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

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Date
2000
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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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IASC, forest management, protected areas, water resources, conservation, user fees, watersheds, sustainability, contingent valuation, willingness to pay
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