Valuation Study

Cost of Typhoon Damage

Attributes

Medium: Animals, Plants and/or Others

Country: Philippines

Analytical Framework(s): Economic Analysis

Study Date: 2006

Publication Date: 2011

Major Result(s)

About the Inflation Adjustment: Prices in Philippines (PHP) changed by 35.65% from 2006 to 2014 (aggregated from annual CPI data), so the study values were multiplied by 1.36 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 research work focused on local government units (LGUs), community organizations (COs), and households in the province of Batangas and their experience with Typhoon Milenyo (international name Xangsane) in September 2006. Using data from primary and secondary sources, key informant interviews, and focus group discussions (FGDs), the study assessed their adaptive capacity and how this capacity was translated to adaptation behavior as manifested in their specific responses to Typhoon Milenyo.

Study Details

Reference: Linda M. Peñalba, Dulce D. Elazegui. 2011. Adaptive Capacity of Households, Community Organizations and Institutions for Extreme Climate Events in the Philippines. EEPSEA Research Report, No. 2011-RR3.

Summary: Tropical cyclone is the most commonly occurring natural hazard in the Philippines causing billions of pesos worth in socio-economic losses and other forms of damages. Analysis of 59-year data on Philippine typhoons revealed that their intensity had been increasing, especially since the 1990s. It is therefore important for people, communities, and institutions to enhance their capacity to adapt to typhoon events and improve resilience to their probable risks. The LGUs' response to typhoon and flooding was essentially 'relief, rescue, and rehabilitation' in nature. However, they recognized that there were other adaptation possibilities that could make the communities less vulnerable to typhoon events. This indicates some gaps between adaptation practices actually taken and practices recommended but were not done. One acknowledged gap in LGU response was better preparedness to typhoon event, showing the importance of establishing an early warning. This system would inform the public and decision makers about critical adaptation decision points such as what adaptation options are available and what adaptation strategies would be most appropriate. Other recommended strategies are medium to long- term in nature in order to mitigate or prevent damages from future typhoons. Constraints to adoption of more effective adaptation options pertain to weak enforcement of existing policies and standards (e.g., land use policy, building code), which are some of the underlying risk factors that could exacerbate vulnerability of the localities. Other barriers include unclear operational procedures; financial constraints, particularly for long-term and infrastructure development measures; and integration of climate risk management to local development plans. While LGUs rate their adaptive capacity high, their programs and policies and human resource capability were apparently low. There may be a need to further enhance this capacity for more effective and sustainable adaptation strategies. Partnership with other sectors of society is crucial, thus the current limited role of community organizations should also be intensified. The second part of the study analyzed the adaptive capacity of households and their experiences and adaptive behavior to deal with the impacts of Typhoon Milenyo. Primary data were generated from personal interviews of lowland and coastal households in two localities of Batangas.

Site Characteristics: The municipality of San Juan is located in the southern tip of Batangas province. It has a total land area of 27,340 ha, the second biggest municipality in the province of Batangas (Table 3). The town's population in 2007 was 87,276 and the total number of household was 20,314. Aside from farming, fishing was also a major industry in themunicipality, with 16 coastal barangays depending on the industry for livelihood. The major crops planted were rice, corn, coconut, banana, mango, and various kinds of vegetables. The study barangays in San Juan are Barangay Ticalan (located along the coast of Tayabas Bay) and Barangay Tipas, a lowland barangay, traversed by a big river system. In 2007, Barangay Ticalan had a total land area of 459 ha and a population of 1,773. Barangay Tipas is smaller, covering 197.87 ha, but it had a bigger population of 2,867. As for Tanauan City, it is strategically located near major growth centers such as Metro Manila and Batangas City, which have influenced its urbanization. It has a total land area of 10,716 ha with 48 barangays. A total of 142,537 residents and 21,912 households were living in the city as of 2007. The major sources of livelihood were farming and fishing, while others were industrial and commercial activities. The study barangays in Tanauan City were Barangay Altura and Barangay Ambulong. Barangay Altura is a lowland barangay that is traversed by a big river and is located at the foot of Tagaytay Highlands. It has a total land area of 216 ha and a total population of 1,203 in 239 households. Ambulong is a coastal barangay located along the coast of Taal Lake. It is almost the same in size as Barangay Altura with 220 ha, but it was more densely populated in 2007 with 5,461 people.

Comments: The damage brought by Typhoon Milenyo varied by sector. The cost of damage to houses was highest in the coastal areas, while agricultural production suffered the most in the lowland areas. Recovery period for majority of affected households was within one month, but agricultural households took a longer period to recover as the income they could have generated from their harvest was lost. During the typhoon, however, there was an increase in fish catch and sales of retail business.

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