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Market-Based Instruments for Water Resource Conservation in Mt. Makiling, Philippines: A Case Study

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Type: Conference Paper
Author: Cruz, Rex Victor O.; Bugayong, L.A.; Dolom, P. C.; Espiritu, N. O.
Conference: Constituting the Commons: Crafting Sustainable Commons in the New Millennium, the Eighth Biennial Conference of the International Association for the Study of Common Property
Location: Bloomington, Indiana, USA
Conf. Date: May 31-June 4
Date: 2000
URI: https://hdl.handle.net/10535/1768
Sector: Water Resource & Irrigation
Forestry
Region: East Asia
Subject(s): IASC
forest management
protected areas
water resources
conservation
user fees
watersheds
sustainability
contingent valuation
willingness to pay
Abstract: "The Makiling Forest Reserve (MFR) is an experimental and educational forest reservation about 65 km south of Manila. The development of economic instruments for more reasonable water pricing was initiated primarily to promote conservation of the water and other resources from MFR. Specifically, the project was designed to increase efficiency in MFR resource utilization by elevating the level of awareness and sense of responsibility of the water users to protect the resources of the watershed from where their water comes from. The study was also designed to develop sustainable sources of funds for the development and protection of MFR watersheds. The economic instrument was initially based on the willingness of users to pay using the contingent valuation technique. "An additional amount that the users are willing to pay on top of the current fees they are charged for using water was generated through the analysis of the preliminary information collected in the study. About 67% of the domestice water use5rs agreed to pay an additional amount ranging from $0.03 to $0.04 per cubic meter of water they use. Assuming that a minimum of $0.02 is added to the current charges per cubic meter of domestic water consumed, sufficient money can be generated and used to implement various management activities to protect the watersheds within the MFR. Modes of payment, fund management and other aspects of implementation are also discussed in this paper."

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