Economic Valuation of Mangroves
Attributes
Medium: Land
Country: Cambodia
Analytical Framework(s): Economic Analysis
Unit(s): Benefits
Study Date: 1996
Publication Date: 1997
Major Result(s)
| Resource/Environmental Good | KHR, per hectare (1996) |
KHR, per hectare (2014)1 |
USD, per hectare (2014)2 |
|---|---|---|---|
| Benefits of local fishing | 222,264.00 | 464,153.91 | 114.09 |
| Value of fuelwood | 9,261.00 | 19,339.75 | 4.75 |
| Benefits of sustainable charcoal production | 1,092,800.00 | 2,282,094.24 | 560.94 |
About the Inflation Adjustment: Prices in Cambodia (KHR) changed by 108.83% from 1996 to 2014 (aggregated from annual CPI data), so the study values were multiplied by 2.09 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: The author admitted that valuation of the many indirect functions of the mangrove resource was not possible due to data limitations. However, many of these indirect values (such as storm protection and biodiversity) were still considered to be of great importance, as shown by a qualitative assessment.
Study Details
Summary: The study presented an economic analysis of two (local community use and commercial shrimp farming) of the different uses of the mangrove resource of Koh Kong province in Cambodia. Mangrove ecosystems provide many environmental services, most well-known of which is the support to local and commercial fisheries. However, mangrove areas in Koh Kong are threatened by clearing for shrimp farming activities and illegal charcoal production. As such, fishing activities have been greatly reduced in the past years, largely affecting the 90% of households who are dependent on fishing for their livelihood. The study found out that on a narrow financial analysis alone (wider environmental and social costs imposed by the industry still unaccounted for), shrimp farming in Koh Kong is unprofitable and unsustainable. Moreover, charcoal production would only be allowed in areas where the mangrove has already been disturbed or replanted, and not in areas of high ecological value. The study recommended that future management of the shrimp farming focus on sustainable practices and greater involvement of the local community, not on short term profit. The study also asserted that relocation may be necessary to afford complete protection of ecologically valuable areas and may potentially improve the living conditions/standards of the people.
Site Characteristics: Mangrove ecosystems are central to the livelihood of coastal households in Koh Kong. The mangrove areas occupy 63,700 hectares. Most of these areas have been designated as protected ones, with protection policies still under development. A total of 90 households participated in the survey eliciting information on the traditional uses of the mangrove area by local communities. The study focused on the economic valuation of non-timber forest products collected by households from the mangrove areas, such as fuelwood, construction materials, crabs, shrimp, fish and snails. Ninety-four percent of the population are in-migrants, attracted to the area by the potential returns from fishing and charcoal production, when population and resource exploitation was low. About 90% of the households are dependent on fishing for their livelihood, though fish productivity has reportedly declined dramatically in the past years due to more number of fishermen, loss of mangrove areas and water pollution due to construction of shrimp farms. As such, charcoal production has been resorted to as an alternative source of livelihood.
Comments: The data limitation has not significantly affected the desired comprehensiveness of the study.