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Tropical Forest Research Network |
ECONOMIC VALUATION OF THE LOCAL AND GLOBAL VALUE OF TROPICAL FORESTS: A COMPARISON BETWEEN THE LEUSER NATIONAL PARK (INDONESIA) AND THE IWOKRAMA FOREST (GUYANA)
By Pieter van Beukering
Policymakers at various levels increasingly ask for information on the value of goods and services provided by tropical forests. They increasingly learn that deterioration of tropical forests does not pay off in the longer term. Local and national policymakers are beginning to agree that the value of natural resources depends not only on the market prices of its direct uses, but also on all other functions of the natural resources that generate value in its broadest sense. Especially now that policy discussions are aimed at a better understanding of these 'hidden values', there is a need for the development of new simple tools to come to a 'fuller' valuation of these scarce resources and to make better decisions. A method central to this effort is 'economic valuation'.
Economic valuation in
international nature conservation
Two case studies carried out in different regions - the Leuser National Park
in Sumatra, Indonesia and the Iwokrama Forest in Guyana - are illustrative of
the possibilities and limitations of using economic valuation in designing international
nature conservation. We can explain the conceptual role of valuation by determining
the economic benefits of tropical rain forest at various scale levels in society.
The concept of benefit transfer can assist in applying economic values of an
existing study to other areas or situations. To illustrate this aspect of economic
valuation and to explain the danger of applying benefit transfer in a too simplified
manner, we compare and analyse the results of both case studies.
The need for different
approaches
It is shown that, because of the high population density and subsequent importance
of indirect use values, the efforts in the Leuser National Park should mainly
focus on protecting the Leuser Ecosystem against encroachment and illegal logging.
If the ecological integrity cannot be maintained, the negative economic consequences
in terms of loss of water supply and increased flooding and drought events can
be enormous. Most of the benefits are already operational, despite the fact
that they may be 'hidden'. In Iwokrama, an opposite movement must be set in
motion. Rather than franticly protecting the forest, sustainable ways should
be found to materialise the potential values present in the forest. To realise
this, a central organisation is required to take the initiative and establish
the link between local supply and global demand for the ecological functions
of the Iwokrama forest. Without the presence of the Iwokrama Centre, it is quite
unlikely that different types of foreign grants and investments such as carbon
credits, bioprospecting and conservation grants would be made.
Further information:
Dr Pieter van Beukering
Institute for Environmental Studies
Vrije Universiteit
Boelelaan 1087
1018HV Amsterdam
The Netherlands
E-mail: beukering@ivm.vu.nl