder rubber plantations represents the most desirable land use from an economic viewpoint, compared with other forms of crop production (cassava, soybean, maize and cashew).
Study Details
Summary: The study makes use of secondary data and the results of the field surveys to conduct a cost-benefit analysis of two land conversion schemes. The study offers several suggestions to the government as the basis for determining its strategic approach to land and agricultural development. The result of the cost-benefit analysis showed clearly that the conversion from crop production (maize, soybean, cassava, and cashew) to smallholder rubber plantation provides the largest benefit to farmers involved in those conversion schemes. The conversion of forestland into large-scale rubber plantation ranks last in economic terms. The study aims to provide information on the general perceptions of local people towards land development being promoted by the government, and the various impacts of the conversion of forestland to rubber plantation on local communities. In addition, it provides results on the economic value of different types of land use, the cost-benefit of land use changes and future scenarios regarding latex price, rubber plantations, and forestland.
Site Characteristics: The available land for rubber plantation in Cambodia is located in Kampong Cham, Kratie, Kampong Thom, Rattanakiri, Mondulkiri, Battambang, Preah Vihear and Pailin provinces. It covers around 900,000 ha where more than 700,000 ha is basaltic red soil. Of the total area of basaltic red soil in Cambodia, 186,600 ha is located in Lower Mekong including Kampong Cham and Kratie province, 520,000 ha in the North East plateau including Rattanakiri province (180,000 ha), Mondulkiri (320,000 ha), and Kratie (20,000 ha), and 10,000 ha in mountain areas. A realistic estimate of the potential area for rubber cultivation in Cambodia for the North and East area of the country is around 330,000 ha.
Comments: The authors stated that the results should provide important messages for policy makers in decisions concerning the expansion of rubber plantations. Further, the findings should contribute to policy discussions regarding the issue of whether economic land concessions and other kinds of rubber plantation development can make a significant contribution to poverty alleviation and economic development of the country.