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Assessing and Valuing Ecosystem Services in the Ankeniheny-Zahamena Corridor (Caz), Madagascar

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Assessing and Valuing Ecosystem Services in the Ankeniheny-Zahamena Corridor (Caz), Madagascar ASSESSING AND VALUING ECOSYSTEM SERVICES IN THE ANKENIHENY-ZAHAMENA CORRIDOR (CAZ), MADAGASCAR A DEMONSTRATION CASE STUDY FOR THE WEALTH ACCOUNTING AND THE VALUATION OF ECOSYSTEM SERVICES (WAVES) GLOBAL PARTNERSHIP JUNE 2012 Rosimeiry Portela, Paulo A.L.D. Nunes, Laura Onofri, Ferdinando Villa, Anderson Shepard and Glenn-Marie Lange WAVES Madagascar: CAZ Case Study ACKNOWLEDGEMENTS This research project would not have been possible without the support of many individuals and organizations. We therefore want to express gratitude to the WAVES Madagascar Steering Committee, which provided great guidance and insightful recommendations at the onset of the research. We are particularly grateful to Leon Rajaobelina (CI) and Jean-Gabriel Randriamarison (Ministry of Economy and Industry) – co-presidents of the Steering committee, for their useful advice and input, and for help in setting up numerous meetings in our short visit to Madagascar. We are also very indebted to Alison Clausen (World Bank Madagascar) for her continuous support throughout the project and to Ramy Razafindralambo with the enormous help with data gathering. An enormous appreciation also goes to Conservation International Madagascar staff for their significant support throughout the project. We are particularly thankful to James MacKinnon, Bruno Rajaspera, Michèle Andrianarisata, Andriambolantsoa Rasolohery, Rollande Finoana, Andoniaina Rambeloson, Hantanirina Ravololonanahary, Harinaina Ramenson. We also want to express a deep sense of gratitude to many governmental officials for their time in providing advice, guidance and data. A great thanks to Ramdrianbolanamitra Samuel (INSTAT), Naivonirina Ramananjaona (ANDEA), Rene Randriambohanginjatovo (National Park, Mantadia Andasibe) and Ravahinimbola Yolanda Rachel (Tourism Regional Office ALaotra-MAngoro). Thanks also to Andrew Cooke and Paul Andrianaivomahefa (Ambatovy) for their willingness to share information and data for the analysis. A great thanks also goes to important stakeholders from CAZ, for their time and willingness to share their perspective. We are particularly grateful to Lalaina Andrianavalona (MiaradiaFederation), Damabehy Garcon (Fandrefiola/VOI), Botokambana Celestin (Ranoala/VOI) Talata Raymond and Toto Jean Etienne (Firaisankina/VOI), Radriomanna Philibert (Maromangi/VOI), Rasambomamama Justin and Ramdroiamiadamanana J. Michel (Mirindra/VOI), Ralotpmodoma Augustin (Maromijahe/VOI), Randrianasolo Simon (Elaka Andranoluva/VOI), Dakotofotsy (Fitamals/VOI), Randiranajandr Gervais Andriameinambinina J. S. Silvain and Lalana Andrianaralona (Miarapia/VOI). Last, but not least, we want to thank the reviewers for their valuable comments and recommendations which helped to significantly improve the report. Suggested citation: Portela, R., Nunes, P.A.L.D., Onofri, L., Villa, F., Shepard, A. and G-M. Lange. 2012. Assessing and Valuing Ecosystem Services in Ankeniheny-Zahamena Corridor (CAZ), Madagascar: A Demonstration Case Study for the Wealth Accounting and the Valuation of Ecosystem Services (WAVES) Global Partnership. The views expressed in this report are those of the authors and do not necessarily represent the views of Conservation International or the institutions with which authors are affiliated. The findings, interpretations, and conclusions expressed in this report do not necessarily reflect the views of The World Bank, its Board of Executive Directors or the governments they represent. Cover photo: Mantadia National Park (Conservation International / Sterling Zumbrunn) ii WAVES Madagascar: CAZ Case Study TABLE OF CONTENTS Acronyms and Abbreviations ....................................................................................................................... vi Executive Summary ..................................................................................................................................... vii 1. Introduction and Objectives ................................................................................................................. 1 1.1 Project Overview and Scope of the Study .......................................................................................... 1 1.2 Constraints and Scientific Context ..................................................................................................... 2 1.3 Structure of the Report ...................................................................................................................... 2 2. Context and Issues ................................................................................................................................ 3 2.1 Overview of Madagascar.................................................................................................................... 3 2.2 Overview of the Ankeniheny-Zahamena Corridor (CAZ).................................................................... 3 2.3 Overview of Ecosystem Services ........................................................................................................ 6 2.3.1 Carbon Storage and Sequestration ....................................................................................... 6 2.3.2 Water Supply ......................................................................................................................... 7 2.3.3 Sediment Regulation ............................................................................................................. 8 2.4 Economics of Ecosystem Services ...................................................................................................... 9 3. Methods .............................................................................................................................................. 11 3.1 Biophysical Analysis: The Artificial Intelligence for Ecosystem Services .......................................... 11 3.2 Biophysical Analysis: Methodological Approach for The CAZ Study ................................................ 13 3.2.1 Carbon Storage and Regulation .......................................................................................... 14 3.2.2 Water Supply ....................................................................................................................... 15 3.2.3 Sediment Regulation ........................................................................................................... 15 3.3 Economic Analysis: Methodological Approach for The CAZ Study .................................................. 16 3.3.1 Input Productivity and Value of Market Productivity ......................................................... 17 3.3.2 Testing Production Functions ............................................................................................. 18 3.3.3 Empirical Analysis: Mining Sector ....................................................................................... 19 3.3.4 Empirical Analysis: Carbon .................................................................................................. 19 3.3.5 Empirical Analysis: Agricultural Sector ................................................................................ 20 3.3.6 Literature and Experts Analysis: Tourism Sector ................................................................ 20 3.3.7 Literature and Experts Analysis: Energy Sector .................................................................. 21 4 Results ................................................................................................................................................. 22 4.1 Biophysical Analysis .......................................................................................................................... 22 4.1.1 Choice of Context for the ES Analysis ................................................................................. 22 4.1.2 Carbon Services ................................................................................................................... 23 4.1.3 Water Services .................................................................................................................... 24 4.1.4 Demand Analysis ................................................................................................................. 24 4.1.5 Source and Flow Modeling .................................................................................................. 26 4.1.6 Factors Affecting Water Quality: Sediment Contamination ............................................... 28 4.2 Economic Analysis ............................................................................................................................ 30 4.2.1 Carbon ................................................................................................................................. 30 4.2.2 Mining Sector ...................................................................................................................... 30 4.2.3 Agriculture/Farming Sector ................................................................................................. 31 4.2.4 Tourism Sector .................................................................................................................... 31 4.2.5 Energy Sector ...................................................................................................................... 32 iii WAVES Madagascar: CAZ Case Study 4.2.6 Synthesis of Water Productivity .......................................................................................... 32 5. Discussion ..........................................................................................................................................
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