YANGON UNIVERSITY OF ECONOMICS DEPARTMENT OF ECONOMICS Ph.D PROGRAMME

ECONOMIC VALUATION OF ECOSYSTEM SERVICES IN TAUNG THAMAN LAKE

YIN MYO OO JULY, 2020

i YANGON UNIVERSITY OF ECONOMICS DEPARTMENT OF ECONOMICS Ph.D PROGRAMME

ECONOMIC VALUATION OF ECOSYSTEM SERVICES IN TAUNG THAMAN LAKE

YIN MYO OO 4- Ph.D (THU) BA-2

JULY, 2020

ii CERTIFICATION

I hereby certify that the content of this dissertation is wholly my own work unless otherwise referenced or acknowledged. Information from sources is referenced with original comments and ideas of the writer herself.

Yin Myo Oo 4- Ph.D (Thu) Ba-2

iii ABSTRACT

This study aims to assign aggregate monetary values of the provisioning, regulating and cultural services on the Taung Thaman Lake in Amarapura Township, Mandalay. The objective is to investigate the factors influencing on willingness to pay (WTP) among villagers and visitors. The market value method is applied to evaluate the aggregate value of crop production in the Lake provisioning service. The contingent valuation method (CVM) is also applied to estimate the amount of money that villagers and visitors were willing to pay by using the binary logistic regression analysis. The Aggregate economic value of crop production from the Lake provisioning services is 49.53 million kyats per year in 2018-2019. The binary regression analysis result shows that the villager’s mean WTP for the water quality conservation is 1,128 Kyats/month/ households and the Aggregate WTP of the water quality conservation of the villagers of the Lake regulating service is 34.41 million Kyats/year/ households in 2018-2019. It is found that the visitor’s mean WTP for entrance fees to the U Bein Bridge is 908 Kyats/person and the Aggregate WTP of recreation of visitors of the Lake cultural services is 109.78 million Kyats/year. The binary regression analysis results indicate that the main factors that are the bid amount with negative effect and age, marital status, education level, occupation, monthly income, visit time and attitudes with positive effects are found to have a significant statistical influence on the WTP. The aggregate monetary value of ecosystem services on the Lake is estimated at 1030.52 million Kyats/year during 2018-2019. The maximum economic benefit is generated from cultural services, followed by provisioning services and regulating services. This study suggests that environmental development supports community development in broad dimensions, associated with community wellness, community economic development and community learning. Positive relationships are emphasized with the opportunity to participate effectively in collective decision-making. Raising community awareness and environmental management will lead to more conservation and sustainable development over the Lake resources. The government should also play a critical role of developing an environmental strategy, including all stakeholders.

i ACKNOWLEDGEMENTS

There are a number of people to whom I am most grateful and whose support made a valuable contribution to the completion of my study. First and foremost, I wish to extend my sincere gratitude to Professor Dr. Tin Win, Rector, Yangon University of Economics, and Professor Dr. Ni Lar Myint Htoo, Pro-Rector, Yangon University of Economics for their kind permission to study in the programme and continued support to carry out this dissertation. I would like to express my deep and sincere gratitude to Prof. Dr. Kyaw Min Htun, Pro-Rector (Retired), Yangon University of Economics, Prof. U Than Aung Yin, Pro-Rector (Retired), Monywa University of Economics, Prof. Daw Nyunt Nyunt Swe, (Retired), Yangon University of Economics, Prof. Daw Aye Aye Myint, (Retired), Yangon University of Economics, Prof. Dr. Htay Htay Lwin, Acting-Rector (Retired), Co-operative University, Thanlyin, Prof. Dr. Khin Khin Htwe, Pro-Rector (Retired), Monywa University of Economics for their sympathetic attitude, invaluable suggestions and comments along with great encouragement and kindness. My deep appreciation and thanks to Prof. Dr. Phyu Phyu Ei, Professor, Head of Department, Department of Applied Economics, Yangon University of Economics, Dr. Cho Cho Thein, Programme Director and Head of Department, Ph.D Programme, Yangon University of Economics, Prof. Dr. Maw Maw Khin, Professor, Head of Department, Department of Statistics, Yangon University of Economics, Prof. Dr. Khin Thida Nyein, Professor, Department of Economics, Prof. Dr. Tha Pye Nyo, Professor, Department of Economics, Prof. Dr. Tin Tin Wai, Professor, Department of Applied Economics, and Prof. Dr. Su Su Myat, Professor, Department of Applied Economics, , for their invaluable advices and academic guidance that have proved to be of great contribution to my dissertation. I would like to express my heartfelt gratitude to my supervisor Prof. Dr. Ni Lar Myint Htoo, Pro-Rector, Yangon University of Economics, for all her time and painstaking patience in providing guidance, suggestions, comments, encouragement and advice. This thesis would not have been completed without her patient guidance, consistent encouragement and advices.

ii Moreover, I would like to express my special appreciation to all those that have assisted me in my research work and to all who have actively participated. During my research, I have come across many individuals at the Taung Thaman Lake in Amarapura Township, Mandalay Region who shared their thoughts and views which are highly valuable. I also would like to extend my gratitude to people who have also assisted me in the interviews. On my personal side, I am extremely grateful to my family for their continuous encouragement, understanding and support. Last but not least, I would like to express my deep gratitude to all individuals who contribute directly or indirectly to my dissertation.

iii TABLE OF CONTENTS Page ABSTRACT i ACKNOWLEDGEMENTS ii TABLE OF CONTENTS iv LIST OF TABLES vi LIST OF FIGURES ix LIST OF ABBREVIATIONS x

CHAPTER I INTRODUCTION 1.1 Rationale of the Study 1 1.2 Problem Statement and Research Questions 5 1.3 Objective of the Study 6 1.4 Method of Study 7 1.5 Scope and Limitations of the Study 7 1.6 Organization of the Study 8

CHAPTER II LITERATURE REVIEW 2.1 Importance of Lakes and Their Ecosystem 10 2.2 Conservation of Lake Resources 13 2.3 Major Categories of Economic Valuation and 17 Methods Used in Environmental Valuation 2.4 The Classification of Lake Ecosystem Functions, 33 Services and Values 2.5 Review on Previous Studies 41 2.6 Conceptual Framework 54

CHAPTER III BACKGROUND INFORMATION OF THE TAUNG THAMAN LAKE 3.1 Background of the Amarapura Township 59 3.2 Extent of the Selected Villages surrounded by the 68 Taung Thaman Lake 3.3 Tourism Based Businesses 80 3.4 Challenges and Environmental Problems of the 81

iv Taung Thaman Lake 3.5 Conservation Measures by Diverse Stakeholders 84

CHAPTER IV SURVEY ANALYSIS 4.1 Survey Profile 92 4.2 Survey Design 94 4.3 Data Collection Techniques 96 4.4 Data Analysis 100 4.5 Examining the Survey Data 106 4.6 Analysis of Survey Results 134

CHAPTER V CONCLUSION 5.1 Findings 154 5.2 Recommendations 158 5.3 Limitations and Further Research 163

REFERENCES APPENDICES

v LIST OF TABLES

Table No. Title Page Table 2.1 Ecosystem Services, Valuation Method, Element of TEV Captured, 37 Ecosystem Services Valued, Benefits of Approach and Limitations of Approach Table 3.1 Population, Number of Households and Sexes of Wards and Village 61 Tracts; Amarapura Township (Mandalay District, Mandalay Region) Table 3.2 Land Use in Amarapura Township 63 Table 3.3 Major Crops in Amarapura Township 65 Table 3.4 Employment by Sector within the Amarapura Township 66 Table 3.5 Households and Sexes of the Selected Village’s Population 71 Table 4.1 Sample Size of the Selected Villages96 Table 4.2 Identification of Dependent and Independent Variables for 103 Villagers Table 4.3 Identification of Dependent and Independent Variables for 105 Visitors Table 4.4 Socioeconomic Characteristics of the Villagers 107 Table 4.5 Socioeconomic Characteristics of the Visitors 108 Table 4.6 Socioeconomic Characteristics of the Tourism-Based Businesses 110 and Factories and Firms Table 4.7 Attitudes Concerning Government Future Plan of Respondents 113 for the Lake Conservation Table 4.8 Attitudes Concerning Public Awareness of Respondents for 114 the Lake Conservation Table 4.9 Perception of Villagers, Tourism-based Business and Factories 116 and Firms on the Taung Thaman Lake Table 4.10 Perceptions and Travel Information for Visitors on 117 the Taung Thaman Table 4.11 Condition of Environmental Quality of the Taung Thaman Lake 120 Table 4.12 Number of Villagers, Tourism-based Businesses and Factories and 121 Firms Who Want to Pay and Unwanted to Pay for Conservation of Water Quality Improvement of the Taung Thaman Lake

vi Table No. Title Page Table 4.13 Number of Visitors Who Want to Pay and Unwanted to Pay 121 for Entrance Fees of U Bein Bridge Table 4.14 Perceptions of Willing to Pay of Respondents for Conservation 122 Program of the Taung Thaman Lake Table 4.15 Perceptions of Unwilling to Pay of Respondents for Conservation 123 Program of the Taung Thaman Lake Table 4.16 Follow-up Certainty about Willingness to Pay of Respondents 124 Table 4.17 Specific Amount of Willingness to Pay of Monthly Payment 125 towards Better Water Quality Conservation of Villagers Table 4.18 Specific Amount of Willingness to Pay of Monthly Tax towards 126 Better Water Quality Conservation of Tourism-based Businesses Table 4.19 Specific Amount of Willingness to Pay of Monthly Payment 126 towards Better Water Quality Conservation of Factories and Firms Table 4.20 Specific Amount of Willingness to Pay towards Entrance Fees 127 for the U Bein Bridge of Visitors Table 4.21 Implementation of the Lake Conservation Program of its Water 127 Quality Conservation and Entrance Fees Table 4.22 Crop Production Value of 4 Villages on the Taung Thaman Lake 129 Provision Services (2018-2019) Table 4.23 The Net Crop Production Value of the Taung Thaman Lake 131 Provisioning Services (2018-2019) Table 4.24 Variables in the Equation for Villagers 135 Table 4.25 Association between Willingness to Pay and Socioeconomic Factors, Spatial Factor, Bid Amount and Attitudes of Villagers 136 Table 4.26 Model Fitting Information for Willingness to Pay among Villagers 138 Table 4.27 Results of Logistic Regression of Villagers’ Willingness to Pay 139 Table 4.28 Variables in the Equation for Visitors 142 Table 4.29 Monthly Income of Tourism-based Businesses 144 Table 4.30 Total Net Income of Tourism-based Businesses (2018-2019) 144 Table 4.31 Association between Willingness to Pay and Socioeconomic Factors, Spatial Factor and Attitudes of Visitors 146 Table 4.32 Model Fitting Information for Willingness to Pay among Visitors 147 Table 4.33 Results of Logistic Regression of Visitors’ Willingness to Pay 148 vii Table No. Title Page Table 4.34 The Aggregate Monetary Value of Ecosystem Services of the Taung Thaman Lake 152

viii LIST OF FIGURES

Figure No Title Page Figure 2.1 Components of Total Economic Value (TEV) 18 Figure 2.2 Methods of Economic Valuation of Environmental Resources 20 Figure 2.3 The Value of Ecosystem Services of the Lake 36 Figure 2.4 Conceptual Framework 55 Figure 2.5 Framework for the Analysis of the Water Quality Conservation and Recreation 57

ix LIST OF ABBRIVATIONS

ALT Altruism Scale BTM Benefit Transfer Method CAs Conservation Areas CBC Community-based Conservation CBM Central Bank of Myanmar CDMA Code Division Multiple Access CM Choice Modeling COA Canada-Ontario Agreement CSOs Civil Society Organization CV Contingent Valuation CVM Contingent Valuation Method DC Dichotomous Choice DLPA Dalai Lake Protected Area DUV Direct Use Value EEPSA Economy and Environment Program for Southeast Asia EIA Environmental Impact Assessment EV Existing Value FGD’s Focus Group Discussion FSUs First Stage Units GDP Gross Domestic Product GFV Gross Financial Value GLWQA Great Lakes Water Quality Agreement GSM Global System for Mobile HH Households HHPV Percentage of Households with Positive Valuation INGO International Non-Government organization IUCN International Union for Conservation of Nature IUV Indirect Use Value JICA Japan International Cooperation Agency KII’s Key Informant Interviews MBCCD Mandalay Business Capital City Development Ltd MCDC Mandalay City Development Committee MEA Millennium Ecosystem Assessment

x MIC Myanmar Investment Commission MMKs Myanmar Kyats MPM Market Price Method MTWTP Mean Total Willingness to Pay MWTP Mean Willingness to Pay NCDP National Comprehensive Development Plan NEP New Environmental Paradigm NFV Net Financial Value NGOs Non-Government Organizations NHH Total Number of Households NUV Non-Use Value OE Open Ended OECD Organization for Economic Co-operation and Development OLS Ordinary Least Square OSHE Occupational, Safety, Health & Environment PES Payments for Ecosystem Services PF Production Function PGK Papua New Guinea Kina RNP Retezat National Park SDGs Sustainable Development Goals SEZ Special Economic Zone SIW Shadegan International Wetland SRS Simple Random Sampling SRSWOR Simple Random Sampling without Replacement SSUs Second Stage Units TC Travel Cost TCM Travel Cost Method TEV Total Economic Value TEEB The Economics of Ecosystems and Biodiversity UNCED United Nations Conference on Environment and Development USAID United States Agency for International Development USD United States Dollar UV Use Value WTA Willingness to Accept WTP Willingness to Pay

xi CHAPTER I INTRODUCTION

An ecosystem involves plants and animals, i.e. all living things in a certain geographical region. These living systems interact with each other and importantly, with their non-living environment that includes weather, water, soil and climate (DEFRA, 2007). Such an ecosystem is strongly connected to and supportive for all physical, mental, social and well-being of all those involved. The main beneficiaries are of course the human societies which derive material goods and resources from the natural ecosystem. This may include seafood, fuel wood, timber, pharmaceutical products and a long list of worldly products. These assets are essential for any economy on this earth. Together, it is expected that the world’s human population will reach nine million people by the year 2050. The population increase will force a huge demand for a large variety of natural resources (Goldman, 2010). As a result, the ecosystem provides basic needs for the entire human life on this mother earth. This includes a soil nutrient cycle, carbon and oxygen cycle, water movement and finally the overall biodiversity. Additionally, the ecosystem provides stimulation for the control of climate and diseases, and provides spiritual and recreational benefits. According to De Groot (1992), ecosystem functions include regulation, habitat, production and information function. Within each of these functions, there are several specific sub- functions which provides one or more services to the overall human life. Consequently, ecosystem services are the end products of the natural resources and healthy ecological systems that create environmentally and economically valuable goods and services (Warner, 2008). Eventually, the entire human life depends on all these ecosystem services for the basic requirements that enclose clean air, clean water and food production. Additionally, the ecosystem services provide a wide variety of different benefits that human society freely reaps and take advantage of the natural

1 environment and its properly functioning ecosystems. These essential ecosystems involve agro-ecosystems, forest ecosystems, plant ecosystems, and aquatic ecosystems. In general, such benefits are known as "ecosystem services" (Millennium Ecosystem Assessment (MEA), 2005). According to the Millennium Ecosystem Assessment, ecosystem services are the benefits that human society receives from the ecosystems. These benefits are further classified into four broad categories: Provision, Regulating, Supporting and Cultural services. The evaluation of such essential ecosystem services has significantly increased in developed countries, while is still lacking in most developing countries such as Myanmar. Among these various natural resources, natural or man-made lakes provide direct and indirect social and economic values for improving human livelihoods. The ecological benefits and services of these lakes in general have not been well defined as essential life support services quite recently. Nevertheless, at present, some of these services supplied by the ecosystem are poorly defined or undervalued and have no monetary value. This is due to the fact that there is no monetary valuation practice at all in the present times. As a result, quantifying and monitoring the flow of environmental services has become an important assessment from the research point of view.

1.1 Rationale of the Study Ecosystem functions create ecosystem services that provide socioeconomic, livelihood, goods and services. A lake is one of the ecosystems that supply numerous varieties of ecosystem services. It must be stated that lakes are among the world’s most productive natural ecosystems that provide a wide range of benefits to local communities, as well as to global communities. These include provisioning products (products/goods gained from an ecosystem); regulating services (benefits received from the regulation of ecosystem processes); cultural services (non-material and enriching benefits), and supporting services (services necessary for the production and distribution of other ecosystem services) (MEA, 2005). Lakes are naturally recognized as an important water source for fishing, water transport, recreation, tourism, biodiversity conservation areas, and natural balance protection reservoirs (Ministry of the Environment, 1996). A widely accepted concept is that people benefit from the numerous resources and processes provided by the ecosystems of lakes. Collectively, these are generally referred to as ecosystem services. 2 Lakes are suitable for tourism and recreation because it is easily available, has the necessary infrastructure with a hot water surface temperature, which is preferably above 20°C, and of course with good water quality or clean water. However, there are differences between wetlands and lakes. The former is typically less than 6 feet deep. Since these are natural capital, lakes contribute directly to economic production through two major channels as inputs to the process of economic activity, and indirectly as an increase in the productivity of other factors of production. Nowadays, lakes are recognized for important biodiversity and ecological conservation. However, there are many factors that threaten the sustainability of lakes around the world. Many of these natural causes consist of climate change, soil erosion, water level rise, and drought. Man-made factors include over-use of resources, rapid urbanization and industrialization, rapid infrastructure development, intensive agriculture and intensive mining as well as timber extraction, etc. A widely held concept is that the livelihoods of indigenous people living near the lakes depend heavily on its resources. Among natural and human causes, the risks of latter causes are even more severe and have an effect on water and various environmental resources. Myanmar has an abundance of natural topography that includes lakes which can be found in a variety of sizes in all states and regions of the country. These lakes provide livelihoods of the local people living in surrounding areas through streamlined transportation, water supply, food, and other raw materials for their household use as well as for businesses. There are four main lakes in Myanmar; Indawgyi in Kachin State, Inlay in Shan State, Taung Thaman in Mandalay Region, and Lake Rih in Chin State. However, most of the famous lake resources face severe environmental challenges such as drought and pollution in tourist attraction areas of Inle Lake in Shan States, dwindling of fish and other habitats in Moeyungyi Wetland, severe waste water disposal in urban Yangon’s Kandawgyi Lake, severe pollution in Lake Taung Thaman in Mandalay Region. Among these lakes, the Taung Thaman Lake is the largest freshwater lake situated in Amarapura Township in Mandalay region. The famous U Bein Bridge span across this lake serve as an attraction to local visitors and foreign tourists from around the world. The Taung Thaman is connected to the Htainbinkan, Amyauk- bone-oh and Taung Myint lakes in the Amarapura Township and provides a variety of goods and services with economic values both for residents as well as for communities outside the lake area. Apart from the scenic beauty, the lake provides a 3 habitat for migratory birds during winter from late October to February. Besides, the lake becomes an important source for local fishing, agriculture cultivation and other ecosystem services. The Taung Thaman Lake is home to approximately more than fifty species of domestic as well as migratory birds. However, these natural gifts have deteriorated over the past few years on account of nature and many human factors. Natural factors may include climate change, flooding, and drought that also has an effect on the water level of the Lake. Moreover, over-fishing of tilapia in the lake and storing of water have greatly affected the migration of winter birds and a high pressure on the agriculture business. The most intense negative production externality is that of water pollution due to the expansion of industrial estates near the industrial area along Panyandaw Creek. Water population is mainly on account of the disposal of contaminated wastewater by this industrial zone into the lake without any control measures. Most of the wastewater comes from the textile industry, which uses ammonium peroxide for textile production. One-tenth of the lake's area is covered with rice ashes from industrial areas that have a negative consequence on the lake. Further worsening of the disposal of wastewater was due to the construction area along the irrigation canal at Sedawgyi Dam, along with widespread business and residential construction. As a result, the worst damage was done to the fish in the Lake where many die-offs occurred during 2014 and 2015. Especially in September 2015, almost 10,000 fishes died and the death toll increased throughout the years. The storage of water in the lake normally affects the natural food sources for migratory birds and as a consequence affects the tourism sector. At present, the Taung Thaman Lake is being undervalued and is under heavy threat caused by man-made factors such as growth in the number of visitors, increased establishment of different types of businesses (food stalls, souvenir shops, street stalls) surrounding the lake, and landfills in some part of the lake. This further causes larger amounts of waste disposal into the lake. Thereby, the lake ecosystem is being degraded unsustainably due to population and business development pressures. As in other developing countries, the Taung Thaman Lake is at present times, undertaking degradation as a result of a wide range of human and environmentally-driven threats. All these factors reduce habitat capacity of the Lake which as well decreases its quality leading to negative effects. Moreover, the negative environmental effect on the Lake is significantly crucial not only for the livelihoods of local inhabitants in the 4 region, but also for the tourism industry and most of all biodiversity. If all of these negative effects cannot be controlled or reduced in time, undesirable results will certainly occur in the region. The fact is that most people do not know the real value of the Taung Taman Lake. This means that the very existence of the Lake itself has numerous advantages to nature as well as to the local communities. Accordingly, with the increase arrival of tourists, it becomes necessary to preserve and safeguard the Taung Thaman Lake along with the cultural heritage of the historic U Bein Bridge. Moreover, there is an important necessity to improve the estimation of economic values of the Lake, promote awareness of local communities of these values, create a market for ecosystem services, improve management mechanisms, and finally provide a framework for decision-making regarding preservation and maintenance of the Lake. Effective economic valuation will provide a powerful tool for placing the Lake and other ecosystems on the agendas of conservation and development decision makers to transform into economically productive systems (MEA, 2005). What is more, the contribution of local communities along with tourists and other stakeholders are obligatory and necessary for conservation and sustainability of the Lake. As a consequence, the monetary values of the selected provisioning, regulating, and cultural services provided by the Lake must be carefully estimated and the contribution to the local people and visitors assessed must be necessarily done. Therefore, this study aims to examine how much these local communities, including the inhabitants, factories, firms, tourism-based businesses and visitors value the ecosystem services of the Lake through their willingness to pay for sustainable development of the ecosystem.

1.2 Problem Statement and Research Questions Taung Thaman Lake currently suffers from natural disaster such as flood and drought, waste disposal and pollution. Moreover, the establishments of an industrial zone around the Lake, expansion of construction, increasing tourism-based businesses have caused population density. Due to this, pollution in the environment causes negative effects. The environmental pollution and ecological degradation have become more and more serious. Significant changes in the Taung Thaman Lake’ ecosystem and a decrease in its potential are due to these factors.

5 Therefore, long existence and sustainability of the Taung Thaman Lake conservation are required. In fact, factors like environmental cleanness, the activities of local residents, their perception of the current water quality situation, and conservation of cultural heritage are all essential for public health and recreation in this Lake. For conservation measures, there is a need to promote attitudes, knowledge and awareness raising funds and cooperation. This requires not only the support of local government, but also the knowledge and value placed by the local people who rely on this Lake. At present, public willingness to pay for the conservation of the Lake is not in practice. Thereby, there is in need of a step to deal with this awareness/knowledge gap. This study is needed to examine economic values of the Lake and people’s attitudes on these values in order to contribute some expected positive outcomes of the Taung Thaman Lake and its surrounding area. Therefore, the study focuses on four issues/questions; 1. What is the value of the provision services provided by the Taung Thaman Lake and how to evaluate it? 2. What is the value of regulating services for the environmental conservation of the Lake? 3. What is the value of cultural services for the Lake environment? 4. What are the factors that affect people’s willingness to pay for the Lake conservation?

1.3 Objective of the Study The major objective is to assign aggregate monetary values of the provisioning, regulating and cultural services provided by the Taung Thaman Lake. In order to meet the above major objective, there are some specific objectives which must be met. These specific objectives are: 1) To evaluate the aggregate value of crop production of four villages on the Taung Thaman Lake in terms of provisioning service 2) To estimate the aggregate value of water quality conservation of ten villages on the Taung Thaman Lake in terms of regulating service 3) To analyze the aggregate value of recreation of visitors and tourism-based businesses to the Taung Thaman Lake in terms of cultural services and

6 4) To explore the factors influencing the people’s willingness to pay for the conservation of the Lake

1.4 Method of Study This study uses a descriptive and inferential analyses based on primary and secondary data. A questionnaire survey was conducted as a requirement for quantitative and qualitative approaches. Information from visitors was collected by using a systematic sampling method. In addition, stratified random sampling method was also used to select a sample of tourism-based businesses and simple random sampling method were used to select of factories and firms. Market value method and the Contingent Valuation Method (CVM) were used to estimate the economic value of the Taung Thaman Lake ecosystem. The binary logistic regression analysis was used to determine the influencing factor of willingness to pay for both villagers and visitors. Secondary data was collected from General Administrative Department, Ward and Village Tract Administration Office, Ministry of Agriculture, Livestock and Irrigation Department, Mandalay City Development Committee (MCDC), Department of Agricultural Land Management and Statistics and Department of Meteorology and Hydrology.

1.5 Scope and Limitations of the Study This study focuses on the market value method through market price-based approach to evaluate the value of Lake provisioning services for crops and Contingent Valuation Method (CVM) through non-market-based approach to estimate the value of regulating services for water quality conservation and cultural services for recreation. Therefore, among the four services, provisioning, regulating and cultural services are estimated while supporting services are not considered in this study. The study period is between 2018 and 2019. For valuation (direct and indirect use values), Willingness to Pay (WTP) of the villagers, visitors, tourism-based industries, factories and firms for conservation of the Taung Thaman Lake in Amarapura Township, Mandalay Region are involved. A questionnaire survey was conducted for a total of 1160 respondents. A total of 700 respondents from ten villages (Oh Bo, Semihtun, Htantaw, Taungthaman, U Yin Taw, Shan Ka Lay Kyun, Tat Gyi, Hpa Ye Kyun, Souk Taw Wa, and Ba Naw,) 7 were selected from the sampling frame of 7 miles distance from the Taung Thaman Lake. Among these villages, four villages (Oh Bo, Semihtun, Htantaw, Taungthaman) are situated just one-furlong distance from the Lake and that these villages heavily rely on the Taung Thaman Lake’s water supply in winter and summer seasons. Six villages are located surrounding the Taung Thaman Lake. In this study, villagers around the lake only take into account their agriculture and other businesses. WTP was also asked by 30 tourism-based businesses, divided by seven strata, fabric shops, restaurants, souvenir shops, fancy and grocery stores, art galleries, camera men and boatmen association on the lake side. In terms of industries, 30 firms and factories were studied within the industrial zone area about 5 miles distance from the Lake. For factories, a questionnaire was prepared for alcohol factories, fabric mills and rice mills, etc. 400 Visitors (about 300 local visitors and 100 foreigners) were interviewed in the study. Visitors were asked on weekends and holidays because tourism is more intense in those periods.

1.6 Organization of the Study This study is organized with five chapters. Chapter one is the introduction, which presents rationale of the study, problem statement and research questions, objectives of the study, method of study, scope and limitations of the study and organization of the study. Then literature review is described in Chapter two. It mentions the importance of lakes and their ecosystem, conservation of lake resources, major categories of economic valuation and methods used in environmental valuation, classification of Lake Ecosystem functions, services, and values, reviews on previous studies and conceptual framework. The background information on the Taung Thaman Lake is presented in Chapter three. It highlights the background of the Amarapura Township, the extent of the selected villages surrounded by the Taung Thaman Lake, tourism-based businesses, challenges and environmental problems of the Taung Thaman Lake and conservation measures made by diverse stakeholders. The Chapter four is empirical study. It explains survey profile, survey design, data collection techniques, data analysis, examining the survey data and analysis of survey results.

8 Chapter five includes conclusion along with major findings and recommendations. In addition, limitations of the study and further research that is needed are also presented in this chapter.

9 CHAPTER II LITERATURE REVIEW

This literature focuses on theories and empirical studies related to economic valuation and ecosystem services of the Taung Thaman Lake. It is divided into six sections. The first section describes the importance of lakes and their ecosystem. The second is the conservation of lake resources. The third presents major categories of economic valuation and methods used in environmental valuation. The fourth outlines the classification of Lake Ecosystem functions, services and values. The fifth section reviews some previous related studies and the final section illustrates the conceptual framework of the study.

2.1 Importance of Lakes and Their Ecosystem Lakes are large bodies of water surrounded by land. There can be different area of unpredictable size, usually full of water, localized in a basin enclosed by land and may be apart from any river or different outlet that serves to feed or drain into those lakes. These are situated on land or on the high land or plateaus and are normally larger and deeper than ponds. An ecosystem like a lake is in fact a biological community of interaction among animals, plants and human surroundings within which it is located. According to Myanmar Division of Resource Management, 1996, a lake is a boundary of water comprised of a minimum of ten acres in surface area and larger than a depth of six feet. Lakes are normally contrasted with flowing rivers or streams. In fact, most lakes are naturally fed and drained by rivers and streams. Natural lakes are characteristically found in mountainous areas, rift zones, and areas with movement of glaciers. Often, lakes are found in basins or on the courses of flowing rivers. These also exist due to chaotic drainage patterns left over from the last Ice Age. At present times, many artificial lakes created for industrial or agricultural use, hydroelectric power generation use or domestic water supply use, or for aesthetic or recreational purpose use. Mother Earth is naturally regarded as a water planet because of its roughly 14,108 cubic kilometers of water. Nevertheless, 97.5% of this water occur within the seas, and virtually all of the residual fresh water is locked up within the Antarctic or Arctic ice regions or as groundwater. Thereby, natural water constitutes 0.007% in lakes and 0.002% in rivers. Among them, lakes from the finest obtainable fresh water supply on the surface (National Geographic, 2011). On the worldwide, it is acknowledged that there are shared features of lakes and wetlands. Both these are flooded from rain and high ground water supporting a large variety of flora and fauna. Lakes supply a broad range of services to the society, particularly for water supply and fishery business. However, there is a big threat concerning the environment for rare and endangered species, water supply, recreation, and aesthetics. The Lakes also caused a broad variety of chemical, physical, and biological pollutants that threaten the natural flora and fauna and many services to society. These also serve as public transport in many European countries. Therefore, conservation is crucial and essential for long –term sustainable use of these resources. By definition, conservation means sensible and responsible use to avoid wastage of resources and degradation of the environment. Environmental conservation includes the conservation of the natural resources, both renewable and non-renewable. On the global sphere, both the public sector along with NGOs in all developed and developing countries are strongly determined to create such conservation measures for lakes. Accordingly, the valuation of the lake ecosystem is relatively important for these types of conservation works. The Earth Summit held in Rio in Brazil 1992, was in fact the start of the highlight of the connection between environmental and economic conditions. The discussion was based on environmental issues and their implications for future development of the world. Furthermore, the OECD describes “natural capital as natural assets in their responsibility of providing natural resource inputs and environmental services for economic production”. The natural capital or natural assets consist of clean air and water, soils for agricultural use, and minerals and ores that can be extracted from the earth. Millions of lakes are found in every continent and in all different environments, in mountains, deserts, plains, and nearby seashores with a variety of diverse sizes. Water in the lakes 11 comes from rain, snow, melting ice, rivers, streams, and groundwater seepage. Many of these lakes consist of fresh water. Lakes can be either opened or closed. If water leaves from the lake it is said to be open. All freshwater lakes are normally open. If water only leaves a lake by evaporation, then it is called closed. Closed lakes characteristically become salty because of the evaporation of water that leaves behind solids, mostly salts. All lakes fill bowl-shaped depressions in the Earth’s surface which are called basins which are designed in many ways. Some of these lakes are formed through volcanoes after being inactive when craters are filled with rain or melted snow. Lakes can also be created by rivers these usually wind back and forth across the plains in wide loops referred to as meanders. Lakes can also be naturally created by landslides or mudslides that send soil, rock, or mud sliding down hills and mountains. Dams that beavers build out of tree branches will plug up rivers or streams and make large ponds or marshes. There are also man-made lakes that occur when men create lakes by digging basins or by damming rivers or springs. These artificial lakes usually are turned into reservoir, irrigation, hygiene, and industrial use. These also provide recreational use for boating, swimming, or fishing and further supply electricity through hydroelectric power plants at the dam. Lakes are useful for all animals, plants, and human beings, and particularly environmental sustainability, which are also essential for preserving wildlife. Serving as migration stops and breeding grounds for several birds, these become refuges for a wide diversity of many animals. They provide homes for a variety of organisms i.e. from microscopic plants, animals and different types of fish. Plants that grow on the lakeshore may involve mosses, ferns, reeds, rushes, and cattails. Small animals like snails, shrimp, crayfish, worms, frogs, and dragonflies live among the plants. What regularly flourish are the floating plants such as water lilies and water hyacinths which shelter small fishes. It is also home to water bugs, beetles and spiders. Small islands, floating plants, or fallen logs become a breeding ground for turtles. Other animals such as bats and semi-aquatic animals, like mink, salamanders, and beavers live around the lake. Semi-aquatic animals are necessary for both water and land to survive, so both lakes and shores are vital to them. Breeding grounds for several species of water birds are also seen around lakes. Small shiners, sunfish, perch, bass, eels, catfish, salmon, sturgeon and diverse fish species are found in lakes that serve as food for many people and play a significant 12 part within the water cycle. These also serve as valuable resources for people in a diversity of ways. Through centuries, lakes are important routes for travel and trade. Additionally, lake water is used for irrigation. For a few people, lakes are permanent homes. Very large lakes affect the climate and support farmers through the water temperature which does not change quickly as land does. The wind blows from lakes facilitates keeping the climate additional even. This is the “lake effect.” In autumn, lakes blow warmer air over the land, serving longer season for farmers. In spring time, cool winds form lakes assist slower growth of plants, avoiding the danger of early-spring frosts which might kill younger crops. Artificial lakes are used for storage of water in times time of drought. Lakes designed by dams are essential for hydroelectric energy where the water is channeled from the lake to drive generators that produce electricity. Being beautiful, lakes become popular recreation and vacation spots to enjoy boating, swimming, water- skiing, fishing, sailing, and, in winter, ice skating, ice boating, and ice fishing. Many public parks are constructed surrounding the lakes, permitting people to picnic, camp, hike, bike, and enjoy the wildlife and scenery the lake provides. Lakes can be a provision of medicinal plants and different raw materials useful for human beings. It is quite essential to conserve the threat of invasive species. When a species harms the natural balance in an ecosystem, these are called invasive. Invasive species can damage life in a lake by competing with similar resources that native species do. Invasive species can harm the natural environment of the lake and are thereby called biological pollutants. Lakes are among the primary valuable and most attractive of the Earth’s resources. Many specialists approve that lakes and their services rendered by the Lake ecosystem are more valuable that these should be kept pollution-clean to provide many advantages to the human society (National Geographic, 2011). Since services rendered by the Lake ecosystem having benefit to the community, it is necessary to conserve it.

2.2 Conservation of Lake Resources

Conservation Areas (CAs) are commonly established to preserve biodiversity, safeguard ecosystems and maintain ecological processes. Predictions on several CAs are made in order to contribute to sustainable development and poverty reduction (Neto,

13 2003); (Scherl, Wild, & Wilson, 2004); (Rogerson, 2006). Many CAs around the world are not economically self-sufficient and are incapable to contribute to either conservation or development objectives (IUCN, 2005).

A number of potential mechanisms have been developed for increasing and promoting the financial sustainability of CAs. One of them is the Payments for Ecosystem Services, PES (Emerton, Bishop, & Thomas, 2006) which serves as an appliance to academics, policy makers and program implements to bring a win-win solution for lowering poverty and degradation of the ecosystem (Pattanayak, Wunder, & Ferraro, 2010). PES have become a decisive instrument to clarify external, non- market values of the environment into actual financial incentives for the local players in providing ecosystem services (Engel, Pagiola & Wunder, 2008).

The main concept of PES is the assumption that when the economic value of ecosystem services is assigned and changed under a market system, it becomes capable of producing efficient environmental outcomes (Engel et al., 2008); (Pagiola & Platais, 2002); (Wunder, 2005). Emphasized by the Quebec statement, ecotourism can be converted into a valuable resource for promotion of socioeconomic development of host communities while on the other hand can generate resources for conservation of natural and cultural properties. In addition, a number of challenges were made regarding national and international bodies to gather the support of biodiversity conservation.

Community primarily-based PES is a rational process to guarantee provision of services and incentives to local communities and make contributions addressing both developmental goals and capacity building of the community-level where communities are on control of the quality or quantity of environmental services (Sommerville, Jones, Rahajaharison & Milner-Gulland, 2010).

From the PES point of view, poor households (HHs) and local communities are the ones having potential to benefit from managing environmental services, especially in developing countries (Milder, Scherr and Bracer, 2010). Likewise, this mechanism plays a larger role and scope in most developing countries where funds are inadequate and where poverty and conservation problems are to be solved together (Karn, 2008). However, because of lack of economic valuation of

14 ecosystem services, it becomes rather difficult to institute a benefit sharing mechanism.

In many developing countries, CAs have to create their individual funds for sustainable conservation and development measures. As a result, Lakes play an important role as a source with the potential for balancing both conservation and development. As lakes provide many advantages to the livelihoods of local community, stability of the ecosystem, conservation of biodiversity and so forth, it is crucial to guard lake resources in both developed and developing countries. Human encroachments, industrial establishments and expansion of various businesses can threaten the sustainability of lake resources. Sustainable development is defined in different ways and means. It is in fact development that meets the needs of the existing without compromising the capacity of future generations to meet their own needs. It consists two key concepts of needs and limitations. Under the concept of needs, the priority goes to the poor communities of the world. Under the concept of limitations, it is to look at the technology and social organization on the environment's ability to meet present and future needs (IISD, 2015). It is important to look at the broader perspective regarding the conservation of environmental resources because these cannot be determined by using one region or one country alone. For conservation of the environment, the primary efforts include promotion of efforts for decreasing the environmental effects of business activities. This also includes taking important measures to prevent the effects of global warming. To put controls on the environmental impact, compliance regarding people and businesses with effective regulations and guidelines become necessary. Lake Ecosystem includes a dynamic complex of plants, animals, and micro- organism communities and the non-living environment, that interaction between them. This means it has strong interactions with its contents in the mechanism and weak interactions across its restrictions. At the regional and global level, evaluation of ecosystems can be based on a commonality of primary structural units. The benefits are the Ecosystem services that human beings gain like food and water, regulating services like flood and disease control, cultural services like spiritual, recreational, and cultural benefits, and supporting services like nutrient cycling that sustain the conditions for life on Earth (Goldman, 2010).

15 Main environmental problems regarding lakes mainly are the problems of water pollution. One or more substances contained within the lake water have caused pollution problems for animals or humans. Water pollution means that certain damages have been done to an ocean, river, lake, or any other water sources. Those types of water resources are called surface waters. Two main approaches exist for measuring the quality of water. One is to take samples of the water to measure the concentrations of various chemicals inside. If the chemicals are found to be dangerous or the concentrations are two excellent, the water can be called polluted. Such measurements are called chemical indicators of water quality. Another approach to measure water quality includes the examination of the fish, insects, and other invertebrates that exist in the water. Such measurements are known as biological indicators of water quality (Sciortino, & Ravikumar, 1999). Apart from these biological indicators, socioeconomic indicators can also be broadly used for examining the conservation. These indicators are advantageous to monitor certain developments over a time period. This includes consideration of a standard or certification scheme, employment of qualitative and quantitative information, and appliance of a supply chain. More particularly, selected social indicators involve many factors like demographic and health birth rate, demographic growth rate, child mortality rate, life expectancy at birth, rate of death per cause, morbidity and health attendance, under nutrition, malnutrition, educational and cultural illiteracy rate, average schooling, information and culture access, employment, unemployment rate, average income, income and poverty GDP per capita, average family income, Gini Index, Theil Index, poverty rate, housing and urban infrastructure, accessibility of urban services, transport infrastructure, quality of life, neighborhood, city and basic infrastructure, crime, environment (air condition, water, waste treatment, garbage collection), etc. Relatively, socioeconomic status can be used in comparing across individuals, families, households or areas. It is not only income, consumption, wealth, education and occupation that can be used, but also demographic and cultural activity variables particularly for population sub-groups. Demographic variables are significant in assessing socioeconomic status as they can be used for dividing the population into sub-groups of interest (for example, males, migrants, persons aged 65 years and over). It is found that the analysis usually focuses on one particular population group, across multiple groups or across the country as a whole. 16 Social indicators, including education, health, family and household structures can be used not only as independent variables, but also as the dependent variables in different cases of analysis. Employment includes own employment, employment of parents, number of family members employed/unemployed, and proportion of the community who are employed/unemployed. Main economic variables are household income, family income, own income, parents’ income, parents’/ spouse’s occupation, home ownership, cost of rent or mortgage, value of dwelling, family ownership of a car, and access to internet (Hout, 2012). Different organizations and institutions have different types of indicators and measures for assessment of livelihood of local people. Generally, livelihood improvement measures include human, social, natural, physical and financial capital and market analysis according to most studies. In contrast, there are detailed indicators used to measure the livelihood, conditions of the community. In this study, efforts have been made to explore the natural (land, water and other resources), physical (machineries and equipment, etc.), social (education, health, etc.), and economic (income, type of jobs, etc.) measures to assess the community livelihoods.

2.3 Major Categories of Economic Valuation and Methods Used in Environmental Valuation Economic valuation consists of assigning monetary values to changes in environmental services and functions and two stocks of environmental assets. When environmental assets are marketed for example, crude oil or natural gas, the valuation of stocks and flows in terms of monetary values is widely accepted. On a controversial basis, assigning a price can be extended to assets and services that have either no obvious market or no market at all. A good example is that of peace and quietness that are not clearly bought and sold in the market. However, a closer look reveals that there are indirect or “surrogate” markets for peace and quietness. Economic valuation is capable of handling small, marginal changes well, but problems arise when the changes are large and non-marginal. In valuing the ecosystem service, specific components are needed to take into consideration. Types of total economic value are illustrated in Figure (2.1). According to the Figure (2.1), components of total economic value consist use and non-use values. Particularly, total economic value (TEV) can be classified as use value (direct use value, indirect use value, option value) and non- use value. Direct- 17 use values include goods and services directly consumed by users while indirect-use values are indirect benefits that arise from ecological systems. Direct use values regarding lakes consist of harvesting fish, growing crops, collecting fuel wood, recreation, transportation, and hunting, etc. Indirect use values consist of nutrient retention, flood control, storm protection, ground water recharge, external ecosystem support, microclimatic stabilization, and shoreline stabilization. The option value includes the values of the lake for potential future uses and for future value of information.

Figure 2.1 Components of Total Economic Value (TEV)

Total Economic Value

Use Values Non- Use Values

Actual Option Philanthropic Altruism to Value Value Value Biodiversity

Direct Indirect Use Bequest Altruist Existence Use Value Value Value Value Value

Consumptive Non-Consumptive Value Value

Satisfaction of Satisfaction of Satisfaction of Crops, Recreation, Pest control, Recreation, knowing that knowing that knowing that a livestock, spiritual pollination, spiritual future other people species or fisheries, wild /cultural well- water /cultural well- generations will have access to ecosystem foods, being, research regulation and being, research have access to nature’s exists aquaculture education purification, education soil fertility nature’s benefits benefits

Source: Sukhdev, Wittmer, Schröter-Schlaack, Nesshöver, Bishop, Brink, and Simmons, (2010).

Generally, the direct consumption value of lakes consists products like crops, timber and non-timber products, fish and birds. Non consumptive direct use values are protected of coastal areas, avoidance of erosion, control of pollution, transportation, water preservation, bird watching, recreational, and particularly tourism. Non-use

18 existence value consists of future recreation, preservation for future generation, and preservation of biodiversity. As stated by (Romm, 2008), approximately 60 percent of lakes worldwide was destroyed in the past 100 years because of drainage for agriculture, pollution, dams, canals, groundwater pumping, and urban development, etc. Non-use values specify the satisfaction individuals derive from the knowledge that biodiversity and ecosystem services are maintained and that other people have or will have access to them (Kolstad, 2000). Non-use values consist of philanthropic value and altruism to biodiversity. Philanthropic value is divided into bequest value and altruist value while the existence value is the component of altruism to biodiversity. Non-use value includes habitat for biodiversity, cultural heritage, and bequest values (Barbier, Acreman & Knowler, 1997). Thus, Non-use valuation techniques are widely used for estimation of values for a diverse range of goods and services. According to the TEV framework, the existing value (EV) is considered to be the intrinsic value of the ecological system. It is the assessment of the ecological environment of the capital. Its value mainly depends on human subjective awareness, which reveals that it changes constantly with human understanding of the ecosystem services. Additionally, the non-use value also includes the heritage value. Regarding the assignment of values, estimation of the monetary value of ecosystem services various economic valuation techniques is developed and being employed. Environmental valuation is the environmental, economic valuation that leads to numerous economic researches. Due to increasing interest methodological improvements and a number of empirical findings are extensively expanded. The purpose of environmental valuation is as a rule to integrate environmental concerns into economic and cost-benefit analysis. Estimates of environmental value have also been tied to macroeconomic models. This is to estimate the welfare effects of the climate treaty (Brendemoen & Vennemo, 1994). Further, estimated willingness to pay is also considered as a basis for legal compensation claims for damages to natural resources caused by spill of hazardous substances. Economic value is exposed through a hypothetical or constructed market based on questionnaires. With the purpose of valuing the diverse ecosystem services, many of the techniques used include revealed preference approaches and stated

19 preferences approaches (Chee, 2004). Figure (2.2) illustrates the methods of environmental valuation.

20 Figure 2.2 Methods of Economic Valuation of Environmental Resources

Preferences

Revealed Preferences Stated Preferences

Market Based Surrogate Based Non-Market Based

Factors of Consumer/ Defensive Contingent Choice Production Producer Expenditure Valuation Experiment Surplus

Hedonic Travel Cost Pricing

Source: Arrow, Solow, Portney, Leamer, Radner, and Schuman, (1993)

According to the Figure (2.2), revealed preference methods use observations of behavior to assign a value to market outcomes relating to market goods. According to Baker, and Ruting, (2014), the theory of revealed preference assumes that consumers consider a set of alternatives before making a purchase decision. When a consumer chooses one option, this option is called the preferred option. Under revealed preference method, travel-cost models use recreation expenditure and travel time to estimate the value people place on visiting a specific site. In contrast, stated preference method is a direct valuation method based on constructed or hypothetical markets. Respondents are asked about the choice made over environmental outcomes with a price. The values are derived within the TEV framework, available from the information about individual behavior provided by market transaction relating directly to the ecosystem services. This situation common categorization of the available techniques is used to value ecosystem services: (a) Direct market valuation approaches, (b) Revealed preference approaches and (c) Stated preference approaches (Chee, 2004). In addition, the International Union for Conservation of Nature (IUCN) classifies these as:

21 (1) Market price-based approaches that value goods and services at their market prices. Market price valuation method, production functions, replacement cost, avoided damage cost, and opportunity cost are the key methods, (2) Revealed preference methods such as the travel cost method and hedonic pricing, value ecosystem services indirectly from the purchase prices of goods or services and (3) Stated preference methods such as contingent valuation and choice experiments, estimate non-market values by employing individual stated behavior in hypothetical settings.

2.3.1 Direct Market Valuation Approaches under the TEV Framework According to Chee, (2004), direct market valuation approaches are divided into three main approaches (a) market price-based approaches, (b) cost-based approaches, and (c) approaches based on production functions. The main advantage of using these approaches is that they use data from actual markets, and thus reflect actual preferences or costs to individuals. Moreover, such data – i.e. prices, quantities and costs-exist and thus are relatively easy to obtain. Market price-based approaches are usually used to attain the value of provisioning services since the commodities produced are mostly sold in agricultural markets. Preferences and marginal cost of production are reflected in a market price in well-functioning markets. Reveals that this can be regarded as precise information on the value of commodities. The price of a commodity multiply by the marginal product of the ecosystem service is an indicator of the value of the services. As a result, market prices are in fact good indicators of the value of the ecosystem services. Cost-based approaches are based on costs estimations that can be incurred if ecosystem service benefits needed to be recreated through artificial means (Garrod, & Willis, 1999). Different techniques include (a) The avoided cost method related to costs being incurred in the absence of ecosystem services, (b) Replacement cost method that estimates the costs incurred by replacing ecosystem services with artificial technologies, and (c) Mitigation or restoration cost method that refers to the cost of mitigating the effects caused by the loss of ecosystem services or the cost of getting those services restored. 22 The estimation of Production Function-based approaches (PF) shows how much a given ecosystem service (e.g., regulating service) make contributions to the deliverance of another service or commodity traded on an existing market. Put differently, this approach is based on the contribution of ecosystem services to the improvement of income or productivity (Mäler, Gren & Folke, (1994); (Pattanayak & Kramer, 2001). The idea is therefore that of any resulting “improvements in the resource base or environmental quality” as a result of enhanced ecosystem services, “lower costs and prices and increase the supply of products being marketed, enhancing consumers’ as well as producers‟ surpluses” (Freeman, 1993). The PF approach normally includes the following two-step procedures (Barbier, 1994). The first step is to establish the physical effects of changes in a biological resource or ecosystem service regarding an economic activity. The second step includes the impact of these changes valued in terms of the corresponding change in marketing output of the traded activity. A difference must be made therefore between the gross value of output and the value of the marginal product of the input. Hence, the PF approach in general uses scientific knowledge regarding cause-effect relationships between the ecosystem services being valued and the output level of marketed commodities. It relates to objective measurements of biophysical parameters. For many habitats where there is sufficient scientific knowledge of how these are connected to specific ecological services that support or protect economic activities, it is possible to utilize the PF approach to value these services (Barbier, Baumgärtner, Chopra, Costello, Duraiappah, Hassan, Kinzig, Lehman, Pascual, Polasky & Perrings, 2009) Limitations regarding direct market valuation approaches depend mainly on production or cost data that are much easier to obtain than data needed to establish demand for ecosystem services (Ellis, & Fisher, 1987). However, when applied to the ecosystem service valuation, these approaches contain significant limitations. These are mainly because of ecosystem services not having markets or having distorted markets. There are two direct problems. The data needed for these approaches are not available when markets never exist either for ecosystem services itself or for goods and services that are indirectly related. In case of the existence of markets, though distorted, prices may not be a good reflection of preferences and marginal costs. This 23 could be because of a subsidy scheme (Sulaiman, Abdulsalam & Damisa, 2015) or because the market is not fully competitive. Accordingly, the estimated values of ecosystem services will be biased and will provide no reliable information for policy decisions. Some direct market valuation approaches have their own specific problems. According to Barbier, (2007), the replacement cost method should be used with care when there is uncertainty. The PF approach has the additional problem when adequate data is not available regarding the understanding of the cause-effect linkages between the ecosystem services being valued and the marketed commodity (Daily, Söderqvist, Aniyar, Arrow, Dasgupta, Ehrlich, & Levin, 2000). Put differently, PF approaches of ecosystem services are hardly ever understood to measure how much of a service is produced, or how changes in ecosystem conditions or functions will transform into changes in the ecosystem services being delivered (Daily, Alexander, Ehrlich, Goulder, Lubchenco, Matson, Mooney, Postel, Schneider, Tilman & Woodwell, 1997). Furthermore, the interconnectivity and interdependencies of ecosystem services may increase the likelihood of double-counting ecosystem services (Barbier, 1994). Market price and market value method can be used when measuring the direct use value of the natural environment. In order to evaluate the net production earned by local people from the lake, the market price -based approach can be utilized based on the product and the opportunity cost of time spent in collecting the product. In terms of environmental economics, the market price and market value method estimate the economic value of ecosystem products or services that are bought and sold in commercial markets. Another approach under market analysis is the productivity method. This method is applicable in cases where the environmental goods/services are consisted in the inputs to produce a marketed good. According to Mishra, (2003), an appropriately specified production function may designate the contribution of these inputs to the output and from this information and the benefit due to these inputs can be deduced. This method requires that data must be composed regarding how changes in the quantity or quality of the environmental resource affect (i) Costs of production for the final good, (ii) Demand and supply of the final good, (iii) Demand and supply of other factors of production. 24 This information is used to connect the effects regarding changes in the quantity or quality of the resource to changes in consumer surplus and/or producer surplus, and therefore to estimate the economic benefits.

2.3.2 Revealed Preference Approaches under the TEV Framework Revealed Preference approaches are based on observation of individual choices in existing markets related to the ecosystem service subject to valuation. This method depends on data concerning individuals’ preferences for a marketable good that includes environmental attributes. These techniques rely on actual markets. This approach includes market prices, averting behavior, travel cost method, hedonic pricing, and random utility modelling (Chee, 2004). Market prices and averting behavior can also be classified as underpricing technique. Pricing approaches offer a different, albeit overlapping, classification to TEV, referring to approaches that use observed market prices either as direct measures of economic value of ecosystem services (e.g. market prices, aversive expenditure and damage costs avoided) or as a proxy for the value (DEFRA, 2007). The Travel Cost method (TC) mostly applicable for determining recreational values is related to biodiversity and ecosystem services. It is based on the rationale that recreational values are connected to a cost (direct expenses and opportunity costs of time). The value concerning changes in the quality or quantity of a recreational site (resulting from changes in biodiversity) can be inferred from estimating the demand function for visiting the site (Bateman, Carson, Day, Hanemann, Hanley, Hett, Jones-Lee, Loomes, Mourato, Ozdemiroglu, Pearce, Sugden & Swanson, 2002); (Kontoleon & Pascual, 2007). The Hedonic Pricing (HP) approach uses information concerning the implicit demand for an environmental attribute of marketing commodities. For example, houses or property in general consist of several attributes where some are environmental in nature, such as the proximity of a house to a forest or whether it has a view of a nice landscape. Therefore, the value of any change in biodiversity or ecosystem services will be reflected in the change in property value (either built-up or land that is in a (semi-) natural state). By estimation of a demand function for properties, it can infer the value of a change in the non-marketed environmental benefits generated by the environmental good. The major steps for conducting a Revealed Preference valuation study are: 25 - Determining whether a replacement market exists related to the environmental resource in question, - Selecting the appropriate method to be used (travel cost, hedonic pricing), - Collecting market data that can be used to estimate the demand function for the good traded in the replacement market, - Inferring the value of a change in the quantity/quality of an environmental resource from the estimated demand function, - Aggregating values across relevant population and - Discounting values where appropriate Regarding the limitations of Revealed Preference approaches, imperfections of markets and failures in policy can make distortion to the estimated monetary value of ecosystem services. Researchers need good quality data on each transaction, large data sets, and complex statistical analysis. Accordingly, Revealed Preference approaches are expensive and time-consuming. Normally, these methods rely on actual/observed behavior and their main drawbacks are the inability to estimate non- use values and the dependence of the estimated value on the technical assumptions made on the relationship between the environmental good and the replaced market good (Kontoleon & Pascual, 2007).

2.3.3 Stated Preference Approaches under the TEV Framework A number of techniques have been developed that can be used in the valuation of non-market goods and services in monetary terms (Mitchell & Carson, 1989); (Freeman, 1993); (Pearce & Moran, 1994); (Winpenny, 1995); (Garrod & Willis, 1999); (Bateman, Carson, Day, Hanemann, Hanley, Hett, Jones-Lee, Loomes, Mourato, Ozdemiroglu, Pearce, Sugden & Swanson, 2002). Non-market valuation is a process of estimating monetary value of goods and services that have limited market or no market (Bateman et al., 2002). It principally uses analytical tools from welfare economics, econometrics and microeconomics (Haab & McConnell, 2002). The need for valuation of environmental goods and services is due to the desire to integrate the natural environment in cost-benefit analysis of public policy (Boyer & Polasky, 2004). Stated Preference methods used in non-market valuation is intended towards revealing the demand for an environmental good or service through consumer surveys

26 through properly constructed survey instrument (questionnaires). Individuals are then requested to state their preferences for the environmental good or service. These approaches simulate a market and demand for ecosystem services by means of surveys on hypothetical (policy-induced) changes in providing ecosystem services. Stated preference methods can be used to estimate both use and non-use values of ecosystems and/or when no surrogate market exists from which the value of ecosystems can be deduced. The major types of stated preference techniques are: (a) Contingent valuation method (CV): this uses questionnaires to ask respondents how much they are willing to pay to increase or enhance the provision of an ecosystem service, or alternatively, how much they are willing to accept for its loss or degradation. (b) Choice modeling (CM): this attempt to construct the decision process of an individual in a given context (Philip & MacMillan, 2005). Individuals are faced with two or more alternatives with shared attributes of the services to be valued, but with different levels of attributes (one of the attributes being the money that people would have to pay for the service). (c) Group valuation: this integrates stated preference techniques with elements of deliberative processes of political science (Spash, 2001); (Wilson & Howarth, 2002). This is progressively used as a way to detain value types that may not be included in individual based surveys. These may include value pluralism, incommensurability, non-human values, or social justice (Spash, 2008). Limitations of stated Preference Techniques are regularly the only way to estimate non-use values. Relating to the perception of the objective of choice, it is often asserted that the interview process assures understanding of the object of choice, but the hypothetical nature of the market has raised numerous questions in relation to the validity of the estimates (Kontoleon & Pascual, 2007). The most important question is whether respondents hypothetical answers keep up a correspondence to their behavior if they were faced with costs in real life. One of the key problems that have been revealed in the literature on stated preference methods is the divergence between willingness-to-pay (WTP) and willingness-to- accept (WTA) (Hanemann, 1994); (Diamond, 1996). From a theoretical standpoint, WTP and WTA have to be similar in perfectly competitive private markets (Willig, 1976); (Diamond, 1996). On the other hand, a 27 number of studies have verified that for identical ecosystem services, WTA amounts systematically exceed WTP. This inconsistency or difference may have several causes that include the faulty questionnaire design or interviewing technique, strategic behavior by respondents and psychological effects such as loss aversion, and the endowment effect (Garrod & Willis, 1999). Another important problem is the “embedding”, “part-whole bias” or “insensitivity to scope” problem (Veisten, 2007). The valuation method used simply depends on the type of service under study. As a general rule, regulation functions are mostly valued with avoided cost or replacement cost methods, habitat functions with direct market (such as money donated for habitat protection), production functions with direct market or factor income, and information functions through contingent valuation (cultural and spiritual information), hedonic pricing (aesthetic information), or market pricing (recreation, tourism, and science) methods. However, many different methods are in place for any given service and the method of choice depends on the specific characteristics and goals of the study (De Groot, Wilson, & Boumans, 2002).

(1) Contingent Valuation Method (CVM) Among several different approaches, Contingent Valuation Method (CVM) under stated preference method is a widely used tool for calculation of the Total Economic Value (TEV) of a good including its non-use or passive use values. It has been frequently used since the 1970s for estimating non-marketed goods due to its advantages of producing reliable estimates, elimination of biases through careful survey design and suitability for various situations. Moreover, CVM is well tested and is the only method accessible to compute important non-use values of natural resources (Rahim, 2008). Contingent Valuation Method (CVM) is a survey-based method used for estimation of the economic value of non-market goods. It establishes a hypothetical market where respondents are requested to express monetary bids for various goods based on the information being provided. The basic assumption is that people are able to translate a wide range of environmental criteria into a single monetary amount that represents the total value to them concerning a particular resource, and the more they value the more they will be willing to pay for it.

28 As a result, CVM is able to determine both use and non-use values of an environmental resource hypothetically (White, & Lovett, 1999). According to Imber, Stevenson, and Wilks, 1993), this states that the use of CVM depends on the assumption that responses to hypothetical markets reflect the choices and the values that would be revealed if there is an actual market. CVM over the years provided the prospect to estimate both use and non-use values, meaning that all components together or in other words, the combination of components of the total economic value (TEV) can be determined through the use of CVM (Carson, Mitchell, Hanemann, Kopp, Presser & Ruud, 1992); (Hoevenagel, 1994); (Berrens, Bohara, Silva, Brookshire & Mckee, 2000); (Tyrväinen, L., 2001). As the rationale is to estimate non-market benefits, the CVM is the technique of choice and is used for this study as a package for non-market components of TEV. CVM is a standardized and extensively used survey method for estimating WTP or Willingness to Accept (WTA) compensation for resources (Loomis, 1996). In a CV) survey, respondents are requested to identify either their willingness-to-pay (WTP) to secure or improve a benefit, or their willingness-to-accept (WTA) compensation to sacrifice a benefit or accept environmental degradation, continuous deterioration or lack of environmental improvement. To acquire a conservative benefit estimate and to take full advantage of the legitimacy of the valuation problem to the respondent, a WTP question is applied in estimating the non-market values/benefits of an environmental program. Hence, the household WTP, rather than WTA, for environmental quality improvement is the choice of measure of welfare. Even though CVM is valued because of its exceptional capacity to estimate non-use values and TEV, there are numerous amounts of literature that criticize the method both related to the practical implementation (e.g. survey design) and other problems related to the method itself. One of the criticisms of CV includes that it is based on a hypothetical or non- existent market (Cummings, & Harrison, 1994). The argument for this is that answers from respondents obtained through hypothetical situations can be biased, leading to invalidity with regards to valuation of the resources in question (Diamond & Hausman, 1994); (Cummings, Harrison & Rutström, 1995). Theoretical and empirical studies have highly developed to a degree which is not only possible to uncover the biases associated with CVM, but also possible to carry out corrective measures to overcome these biases (Mitchell & Carson, 1989); 29 (Hanemann, 1994); (Smith, 1994). According to Angelsen, Fjeldstad, and Sumaila, (1994) the CVM should not be rejected based on its potential biases, but rather be aware of the difficulties involved, and avoid these pitfalls through all stages of design, implementation and analysis. Some of the weaknesses of CVM may include difficulties in validating estimates, respondents being unfamiliar with environmental goods and services, and the overvaluation of willingness to pay of respondents relating to its hypothetical nature. Therefore, careful survey designs must be employed to eradicate many of the limitations and biases associated with CVM.

(2) Willingness to Pay (WTP) Approach Use and non-use values can be developed under stated preference approach using CVM with a willingness to pay (WTP) format that used hypothetical markets to estimate the benefits of environmental changes. According to Mitchell, and Carson, (1989), CVM, includes creating a hypothetical market using CV questionnaire, and allowing respondents to specify their Willingness to Pay (WTP) for the non-market good in question. Willingness to Pay (WTP) is the maximum amount of money is used in buying a particular good. This concept was derived from the Hicksian welfare measures of the compensating variation and the equivalent variation (Ahlheim & Buchholz, 2000). In economic analysis, willingness to pay is found with the use of the demand curve. WTP has a direct relationship with a demand curve for goods and services. The demand curve illustrates how much a consumer is willing to pay for an extra unit of the good where the price affects individual preference (Turner, Georgiou, Clark, Brouwer & Burke, 2004). In economic theory, WTP has the standard assumption of a downward sloping demand curve, which means that as the offered price increases, the percentages of ‘yes’ response decrease (Hartwick & Olewiler, 1998). This is referred as compensating variation or the willingness to pay, or a measure of the transfer of an individual to keep his utility constant (Alberini & Cooper, 2000). Alternatively, choice modeling estimates implicit prices for the attributes of a non-market outcome through questioning respondents to choose between options that are described by different levels of attributes and any costs they would have to pay. 30 WTP has a formal relationship to the concept of a demand curve. Several studies are made to value non-marketed goods and services using CVM (Alberini & Cooper, 2000) in developing countries where the widely used technique in eliciting WTP is the dichotomous choice approach using a different bid value for different social spaces of respondents. Proposals are made by several authors regarding different hierarchical classification frameworks to organize existing methods to WTP estimation for economic analysis concerning environmental valuation. According to Breidert, Hahsler and Reutterer, 2006), and Marbeau (1987), the estimation methods are stated at the highest level, whether they are monadic tests or competitive tests. In the former, price information is elicited without considering a competitive situation. The latter, elicits a competitive context. Balderjahn (2003) differentiate estimation methods on the highest level, whether these elicit price information at the individual level or at the aggregate level. Nagle, and Holden (2002) categorize and organize techniques for measuring price sensitivity at the highest level into uncontrolled and experimentally controlled measurement of the variables. In addition, they classify the techniques based on the variable measurement into the measurement of purchase behavior and measurement of purchase intention. CV is useful for two important reasons. The first is that environmental attitudes are not good indicators of actual conservation behavior (Fridgen, 1994); (Loomis, Kent, Strange, Fausch & Covich, 2000); (Cooper, Poe & Bateman, 2004). Since CV valuations offer the respondent with a situation specific to their environmental good, and ask respondents to report expenses or costs they are willing to contribute each month or year. WTP becomes a more substantiated measurement of environmental stewardship than environmental values alone. The second is that the aggregated WTP of all environmental consumers can give local conservation groups and policymakers estimation of the worth of their shared environmental good. This estimation can then be used to evaluate the costs and benefits of implementing or forgoing conservation policies (Whitehead, 2006). When CVM is used regarding conservation of lakes, people place a value on them, although lakes are non- marketed. The value ranges from life-supporting biodiversity to the pleasure potentially derived from enjoying the scenic beauty or bird watching (Bateman, Carson, Day, Hanemann, Hanley, Hett, Jones-Lee, Loomes, 31 Mourato, Ozdemiroglu, Pearce, Sugden & Swanson, 2002). This value may at the same time reflect many different attributes of lake products that include their consumptive value, and social and traditional significance. The CVM is a questionnaire-based valuation technique. Questions are directly asked to people regarding the amount of WTP for specific environmental services or improved environmental amenities such as tourism. Key steps in accessing CV include things like recitation of the environmental quality attributes to be changed or estimated, to outline a questionnaire that makes the situation comprehensively and meaningful to respondents for the purpose of providing applicable values, to classify respondents to obtain unbiased samples, to implement survey and estimate average WTP from the sample and aggregating to the entire group.

2.3.4 Factors Influencing Willingness to Pay The literature concerning economic valuation constituted a large amount of studies determined to examine factors influencing the WTP. Several studies about CVM have shown extensive literature on independent socioeconomic variables that affect choices of the willingness to pay regarding respondents for environmental conservation. In order to achieve the best specified model, it is rather significant to control all relevant factors influencing WTP for the conservation of a lake. This largely means that the model must consist of households’ characteristics (socio- economic and demographic) as well as perceptions of respondents with regard to the existing status in the lake. The relative significance of factors likely to influence the WTP was evaluated by estimating a model, including respondents’ socio- economic factors as independent variables into the WTP function. Such independent variables include age, gender, marital status, household size, main occupation, education level, household income, attitude, visit/ distance from residence to the lake. A household with a large number of members is likely to incur more expenses than a household with a small number of members due to budget constraints. From economic theory standpoint, the real market situation reveals that when a bid of a good increases, the demand of that good decreases. In considering that CVM presents market-like situation to the respondent, the bid amount negatively influences the magnitude of WTP. Some people positively influenced the magnitude of WTP for conservation of a lake. These include whose major occupation and the 32 distance are nearest to the lake. This also includes the respondent’s attitude, wealth, education and knowledge about the lake. Some members of environmental groups may also be included since they are more aware and concerned about environmental conservation. Recent contingent valuation (CV) studies of lake and river water quality include an analysis on a wide variety of determinants of WTP. Most common categories of explanatory variables are demographic characteristics, perceptions of lake water quality, and environmental attitudes. Del Saz-Salazar, Hernández-Sancho, and Sala-Garrido (2009) estimated that income, gender, employment, number of children, and average annual river visits all have positive and statistically significant effects on WTP. Furthermore, studies show a negative relationship between age and WTP and a positive relationship between low water quality perceptions and WTP (Bateman, Cole, Georgiou & Hadley, 2006); (Del Saz-Salazar, et al. 2009). Azevedo, Herriges, and Kling (2001) also found that residents and visitors are willing to pay more for preventing the deterioration of water quality than they are for improving water quality. These indicate that poor water quality stimulates a stronger sentimental value of environmental responsibility and that older people recognize their short-term outlook of use. In addition to water quality perceptions and demographic characteristics, Cooper, Poe, and Bateman, (2004) evaluated the effects of environmental values, altruism, and use motives on WTP. In this case, Cooper, et al. (2004) used the New Environmental Paradigm (NEP) and the Altruism Scale (ALT) to achieve respondents’ environmental and human values. NEP is a sequence of questions used in surveys to measure environmental values. However, the researchers do not find a correlation between higher scores on either test and the WTP. The result that pro-environmental attitudes alone are not an indication of actual environmental stewardship is confirmed by Fridgen (1994). Other researchers use more simple measurements of environmental awareness by asking outright about membership in environmental organizations and interest in the environment. These variables are likely to have positive effects on the WTP (Loomis, Kent, Strange, Fausch & Covich, 2000); (Del Saz-Salazar, et al. 2009). Based on the literature, the study hypothesizes factors that affect willingness to pay like the attitudes and socioeconomic profile. 33 (1) Respondent’s willingness to pay is expected to have a positive relationship between awareness and attitude towards environment and lake functions. (2) Respondents who have positive attitudes of the lake are much willing to pay for its conservation. (3) Socioeconomic profiles such as age, income, occupation and educational attainment are expected to have a positive relationship with WTP. (4) Residency and location of respondents have a positive willingness to pay if they are located closer to the lake. (5) Respondents’ willingness to pay is negatively related to the bid amount and water quality. It means that as the bid amount increase, respondents will be less likely for willingness to pay.

2.4 The Classification of Lake Ecosystem Functions, Services and Values Ecosystem services are defined as the conditions and processes through which natural ecosystem and natural species are constituted, and how they sustain and fulfill human life. Services include functions and processes (Daily, 1997). Costanza, R. (2000) defined functions as “the habitat, biological or system properties or processes of ecosystems”. Thereby, services are the benefits humans derive from these functions. Functions contain processes that provide such services. A functional classification of Lake Ecosystem is provided by De Groot, Wilson, and Boumans (2002). Initially, there are four functions: Regulation, Habitat, Production and Information. Regulation functions sustain the ecosystems and life support systems. This includes biogeochemical cycles and biotic interactions essential for every living organism and that directly or indirectly benefits humans. Habitat functions provide for several life cycles of plants and animals that maintain biological and genetic diversity and the evolutionary process. Production functions are the synthesis of biological and inorganic substances into goods that can be directly used by humans and traded in primary or secondary production. Information functions include ecosystem characteristics that contribute to the mental and spiritual well-being of humans. Each of these functions has several specific sub-functions, and each provides one or more services to individuals. The following classification structure describes sub-functions and services (De Groot, Wilson & Boumans, 2002). These functions and services are all interconnected 34 and consistently dependent upon each other.

1. Production Functions Benefits from the lake ecosystem are directly obtained by local residents. This is known as “direct use value (DUV)”. It can be divided into food production and raw materials. (1) Food production: On a worldwide basis, wild plants and animals, fish, potatoes, mammals, fruit and organisms provide a large variety of food. Nuts, mushrooms, honey and spices are also included as a food (Daily, Matson & Vitousek, 1997). Small-scale agriculture may be involved, though it has no effects on other services. (2) Raw materials: This includes biotic renewable things such as wood and fibers, biological chemicals and compounds, industrial materials, sources of energy (wood, organic matters) and foodstuffs.

2. Regulation Functions Regulation functions include ecosystem processes and life support systems. These functions provide many other ecosystem services that have direct benefits (e.g., water supply and water regulation). They also generate indirect benefits “indirect use value (IUV)” that include water quality improvement, water conservation, and flood control to local residents living in the lake area. (1) Water regulation: Normally, natural systems performs hydrological cycles and surface water flow. The ecosystem services derived from water regulation consist of maintenance of natural irrigation, drainage, discharge of the river, and channel flow. (2) Water supply: This function mainly consists of retention and storage water supply. This provides water for human consumption, households, industry and agriculture. (3) Water quality improvement: Aquatic system can usually break down, removed, and recycle organic and inorganic human waste through dilution, assimilation, and chemical re-composition. Control of water quality is significant.

35 36 3. Information Functions A lake can be a significant part of cultural history, arts and religion. Natural ecosystems provide opportunities for recreation activities and people can directly derive this ecosystem service benefit (direct use value, DUV). (1) Recreation: Natural ecosystems are usually used as places of relaxation and recreation that include hiking, camping, fishing and observation of nature. With the increase in wealth and leisure time, there is also an increase in recreation. Demand for recreation provides economic opportunities through eco-tourism in many areas. (2) Cultural and artistic information: Nature is most often the basis for cultural traditions. It offers enthusiasm, motivation and stimulation for all types of art, books, films, fine art, photography, music, dance, fashion and architecture. (3) Spiritual and historic information: Ecosystems and their components can provide humans with a sense of continuity and place, and can also be an essential part of religion. (4) Science and education: Natural areas provide abundant opportunities for study, education, research, review and reference tools for monitoring environmental change.

4. Habitat Functions Lake Ecosystems support living space for plant and animals and biodiversity. Humans derive benefits from the existed resources. This is commonly known as “existence value” and is also part of the “non-use value (NUV) (1) Refugium function: Wind, water and animals disperse seeds and when the seed reaches an adequate location, the soil shelters and supports it while it grows and becomes matured. (2) Nursery function: Ecosystems further provide breeding and nursery grounds for a variety of species that can be harvested. This function is vital and important for commercial and subsistence uses of various species.

In addition, ecosystem services are normally divided into provisioning services, regulating services, cultural services and supporting services (MEA, 2005). 37 Provisioning services include direct benefits to local people such as food production, raw materials, crops, fish, forest and non-timber forest products etc. Regulating services include direct and indirect benefits to the lake area which provides water supply, water conservation, flood control, water quality improvement, waste treatment and biodiversity maintenance etc. Cultural services include non-material and enriching benefits along with recreation, cultural heritage, and scientific research. Supporting services include services necessary for the production and delivery of other ecosystem services. Among these services, this study evaluates provisioning service (crop production), regulating service (conservation for water quality improvement) and cultural service (recreation) provided by the Lake and the value of services are calculated by different methods. Supporting service was not considered in this valuation. The importance of Lake Ecosystem services is evaluated with lake values. The value of ecosystem services of the lake is shown in Figure (2.3). Figure 2.3 The Value of Ecosystem Services of the Lake

Lake Ecosystem services

Provisioning Regulating service Cultural service service (Water quality (Recreation) (Crop production) conservation)

Direct Use Value Consumptive Value Indirect Use Value -Crops -Water quality conservation Non-Consumptive Value -Recreation

Use Values

The value of ecosystem services of the lake

Sources: Barbier, (1994) and De Groot, Wilson, and Howarth, (2002). 38 According to Figure (2.3), from the application of the TEV framework, the total economic value (TEV) associated with lake services can be categorized into two components according to the use values. Direct use values are derived from consumptive and non-consumptive uses of lake resources and services (e.g., irrigation for agriculture and use of the lake environment for recreation). The indirect use value is associated with the indirect services provided by functions such as water quality conservation (flood control and water quality improvement). The use values are obtained from these values and the value of ecosystem services can be assigned monetary terms.

2.4.1 Method of Valuation Here, a market value method and contingent valuation method are used to estimate the economic value of direct and indirect uses of the Lake Ecosystem services. Following the concept of Millennium Ecosystem Assessment regarding an ecosystem approach (MEA, 2005), the main ecosystem services considered for valuation include provisioning service (crops), regulating service (water quality conservation) and cultural service (recreation). The present assessment did not measure the economic value of non-use values and any components. Table 2.1 illustrates ecosystem services, valuation method, the element of TEV being captured, ecosystem services being valued, and benefits of the approach and its limitations.

Table 2.1 Ecosystem Services, Valuation Method, Element of TEV Captured, Ecosystem Services Valued, Benefits of Approach and Limitations of Approach Element of Ecosystem Benefits Ecosystem Valuation Limitations of TEV Services of Services Method Approach Captured Valued Approach Provisioning Market price Direct Those that Market Limited to those service and market consumptive contribute to data ecosystem -Crops value use value marketed readily services for (Paddy, beans products e.g. available which a market and oil seeds) crop exists

39 Table 2.1 Continued Regulating Contingent Indirect use Depends on Able to Bias in service valuation the existence capture responses, -Water quality of relevant use resource- conservation markets of the values intensive (Flood control ecosystem method, and water service. e.g. hypothetical quality expenditure nature of the improvement) on water market filtration Cultural Contingent Direct non- All ecosystem Able to Bias in service valuation consumptive services capture responses, -Recreation use value use resource- (Visitors and values intensive tourism-based method, businesses) hypothetical nature of the market Source: De Groot, Wilson, and Boumans, (2002).

Table (2.1) indicates basic parameters, methods used, benefits and limitation for estimating the value of the major ecosystem services provided by the Lake.

(1) Market Value Method Local people produce a wide range of valuable lake products. The market price and value method are used to evaluate the value of lake production services. This method measures the economic benefits or loss of changes in the environmental quality. This method to estimate the value of crop production in the Lake is usually considered looking at the direct benefits rather than indirect benefits. This value method is one of the most direct ways to approximate the value of crop production. It is usually estimated on the basic of average quantities harvested, their market prices, associated costs, and the area of the material resource from lake provisioning service. (Li & Gao, 2016) The formula is given as follow: n

U=∑ (Si× W i × Pi) i=1

40 Where, U is the crop production value of lake resource, Si is the area of the cultivated land of crops, Wi is the per unit of output of the crop, Pi is the average market price of crop for the year and n is the number of crops.

(2) Contingent Valuation Method (CVM) This method is used for estimation concerning the value of regulating services and recreational services. Water conservation is one of the most important regulating services being provided as the ability of the lake is to discharge water during flooding and waste water. Natural floodplain ecosystems and flood control structure are alternative ways to prevent flooding and conserve water quality. If there is persistence of Lake Water degradation and continuous erosion, the flood water and wastewater would be increased and leads to requirements of water conservation measures. Maintenance costs are needed to conserve water quality. The gross capacity of Lake, as the usable maintenance, can be used to estimate the service value of flood regulation and water quality. The value of flood control and water quality improvement can be estimated by using the WTP approach. To be precise, an estimate for the service value is based on amount of willingness to pay for water quality improvement of reservoir capacity. The amount of willingness to pay of local residents for water conservation is calculated as the sum of revenues generated by the Lake regulating services. The value estimated for cultural services is tourism. The economic value of tourism can be estimated using the WTP approach. Income generated by tourists is calculated as the sum of the total revenue generated by recreation services. The CVM method uses questionnaires to set the non-market environmental services. Estimated market information is provided by questionnaires, through asking people about their maximum willingness to pay (WTP) through the improvement of environmental quality. These data will be used to calculate the value of environmental goods. In this study, it uses a payment vehicle questionnaire and asked respondents to select their WTP from a given set of values. The binary logistic regression model is used to observe the WTP. Logistic Regression Model is considered as appropriate for this type of study. This analysis can be used to study the relationship between a measured characteristic and a categorical response (dependent) variability in a population. The dependent variable is a measure of nominal scale. This logistic regression is a special case of the logistic 41 regression where the dependent variable is a dichotomy i.e. two levels in the outcome variable. Under Logistic regression approach, the dependent variable is in the form of yes/ no format that can be expressed using the binary coding 0/1. For this, ywtp= 0 when the respondent is not willing-to-pay the requested amount to support the conservation program of the site. Further ywtp = 1 if the respondent is willing-to-pay the specific bid amount of conservation. Hence, visitors will be asked whether or not there is a willingness to contribute to conserve and protect biodiversity in the Lake. According to Calderon, Dizon, Barule, and Fernando, (2008), willingness to pay for a change in environmental quality can be stated as below. Pr(WTP=1) ( 1−Pr(WTP=1)) Log = β0+ β1X1+ β2X2+...+ βk Xk+ εi where: WTP = 1 is equivalent to the “yes” response,

X1, X2, . . . Xk are the independent variables, 1 −z The equation can also be expressed as Pr (WTP=1) = 1+e where: Z is given by the linear equation,

Z= β0 + β1X1+ β2X2+...+ βkXk and

X1, X2, …Xk are the independent variables.

Luangmany, Voravong, Thanthathep, Souphonphacdy, and Baylatry, (2009) studied the mean willingness to pay (MWTP) for valuing environmental services. In this study, (MWTP) is calculated using the following formula:

Mean (Bids) = α/β where: α = a constant value and acts as a coefficient of the dependent variable (WTP). β = an independent variable coefficient (bid price level). This function considered the bid variable as the only determinant factor.

The Aggregate WTP or the social, economic value of a good or service (Turner, Georgiou, Clark, Brouwer & Burke, 2004) is calculated from the result of Mean WTP. What is more, Aggregate WTP is calculated from the total number of households (HH) / respondents in the target population. In this study, the total number of households from the respondents is used in the formula; 42 Aggregate WTP = NHH × M (WTP) × % HHPV where: NHH = total number of households from the respondents M (WTP) = expected mean willingness to pay % HH PV = percentage of households with positive valuation or those who answered ‘yes’.

2.5 Review on Previous Studies Numerous studies have been applied by the CVM approach for estimating the economic value of non-market goods for diverse types of natural environment, including lakes, wetlands and natural parks through the calculation of willingness to pay.

(a) Review on Economic Value of Ecosystem Services Studies Verma, Bakshi and Nair (2001) estimated the economic value of Bhoj constructed wetlands using various valuation techniques. The direct use value is calculated by a production function in terms of food production and water supply, while the recreation value is measured by CVM using a multiple linear regression model. On the one hand, indirect use values focused on water quality improvement is approximated by the cost of illness approach. The study found that the water supply had the highest value of about US$ 798.44 per ha per annum and recreation value had the second highest value of about US$ 405.36 per ha per annum. Water treatment was estimated at US$ 115.40 per ha per annum. Although the study attempted to carry out an estimate for both direct use value and indirect use value, it fails to include non-use value. Luangmany, Voravong, Thanthathep, Souphonphacdy and Baylatry (2009) presented the results of two studies of valuing environmental services in Lao PDR that calculated willingness to pay (WTP) of the local people using the Contingent Valuation Methodology (CVM). The first study investigated the WTP of residents for sustainable development and maintenance of urban parks in the city using Saysetha Park as the case study. The WTP question was posed as a single-bounded dichotomous choice where five bid prices were used, namely, 1,000-kip, 3,000-kip, 5,000-kip, 8,000 kip and 10,000 kip. The WTP survey discovered that the mean WTP of residents is 10,741kip/month/household. The second study calculated the WTP for biodiversity conservation and sustainability in the Houay Nhang protected Area. 43 Using CVM, the WTP responses revealed that the monthly contribution acceptable to the people is 5,000 kip. The logistic regression also proves that this WTP value is influenced by bid prices, gender, and educational levels. Kc, B., Kandel and Adhikari (2013) examined the value of ecosystem services in Baghmara Buffer Zone Community Forest of Nepal determining the willingness of local users and tourists for sustainable development and management /conservation measures of natural resources as well as recreational and aesthetic services. The contingent valuation survey was done by using a multiple linear regression model to 95 users and 100 tourists. Regarding users, variables like the distance to the forest, family size, nature of residence, gender and size of land holdings are the important factors affecting their willingness to pay. The projected average willingness to pay by all users for recreational and aesthetic services was NRs. 33,347 (about US$ 460) per year. For domestic tourists, income was the only factor affecting their willingness to pay. However, for international tourists, factors like income, gender, travel group and education were major determinants of willingness to pay. The average projected willingness to pay by all tourists was US$ 3,806,468 per year. Zuze (2013) examined the economic valuation and conservation of Lake Chiuta wetland in Malawi. The objectives were to classify the existing ecosystem services provided by the Lake that enumerate the values of lake resources (products and services) and to resolve the economic dependency on the lake regarding local people living in the surrounding areas. The Market Price technique was used to estimate the direct use value of Lake Ecosystem goods and services while Contingent Valuation Method was used to solicit the willingness to pay for the conservation for biodiversity. The research findings proved that the contribution of the wetland to the surrounding local communities have an estimated annual value of US$17.2M, which translate to US$554 per ha (GFV), and an annual per capita value of wetland economic benefits of US$248. The findings showed that fishing and crop production each contributes 75% and 23% respectively to the cash income of the households. Willingness to pay for the conservation of biodiversity was estimated at an annual aggregate of US$11M, which is lower than the GFV. The findings specify that the annual mean income per household is US$223 which is obtained through farming, fishing and harvests of wetland goods. Chaikumbung (2013) studied the estimation of wetland values that included a comparison of benefit transfers and choice experiment values. This theory applies two 44 techniques that included economic valuation methods and benefit transfer using meta- regression analysis to estimate the value of ecosystem service of the Bung Khong Long wetland. On average, households are willing to contribute US$ 79.13 per annum for five years to a trust fund to finance ecosystem improvements. The estimated social benefits are US$ 1,349,087 per annum calculated at 2012 prices. The estimates of avoided damage cost showed that the value of carbon sequestration ecosystem service was US$ 1,387,415 per annum. The estimates from the market price valuation method revealed that the water supply and raw material values were US$ 24,333 per annum and US$ 1,670 per annum, respectively. Thus, the total economic value of ecosystem services was US$ 2,762,505 per annum, or an average value of approximately US$ 1,248 per hectare per annum based on 2012 prices. Benefit transfers predicted a value of the CE and market price-based approaches of US$ 1,248.

Khanal, Gurung, Pant, Chaudhary and Dangol (2014) also evaluated the ecosystem services delivered from Bishajari Lake and its associated wetland areas of Chitwan district during June to August 2014. A household survey consisting of 110 households along with interview with key informants and group discussions and stakeholder analysis was carried out for this purpose. The aim was to discover the overall status of ecosystem services, evaluation of the provisional services generated by the lakes, understanding potentials for payment for ecosystem services, and identifying stakeholders involved and their roles and responsibilities. Both descriptive and analytical methods were used to analyze the data. About 65.5% of respondents were found to receive some form of income from the wetland area. The majority of respondents felt that the ecosystem was changed, mostly on provisional services.

Li, and Gao (2016) a study in China on Chaohu Lake ecosystem anticipated the value of ecosystem services that included material production, air sanitization, water conservation, biodiversity, recreation, species conservation, education and scientific research. Questionnaire survey data was calculated by the market value method, carbon tax method, afforestation cost method, shadow engineering method and contingent valuation method (CVM) using logistic regression. The results showed that the total value of the ecosystem services of Lakeside Park was at 144 million CNY in 2015. Among those services, the value of society service was 91.73

45 million CNY, followed by ecological services and material production services amounting to 42.23 million CNY and 10.43 billion CNY in 2015 respectively.

Baral, Basnyat, Khanal, and Gauli (2016) in Nepal also contributed a research on the total economic value of Wetland ecosystem services: this was conducted at Jagadishpur Ramsar Site, Nepal with the objective to estimate the total economic value of Jagadishpur Reservoir taking into consideration of both direct, indirect and non-use value. The research prioritized six major values of the reservoir which are wetland goods consumption, tourism, irrigation, carbon sequestration, biodiversity conservation and conservation for future use by using descriptive analysis. The total annual economic value estimation was NRs 94.5 million that included all direct as well as indirect use value. The local communities stressed great consequence to the future use value and were willing to make an investment in conservation and restoration of the reservoir.

Resende, Fernandes, Andrade and Néder (2017) estimated the economic value of the ecosystem services provided by a protected area, the Serra do Cipó National Park in southeast Brazil, by using CVM. The mean individual WTP was calculated for obtaining the aggregate WTP. It was found that the mean willingness to pay was R$ 7.16 year–1 corresponding to a total of approximately R$ 716,000.00 year–1. Per capita income, household size, level of interest in environmental issues and the place of origin are the factors that influenced the individuals for willing to contribute to the conservation of the park, as well as the value of the stated willingness to pay.

Gelal (2017) made a research on Begnas Lake Watershed, a Ramsar site, at Pokhara-Lekhnath Metropolitan in Nepal. The objective is to classify the principle types of ecosystem services in the categories of ecosystem services provided by MEA that included provisioning, regulating, supporting and cultural services. Market Price Method (MPM), Travel Cost Method (TCM), Contingent Valuation Method (CVM) and Benefit Transfer Method (BTM) were the methods being used for estimation of its economic value. The study identified varieties of provisioning, regulating, supporting and cultural services of Begnas Lake Watershed. In this respect, recreation and ecotourism services were prioritized, as most significant, followed by erosion control, fishing, irrigation, ground water recharge and discharge

46 and habitat for wildlife. The total economic value of Begnas Lake Watershed was calculated to be US$ 9,744,539 year-1 and potential economic value at US$ 89,586,772. Recreational and aesthetic services were prioritized and valued highest with an annual value of US$ 8,592,863.

(b) Review on Production Function and Other Market-based Approaches of Ecosystem Services Studies Sathirathai (1998) made a research on the economic value of mangroves in the Surat Thani Province with an emphasis only on use value. The direct use value of mangroves was approximated by a market valuation method by means of the net income generated from the mangroves by local people. This included harvesting fish, shrimp, crabs and molluscs and honey, as well as wood products. Using the production function approach, the study estimated the indirect use value of offshore fishery and coastal line protection using replacement costs. The calculated economic use value of mangroves was in the range of US$ 171.39 to US$ 227.56 per ha per annum. Sulaiman, Abdulsalam and Damisa (2015), made an economic analysis regarding Sugarcane Production and its Contribution to Farm Income of farmers in the Maigana Agricultural Zone of Kaduna State, in Nigeria. The research studied the costs and returns and resource use efficiency of sugarcane production and its contribution to farm income. Primary data were collected from 330 sugar-cane farmers, using multi-stage sampling techniques. The data being collected was analyzed using the stochastic frontier production function. Sugarcane production was profitable with an average return of 83 Kobo for every N1 invested in the study area. Sugarcane production contributed to an average to about 19.55% of the annual farm income. Maximum contribution made was 81.87%, while the minimum was 0.12%. Major constraints constituted low demand for the crop, inadequate capital, credit inaccessibility, and fertilizers at unaffordable prices. Sopheak and Hoeurn (2016) studied the assessment of the production function of fisheries in the Peam Krasaob Wildlife Sanctuary in Koh Kong Province in Cambodia. The study analysed different uses and indirect use value of mangroves in the study area. A survey was then made in 300 households in four different locations of the study area (75 households in each location) for collection of information relating to the traditional use of mangroves by local communities. The direct use

47 value of the mangrove products included collecting firewood, charcoal, wood for construction materials, fish and snails. Adding up, the indirect use value of mangrove forest resulting from breeding ground services for fish was also studied. The result showed that the net total mean value of the direct use value of mangroves obtained from the household was approximately USD 10,493.82 per household per year. The indirect use value of mangrove in terms of its function as a breeding and nursery ground for fish was USD 44.82 per household per year.

(c) Review on the Lake CVM Analysis Studies Zhen, Li, Huang, Dilly, Liu, Wei, Yaung and Cao (2011) studied the willingness of households to reduce pollution threats in the Poyang Lake region in southern China. A linear regression analysis was used to estimate relationships between WTP and characteristics of households. The Poyang Lake is the largest freshwater lake in China. A survey was conducted in 270 households where both primary and secondary data were used. The bid amount was given as 75,188, 375, 750, 1125, 1875, and 3750 CNY per ha (1CNY = USD 0.1465). The average annual amount of WTP per household was 802-956 CNY/ha, which was nearly 1/10 of the household annual income derived from arable land production. Wang, and Jia (2012) studied guidelines for possible increases in entrance fees and efficient sustainable management of the Dalai Lake Protected Area (DLPA) in northeast China. This included the willingness to pay (WTP) of tourists for biodiversity conservation and environmental protection of the DLPA and the factors influencing the WTP. The data were collected from questionnaires, and the WTP was estimated using the contingent valuation method (CVM). A survey was conducted on 2000 randomly chosen tourists in the DLPA. To institute the affiliation between the variables and the WTP, three logit and probit models for evaluating the probability of a positive WTP were constructed. The key findings were as follows: (1) The majority of the respondents (73.6%) were willing to pay for a higher entrance fee for biodiversity conservation and environmental protection, whereas the remaining 26.4% showed unwillingness to pay a higher entrance fee. The most general justification given for the unwillingness to pay was that it was the responsibility of the government to protect biodiversity and the environment. (2) Income level and the awareness of being in a Protected Area were the most 48 significant estimators of the WTP (p < 0.01) of tourists. The educational level and the institutional trust were also significant estimators of the WTP (p < 0.05) of the tourists. (3) The median WTP was 71.08 RMB ($ 10.72) (Exchange rates at the time of the study was $ 1 = 6.63 RMB), and the current entrance fee represented 28.14% of this WTP. (4) Based on their findings, an entrance fee of 50 RMB ($ 7.54) was recommended, with the probability and the advantages of a higher entrance fee being analyzed and discussed. Antonopoulou, Mallios, and Latinopoulos (2013) conducted a CVM approach by using logistic regression analysis to analyze the conservation and protection of Lake Volvi in Greece. Their research on willingness to pay for lake conservation was to investigate the WTP among the local people. From this study based on responses of 209 respondents, participants were divided into five subgroups with different bid offers (0.5, 1, 2,5,10 Euro). Using this model, the annual WTP was found to be 18.96 Euro per household. Behjou, Esfahan, Ramezani, Hashemian and Amirahmadi (2014) explored the conservation of Shorabil Lake which has an area of 150 ha located in Ardabil city. The Lake is one of the most important attractive areas in national and regional level that can attract many people on recreation from other areas every year. The study was carried out with the purpose of estimation of the recreational value of the Lake by using CVM and determining the affecting factors. Here, a Logistic regression with maximum likelihood method is used. A survey was carried out using 256 questionnaires from the lake visitors. The results proved that the average willing to pay for each person was 9236 Rials (US$ 0.75) and annual willingness to pay was 155682 Rials (US$ 126.98). Lebeta (2014) estimated the value of conservation of Wonchi Crater Lake. The rationale of the study is to approximate the value of lake resources assuming these were conserved with the emphasis on conservation of the Wonchi Crater Lake. Closed-ended question format was used to identify the individuals’ WTP for individuals concerning the conservation of the Lake. The follow-up question was used for observation. From a total of usable sample size 193, about 190 (98%) were aware of the problem and are willing to pay. From Econometric results, explanatory variables such as income, education, origin, family size, and occupation of the respondents affected positively the probability of saying ‘yes’ for proposed bids and were statistically significant variables at different levels. Other variables like age and 49 initial bids were also significant at 1%, but negatively impact the probability of saying yes. Kong, Xiong and Zhang (2014) studied the determining factors regarding farmers’ willingness to pay (WTP) and their payment levels for ecological compensation of the Poyang Lake Wetland in China. A survey was conducted in 292 farmer households where the contingent valuation method (CVM) and Heckman’s two-step model were employed in the empirical study. The probit model and the multiple linear regression models were also used. Findings showed that 46.58% of farmers were willing to pay ecological compensation, with an average price of $64.39/household per year. Factors that considerably influence farmers’ WTP include household income, residential location, emphasis on improvement of wetland resources, arable land area, and contracted water area. In addition, household income, residential location, arable land area, and contracted water area have a significant relationship with their payment levels. Lamsal, Atreyab, Krishna, Pantc and Kumard (2015) studied the willingness to pay of local people for community-based conservation activities and it’s affecting variables in the Ghodaghodi Lake Complex in Nepal. A survey was conducted on a sample of 217 households residing near the lake complex. The research used the Robust Regression Model for the identification of factors affecting households WTP. The results indicated that households were willing to pay for community-based conservation activities at an average of NPR 378 (US$ 5.4) per annum. Factors affecting household’s willingness to pay include the age of the household head, wetland income, agricultural income and prior experiences on participation in conservation activities. Lamsal, Pant, Kumar and Atreya (2015) conducted a study on Sustainable livelihoods through conservation of wetland resources, a case of economic benefits from Ghodaghodi lake, Western Nepal with the intention to examine the participation of the local ethnic group in lake conservation, determine the economic benefits being received from the Lake, and assess socio-economic factors that affect dependency on the Lake. A survey was done on a total of 217 wetland resource-user households residing around Ghodaghodi Lake. Data were analyzed using descriptive statistics, t- tests and ordinary least squares regressions. It was found that an annual worth of NPR 4379 was extracted from the lake resources from each household. Nevertheless, the contribution and participation of local people were found to be inadequate in the 50 conservation of the lake, in spite of having a positive attitude regarding the conservation. Nyongesa, Bett, Lagat and Ayuya (2016) explored farmers’ stated willingness to accept pay for ecosystem services in the case of Lake Naivasha watershed in Kenya. This study analysed contingent valuation (CV) and logistic regression for data analyses to obtain WTA of farmers to implement payment for environmental service (PES). The study also looked for socioeconomic factors determining farmers’ WTA for watershed conservation. Findings showed that more than 90 % of respondents were farmers and 60 % had a primary level of education. The estimated annual lowest and highest WTA for PES farm practices were at Kshs. 8835 (US$ 88.35) and Kshs. 21,847.500 (US$ 218.48) respectively. Many household socioeconomic characteristics were found to impact significant influence on the WTA among farmers. Krantzberg, and de Boer (2016) studied the valuation of ecological services in the Great Lakes Basin Ecosystem to sustain healthy communities and a dynamic economy. Data were analyzed using descriptive statistics to assess the value of the Great Lakes to the health of people, communities and the economy in Ontario, USA. The assessment was made on the contributions by the Great Lakes to the local, provincial, regional, and national economies. The study shows a subset of the major issues which were not historically addressed in The Canada-Ontario Agreement (COA) and the Great Lakes Water Quality Agreement (GLWQA). The study found that the Great Lakes contribute beyond direct market values. Lamsal, Atreya, Pant and Kumar (2016) investigated the need of wetland tourism for resource conservation, using the case of Ghodaghodi Lake Complex, a Ramsar Site in western Nepal. In this study, the travel cost method (TCM) was used to establish the recreation potential of the lake complex, while the contingent valuation method (CVM) was utilized to compute willingness of visitors to pay an entry fee as a payment vehicle for conservation. Further, Ordinary Least Squares (OLS) regression was also used to explore factors affecting the rate of visitation provided the present physical and environmental conditions were improved, and the maximum WTP (Max WTP) of visitors for entry fees. The per capita travel cost was found to be NPR 540 (US$ 7.71), while the mean willingness to pay an entry fee was NPR 34 (US$ 0.48) per visitor per entry.

51 Bhattarai (2016) contributed a study which is mainly focused on the utilization of the Taudaha Lake and the conservation and management activities done at the local level. This study emphasized on the sustainable use of Lake Resources. The basic methodology includes the field visit, questionnaire survey, and key informant interviews. Descriptive data were analyzed using logical statements. SPSS and Excel Sheets were extensively used for analyzing results of data being collected. It was discovered that the willingness to pay fully depends on education, area of land owned and an annual expenditure of the people. The study also proved that everyone was aware of the need for conservation and management activities in the lake. Nevertheless, a large number of people have not actively participated. Asmamaw, Beyene, Tessema, Kara, Goshu and Assefa (2016), used a Contingent Valuation Method (CVM) to estimate the willingness to pay (WTP) by labour of beneficiaries in Lake Tana, Ethiopia. The WTP was calculated among 357 beneficiaries of the lake in 11 kebeles (districts). The analyzed, collected data included frequency, descriptive statistics and regression analysis. The data exposed that 96.9% of the respondents were willing to pay for conservation activities of labeobarbus fish species by laborious work. The mean WTP in working days was approximated at 48.48 labor days per year per household in the four weredas/districts being studied that was equivalent to 4,422,792.4 USD per year. It was found that the WTP was considerably influenced by age, sex, economic activity, respondents being involved, and the level of understanding of local inhabitants about future generation without labeobarbus fish species.

(d) Review on the Wetland CVM Analysis Studies Shamsudin, Radam, Rahim, Yacob, Muda and Yazid (2011) made a measurement regarding CV of a wetland under the name of Economic valuation of Shadegan International Wetland (SIW) in Iran. It was found that the underestimation of the non-market values of wetlands have led to degradation of the quality of SIW. CVM was used to approximate the economic benefits of SIW based on the logit models and dichotomous choice. Five sets of bidding prices were selected in the range of RLs 10,000-30,000. It was found that local people feel the consequence of ecosystem and the benefits of SIW. Estimated mean WTP was US$ 1.74 per household as a one-time donation. The study stressed that demographic variables,

52 including age, gender, education, employment, household size, and household income of respondents were the chief predictors of WTP. Bhatt and Aijaz (2014) conducted a research one of the Wetlands in Hokera, India. This wetland is a natural permanent wetland situated in District Budgam and Srinagar in Kashmir valley in India. The study estimated the demand function for conservation of biodiversity for analyzing the household benefits among the local populace surrounding the wetland. CVM was used and gave six bid values (Rupee 10, 20, 100, 200, 500, and 1000). The CV model being used was based on binary logistic regression analysis. The mean WTP of the local populace for conservation and preservation of biodiversity in Hokera was Rs.507 per annum. It was discovered that there were high values among respondents regarding conservation of wetland biodiversity. Haque and Shah (2016) performed a study of Kachan wetland in West Bengal, India based on CVM to evaluate WTP among local residents for protection and conservation. Using the binary logistic model, it proved that there was sensitivity of socioeconomic and other characteristics that included education, income, earning from wetland and the shift from wetland regarding WTP. The willingness to pay of respondents ranged between Rs. 20 to Rs. 3600 per year. The mean was around Rs. 286 per year (Rs. 23/month). The average WTP was Rs. 286 per year among local people to preserve the wetland. Aggregate WTP for improvement of Kachan wetland was calculated as Rs. 58720, which was computed by multiplying mean WTP with the total number of sampled households. Out of 205 respondents, nearly half (45.4%) were unwilling to pay for conservation because they assumed that as the responsibilities of the Government and INGOs. Ndebele and Forgie (2017) preformed a research on estimation of the economic benefits of wetland restoration program in New Zealand by means of a CVM approach. The Pekapeka Swamp CV survey was conducted on a sample of 958 households in the Hawke’s Bay region. The analysis regarding responses to the dichotomous choice (DC) question was done by means of logistic regression while analysis concerning responses to the open ended (OE) questions was done by using ordinary least squares (OLS) regression. The 16 bid levels used in this study were; $1, $10, $20, $30, $40, $50, $60, $70, $80, $90, $100, $120, $140, $160, $180, and $200. Some of the dependable variables in WTP for preservation of Pekapeka Swamp in the study included household income, distance to the site, membership of an 53 environmental organization, expression of potential future use of the restored wetland, demonstrating value for the environment and attitudes towards environmental improvement. The average WTP was between NZ$ 30.00 and NZ$ 72.38 per household, per year for five years.

(e) Review on the Natural Park and Other CVM Analysis Studies Celeste (2009) studied the willingness to pay of households for the perseveration of the watershed for sustainable water supply in the Slibalom natural park, Sibalom, Antique. The study used qualitative as well as quantitative approaches to determine water use behavior, present situation of water supply, and environmental programs and projects. The survey interviews were done on 309 respondents from five municipalities for determination of the household's willingness to pay for conservation of the watershed using the Contingent Valuation Method (CVM). Statistical and econometric analysis using Logit model were also estimated regarding the respondents mean willingness to pay using an open source package. The bid levels used were P 5, 10, 20, 30, 50, and 100. The adjusted model discovered that the respondents were willing to pay for P7.23/mo as an incremental water bill, which was relatively low in contrast to the uncensored or uncalibrated response with P40.36/mo. The willingness to pay per year was P 9,859,190.88 and P 1,732,829.76 for uncensored and adjusted model respectively. Factors like age and awareness of the program were also observed that affected willingness to pay only in uncensored model. Szell (2012) made a study of the attitudes and perceptions of local residents and tourists to the protected area of the Retezat National Park (RNP) in Romania. For exploring the attitudes of local communities and tourists for conservation and for estimating the WTP, an interview was done on a total of 154 respondents, local residents and tourists. The qualitative approach found that tourists were more concerned with environmental issues rather than local residents. Those in favor of supporting conservation within Retezat National Park were willing to pay higher entrance fees on an average of 4.33 EUR to 5.56 EUR per day. The average WTP amount of the tourist sample size was higher than that of the local resident sample size. However, both amounts were considerably higher than the currently imposed entrance fee of 1.14 EUR per week. In this case, the Individual Samples T-test analysis was used.

54 Sylvie (2012) undertook the study to evaluate farmers’ maximum Willingness to Pay (WTP) for protection of the Nyabarongo River system. Further, it also assessed the potential influence of different factors concerning WTP estimates. A random selection of a sample of 359 households from four Districts in the catchment area was made and interviewed through household survey questionnaires. The Contingent Valuation Method (CVM) was employed to approximate the amount of money farmers are willing to pay while other determining factors were also assessed with the use of Ordinary Least Squares regression method. Results revealed that the mean household’s maximum WTP for the protection of the Nyabarongo River system was 486.4 Rwandan francs (Rwf) per household per month over the proposed five years (USD$ 1 = 607 Rwf). Determining factors found to have a significant statistical influence on the WTP were household income, education of the household head, respondent’s perception of the current quality of water in the Nyabarongo River, access to tap water, household size, extensive contacts, initial bid amount and knowledge of individual responsibility in wetland protection. Vujko and Gajić (2014) made a research on the persuasive communication and visitors’ willingness to pay park user fees for the Fruška Gora National Park. Being a protected area, things like effective protection measures, enhancement of natural beauty and values are requirement conditions. The Park user fees were first collected in April 2014 for the purpose of entering vehicle, lighting fires and using the parking lot at the park. This study explores 253 visitors for measuring visitors’ WTP in regards to the protection of the Park. The major determinants of the visitors’ WTP were calculated by using the chi-square test. Findings revealed that respondents have very negative attitudes upon user fees. Inadequate infrastructure networks and lack of other facilities showed that investment was needed to raise the services to the appropriate level. What is more, low entry fees were found to be unable for protecting biodiversity and natural resources as well as providing appropriate services to park users. Ezebilo (2016) contributed a study of willingness to pay (WTP) for the maintenance of Mount Wilhelm jn Simbu Province, Papua New Guinea by urban residents and the socioeconomic factors that influenced it. The data were obtained from questionnaires and personal interviews of residents of Kurniawan, which is the capital of Simbu Province, Papua New Guinea. Descriptive statistics and binary logit regression model were used for data analysis. The results revealed that 92% of the 55 respondents were willing to pay for maintenance of Mount Wilhelm on an average of 7.4 Papua New Guinea Kina (US$ 2.5) each year. Respondents belonging to high- income groups have the highest WTP, followed by those who were willing to offer part of their land for conservation. Approximately 62% of the respondents were willing to pay ≥10 Papua New Guinea Kina (PGK) equivalent to the amount charged as access fees to Mount Wilhelm. The willingness to pay ≥10 PGK was largely determined by income, education, importance of forests and willingness to give up land for conservation. The findings contributed to land use planning and design of nature-based recreation that met societal demands.

2.6 Conceptual Framework The aim of the conceptual framework for the study is to resolve the current deterioration of the Taung Thaman as a result of human activities. Lack of knowledge, unawareness and negligence generated severe pollution in the Lake environment which in turn affects the livelihoods of people as well as the long- standing historic beauty of the Lake. Human societies in the Lake area depend heavily on natural, cultural, recreational and aesthetical resources provided by ecosystems. Factors like climate change in an ecosystem can lead to deterioration and may eventually influence human well-being in terms of decreasing the quantity or quality of total ecosystem benefits. This Lake deterioration can lead to significant social as well as economic costs to human society. The conceptual framework is shown in the Figure (2.4). According to the conceptual framework, the study examines the Lake ecosystem services that include provisioning service, regulating services and cultural services. Direct use values are obtained from consumptive use of the Lake’s provisioning service (irrigation water for agriculture) and non- consumptive use of cultural services (use for tourism). Indirect use value is normally derived from regulating services (use of water quality conservation). The figure reveals that the first stage is to evaluate the economy of four villages that depend much on the Taung Thaman Lake water resources (provisioning services) through the market value method applied in the agricultural sector regarding the use of land area, output per unit, market price, cost of production and charges for irrigation water in production. As a result, the aggregate crop production value of the Lake water resources can be obtained. 56 57 Figure 2.4 Conceptual Framework

Direct Use Value Consumptive Value of 4 Villages Crop Production Provisioning Value Service (Paddy, beans and oil seeds) - Land Area - Output per Unit - Market Price - Cost of Production - Charges for irrigation water

Direct Use Value The aggregate Non-Consumptive monetary Value of Local value of Visitors and ecosystem Foreigners services of Recreation Value Cultural the Taung Lake (Visitors) ThamanLake Ecosystem Service - Socioeconomic Services factors - Visit time - Attitudes - Bid amount

Non-Consumptive Value of Tourism- based Businesses -Total Net Income

Indirect Use Value of 10 Villages Water Quality Regulating Conservation Value Service (Flood control and Water quality improvement) - Socioeconomic factors - Distance - Attitudes - Bid amount Source: Own Compilation

58 The second and third stages include the analysis of ten villages involving local visitors and foreigners, socioeconomic factors, distance/ visit time, attitudes and bid amount being explored with the use of binary logistic regression analysis. From these results, willingness to pay for the conservation of Lake, water quality conservation value, and recreation value can be discovered. The total net income of Tourism-based businesses (use of the Lake’s environment for recreation) is added in recreation value. From direct and indirect use values, the aggregate monetary value of ecosystem services on the Taung Thaman Lake can be used. The conceptual framework is constructed with the inter-linkage among all possible variables in the Lake services. However, only current variables are used for academic research. Therefore, the framework for the analysis is concerned with the studied variables that include socioeconomic factors of villagers and visitors, spatial factors, attitudes and bid amount. Furthermore, it examines how these factors determine the willingness to pay for Lake Conservation. The framework for analysis shows the inter-linkage between the independent (socioeconomic factors, spatial factors, attitudes, bid amount) and dependent variables (WTP). From the standpoint of WTP, the non-market-based approach is used to estimate the aggregate monetary value of regulating services for water quality conservation and cultural services for recreation. This is depicted in the Figure (2.5). According to the framework for the analysis, this stage is to estimate the requirements to assess the socio-economic condition and demographic background (age, material status, education level, household size, main occupation, and monthly income), spatial factors (distance and visit time), attitudes (government future plans, public awareness and conservation) and bid amount. Contingent Valuation Method with Willingness to Pay approach of villagers for water quality conservation value and visitors for recreational value will be analyzed by using binary logistic regression analysis. The results can be expected willingness to pay (WTP) for conservation of the Lake by stakeholders. From the WTP, water quality conservation value and recreation (visitors) value amount can be discovered.

59 Figure 2.5 Framework for the Analysis of the Water Quality Conservation and Recreation

Independent Variables Dependent Variable

Examining the Villages and Visitors, Socioeconomic factors - Age - Material status - Education level - Household size - Main occupation - Monthly income Willingness to Pay (WTP) for water Spatial factors quality conservation - Distance - Visit and recreation of the Taung Thaman Lake

Attitudes of Villagers and Visitors -Attitude concerning Government future plans -Attitude concerning Public awareness -Perception for Conservation

Other Variable -Bid amount

Source: Own Compilation

Through these efforts, things like attitudes, knowledge and awareness for the conservation of villagers and visitors concerning conservation can be analyzed. By examining non-market valuation approach, the aggregate monetary value of the Taung Thaman Lake’s regulating and cultural services can be estimated. 60 Policy actions are crucial and obligatory to prevent the dreadful and injudicious behaviour of the people and sustain the ecosystem services. Ecosystem structures and processes are largely determined by long-term, large-scale biophysical factors which in turn create necessary conditions for providing the ecosystem goods and services in value. By examining the links between socioeconomic factors, attitudes and other factors through non-market valuation approaches, their attitude towards the payment vehicle and this invented payment system, the willingness to pay for conservation of the Lake can be explored. This is assumed to be the most appropriate way to integrate efforts for the conservation of the Lake through the contribution of financial resources for anti-pollution measures in the future.

61 CHAPTER III BACKGROUND INFORMATION OF THE TAUNG THAMAN LAKE

Established in the Taung Thaman Lake is a well-known tourist site in Mandalay Region where thousands of both local and foreigners used to flock together at the site. It is also the major water source for agriculture and livelihoods of the surrounding villages in the Amarapura Township. After 2015, expansion of factories, businesses, as well as land use has changed the surrounding areas of the Lake which largely affected the ecosystem of the Lake. Many pollution problems have existed till then to the present day. Chapter three attempts to explore some background information with regards to the Taung Thaman Lake. Discussion concerning the background of the Amarapura Township is in section 3.1 and information of selected villages in the neighbourhood of the Lake in section 3.2. Challenges along with environmental problems of the Lake are expressed in section 3.4 while conservation measures by diverse stakeholders are stated in section 3.5.

3.1 Background of the Amarapura Township The Amarapura Township is the home for the Taung Thaman Lake, which is located in the southern part of Mandalay City in the upper reaches of Myanmar. Historically, Mandalay City was the former capital of Myanmar during Konbaung Dynasty between 1783 - 1821 and 1842 - 1859. Present day major economic sectors are agriculture, weaving businesses and tourism. The Lake is a popular tourist day- trip destination from Mandalay and built across is the historic U Bein Bridge. The study area mainly concerns with Amarapura Township, where a survey of visitors and local community will take place. Location, Topography, Weather and Natural Environment The Amarapura Township is located in N 21˙ 54′ and 22˙ 46′ and E96˙ and 96˙3′. It has a total area of 51268 acres. The length is 14 miles from east to west and 5.71 miles from north to south. The Township is surrounded by Tadaoo Township and Dotehta Wady River in the west, Chanmyathazi Township in the north, Pathein Gyi and Pyigyidagon Townships in the east, Sint Kaing Township and the ancient capital Inwa in the south. Due to developments of urbanization in the past century, Amarapura became a township of Mandalay City. The Figure illustrates the location of the Amarapura Township in Mandalay City in Appendix-1, 2 and 3. The Amarapura Township is composed of both urban and rural areas. An urban area includes two towns, Amarapura and Myint-Nge including nine community wards. Altogether, there are forty- two village tracts and one hundred and seventy villages within the rural areas of Amarapura. In Mandalay City, Payandaw Creek is a part of water resource after the great Ayeyarwady River that flows from the northern part of Myanmar to the Indian Ocean in the south. The source of the lake originates in the Yaedagon Mountain ridge in the east and flows into the Saedawgyi Canal and flows through the Myayinander Ward, Chanmyatharzi Township and joins the Ngwetachaung Canal in Pyigyyidagon Township. Finally, the water discharges into the Taung Thaman Lake, Amarapura Township and seen today as a famous, historic tourism site. The Payandaw Creek is useful in terms of irrigation for rice/ paddy cultivation. Irrigation outlets are located in the eastern part of Amapura Township. Being located in lowland areas with 250 feet above sea level, annual floods commonly occur in Amarapura Township (mainly in the South-western part) during the rainy season as a result of higher water levels in Ayeyarwady River. As Amarapura Township lies in the Central Dry Zone of Myanmar, a tropical climate is commonly seen along with the hot and humid weather having a maximum temperature of 42.3˙C (in the hot season) and a minimum temperature of 13.5˙C (in the cold season).

Economic and Social Conditions The Amarapura Township is located in the major economic Center of Upper Myanmar. Livelihoods of local populace mainly include traditional agriculture along with traditional weaving industry and commercial trade with the rest of Myanmar. Within the township, there is a total of 123137 females, 114481 males and 237618 60 total populations in 2017. The population of the community wards and village tracts are shown in Table (3.1)

Table 3.1 Population, Number of Households and Sexes of Wards and Village Tracts; Amarapura Township (Mandalay District, Mandalay Region)

Ward (W)/Village Tracts Number of Population (number) Sr (VT) Households Total Males Females Total 49,626 237,618 114,481 123,137 Wards 1 Taung Gyi (W) 488 1,946 915 1,031 2 Kyan Tan (W) 1,270 6,295 2,923 3,372 3 Hman Tan (W) 7,204 34,902 16,968 17,934 4 Zay Cho (W) 1,746 7,952 3,622 4,330 5 Shwe Gun Htoke (W) 639 3,708 1,880 1,828 6 Lay Su (W) 987 4,628 1,994 2,634 7 Oe Taw (W) 1,406 7,322 3,298 4,024 8 Sin Swei Put (W) 773 5,283 3,152 2,131 9 Myit Nge (W) 2,117 8,788 4,207 4,581 Total 16,630 80,824 38,959 41,865 Village Tracts 1 Shan Ka Lay Kyun (VT) 890 3,749 1,831 1,918 2 Yin Taw (VT) 710 2,865 1,370 1,495 3 Hin Thar (VT) 694 3,203 1,444 1,759 4 Tat Gyi (VT) 319 1,438 656 782 5 Bone Taw NaingNgan (VT) 297 1,234 565 669 6 Kyee Myin Daing (VT) 511 2,402 1,132 1,270 7 Say Oe Bo (VT) 122 600 272 328 8 Hpa Ye Kyun (VT) 249 1,184 552 632 9 Pan Chi (VT) 580 2,861 1,286 1,575 10 Nge Toe (VT) 2,257 11,114 5,275 5,839 11 Bone Oe (VT) 1,214 6,941 3,387 3,554 12 Taung Thaman (VT) 1,371 7,322 3,545 3,777 13 Shwe Kyet Yet (VT) 2,583 12,585 6,154 6,431

61 Number of Population (number) Sr Ward/Village Tract Households Total Males Females 14 Chin (VT) 230 1,114 540 574 15 Ye Lun Kyaw (VT) 172 801 385 416 16 Sin Yar MyinHmu (VT) 452 2,800 1,494 1,306 17 Let Pan Zin(VT) 117 594 289 305 18 Sar Taw Gyi (VT) 334 1,515 740 775 19 Ba Naw (VT) 320 1,404 654 750 20 Kin Bet (VT) 438 1,738 822 916 21 Mi Chaung Tet (VT) 342 1,390 660 730 22 Yar Khaing/ Leik SanKhun (VT) 756 3,382 1,552 1,830 23 Ta Lin Gyi (VT) 764 3,090 1,489 1,601 24 Thu Nge Taw (VT) 310 1,377 635 742 25 Mon Taw (VT) 393 1,860 912 948 26 Taung Kaing (VT) 684 3,052 1,447 1,605 27 Daung Yway (VT) 495 2,301 1,101 1,200 28 Sin Boe(VT) 325 1,424 696 728 29 Sin Taw Wa (VT) 917 4,040 1,924 2,116 30 Yae Kyi Pauk (VT) 561 2,704 1,188 1,516 31 Myit Laung (VT) 404 1,849 852 997 32 Kan Peit (VT) 182 800 379 421 33 Ma Gyi Kaing (VT) 333 1,432 694 738 34 Myit Tu (VT) 395 1,849 789 1,060 35 U Yin Taw (VT) 2,091 9,862 4,692 5,170

62 36 Da None (VT) 969 4,365 2,095 2,270 37 Taw Twin (VT) 1,186 5,531 2,686 2,845 38 Ta Moke Soe (VT) 1,323 6,051 2,802 3,249 39 Nat Yae Kan (VT) 4,591 21,788 11,093 10,695 40 Sar Toe (VT) 1,319 7,652 3,746 3,906 41 Pyi Lone Kyaw (VT) 316 1,449 716 733 42 Yae Poke (VT) 480 2,082 981 1,101 Total 32,996 156,79 75,522 81,272 Table 3.1 Continued 4 Source: Department of Population (2017) Table (3.1) shows the major community wards and village tracts within the township. These include Taung Gyi, Kyan Tan, Hman Tan, Zay Cho, Shwe Gun Htoke, Lay Su, Oe Taw, Sin Swei Put and Myint Ngw. The total population in these wards is 80,824. It was found that the female population is slightly higher (41,865) than that of the male population (38,959). Altogether, a number of 42 village tracts are located within Amarapura Township and under each village tract, there are 170 villages exist. Populations in these townships are 156,794 in total while male population is 75,522 and female population of 81,272. Among these village tracts, villages like Nat Yae Kan, Shwe Kyet Yet, and Nge Toe have more than 10,000 in population size while other village tracts have less than 10,000 in terms of population size. A total cultivable land area of 51,268 acres existed in Amarapura Township. Different types of land under cultivation are shown in the Table 3.2.

Table 3.2 Land Use in Amarapura Township

Type of Land Area (Acres) Percent Net Sown Area 30,748 60 Paddy 17,024 33 Ya 3,742 7 Kaing 6,808 14 Garden 3,174 6 Fallow Land 1,778 3

63 Paddy 875 1.5 Ya 57 0.1 Kaing 821 1.4 Garden 25 0.04 Residential Area 18,742 37 Total 51,268 100 Source: General Administrative Department (2019)

From the Table (3.2), it can be seen that 60% of the land is utilized for agriculture in Amarapura Township. Fallow land includes only a minimum of 3% of the total land area while the residential area covers 37%. Agriculture is seen with six main crops within the study area and was found to have some diverse cropping pattern between the farmer groups. The first group grows rice/paddy in the traditional sense during the monsoon season with pulses during winter and an additional summer paddy. The second group grows paddy-sunflower- paddy in the three seasons of monsoon, winter and summer. The third group grows paddy-groundnut-paddy while the fourth group cultivates paddy in a monsoon and summer with maize in winter. The fifth group is involved with paddy- green gram- paddy while the sixth group cultivated a different paddy- soy bean – paddy. In many of these farmer groups, renting land is not the usual agricultural way. Instead melon farming is done on their own land mainly meant for the export market to the China border trade. The earnings of the majority of peasant/ farmers are relatively large in amount due to changes in crop patterns depending on the demand of the local and foreign market. Paddy is still grown for household use while some marketable surplus goes to the market. It is important to explore whether there are improvements and challenges among farmers in terms of changes in the cropping patterns. Also, there is a need to look into the existence of land rents which are normally informal rather than formal. Current major crops grown by farmers in Amarapura Township are shown in Table (3.3). In terms of cultivable land, major agricultural crops in Amarapura Township are Paddy, Groundnut, Sesame, Sunflower, Green Gram, Mung Bean, Chick Pea, Long Staple Cotton, Sugar Cane and Maize. Rice/paddy, sesame and sunflower crops

64 are grown in two seasons; rainy and summer season while groundnut is grown only in winter. The rest of the crops are grown only in one season. Total output of summer paddy per year is approximately 756,863 baskets while the main monsoon paddy output is an approximate of 1,085,764 baskets. The second largest crop, groundnut has an annual output of 60,708 baskets while the lesser important sunflower’s annual output is of 2,262 baskets per year. No output data is available for green gram and sugar cane within the township in the year 2019. Nowadays, more than half of farmers in each group have changed their cropping patterns with a more emphasis on rice/paddy in both monsoon and winter. Land is seen to be rented during the winter for growing fruits. From the data, paddy is seen as the major crop grown in the Amarapura area followed by groundnut, sunflower and others. Although miscellaneous types of melons were grown since 2015, most of them are informal since the melon seed varieties come primarily from mainland China.

Table 3.3 Major Crops of Amarapura Township Cultivate Planned Area Harvested Output Sr. Crops d (Acres) Acres (Baskets) Acres Summer 8,000 7,480 7,480 756,863 1 Paddy Rainy 11,650 11,452 11,452 1,085,764 Rainy - - - - 2 Groundnut Winter 1,080 926 926 60,708 Rainy 502 92 92 695 3 Sesame Summer 5000 5015 4840 45980 Rainy 25 35 35 745 4 Sunflower Winter 80 71 71 1517 Rainy - - - - 5 Green Gram Winter - - - - Rainy 21 35 35 354 -6 Mung Bean Winter - 6 6 72 7 Chick Pea Rainy - 3 3 36 Long Staple Post- 8 21 5 5 2020 Cotton Rainy 9 Sugar Cane - - - - -

65 10 Maize Winter 200 336 336 4,695,030 Source: Ministry of Agriculture, Livestock and Irrigation Department (2019)

Apart from traditional agriculture, livestock breeding and the fishery sector as well play the role of major primary economic sectors. With the two public factories under present existence within the township, there is no industrial zone yet. In 2019, a number of 13,186 SMEs and cottage industries operated in the township having a total workforce of 13,439. These SMEs are categorized as 12,312 machine weaving, 531 hands weaving, 200 sewing businesses, 31 food processing firms, 2 blacksmiths, 3 painting firms, 3 sculpture workshops, 100 pottery businesses and 4 thread making firms. Almost all of these businesses are related with handicraft and arts. During 2018-19, the regional GDP of the Township with regards to the production sector was Ks 190,945.3 million, while the contributions of the service sector and trade sector were Ks 105,907.5 million and Ks 93,564.3 million respectively. Increase in per capita income rose from 1,337,835 Ks in 2016-17 to 1,413,500 Ks in 2017-18 and 1,838,229Ks in 2018-2019 respectively. Employment in each sector within the township is shown in the Table (3.4). Total labour force in Amarapura Township amounted to 121,855. Among them, a number of 113,605 were employed while 8250 were unemployed leading to an unemployment rate of 6.77% in the Township.

Table 3.4 Employment by Sector within the Amarapura Township Employment Sector Percent (Number) Government 2,743 2.4 Agriculture 20,038 17.6 Livestock 20,300 17.9 Trading 38,045 33.5 Manufacturing 20,960 18.5 Informal 9,544 8.4 Other 1,979 1.7 Total 113,605 100.0 Source: General Administrative Department (2019)

Four universities, namely Yadanabon, Pharmaceutical, Mandalar College and Saunder Weaving University existed within the Township, These universities have a

66 total number of 744 instructors and 64,046 students in 2019 with a teacher- student ratio of 1:86. Besides, there was also an existence of 11 high schools, 10 middle schools, 80 primary schools, 7 nurseries schools and 6 monastic schools in the Township. Concerning the health sector, there were 5 public hospitals, 35 private clinics and 29 rural health-care centres. In addition, a branch office of World Vision and other local CSOs also exist in the Township.

The Taung Thaman Lake and U Bein Bridge The famous Taung Thaman Lake and the remarkably historic U Bein Bridge serve as a major attraction for both foreigners and local visitors in the Amarapura Township. The Taung Thaman Lake consists of a large body of freshwater bordering the western side of the city of Amarapura. The 12-kilometer-wide with around 1200 meters long, the Lake is one of the best-known landmarks in the region, especially with the sunset view as the most beautiful scene. Built in the mid-19th century, U Bein Bridge is home to the world-famous, a 1.2km (0.75 mile) wooden bridge that spans the lake. Its construction began when the capital of Ava Kingdom moved to Amarapura. Built with 1086 pillars and involving 4 places to take a rest, the Bridge has become a well-known recreation centre. It is normally used as an important passageway by local people and has also become one of the most popular tourist attractions and most photographed features in the region. The Taung Thaman Lake and U Bein Bridge are famous not only for its structure, but also for being a crucially important part of the local community. It provides a livelihood to local farmers, vendors, and other tourism-based businesses for their income. Tourists usually come here for watching the beautiful sunset, walking along the main passageway or sightseeing the iconic view by boats on the Lake. The best weather to enjoy travelling around the Taung Thaman Lake falls between November and May i.e. during the dry season. During August and September, the Lake water rises due to monsoon rains and often covers over the top of the U Bein Bridge. During the dryer months of March and April, the tall pillars of the Bridge are above the water and become a passageway for everyone. The present-day situation is that the Lake is heavily polluted and the Bridge being deteriorated due to the negligence of the authorities and the local populace. Nevertheless, both the Lake and Bridge are still a beautiful and popular place among

67 the natural beauties of Myanmar. The Taung Thaman Lake and U Bein Bridge is shown in Appendix-4.

3.2 Extent of the Selected Villages Surrounded by the Taung Thaman Lake The Amarapura Township included nine community wards and forty-two village tracts. As stated earlier, under these 42 village tracts, there are altogether 170 villages. Among them, 10 villages were randomly selected for the purpose of a sampling frame having a 7 miles distance from the Taung Thaman Lake. Ten Villages are namely Oh Bo, Semihtun, Htantaw, Taungthaman, U Yin Taw, Shan Ka Lay Kyun, Tat Gyi, Hpa Ye Kyun, Souk Taw Wa, and Ba Naw. Among these villages, four villages (Oh Bo, Semihtun, Htantaw, Taungthaman) are located just one-furlong distance from the Lake which are mainly dependent on the Lake’s water resources particularly in the winter and summer seasons. The rest of the six villages (U Yin Taw, Shan Ka Lay Kyun, Tat Gyi, Hpa Ye Kyun, Souk Taw Wa, and Ba Naw) are situated within 7 miles of the Lake.

Location, Area and Topography Villages concerning Oh Bo, Semihtun, Htantaw, and Taungthaman villages are well located in Amarapura Township, Mandalay Region. The location is between latitudes 21˙ 54′ N and 22˙ 46′ N and between longitudes 96˙ 00′ E and 96˙ 03′ E. The mentioned villages are bounded on the east by Danon Village, in the west by Taung Thaman Lake, in the south by U-yin-taw Village and in the north by Pyigyitagon Township. Four villages In the Amarapura Township include Oh-Bo in the east, Semihtun in the west, Htantaw in the north and Taungthaman in the south. The area of four villages is approximately 1911 acres and an estimated 2.99 sq miles. Before the year 2000, villagers from these areas have to cross the U Bein Bridge to get to Amarapura and then to Mandalay. Consequently, transportation was rather difficult during those times. As these villages are surrounded by the Lake, the area has become something like an island. During the old days, survival was only through subsistence levels of peasant agriculture and traditional animal husbandry. U Yin Taw is located between the latitudes of 21.849090˙ and the longitudes 96.062872˙. Its area is 998 acres. It is located west of the Amarapura and away one and half miles from Taung Thaman Lake. Shan Ka Lay Kyun is situated between the latitudes of 21.9274˙ and the longitudes 96.06494˙. The area of the village is 1549 68 acres. It is located north-west of the Amarapura and away two miles from Taung Thaman Lake. Tat Gyi exists between the latitudes of 21.8545˙ and the longitudes 96.0036˙. The area is 767 acres. It is placed west of the Amarapura and five miles distance from the Taung Thaman Lake. The next village is Hpa Ye Kyun which is situated between the latitudes of 21.824995˙and the longitudes 96.004588˙. Its area is 257 acres. It is placed in the southern part of Amarapura and six miles far from the Taung Thaman Lake. Souk Taw Wa is between the latitudes of 21.854124˙and the longitudes 96.114227˙. The area is 2679 acres. It is located in the eastern part of Amarapura and six miles distance from the Taung Thaman Lake. The last village is Ba Naw which is situated between the latitudes of 21.814681˙and the longitudes 96.021972˙. The area of the village is 233 acres. It exists in the West of Amarapura and seven miles far from the Taung Thaman Lake.

Land Situation and Utilization Oh Bo, Semihtun, Htantaw, and Taungthaman villages are situated at 250 feet above sea level in a plain area. Most of the land of a total area of 1911 acres is used for cultivation. The net cultivated land is 776 acres. This includes paddy land of 339 acres, farm land of 154 acres, alluvial land of 263 acres and garden land of 20 acres. Others are land to the railway line of 22 acres, pathway land of 46acres, river, creek or stream land of 46 acres, pond land of 792 acres, dam and cannel land of 16 acres, village land of 59 acres and cemetery land, religious building land of 160 acres. There are altogether 150 farmers who are cultivating at present and the average cultivated land is 5.2 acres. Total area of other villages is about 6482 acres and more than 2000 acres is used for agriculture.

Climatic Condition and Soil The climate of the villages is extremely hot and dry being located in the central dry zone of Myanmar. During 2018 to 2019, in the hottest month of April, the highest temperature was between 37.7˙C and 40.6˙C. In January and February, being the coldest months of the year, the lowest temperature was between 11.8˙C and 12.7˙C. Subsequently, it is found that the climate of these villages has slightly changed in the heat and cold. During the rainy season, rainfall inches at villages are on the average of (40) inches. 69 Oh Bo, Semihtun, Htantaw, and Taungthaman villages have dark compact savanna soil, locally known as “sane myese”. Meadow alluvial soil is found around the Lake area usually on the flat plain. The pH value is about seven in the villages. The soil is suitable to cultivate rice, beans, groundnut, sesame, pulses, vegetables and many others.

Irrigation and Drainage Almost all cultivated lands are mainly dependent on water availability from natural rain and from the Hsedawkyee Irrigation dam. Four villages are in the central region where there is only sparse rain. There are four ways of irrigation when drawing water from the Hsedawkyee Irrigation dam to these village tracts. One way is from Hsedawkyee to Mandalay canal, while the second is from the Mandalay canal to Tmotebso main drain. The third is from the Tmotebso main drain to Tmotebso c’ drain and the last one is from the Tmotebso c’ drain to these villages. Among all cultivated lands of Oh Bo, Semihtun, Htantaw, and Taungthaman villages, an approximated (50) acres of the land near Taung Thaman Lake are grown with the use of water from the Lake. After the rainy season, local farmers grow summer paddy and winter crop using an approximate 50 acres of silted land situated the banks of Taung Thaman Lake when the water subsides in winter and in summer.

Livelihoods of the Villages Surrounding the Lake Valuation survey is planned to conduct in the villages with regards to both social and economic sectors. (a) Social Sector Social sector consists of eight categories that include population, education and health, religion, social works, transportation and communication, access to electricity, house structures and water supply.

(i) Population The population of the ten villages is neither dense nor scattered. In 2019, total population was 20,940 with 5084 households in the selected villages. Among the total population, 7014 people were at the age of less than 18 and with 13,926 people at the age of over 18. Generally, most villages have a greater female population.

70 Table 3.5 Households and Sexes of the Selected Village’s Population. (Number)

Under 18 Years Over 18 Years Total Population Village Households Male Female Total Male Female Total Male Female Total

Oh Bo 519 400 377 777 777 851 1628 1177 1228 2405

Semihtun 174 130 129 259 272 362 634 402 491 893

Htuntaw 818 511 561 1072 939 1085 2024 1450 1646 3096 Taungthaman 209 154 142 296 279 324 603 433 466 899 71 U Yin Taw 735 444 459 903 867 1072 1939 1311 1531 2842 Shan Ka Lay 850 434 409 843 966 1064 2030 1400 1473 2873 Kyun Tat Gyi 298 139 132 271 495 588 1083 634 720 1354

Hpa Ye Kyun 270 125 150 275 417 458 875 542 608 1150

Souk Taw Wa 927 945 1027 1972 1065 1110 2175 2010 2137 4147

Ba Naw 284 175 171 346 413 522 935 588 693 1281

Total 5084 3457 3557 7014 6490 7436 13926 9947 10993 20940 Sources: Ward and Village- Tract Administration Office (2019)

71 More than 99% of the total population were Myanmar nationals and about 1% constituted of other national races. Table (3.5) shows households, and sexes of the population of these selected villages.

(ii) Education and Health One primary school was set up in Htantaw in 1966. The year 2019 statistics showed that there were (6) teachers and about (228) students from KG to Grade 4, where teachers- students’ ratio was 1:38. In 1986, the Semihtun Basic Education Affiliated Middle school was set up in Semihtun. The year 2019 statistics showed that, there were (22) teachers and (752) students from KG to Grade 8 where the teachers – students’ ratio was 1: 34. In 2019, Taungthaman has one primary school with (2) teachers and (50) students where the teacher -students’ ratio was 1:25. Students from four villages who have completed primary school have to join the Basic Education High School, Amarapura, or to Myoma Basic Education Middle School, Amarapura, or to No.(2) Basic Education High School, Tagon Tai Military. The Yadanabon University was established on 22nd February, 2000 which is near Oh Bo, Htantaw and Taungthaman village in Amarapura Township, Mandalay Region covering an area of about (30) acres which presently is extended to (83.26) acres. Due to educational changes and development of the mentioned four villages, Yadanabon University has produced certain highly qualified human resources with the numbers increasing on an annual basis. It was also found that ‘Mg Phay Nge Libiary’ that was established on 15th April, 2001 shared knowledge to the local villagers around the Lake. In 2007, the opening of the ‘Youth Village Library’ also contributed much to the distribution of knowledge and education in the Lake area. The year 2019 statistics showed that there were 15 teachers and 280 students from KG to Grade IV in the four Basic Education Primary Schools of U Yin Taw where the teacher -student’ ratio was 1: 19. The nearby Shan Ka Lay Kyun has only one Basic Education Middle School with 10 teachers and 220 students where the teacher -student’ ratio was 1: 22. With only one Basic Education Primary School in Tat Gyi and with 8 teachers and 112 students the teacher -student’ ratio was 1: 14. Hpa Ye Kyun has two Basic Education Primary Schools and with 8 teachers and 90 students, the teacher -student ratio was 1: 11. Another nearby village, Souk Taw Wa has one Basic Education Middle School and three Basic Education Primary Schools. With 15 teachers and 411 students in the Basic Education Middle School, the teacher -student ratio was 1: 27. Again with 17 teachers and 263 students in the three Basic Education Primary Schools, the said ratio was 1:15. Another nearby village, Ba Naw has only one Basic Education Primary School. With 5 teachers and 98 students the ratio was 1: 20. Health as a general rule is one of the indicators that measure the human resource development. Better facilitated education and health, local security, increasing job opportunities and good economic conditions of the rural economy of Lake Region can eventually provide increases in socioeconomic development. In terms of health facilities, there was only one rural health centre, one health dispensary (maternity ward), three private clinics and Bawa-alin social clinic in the four villages in the year 1980. In the health dispensary (maternity), a single midwife was in charge of pregnant women, home delivery, inoculation and immunization. If illness existed beyond the capacity of the midwife, it was usually handed over to the Hospital of Amarapura Township in case of emergencies. In the Bawa-alin clinic, dutiful doctors and assistant nurses normally carried out health care services for about 75 patients per day. Besides, there was only one rural health sub-centre clinic in each of the villages in Oo Yin Taw, Shan Ka Lay Kyun, Tat Gyi, Souk Taw Wa and Ba Naw.

(iii) Religion About 99% of the people residing in the Lake area villages are Bamas, Kachins, Kayins, Chins, Rakhines, and Shans. The majority (99%) are Buddhists with only about 1% related to Islamic. Altogether, there are (18) monasteries and about 200 Buddhist monks that include Head monks and novices in the four Lake villages. Famous pagodas in these four villages are Pahtama Kyauktawgyi known as the Maha Sakkya Ransi Pagoda, Payathonesu, Maygawadi and Shwetanger Shwethee Ngwaythee. Pahtama Kyauktawgyi Maha Sakkya Ransi happens to be the most celebrated and well-known pagoda. It was built by King Bagyidaw (King Sagaing), the grandson of King Bodawpaya (King Badon), on 15th waxing of Kahson, 1192.

(iv) Social Works Inside the villages, social organizations such as the Women’s Affairs Federation, Maternal and Child Welfare Association, Auxiliary Fire Brigade, 73 Association for Social Occasion of Joy or Grief and Association of Communal Offering of Provisions and Various Articles to Monks were also established. It was found that there is high cooperation and participation of local people with regards to these associations leading to beneficial processes and social development inside the village tracts.

(v) Transportation and Communication Transportation and communication of the villages are moderately good. Three main roads and one railroad existed from these village tracts to other townships in Mandalay Region. These include the entrance way from Yangon–Mandalay High way, the entrance way from the Amarapura Township (Sagaing-Mandalay High way), the entrance way from Myintnge Township and Yangon-Mandalay Railroad across Yadanabon University and Taungthaman village. Mandalay-Naypyitaw-Yangon Expressway, which is a four-way traffic lane was constructed near Tagontai Gate by the Mandalay City Development Committee. The chief aim was to develop these villages. These transportation links contributed to the movement of agricultural products in and out of the village tracts to nearby towns. Moreover, there are two dirt roads to communicate within the villages namely Taungthaman-Thenantaung dirt road and Htantaw-Taungthaman-Oh Bo dirt road. Total length of such roads, including Taungthaman border is about 4.5 miles. Regarding communication, a few bus lines are connected with Mandalay and Amarapura where motorbikes are mainly the chief transportation vehicles used everywhere. Concerning telecommunication, one post office in the Yadanabon University campus for university students and the local people was constructed in 2000. Found in the villages were a few auto telephones i.e. GSM, CDMA, Telenor, Ooredoo and Mytel mobile phones. One Public Centre is opened for international news and timely information. As local produce of different types was easily traded owing to the improvement of transportation and communication, a big advantage existed leading to improvement and convenience of the social lives of the residents in the Lake Region.

74 (vi) Access of Electricity In Lake these villages, electricity is distributed for household uses in Htantaw, Oh Bo and Taungthaman villages with the use of two self- help transformers each with 350 Volts and 200 Volts respectively. Transformers are also used in other villages too. Electricity is used to replace of fire-wood. Moreover, some households use a solar system while others use batteries, candles and a private generator to get electricity.

(vii) House Structures The structure of normal houses varies among villages, in terms of roof material, shape, and construction of walls and floors. Village houses use different sorts of materials. The predominant roof structure is usually thatch and metal sheet while the predominant wall and floor materials were of bricks and timber.

(viii) Water Supply The local inhabitants in the study areas have access to two types of water resources i.e. surface water (Lake) and ground water (tube well). The pH value of the Lake is about 7 and the value of tube well is between 7.5 and 7.6. The depth of the aquifer, which is important for tube well building, is between 60 and 70 feet in the villages. All villagers gather their water from tube wells and rely on them for both drinking and household use.

(b) Economic Sector The economic activities of the villages are divided into three sectors. There are agriculture sector, fishery sector, and other economic sectors.

(i) Agriculture Sector Traditional agriculture is the important income-generating activity in the study area. Main crops include paddy, groundnut, beans, sesame, corn, tomatoes and vegetables. There are six varieties of paddy most appropriate for the cultivated land of these four villages. These varieties include Manawthhukha, Hsinthwelat, Hsinnweyin, Yaybsinlonethwe, Shwethweyin and Ayeyarmin. Additionally, with different kinds of crops for oil regarding peanut, sesame and sunflower, various types of beans such as butter bean, green gram, pigeon pea, 75 chich pea, pea kyar, black gram, blue phaseolus lunatus, soya-bean, rice bean, seasonal vegetables, millet, corn and rice beans for cattle are also grown within their capacity. With double cropping every year, rain paddy is primarily grown during the rainy season. On the other hand, summer paddy as well as beans and groundnut are also grown in summer and winter seasons. During the rainy season, cultivated lands by traditional means are mainly used, which are much dependent on natural rainfall and water from Hsedawkyee dam. Seasonal crops like tomatoes, mustard, Chinese kale and lettuce are also grown in summer. In winter and summer, farmers cultivate crops which were depended on Taung Thaman Lake’s water. Key economic activities of other six villages are agricultural production, which is the main source of rural income for local villagers. Most of the crops include groundnut, butter bean, rice bean and blue phaseolus lunatus. It was found that groundnut is the major crop mainly cultivated in Ba Naw and Shan Ka Lay Kyun whereas butter beans are principally grown in Hpa Ye Kyun. For Tat Gyi village, rice bean, butter bean, and red phaseolus lunatus are principal cash earning crops.

Conditions of Firm Inputs Ten villages in the lake area normally used, traditional as well as modern farming implements leading to increased productivity of paddy. Inside these villages, the average total paddy productivity per acre is approximately 95 bushels. The possessions of farming implement do play a vital role for farmers while the State Government is assisting from all angles. With regards to an increase in paddy production, several ways existed such as expansion of cultivated land in villages. Enhancing the productivity rate per acre and focusing on the quality of extra crops are the main issues in the area. In these Lake areas, chemical fertilizers are extensively used by mixing Nitrogen, Phosphate and Postassium Phosphate which are important chemicals for crops. Even though there are various kinds of chemical fertilizers, it is necessarily crucial to use appropriate fertilizers on a systematic basis. Appropriate in the sense that these fertilizers are relevant to the kinds of crops and the situation of local soil. Furthermore, it also becomes necessary to choose and use suitable insecticides depending on existing kinds of pests in the region. When there is little infestation, farmers can use different ways, such as picking and removing by hand, burning, 76 flushing water and raising friendly insects by bio-technological means of destruction of pests. Types of insecticides used to prevent the danger and threats of pests which can damage rice crops are Bokachi and Phuharan. It becomes necessary to choose these insecticides depending on the local pests.

Cost expenditures for Crop Production In Oh Bo, Semihtun, Htantaw and Taungthaman villages, farmers mainly grow monsoon paddy where cost of production is incurred. According to the 2018- 2019 season, estimated cost per acre of land reclamation of paddy, dyke reparation, digging swampy canal as well as canals around the fields and charges of water corning paddy production (Ayeyarmin-seeder) is 120,000 kyats. Cost per acre with regards to price of seeds, sowing the seed in water, covering the seeds, broadcasting seed, pulling out rice seedlings, and transplanting paddy for cultivation is about an estimated 55,000 kyats. Estimated cost per acre of Urea, T super, insecticides, wages for insecticide, and weeding for using material aid is around 100,000 kyats. Cost of production for one acre of harvesting, carrying a sheaf of paddy and winnowing is roughly 102,000 kyats. Therefore, total estimated cost per acre of paddy production (Ayeyarmin) in these villages is 377,000 kyats. (There are (339) paddy acres in the whole villages.) In the year (2018-2019), cost of production per acre of other crops was seen as follows. Estimated cost per acre is found to be 334,000 kyats for groundnut, 200,200 kyats for sesame production, 150,500 kyats for sunflower, 144,500 kyats for soya- bean, 150,000 kyats for green gram, 140,000 kyats for rice bean and 142,000 kyats for red phaseolus lunatus. In the other villages, the major crops of peasant farmers are beans and oil seeds. According to the (2018-2019) estimates, the estimated cost per acre of land reclamation for groundnut, dyke reparation, digging swampy canal and canals around the fields and charges of water for groundnut is 230,000 kyats. Cost per acre of price of seeds, sowing the seed in water, covering the seeds, broadcasting seed for cultivation is approximately 96,000 kyats. Estimated cost per acre regarding Urea, T super, insecticides, wages for insecticides, and weeding for using material aid is 50,000 kyats. Further, the cost of production per acre of harvesting, carrying a sheaf and winnowing of groundnut is an estimated 77,000 kyats. Therefore, total estimated cost per acre of groundnut 77 production in the villages is an average of 453,000 kyats. In the year (2019), estimated cost for per acre is 277,000 kyats for butter beans, that of rice bean production is 235,000 kyats for rice beans and 260,000 kyats for blue phaseolus lunatus.

Income and Profit from Crop Production In 2018-2019, various types of rice/paddy cultivated in Oh Bo, Semihtun, Htantaw and Taungthaman villages were Manawthukha, Ayeyarmin and Shwethweyin. The selling price of Manawthukha per bushel is 7,000 kyats. For Ayeyarmin and Shwethweyin, the selling price is 10,500 kyats and 8,500 Kyats respectively. The average rice productivity per acre is about 94 bushels. Therefore, the estimated revenue of paddy production (Ayeyarmin) per acre is 987,000 kyats. With the difference in the revenue per acre 987,000 kyats and total estimated cost per acre 377,000 kyats, the total profit of one acre becomes 610,000 kyats. In 2018-2019, there were (339) cultivated paddy acres in the whole village and total paddy production was (31,866) bushels. Accordingly, the estimated total revenue amount of Ayeyarmin was (334,593,000) kyats and the estimated amount of total costs of paddy was (127,803,000) kyats. As a result, the total profit for the whole villages was 206,790,000 kyats i.e. (206.79 million Ks). In terms of production, the types of crop cultivated by other villages in 2019 were groundnut, butter bean, rice bean and blue phaseolus lunatus. The selling price for groundnut per bushel is 24,000 kyats, for butter bean is 35,300 kyats, for rice bean and blue phaseolus lunatus is 23,000 kyats and 18,600 kyats respectively. The average groundnut productivity per acre is about 30 bushels. Thereby, the estimated sales amount of groundnut production per acre was 720,000 kyats. With the difference between the sale income per acre 720,000 kyats and total estimated cost per acre 453,000 kyats, the total profit of one acre becomes 267,000 kyats.

(ii) Fishery Sector This is one major branch of economic activity within these villages. The fishing activities are commercially carried out on the Taung Thaman Lake where fish farming is allowed within the Lake. These farms mainly breed fifty species of fishes in the Taung Thaman Lake within an area covering 1,000 acres. Many farm families earn a living through this fishing business. 78 In the previous years, fish farming was mainly carried out freely by villagers in these village tracts. Ever since the late 1990s, the lake was auctioned for fishing to businessmen through locking all waterways inside the Lake. Given that fact, water flow has stopped at the Taung Thaman Lake since then. However, the auction for fishing at the Lake was stopped after the period 2015 by the Regional Government. Therefore, no large-scale fishing businesses were seen in the Lake for the last three- year period, except for some small-scale finishing activities at subsistence levels.

(iii) Other Economic Sectors Most of the local populace inside these villages earns their livelihoods through agriculture, fishing, animal husbandry, cotton cloth (hand weaving), and the art of carving wood or ivory, hostels, grocery and stores, government services, carpenters, computer and copy businesses and hawker business. Due to many difficulties of agriculture, some turned into daily-wage earners such as woodcarvers, masons, painters and ironworkers in construction while some changed their livelihoods by opening tailor shops, café shops, private hostels, beauty salons, phone and accessories shops, purified water and cold drinks shops, restaurants, concrete ware, pawn shops and stores. Besides, people sell their surplus products directly to nearby towns namely Myintnge, Mandalay, Sagaing, Amarapura and Kyaukse as well as to lower Myanmar, Shan State and other parts of the country. Among these products, many kinds of fishery products, fabrics and agricultural products are sold in the markets in Mandalay. Earnings from Livestock farming are in fact substantial and increasing incomes for many families. Since animal husbandry partially contributes to increase incomes, breeding, different kinds of animals like buffaloes, bulls and cows, sheep and goats, pigs, chicken and ducks have turned into commercial business. Some local residents also made their living by small-scale private business or trading, manufacturing, cotton cloth (hand weaving), and other service industries like company staffs, government employees, and general workers. In the study area, as households became well-off, the use of electricity devices and household appliances are in direct relationship with increased incomes. Since most households come into possession of television sets, video, radio, satellite and mobile phone, the need for repair shops also come into existence. Therefore, apart 79 from traditional production and businesses, there are many spills over effects within the rural Lake community

3.3 Tourism-based Businesses Tourism has turned into a key driver of socioeconomic development as one of the largest and increasing economic sectors in the world (UNWTO, 2014). One of the most rapidly growing sectors in Myanmar is tourism-based businesses. This growth has been related to increase demand for various types of recreation, relaxation and entertainment in natural environments. There are frequent visits by locals and foreigners to the Taung Thamn Lake and U Bein Bridge. The Taung Thaman Lake is one of the favorite destinations of tourists who arrive in Mandalay. An increase in tourism has led to a large increase and on vendors and local businesses surrounded by the Lake. The development in tourism-based businesses, such as sightseeing by boat (Ngat Hlay), selling local products and other shops has gained a significant increase in the local residents’ source of income. The services due to local boats (Ngat Hlay) around the Lake have started since 1980 and to the present. Before 1996, the local people, mainly use Ngat Hlay for travelling or transporting people and products from one bank to another of the Lake during deep water levels during the rainy season. Total number of boats in those days were about fifty in numbers. Visitors enjoy bird watching, scenic beauty of the lake environment, and the sunset by riding those boats. Nowadays, Lake Boats have turned into businesses where earnings of these boatmen have also increased. In 2018-2019, passengers have to pay Ks.6000 per route in the morning and Ks.4000 per route in the afternoon. A boatman organization appeared that carried out sanitation works at the bridge and Lake. The earning of a paddler is about 50,000 kyats per week during the tourism peak seasons from October to February. For the rest of the year, particularly in the low tourism seasons, earning is simply about 20,000 Ks per week. During the low tourism seasons, only the elderly paddlers work in the boat business while the younger paddlers change their livelihoods to other businesses like photographers, painters and general workers, etc.

80 Before 1996, there were no restaurants in this place. During those days, there were only some vendors which sold fried fish from the lake. After 1996, these vendors started some restaurant business due to tourism development in the area. After 2002, the number of restaurants increased due to the development of tourist arrivals. The restaurant business is not only performed by the local residents, but also by other from other parts of the country. In 2018-2019, daily income of a restaurant is average about 40,000 kyats. During the holiday and tourist seasons, a restaurant earns from 100,000 kyats to 150,000 kyats per day. During days of water festival, a restaurant earns over 500,000 kyats. With the increasing arrival of visitors, numerous restaurants appeared even in their agricultural lands. Therefore, it was seen that tourism created large employment opportunities for the local community. Clothing shops were not seen before 1996 but soon after 2002, a significant number of these shops appeared around the Lake environment. Most of these shops sell the local fabric domestically weaved in the region. Local fabric comes from nearby regions like Myingyan and Amarapura. In the low tourism seasons, these shops earn an average of 30,000 kyats per day. However, in high tourist seasons and holidays, income earned is around 50,000 kyats to 100,000 kyats. After 2002, a significant number of souvenir shops, art galleries, shoe shops, boutiques, photo shops, fancy stores, grocery stores and coffee and snacks have increasingly appeared. Photographing has also turned into a profitable business due to the scenery of the Lake and the Bridge. Tourism-based businesses also have both positive and negative impacts on the local community. Local income depends much on the arrival of both local and foreign visitors. Economic analysis showed that the region is in need of a stable and regular income for the locals. However, due to changes in the Lake environment, including the Bridge have turned into more visitors every year.

3.4 Challenges and Environmental Problems of Taung Thaman Lake In Taung Thaman area, water quality of the Lake is essentially important for health and social welfare of the local populace. Situated in the Amarapura Township, the water body of the lake is approximately 600 ha. The Dokhtawady River flows to the south and the Ayeyarwaddy River flows to the west. The Lake itself is a large floodplain transformed into a permanent lake by means of water control. Urban and 81 industrial development around the Myothit area is the major source of water pollution usually from waste discharges directly into the Lake. In spite of the fact that the Lake site is favourite for tourists, many have recently complained about the smell coming from it. There are two general sources of water pollution: point and non -point sources. Point sources are industrial discharge pipes and municipal sewer outlets that pour pollutants directly into an aquatic ecosystem. Non-point sources are indirect sources of pollution such as runoff from agriculture, forestry, urban and industrial activities and land fill leaches and airborne matter. According to Painchaud and Jean, 1997, water pollution from human activities includes nutrients, heavy metals, persistent pesticides and other toxic. Since the late 1990s, the Lake was auctioned off for fishing to businessmen through locking all waterways of the Lake. Ever since, water flow has stopped causing more damage to the Lake. In fact, the Lake is a natural reservoir that becomes full during monsoon seasons along with the rising water levels of Ayeyarwady River and sea water recedes during the summer months. However, in the late 1990s, the then military government ordered that a dike should be built to control the water flow, creating a year-round lake. Given that the Lake was used for commercial fishing since 1989, untreated wastewater from a nearby industrial zone has increased water pollution over the years to the detriment of its fish stocks and the broader ecosystem. Many experts suggest that the above activities control the free-flowing water, sustainability of seasonal flora and fauna of the area, farming and decay of U Bein Bridge. The most severe environmental problem was faced at the Taung Thaman Lake in 2015 where several thousand of fish simply died. A prominent event found was that of thousands of fishes died in April and May, 2015, in the Lake (Khin Su Wai, 2015). According to Sithu Lwin (2015), industrial effluent, such as from the distillery, tannery and factories making pie, sugar and soap in Mandalay Industrial Zone flow directly into the Lake and dispose of without treatment. The main cause that has killed hundreds of fish in the Taung Thaman Lake was the inflow of industrial waste in Amarapura Township, Mandalay. Waste water from factories of Mandalay Industrial Zone in Pyigyidagon was not at all purified before it was drained into Payantaw Creek, causing fish to die from a lack of oxygen. This waste water left more than 160 kilograms of six species of dead fish. In many parts of the Mandalay industrial zones, especially where surface water supplies are 82 unavailable, industrial water needs can only be met by using the underground water. Manufacturers should ensure that water through their systems must pass through a proper water pre-treatment process. The use of wastewater in the production process is usually found in a few factories such as paper factories. Most factories discharge wastewater into the Lake without any pre-treatment process. There has to be a plan for raw water treatment and distribution from the Dokhtawaddy River for Pyigyitagon Township. From this plan, industries can be partly supplied with treated fresh water. The polluted waste water has also led to the failure of a fish breeding project inside the Lake. Even this will do little to enhance its picturesque reputation. Due to this deterioration of the Lake, local authorities from Amarapura Township started their plans for education and public awareness on waste separation and recycling of waste. In the meantime, the Mandalay City Development Committee (MCDC) temporarily postponed the renewal of licenses for 17 factories, including 12 plants due to the above pollution reasons. This temporary stoppage of factories led to local industrial unemployment affecting the survival of families. This also affected many areas of other businesses. In 2019, there were no large and medium scale factories in the surrounding areas of the Lake. Since 2017, except for only one candy factory and one fabric factory, other factories, including alcohol factories, sugar factories and rice mills have been barred from operation. Similarly, the agricultural sector also faces many challenges such as flood in rainy season due to blockage of the flow of Lake Water. Many factors have driven local farmers to conduct less farming. Moreover, the profitability ratio of return on investment of agricultural production per acre is less due to high production costs, seasonal diseases and unfavourable weather conditions. In addition, farmers lost confidence in producing agriculture commodities due to uncertainty in the environment, imperfect knowledge, low quality of output, unstable product prices among many other difficulties. Most of the villagers sell their lands on account of low agricultural activities. Due to the result of these changes, economic and social structure patterns have relatively changed in the study areas. The transformation was seen as businesses turned towards service firms such as retail stores, hostels, restaurants and other recreational businesses. Many changed their livelihoods to become general workers, vendors, carpenters, civil servants, migrant workers, and etc. On the other side, other 83 types of businesses and educational institutions are seen to have developed in nearby areas. Therefore, a dramatic change happened to the people who relied much on the Lake water in the past. U Bein Bridge in the Lake environment was constructed with teak wood and its length is nearly one mile. Built with more than a thousand teak pillars, it is over one hundred and sixty- five years old and the longest standing teak bridge in the entire world. The majority of the visitors are regarding U Bein Bridge are during and after summer especially in times of festivals. Many come from Yangon, Bago, Nay Pyi Taw, USA, Italy, Korea, Japan, and all over the world. The scenery of the Lake and the wooden bridge has turned into one of the best sites to watch the natural sunset. In recent times, some pillars and floors of the Bridge were damaged by the Lake Water and nature. There was replacement of some pillars have with concrete, though many of the original floorboards are still needed to be replaced. Inside the booming Tourist Lake and Bridge area, a large increase was seen in the development of local businesses, socio-cultural factors, environmental factors and population growth. Due to this, pollution with garbage, plastic and others have caused deterioration to the banks of the Taung Thaman Lake near the U Bein Bridge. All these waste disposal and environmental pollution factors are in fact severe challenges and problems to the Lake, and have consequently led to a negative impact on the Lake ecosystem and a decrease in its water quality.

3.5 Conservation Measures by Diverse Stakeholders Conservation measures for the Taung Thaman Lake have been conducted by Government bodies as well as various other (Non-Government Organizations (NGOs) and Civil Society Organizations (CSOs). Also, at the national level, the Government of Myanmar is in the process of making conservation efforts to be consistent with the National Environmental Policy set 1994.

3.5.1 National Environmental Policy Vision and Purpose In Myanmar, environmental conservation efforts are implemented in accordance with the National Environmental Policy set in 1994. The vision of Myanmar environmental policy is to generate clean environment with healthy and functioning ecosystems, ensuring inclusive development and well-being of all people.

84 This is done with the purpose of establishing national environmental policy principles for guiding environmental protection and sustainable development as well as for mainstreaming environmental considerations into all policies, laws, regulations, plans, strategies, programs and projects in Myanmar. To pursue such a vision, the Myanmar government adopts 23 National Environmental Policy Principles as the guiding framework for achieving a clean environment and healthy, functioning, ecosystems; sustainable economic and social development and mainstreaming of environmental protection and management. These 23 principles are categorized into three main groups: 1) To create clean environment and healthy, functioning ecosystems, 2) To achieve sustainable economic and social development and 3) To the mainstream environmental protection and management In addition, these principles are linked with SDGs for achieving sustainable development. The first includes 7 points which show every person and citizen living in Myanmar has the right to access to a clean and healthy environment, and to protect the environment (Goal 1, 2, 3, 6). The complete value of Myanmar’s environment is recognized and considered both tangible and intangible values, including its significant spiritual values, ecological assets and cultural heritage. In addition to its direct benefits for humanity, environment and natural resources management will recognize the critical roles that Myanmar’s natural capital and ecosystem services play in the country’s society and economy (Goal 14, 15). Myanmar’s ecosystems are to be protected and managed in sustainable ways to ensure their natural functions and resilience and rich biodiversity are maintained. (Goal 13, 14, 15). Natural resources are to be protected and managed in an integrated and sustainable way to ensure their availability and quality for future generations is not diminished (Goal 14, 15). The rights of indigenous people and ethnic nationalities to their lands, territories, resources and cultural heritage, and their roles in environmental conservation and natural resource management are recognized and protected (Goal 10, 16). Environmental service provisioning that includes waste management, wastewater treatment, drinking water purification, ambient air and water quality monitoring and management will be included as necessary parts of infrastructure planning and development of urban and human settlement areas, with resource efficient and zero waste approaches used (Goal 6, 7, 9, 11, 13, 14, 15). 85 The second is the sustainable economic and social development that contains 7 facts that environmental sustainability will always be the primary objective in determining Myanmar’s economic and social development strategies. This will prioritize low- carbon and green economy pathways, including responsible investment and partnerships with the private sector and civil society (Goal 1, 8, 10). Recognizing the inextricable link between environment and poverty, environmental considerations are important to effective people-centered development and will guide development strategies so that sustainable and equitable approaches to improved prosperity and living standards are pursued (Goal 12). Further, sustainable and renewable energy for the needs of people and for economic development will be secured and utilized efficiently, through the use of existing technology and innovations (Goal 7, 9, 11, 14, 15). Climate support approaches to development, including resilience, climate change adaptation and mitigation, and disaster reduction strategies will be aligned to environmental protection and good natural resource management approaches (Goal 7, 9, 11, 13). The economic values of environmental services will be recognized and incorporated in development policies so that these values are optimized and captured to the possible extent (Goal 15). Pollution and waste are to be avoided and minimized at the source as more cost effective than remediation with enterprises adopting clean production principles and best practices (Goal 3, 6). Remediation of past environmental damage will be prioritized in development planning and decision- making to promote green outcomes and give effect to the polluter pays principle (Goal 8). The final mainstreaming environmental protection and management consists of 9 principles. These include institutional and legal frameworks for implementing and enforcing environmental laws. Policies will be strengthened through a clear definition of rights and responsibilities, and greater collaboration among different institutions within the government at all levels, as well as with non-government stakeholders (Goal 16, 17). All decisions on policies, plans, projects and activities on environmental impact will be subject to prior comprehensive assessment of their potential impact, applying the precautionary principle, systematic risk assessment and the mitigation hierarchy (Goal 16). Environmental decision making at all levels will be inclusive, transparent and accountable to relevant stakeholders, with communities and citizens having the right 86 to participate in decisions and access information that could affect their lives and property (Goal 16). Gender equality and the empowerment of women and girls will be integrated in all aspects of environmental protection and management (Goal 5). Environmental education, public awareness raising and quality research will be promoted to enhance respect for the country’s environmental values, understandings of environmental challenges and commitments to environmental conservation and sustainable development (Goal 4). Environmental governance arrangements will be responsive to peace processes, and arrangements in sub-national areas, including self-administered areas, recognizing that the peaceful and just societies, and environmental conservation and sustainable development efforts are mutually beneficial (Goal 16). Financial sustainability of environmental governance is to be achieved through the application of the polluter pays principle and the use of green financial instruments, international cooperation will be sought to strengthen environmental conservation and sustainable development in Myanmar. In addition, conservation of the natural environment in Myanmar is in the process of implementing in line with the Constitution (2008), Environmental Conservation Law (2012), Environmental Conservation Rules (2014), Environmental Quality Guidelines (2015), EIA Procedures (2015), SEZ law (2014), Relevant Sectoral Laws and Rules, etc. According to the Environmental Conservation Law (2012), environmental objectives in Myanmar are; 1. to execute the Myanmar National Environmental Policy; 2. to set basic principles and give guidance for systematic integration of environmental conservation in the sustainable development process; 3. to materialize a healthy and clean environment and to preserve natural and cultural heritage for the benefit of present and future generations; 4. to retrieve ecosystems which are deteriorating; As stated in the National Comprehensive Development Plan (NCDP) (2015), key strategic principles for the Environmental Safeguards include: 1. The management of the environment and natural resources such as land, forests, water and coastal ecosystems in a sustainable manner,

87 2. The promotion of sustainable and transparent investments in oil and gas production, mineral extraction, hydro-power, infrastructure and agriculture in ways that sustain the resource base and benefit the whole population; 3. The reduction of environmental health risks of air and water pollution with improved access to energy, water and sanitation; 4. The decline in vulnerability to climate change related disasters and impacts.

3.5.2 Environmental Conservation Measures for the Taung Thaman Lake After a series of massive die-offs of several thousands of fish in the Lake, the Mandalay Regional Government took action by investigating the nearby factories inside the industrial zone. According to the survey regarding water quality conducted by the Municipal Water and Sanitary Department, several factors have affected the water quality of the Taung Thaman Lake. These include both pollutants and toxins from factories like alcohol factory, sugar processing plant, leather factory, fertilizer plant, paper factory and soap powder factory. These factories are found to be located in Pyigyitagon Township, Mandalay Region. A series of actions was untaken by different stakeholders for Environmental Conservation Measures of the Lake. As a first step, according to the Freshwater Fisheries Act, Article 45, the local government suspended 17 nearby factories in the industrial zone in Mandalay Region and further took legal action against 12 factories that discharged polluted water and substances into the Lake. After these actions, local people in Amarapura Township were educated and provided awareness programs through government departments concerning waste separation and recycling of waste. Regarding waste water pollution, a three-year project (June 2015 to May 2018) was jointly conducted by the Ministry of Natural Resource and Environmental Conservation, the Mandalay City Development Committee (MCDC) and the Japan International Cooperation Agency (Sithu Lwin, 2018). The said project included water quality surveys, database development, interpretation of the water pollution control plan and technical guideline format preparations and review on impact assessments. Civil society groups also took part in the findings in the study which revealed that nitrogen and phosphorous content on

88 Dotehtawady River and fields in the Taung Thaman Lake are relatively high due to agriculture waste and fertilizers. Nonetheless, it was found that collaboration between these groups was weak and the results from the Ministry and JICA are still in process. After 2018, MCDC continued to test of Lake Water quality on a monthly basis. In 2015, the Regional Government opened the storage of Taung Thaman Lake for free movement of water in order to reduce the high level of water pollution and also stopped the auction of the fishing business. All these were aimed to clean of the local environment and sustain the world’s longest teak bridge. In 2016, rehabilitation efforts and restoration work project were planned for the Lake and as well as U Bein Bridge by one local committee to maintain this major tourist attraction area. Under the said project, repairs were untaken for the 160-year- old Bridge. Some of the damaged parts were replaced with floorboards, though some old teak woods still remain. The Lake and the Bridge were reformed without affecting the environment or culture in the area. What is more, the Taung Thaman Thitsar resort and culture park Project was planned in order to protect the natural environment and culture of the Lake Area as well as for rural development. The Project, located on the eastern bank of the Lake near the area of U Bein Bridge, aimed to construct a resort and culture park which was negotiated between the Regional Government and local residents. It was committed to fulfill the needs of local people living around the Lake. Taungthaman Thitsar, a Mandalay-based company will construct a park with an area of 16.2 ha site close to the tourist sites of the lake and the Bridge. This project was planned to uphold Myanmar traditional cultural heritage. The project initially started in April, 2015 where about 40 acres of local land were purchased. The implementation included the construction of a model village and cultural park on two land plots of 40.27-acres and 58.83-acres that also included residential complexes, traditional cultural booths, handicraft malls, tourism service area and a recreation park surrounding the Lake in Amarapura Township. The Company hired Yangon-based OSHE (Occupational, Safety, Health & environment) Services Company Limited for the environmental and social impact assessments as well as a heritage impact assessment as the site is near the Taung Thaman Lake and U Bein Bridge. The investment of many hotel rooms, Resort Park, traditional culture, handicraft malls including Myanmar traditional culture and Taung 89 Thaman resort project were estimated around 300 billion Kyats. This project continued till mid-2015. However, the Government suspended the project in 2016 due to complaints related to the use of farmland by the project. Other problems included the unknown source of funds and procedural requirement in the government hierarchy. Moreover, Taung Thaman Lake and U Bein Bridge were so invaluable that the antique historical and cultural heritage cannot be allowed to be impacted by the Project. In May 2018, the Myanmar Investment Commission (MIC) granted a permission to restart the Project again. Feasibility works were being carried out and permission to restart construction was submitted to the Mandalay City Development Committee (MCDC). The analysis on environment, land issues and an investigation into the project potential negative impacts was done by the MCDC. In addition to meet environmental requirements audited by a third party, other requirements also included adherence to the policies of the Department of Archaeology and National Museum. In 2019, the Taungthaman Thitsar project purchased about 200 acres of land from villages like Taungthaman, U Yin Daw, Ywa Thit, Bone Oh, Nwar Noetaw Su and Tae Nant Thar. The cost was about 50 lakhs for one acre for water land and about 1000 lakhs for one acre of land. Recently, the Company has completed 70% of basic foundation and 40% of clearing works. Other projects include the Irrawaddy River Urban Project of Mandalay Business Capital City Development Ltd (MBCCD) which is planned near the Shan Lay Kyun. The Mandalay Divisional Government also allowed Amarapura Urban Development Project to begin the initial stages of the major development project on an island in the Irrawaddy River, despite protests from locals and environmentalists. This project will include public buildings, modern hotels, hospitals, business centers, markets, shopping centers, government offices, vocational training centers and public recreation areas on 40 acres on the island. The Amarapura Urban Development Project will implement works with an initial capital investment of K500 billion and continue to raise the necessary funds by selling company shares and seeking bank loans over the 10- year project period. The majority of the employment will be for local people, but foreigners will also be employed in terms of technological skills. This project is expected to create more than 70,000 job opportunities. 90 Hoping that the Project would bring regional development to the region and protection of the surrounding environment, an analysis on the project’s social and environmental impact was submitted to the Mandalay regional government. The aim is to ensure that the area will be protected from natural disasters and environmental impacts. With technical assistance from Dutch experts, the Project is expected to take at least 10 years for completion. Challenges for the project include the effects on the river flow during the monsoon season that could result in the flooding of the lower regions. Other challenges include flooding on the island during the monsoon season where residents may have to move to the mainland. However, most of the residents live in two-story stilt houses and live upstairs. The Company also promised the residents of new housing after the construction is completed. Another project called Green City Project run by Green Company Ltd also came into the picture after 2015. The aim was to develop urbanization around the Lake. This project purchased about a total land of 100 to 200 acres of villages like Bone Oh, Oh Bo, Semihtun, Htantaw and Shwe Gun Htoke. The cost of land was about 75 lakhs per acre. Currently, the Project was suspended because permission is not granted yet. In addition, Civil Societies Organizations and communities also persuaded the local people in collecting garbage near the Lake as well as cleaning up the water with regards to environmental conservation on a weekly basis. Promotion of environmental education and awareness activities are also done in collaboration with INGO, local community and the Ministry of Environmental Conservation, Forestry and Natural Resources. Rehabilitation of the Lake and the Bridge without affecting the environment and the culture of that area are extremely crucial. These will include the free flow of water, water treatment process, landscaping through parks and planting seasonal flowers, and maintaining winter migratory birds which has become less in numbers due to unclean water, scarcity of fish and most of climate change. It must be seen that all these environmental conservation measures will enhance and develop tourism in the future.

91 CHAPTER IV SURVEY ANALYSIS

Chapter four presents the applied methodology and empirical study. In this chapter, the profiles of villagers, local visitors and foreigners, tourism-based businesses and factories and firms are stated in section 4.1 while survey design is described in section 4.2. The sampling design is expressed in section 4.3; data collection techniques are further explained in section 4.4, data analysis that shows the market value analysis, and binary logistic regression analysis is in section 4.5, the survey data is examined in section 4.6 and survey results are analyzed in section 4.7.

4.1 Survey Profile The study is focused on the Taung Thaman Lake in the Amarupura Township, Mandalay Region. The study covers 10 selected villages selected in the study area. These villages are Oh Bo, Semihtun, Htantaw, Taungthaman, U Yin Taw, Shan Ka Lay Kyun, Tat Gyi, Hpa Ye Kyun, Souk Taw Wa and Ba Naw. The total number of households is 5,084. Moreover, tourism-based business, factories and firms are surrounded by the Lake and surveys were conducted on local visitors and foreigners.

(1) The Profile of Villagers Oh Bo village is located 1 furlong distance from the Taung Thaman Lake. Consisting of 519 households (2405 people), its area is (40) acres, about (0.063) square miles. Also, Semihtun village is located 1 furlong far from the Lake with 174 households (893 people) and also with an area of (14) acres, about (0.022) square miles. Htantaw village comprises 818 households (3096 people) with an area of (50) acres, about (0.079) square miles and the same distance like the mentioned villages. Taungthaman village has 209 households (899 people) and its area is (30) acres, about (0.047) square miles, with 1-furlong distance from the Lake. Villagers used to earn their living as farmers, ranchers, sculptures, painters, grocery and store owners, civil servants, carpenters, traders and merchants, fishermen, general workers, restaurant owners, and hostel owners. Village households are as follows. U Yin Taw with 735 households (2842 people) and 1.5 miles distance from the Lake; Shan Ka Lay Kyun with 850 households (2873 people) and 2 miles distance; Tat Gyi with about 298 households (1354 people) and 5 miles distance; Hpa Ye Kyun with 270 households (1150 people) and 6 miles distance; Souk Taw Wa with 927 households (4147 people) and 6 miles distance and Ba Naw with 284 households (1281 people) and 7 miles distance respectively. Main livelihoods of villagers are farmers, ranchers, sculptures, painters, grocery and store owners, civil servants, carpenters, traders and merchants, fishermen, restaurant owners and hostel owners. A total number of the 700 villagers are being investigated in the study area.

(2) The Profile of Visitors Visitors being interviewed included 300 local visitors and 100 foreigners. Local visitors consist of undergraduate university students, government servants, merchants, and restaurant owners in Yadanabon University and households in Maha Aungmye, Patheingyi, Aungmyethazan, Myothit, Chanmyathazi, Chanayethazan, Pyigyidagun townships, Civil Society Organizations in Mandalay Region, Yangon, Bago, Nay Pyi Taw, Sagaing Region, Kachin, and Shan State. Interviewed foreigners were from USA, Italy, Korea, Austria, Poland, Norway, Japan, Argentina, Russia, UK, Hong Kong, France and others from other parts of the world.

(3) The Profile of Tourism-based Businesses Most of these businesses surround by the Lake and include shops like fabric shops, souvenir shops, photo shops, art galleries, shoe shops, boutiques, restaurants, grocery and stores, fancy stores, coffee and snack shops. Additionally, boatmen and cameramen who earned their living using the Lake’s environment for tourism are also interviewed. A total of 30 businesses are being interviewed.

(4) The Profile of Factories and Firms A number of 30 industrial firms and factories from a nearby industrial zone are also investigated under the study. Located around 5 miles distance from the Lake,

93 these included alcohol factories, sugar procession plants, leather factories, fertilizer plants, paper factories, soap powder factories, fabric factories, and food industries.

4.2 Survey Design The survey design of the study involved both qualitative and quantitative methods. Data was collected using face to face interview with a structured questionnaire. Target population included a total of 1160 respondents. A survey instrument based on the concept of Contingent Valuation was designed with primary data relating to the Lake conservation program. Focus group discussions involving community leaders were organized for the questionnaire. It was pre-tested and corrections were made to confirm whether respondents are fully understood. Special attention was devoted to responses given by respondents in relation to the hypothetical scenario, the payment vehicle and the willingness to pay question. The survey questionnaire was designed with three sections: section I relates to socioeconomic information, section II relates to respondents’ attitude, knowledge, and perception on the Taung Thaman Lake and section III relates to a conservation program for the Taung Thaman Lake. Included in these sections are household’s socioeconomic characteristics, economic and environmental issues, a method by which the survey elicits respondents’ preferences along with a follow-up question. Secondary data were obtained from General Administrative Department, Ward and Village Tract Administration Office, Ministry of Agriculture, Livestock and Irrigation Department, Mandalay City Development Committee (MCDC), Department of Agricultural Land Management and Statistics and Department of Meteorology and Hydrology.

Sample Size Determination The two-stage sampling design was done in this study and simple random sampling without replacement (SRSWOR) was also used in both stages. Villages were treated as first stage units (FSUs) and households in the selected villages were treated as second stage units (SSUs). In the first-stage sampling, villages were randomly selected from the sampling frame of 7 miles distance from the Taung Thaman Lake. The sampling frame is a complete list obtained from the General Administration Department of Amarapura

94 Township. At the first-stage sampling, the SRSWOR method was used to select 10% of villages (10 villages) from 100 villages. In the second-stage sampling, a household listing operation was carried out in the selected villages to provide the most updated sampling frame of the data collection period regarding the selection of households. The lists of households served as the sampling frame for the selection of households in the second-stage sampling, where households were randomly selected in each selected village. According to Krejcie and Morgan (1970), the required sample size used for categorical data is pq z2 0.5 ( 0.5 ) (1 .96)2 n = = =784 0 d2 (0.035 )2 where, p = 0.5 (maximum possible proportion) d = 3.5% (acceptable margin of error for proportion) z = 1.96 for 5% significance level The number of households in selected villages is (5084) and the number of selected households (sample size) is (784). Since this sample size exceeds 5% of the population (5084 × 0.05 = 254), Cochran’s (1977) formula was used to calculate the final sample size. Therefore, the final sample size becomes

n0 784 n= = =679 n 784 1+ 0 1+ population 5084 The assumption is that the response rate is 97%. Therefore, the required sample size is (679/0.97=700) 700 households. The sample size of the selected villages is shown in Table (4.1). Using these 700 households, 71 from Oh Bo, 24 from Semihtun, 113 from Htuntaw, 29 from Taungthaman, 101 from U Yin Taw, 117 from Shan Ka Lay Kyun, 41 from Tat Gyi, 37 from Hpa Ye Kyun, 128 from Souk Taw Wa, and 39 from Ba Naw were interviewed for Lake conservation. In addition, 400 people were interviewed for willingness to pay of visitors for conservation of the Lake. Among visitors to the Lake, 300 local visitors and 100 foreigners were selected by a systematic sampling method.

95 96 Table 4.1 Sample Size of the Selected Villages

Selected Selected Villages Number of Households Households Oh Bo 519 71 Semihtun 174 24 Htuntaw 818 113 Taungthaman 209 29 U Yin Taw 735 101 Shan Ka Lay Kyun 850 117 Tat Gyi 298 41 Hpa Ye Kyun 270 37 Souk Taw Wa 927 128 Ba Naw 284 39 Total 5,084 700 Sources: General Administration Department of Amarapura Township and Wards and Village-Tract Administration Office (2019)

At that time, stratified random sampling method was also used to select a sample of tourism-based businesses. According to the stratified random sampling, seven strata that include fabric shops, restaurants, souvenir shops, fancy and grocery stores, art galleries, camera men and boatmen association were chosen. Next, among (80) tourism-based businesses around the Lake, a number of (30) businesses were selected. Furthermore, simple random sampling (SRS) method was used for selection of factories and firms. These (30) factories and firms were located in the nearby industrial zone about 5 miles distance from the Lake situated on Amarapura and Pyigyidagun Township, Mandalay Region.

4.3 Data Collection Techniques Willingness to pay for the conservation of the Taung Thaman Lake was estimated by using the Contingent Valuation Method. The (CVM) method was quite extensively applied in both developed and developing countries for valuation of a wide range of environmental goods and services. Particularly, CVM was successfully applied to a variety of water related issues, including sanitation, water supply, and recreation.

97 In order to collect useful data and provide meaningful results, the Contingent Valuation survey is to be properly designed, pre-tested, and implemented. The CV survey questions must focus on specific environmental goods and services as well as on a specific context that is clearly defined and understood by survey respondents. For an environmental enhancement, any assessment in terms of monetary value may not be enough and also need to provide the development of specific environmental services. The results of a CV survey are often highly sensitive to what people are being asked to value, and the context being described in the survey. CVM method can be designed in five steps. The first step is to define the valuation problem. This includes determining exactly what environmental goods or services are being valued and the relevant population (local residents, general public, and visitors to the area). The second step is to make preliminary decisions about the survey itself. These include whether it will be conducted by mail, phone or in person, how large the sample size will be, who will be surveyed, and other related questions. Answers will depend on the importance of the valuation issue, the complexity of the question being asked, and the size of the budget. For the sake of an interview, the use in-person interview is assumed to be the most effective for complex questions, because it is often easier to explain the required background information to respondents. The third step is the survey designed with several procedures. It starts with initial interviews and Focus Groups Discussion (FGDs) with the General Administration Department, Ward and Village Tract Administrative Office, Visitors and Community leaders. In the initial focus groups (5 to 15 persons, both men and women), general questions would be asked that consist questions about peoples’ understanding of the issues related to the environmental good or service, whether they are familiar with it and the issues related to it, whether and how they value this environmental good or service. Interviews in later focus groups will consist of how to be able to support the survey questionnaire and decide required background information on areas, to be able to know how to present the questionnaire, and to be able to know their individual value, attitude and knowledge on the environmental good or services. With the gathering of all these data and findings from above interviews, it would then be able to test different approaches to the valuation question and different payment mechanisms. Any “protest” bids or other answers that do not reveal peoples’ values for the good or service of interest can be identified in this 98 stage. And questions about the social and economic characteristics of the respondents (e.g. age, gender, education, income) can also be tested. The fourth step is the actual survey implementation where the initial task is to select the survey sample. Preferably, the sample should be a randomly selected sample of the relevant population, using standard statistical sampling methods. Then, in-person surveys are to be conducted with random samples of respondents, asking people in public places to fill out the survey. The final step is to compile, analyze and report the results. Data must be analyzed with the use of appropriate statistical techniques with concern for the type of payment mechanism. In the data analysis, attempts must be made to identify all responses and possible non-response bias in a number of ways. The most conservative way is to assume that those who did not respond will have zero value. The impact of social and economic characteristics on the respondents’ WTP can also be investigated. Therefore, for a CV survey, it is crucial to clearly define the services and the context, and to obviously demonstrate that respondents are actually stating their values for these services when they answer the valuation questions. 1. Before designing the survey, it is important to learn as much as possible about how people think about the good or service in question. This includes people’s familiarity with the good or service, the importance of quality, quantity, accessibility, the availability of substitutes, and the reversibility of the change. 2. It is important to determine the extent of the impacted populations or markets for the good or service in question, and choose the survey sample based on the appropriate population. 3. It is important to choose the scenario which provides a precise and comprehensible description of the change in environmental goods or services associated with the event, program, invest, or policy choice under consideration. 4. It is crucial to ask WTP questions in a variety of ways, using both open- ended and closed-ended formats. In the open-ended format, respondents are asked to state their maximum WTP for the environmental improvement. With the closed-ended format, respondents are asked whether or not they would be WTP a particular amount for the 99 environmental improvement, or whether they would vote yes or no for a specific policy at a given cost. This format is generally accepted as the preferred method. 5. It is also crucial to interview the hypothetical question for WTP in order to know their preferred payment mechanism, for example through taxes or a donation. In order to be an effective question, it must win the confidence of respondents on the money being collected. This involves (i) who will collect the money and (ii) how often it will be collected (monthly, or six monthly or annually or only when it is required) and (iii) how the money will be effectively used for environmental changes. 6. To indicate the scenario clearly on the results of payment, e.g. what will be done in the absence of sufficient payment? 7. To examine the household income 8. To analyze the difference between the pre-testing and testing on the same question. There can be changes in their value of goods and resources. 9. To authenticate and verify the high response rate and a mix of respondents of the represented population based on receiving information. 10. Finally, to evaluate and interpret by using binary logistic regression analysis. Using the CV method, people will be interviewed in their willingness to pay for conservation program of the Taung Thaman Lake and entrance fees for U Bein Bridge. Regarding the willingness to pay questions, a single-bounded dichotomous choice Contingent Valuation method was conducted with thirty bids in this survey. The thirty bids are provided within the range of 100 to 3000Ks. With the intention of establishing thirty bids, the draft questionnaire was constructed based on the information from the General Administrative Department and Ward and Village-Tract Administrative Office. After that, discussions are made by villagers, vendors and visitors to explain the CV scenario, environmental conservation program, payment mechanism and draft questionnaire. At that point, face to face interviews were conducted with respondents. In the pre-test, draft questionnaire was asked to 50 numbers of visitors and residents as the first time. After that, second round of pre-testing on 100 respondents are conducted on previously asked residents.

100 Some of the interviewees answered the question regarding conservation and entrance fees that they could pay monthly and only once. After the pre-test with people, four bids for entrance fees: 500Ks, 600Ks, 1000Ks and 1500Ks for local visitors and below 1US$, 1US$, 2US$ and 3US$ for foreigners were chosen based on pre-test frequency. Seven bids for water quality conservation: 500Ks, 600Ks, 700Ks, 1000Ks, 1200Ks, 1500Ks, and 2000Ks for villagers were chosen based on survey frequency. There were some people who provide negative responses to the proposed bid and they were asked their preferred amount. In order to calculate and appraise the willingness to pay, survey questions are taken as reference from the economy and environment program for Southeast Asia research report series (EEPSA). There were about 35 questions in the questionnaire set. This covers 700 villagers near the lakeside, 400 visitors, 30 tourism-based businesses and 30 factories and firms. This involve all together 1160 people who were interviewed by contingent valuation (CV) method.

4.4 Data Analysis In assessing the economic value of the Taung Thaman Lake, this study focuses on the “use value”, which includes direct and indirect use values. There are several components of use value to be considered. This study identified two components where the availability of data allows the conduct of useful economic valuation methods. In analyzing the production value and willingness to pay for conservation and livelihoods of the villages in the Lake area, the employed tools are market value analysis, descriptive analysis, and binary logistic regression analysis.

4.4.1 Market Value Analysis A market price and value analysis is the estimated current price estimate for particular goods and services in a given market. The market value method measures the economic value of ecosystem goods or services being purchased and sold in trade markets. It is used in order to estimate changes in quantity or quality of goods and services. Standard economic methods are used to compute and determine the economic benefits of marketable goods, based on land area, input costs, quantity of output, and market prices. The value of directly used Lake Product was estimated on the basis of average quantities harvested, their market prices, costs of production, and the area of the 101 cultivated land of Lake provisioning service. The formula for calculating the crop production value is; n

U=∑ ( Ai× Qi × Pi) i=1 where, U = the crop production value of lake water resource,

Ai = the area of the cultivated land of crops,

Qi = the per unit of output of the crop and

Pi = the market price of crop for the year. n = the number of crops

4.4.2 Binary Logistic Regression Analysis For measuring the willingness to pay for conservation of water quality improvement and entrance fees for conservation program of villagers and visitors, WTP is a dependent variable and independent variables are bid amount, age, marital status of household head, education level, household size, main occupation, monthly income, distance/visit time, and attitudes concerning five government future plan; (1) The Government intends to raise more funds to deal with environmental programs, (2) The Government plans to collect taxes to pay for environmental conservation (3) Endangered species conservation is a priority concern of the government, (4) The Government will invest in helping people before it spends money on conservation, (5) Breaking rules for environmental conservation will be punishable by law Attitudes with concern to five public awareness are: (1) There are other more important environmental concerns than Lake conservation, (2) It is everyone’s concern to ensure that sustainability of plants and animals are important for the future, (3) Lakes are important even if there is no human connection, (4) Citizens should contribute to Lake Conservation by making cash donations,

102 (5) Households who earn more income should contribute more to Lake Conservation and the perception of willing to vote for the conservation program; protect the Lake environment, prevent encroachment of human and businesses, preserve cultural heritage sites in the Taung Thaman Lake, and manage sustainable development in the Lake environment. In this way, a binary logistic regression analysis is performed and P-value is also calculated to determine the regression coefficient. This analysis is appropriate when the means of two groups are to be compared. For this study, one group is dependent variable and another group is independent variable. Therefore, binary logistic regression is analyzed between dependent variable (WTP) and independent variable each using SPSS Statistical Software. In this study, the willingness to pay for a change in environmental quality can be stated by the following empirical binary logistic model.

(1) WTP for Conservation of Water Quality of Villagers, Pr(WTP=1) ( 1−Pr(WTP=1)) Log = β0 + β1X1 +β2 X2 + β3 X3 + β4X4 + β5 X5 + β6 X6+ β7X7 +

β8 X8 +β9 X9+ β10 X10 + β11 X11+ i

(2) WTP for Entrance Fees of Visitors Pr(WTP=1) ( 1−Pr(WTP=1)) Log = β0 + β1 X1 +β2 X2 + β3 X3 + β4 X4 + β5 X5 + β6 X6 + β7X7 +

β8 X8 +β9 X9+β10X10 + β11X11+ i where: WTP = the dependent variable, 1 is equivalent to the “yes” response, and willingness of respondents to pay for conservation program.

X1 = Bid Amount, X2 = Age, X3 = Marital Status, X4 = Education Level,

X5 = Household Size, X6 = Main Occupation, X7 = Income, X8 = Distance/Visit Time,

X9 = Attitude concerning government future plan, X10=Attitude concerning public awareness, and X11 = Perception of Conservation program are the independent variables. i is error term.

103 (3) Mean Willingness to Pay (MWTP) The logistic regression analysis is used to estimate the Mean Willingness to Pay (MWTP). The computation of model to elicit Mean (WTP) is represented in the formula:

Mean WTP = β0/β1

Where β0 is a constant value and acts as a coefficient of the dependent variable

(WTP) and β1 is the coefficient of the independent variable (bid amount). This function considered the bid variable as the only determinant factor.

(4) Aggregate Willingness to Pay The Aggregate WTP is calculated from the result of Mean WTP. Aggregate WTP is calculated from the total number of households (HH) / respondents in the target population. The total number of households from the respondents was used in the formula; Aggregate WTP = M (WTP) × % HHPV × NHH where: M (WTP) = expected mean willingness to pay % HH PV = percentage of respondents with positive valuation or those who answered ‘yes’. NHH = total number of respondents

For this determination of willingness to pay for conservation program, dependent variable (WTP) and (11) independent variables are examined. Identification of variables used in the willingness to pay for the conservation of the Taung Thaman Lake is shown in Table (4.2) and Table (4.3).

Table 4.2 Identification of Dependent and Independent Variables for Villagers Dependent variable Independent variables Willingness to pay Bid amount Y = 1 if yes X1 = 1 if 500-1000 = 0 if no = 2 if above 1000 = 3 if no Age X2 = 1 if 30 years and below = 2 if 30-40 years = 3 if 40-50 years = 4 if 50-60 years = 5 if 60 years and above

104 Table 4.2 Continued Marital status of household head X3 = 1 if single = 2 if married Educational level X4 = 1 if primary = 2 if middle = 3 if high = 4 if graduate Household size X5 = 1 if 1-3 = 2 if 4-6 = 3 if 7 and above Main Occupation X6 = 1 if agriculture/ fishery = 2 if government staff = 3 if private staff = 4 if own business Monthly income X7= 1 if 200000 and below = 2 if 200001-400000 = 3 if 400001-600000 = 4 if above 600000 Distance X8 = 1 if less than 1 miles = 2 if 1-2 miles = 3 if 3 miles and above Attitude concerning government future plan X9 = 1 if low = 2 if high Attitude concerning public awareness X10 = 1 if low = 2 if high Perception of conservation program X11= 1 if to protect lake environment = 2 if to prevent encroachment of human & businesses = 3 if to preserve cultural heritage site in Taung Thaman Lake = 4 if to manage sustainable development in lake environment Source: Survey Data (2018-2019)

105 Table 4.3 Identification of Dependent and Independent Variables for Visitors Dependent variable Independent variables Willingness to pay Bid amount Y = 1 if yes X1 = 1 if 500-1000 = 0 if no = 2 if above1000 = 3 if no Age X2 = 1 if 30 years and below = 2 if 30-40 years = 3 if 40-50 years = 4 if 50-60 years = 5 if 60 years and above Marital status of visitor X3 = 1 if single = 2 if married Educational level X4 = 1 if non graduate = 2 if graduate Household size X5 = 1 if 1-3 = 2 if 4-6 = 3 if 7 and above Occupation X6 =1 if dependent =2 if working Monthly income X7= 1 if 200000 and below = 2 if 200001-400000 = 3 if 400001-600000 = 4 if above 600000 Visit time X8 = 1 if 1 time = 2 if 2 times = 3 if 3 times and above Attitudes concerning government future plan X9 = 1 if low = 2 if high Attitudes concerning public awareness X10 = 1 if low = 2 if high Perception of conservation program X11 = 1 if to protect lake environment = 2if to prevent encroachment of human & businesses = 3 if to preserve cultural heritage site in Taung Thaman Lake = 4 if to manage sustainable development in lake environment Source: Survey Data (2018-2019)

106 In general, when analyzing the WTP of people for environmental conservation, factors like socioeconomic effects on the WTP, respondents’ location, respondents’ knowledge of the place and species and their attitudes towards environmental issues and perception of conservation are taken into explanation. In the analysis, cross-classification and Chi-square test bivariate were used for independent variables (socioeconomic factors, spatial factors, attitudes and other variables associated with the dependent variables (WTP). Besides, Hosmer- Lemeshow test, Omnibus test, Cox and Snell's R squared and Nagelkerke R squared were applied for the model evaluation of logistic regression.

4.5 Examining the Survey Data The results and findings of the study are presented in this section. The findings involve the investigation of factors that affected the conservation of the Taung Thaman Lake.

4.5.1 The Socioeconomic Characteristics of the Respondents The first part of the villagers’ profile reveals the socioeconomic information. The study identifies their characteristics, whether to examine whether these people show signs of different factors or not. Table (4.4) shows the socioeconomic characteristics of the villagers in the study area. According to Table (4.4), the majority of the villagers are between ages of 50 and 60, representing 220 (31.4%) of the total of 700 respondents. Only 178 (25.4%) are between ages of 40 and 50, while 134 (19.2%) are above 60 years. It is found that the mean age of villagers is above 50 years. Among the villagers, 651 respondents (93.0%) are married and 49 of them (7.0%) are single. Regarding education, 308 (44.0%) of sample villagers has primary education. Only 207 villagers (29.6%) have middle school education while 99 (14.1%) are graduates. Only 419 respondents (59.9%) have between 4 and 6 family members and 206 (29.4%) of them have between 1 to 3 members. The mean household size was between 4 and 5 members. Regarding the study of occupation, it shows that 404 villagers (57.7%) are employed in industries and 138 respondents (19.7%) are involved with traded. Only 83 villagers (11.9%) are peasant farmers. Concerning family income of 301 respondents (43.0%), it ranged from 200,001 kyats to 400,000 kyats per month and 107 256 (36.6%) of total respondents receive less than 200000 kyats. About 73 villagers (10.4%) earn above 600,000 kyats per month. The mean number regarding high earners is between 2 and 3 members. The mean regarding the years of living in the study area is above 28 years.

Table 4.4 Socioeconomic Characteristics of Villagers Sr. Characteristics Classification Number of Percentage No Villagers 1. Age (years) <=30 51 7.3 30-40 117 16.7 40-50 178 25.4 50-60 220 31.4 60 and above 134 19.2 Total 700 100 Mean age of Head 50.15 2. Material Status Single 49 7.0 Married 651 93.0 Total 700 100.0 3. Education Level Primary 308 44.0 Middle 207 29.6 High 86 12.3 Graduate 99 14.1 Total 700 100.0 4. Household Size 1-3 206 29.4 (members) 4-6 419 59.9 >=7 75 10.7 Total 700 100.0 Mean household size 4.49 5. Main Occupation Agriculture 83 11.9 Fishery 75 10.7 Trading 138 19.7 Manufacturing 404 57.7 Total 700 100.0 6. Monthly Income <=200000 256 36.6 (Kyats) 200001-400000 301 43.0 400001-600000 70 10.0 above 600000 73 10.4 Total 700 100.0 7. Mean number of earners 2.61 (numbers) 8. Mean year of living (years) 28.6 Source: Survey Data (2018-2019)

108 The second part of visitors’ profile states the information on socioeconomic factors. Table (4.5) shows socioeconomic characteristics of the visitors in the study area. Table 4.5 Socioeconomic Characteristics of Visitors Sr. Characteristics Classification Number of Percentage No Visitors 1. Age (years) <=30 76 19.0 30-40 154 38.5 40-50 71 17.8 50-60 47 11.7 60 and above 52 13.0 Total 400 100.0 Mean age of Head 38.37 2. Material Status Single 279 69.7 Married 121 30.3 Total 400 100.0 3. Education Level Non-graduate 36 9.0 Graduate 364 91.0 Total 400 100.0 4. Household Size 1-3 99 24.7 (members) 4-6 252 63.0 >=7 49 12.3 Total 400 100.0 Mean household 4.49 size 5. Main Occupation Dependent 74 18.5 Working 326 81.5 Total 400 100.0 6. Monthly Income* <=200000 59 14.7 (Kyats) 200001- 97 24.3 400000 400001- 114 28.5 600000 above 600000 130 32.5 Total 400 100.0 7. Mean number of 2.67 earners (numbers) Source: Survey Data (2018-2019) *1USD = 1500 Kyats for foreigners’ monthly income, Central Bank of Myanmar (CBM), USD/ MMK (United States Dollar/ Myanmar Kyats), May-2019, exchange rate.

109 According to Table (4.5), the majority of the visitors are between ages 30 and 40, showing 154 (38.5%) of the sample respondents and 76 (19.0%) of the visitors are less than 30 years of age. Only 71 (17.8%) are between ages 40 and 50. The mean age of visitors is found to be above 38 years. Regarding marital status, 279 respondents (69.8%) are single and 121 visitors (30.3%) are married. Concerning education, 364 (91.0%) of total visitors are graduates and 36 respondents (9.0%) are non-graduates. Only 252 respondents (63.0%) have between 4 and 6 household member size and 99 (24.8%) have between 1 and 3 family members. The mean household size is between 4 to 5 members. In the study of livelihood/occupation, it indicates that 326 respondents (81.5%) are workers/service people and 74 visitors (18.5%) are dependents. With regards to monthly income, 130 visitors (32.5%) earn above 600,000 kyats per month while 114 (28.5%) earned between 400,001 and 600,000 kyats per month. Only 97 (24.3%) of total respondents received a monthly income between 200,001 kyats and 400,000 kyats. The mean number of high earners of visitors is about 2 to 3 members. The third part shows the profile of tourism-based businesses, factories and firms that describe the socioeconomic information. This is shown in Table (4.6). According to Table (4.6), the maximum range regarding the ages of tourism- based businessmen were 30 and 40. Those above 60 years old represent 7 (23.3%) of the total number 30 respondents. The mean age of businessmen was 47 years. About 26 respondents (86.7%) were married and 4 (13.3%) were singles. Regarding education, about 8 (26.7%) of sample respondents have primary, middle school and graduate. Only 14 respondents (46.7%) have between 4 and 6 family members and 9 (30.3%) have less than 7 members. The mean household size was between 5 and 6. The study concerning business products showed that 11 (36.6%) traded various products while 8 (26.7%) sold fabric products. Six respondents (20.0%) were involved with food products. Monthly income of 14 (46.6%) of total respondents were above 600000 kyats, about 10 respondents (33.3%) received 200,001 kyats to 400,000 kyats per month. The mean number of high earners in tourism-based businesses were 2 while the mean number of years respondents has stayed in the study area was above 15 years.

110 Table 4.6 Socioeconomic Characteristics of Tourism-Based Businesses and Factories and Firms Tourism- Sr. Based Factories and Firms Characteristics Classification Businesses No Number Percentage Number Percentage 1. Age (years) <=30 4 13.4 4 13.3 30-40 7 23.3 7 23.3 40-50 6 20.0 8 26.7 50-60 6 20.0 11 36.7 60 and above 7 23.3 - - Total 30 100.0 100.0 Mean age of 47.17 42.63 Head 2. Material Single 4 13.3 4 13.3 Status Married 26 86.7 26 86.7 Total 30 100.0 30 100.0 3. Education Primary 8 26.6 Level Middle 8 26.7 High 6 20.0 6 20.0 Graduate 8 26.7 24 80.0 Total 30 100.0 30 100.0 4. Household 1-3 7 23.3 - - Size (members) 4-6 14 46.7 29 96.7 >=7 9 30.0 1 3.3 Total 30 100.0 30 100.0 Mean 5.5 5.23 household size 5. Main Product Agro based - 5 16.7 Food product 6 20.0 10 33.3 Fabric 8 26.7 2 6.7 product Stores/ 5 16.7 7 23.3 Trading/ Manufacturin g Others 11 36.6 6 20.0 Total 30 100.0 30 100.0 6. Monthly <=200000 6 20.0 - - Income (Kyats) 200001- 10 33.3 - - 400000 400001- - 14 46.7 600000 above 600000 14 46.7 16 53.3 Total 30 100.0 30 100.0

111 Table (4.6) Continued 7. Mean number 2.0 2.03 of earners (numbers) 8. Mean year of 15.2 9.73 living (years) Source: Survey Data (2018-2019)

In the study of factories and firms, the highest range regarding age of respondents showed that 11 (36.7%) was between 50 and 60 years old. About 8 (26.7%) of the total 30 respondents were between 40 and 50 years. Only 7 (23.3%) respondents were between 30 and 40 years. The mean age of respondents in factories and farms was 42 years. About 26 respondents (86.7%) were married and 4 (13.3%) were singles. Regarding education, 24 (80.0%) respondents were graduates while 6 respondents (20.0%) received high school education. About 29 (96.7%) respondents have between 4 to 6 family members and 1 (3.3%) of respondents have less than 7 family members. The mean household size was between 5 and 6. The study with concern to factories and firms shows that 10 (33.3%) were food producing industries, while 7 (23.3%) were involved with trading and manufacturing. Only 6 respondents (20.0%) were occupied with other products. Monthly income of 16 respondents (53.3%) was above 600000 kyats. Only 14 (46.7%) of total respondents have a monthly income ranging from 200,001 kyats to 400,000 kyats. The mean number of major earners in factories and firms was only above 2 members and the mean of the years of living in the study area was above 9 years. The study also found that 280 (40%) of the villagers and 4 (48%) tourism- based businesses, people own private lands, while 205 (73%) of the villagers use their land for agricultural purposes. About 75% of respondents among villagers, visitors, tourism-based businesses, and factories and firms were found to have made donations for some charitable purposes. It was also discovered that 80% of respondents were not members of any environmental organization.

112 4.5.2 Attitudes, Knowledge and Perception of Respondents in the Taung Thaman Lake area

This section consists of questions leading to attitudes, knowledge and perception about the Taung Thaman Lake. The first part seeks to examine the attitudes and knowledge of villagers, visitors, tourism-based business, and factories and firms the Lake and is concerned with government future plan and public awareness. According to the results, 284 (54.6%) of villagers, 285 (71.2%) of visitors, 18 (60%) of tourism-based businesses, and 23 (76.7%) of factories and firms responded that the environment and natural resources in Myanmar are properly taken care of. An average 20% of the respondents responded that this is not true, meaning the environment is left without proper care. An average 18% of the respondents responded that it is unknown whether it is being taken care or not. Attitudes and knowledge concerning the Government future plan and opinion on public awareness of respondents for the Lake conservation are shown in Table (4.7) and (4.8). Table 4.7 shows that the result of analysis on attitudes concerning Government future plan of respondents for the Lake Conservation. The mean scores of the Government intends to raise more funds to deal with environmental programs for villagers, visitors, tourism-based businesses and factories and firms are 4.22, 4.01, 4.03 and 4.27. These mean scores are above agree level 4 and it is indicated that the Government should implement to raise more funds to deal with environmental programs. The mean scores of the Government plan to collect taxes to pay for environmental conservation for villagers, visitors, tourism-based businesses and factories and firms are 3.64, 3.54, 3.4 and 3.37. These mean scores are above neutral level 3.The mean scores of endangered species conservation are a priority concern of the Government for villagers, visitors, tourism-based businesses and factories and firms are 3.76, 3.79, 3.77 and 3.57. These mean scores are nearly agree level 4 and it is found that the Government should reduce endangered species conservation. The mean scores of the Government will invest in helping people before it spends money on conservation for villagers, visitors, tourism-based businesses and factories and firms are 3.58, 3.76, 4.03 and 3.5.

113 Table 4.7 Attitudes Concerning Government Future Plan of Respondents for the Lake Conservation

Tourism- Factories Sr. Villages Visitors based and Statement No (n=700) (n=400) businesses Firms (n=30) (n=30) The Government Mean 4.22 4.01 4.03 4.27 intends to raise more 1. funds to deal with Standard 0.96 0.99 1.40 0.83 environmental deviation programs. The Government plan Mean 3.64 3.54 3.40 3.37 to collect taxes to pay 2. for environmental Standard 0.91 0.94 1.45 0.72 conservation. deviation Endangered species Mean 3.76 3.79 3.77 3.57 conservation is a 3. priority concern of Standard 0.95 0.94 1.33 0.68 the government. deviation The Government will Mean 3.58 3.76 4.03 3.50 invest in helping 4. people before it Standard 1.10 0.99 1.38 0.73 spends money on deviation conservation Breaking rules for Mean 3.65 3.73 4.01 4.63 environmental 5. conservation will be Standard 1.23 0.91 1.39 0.49 punishable by law. deviation

Source: Survey Data (2018-2019), 5(strongly agree) to 1 (strongly disagree)

The mean scores for villagers, visitors and factories and firms are above neutral level 3 and mean scores for tourism-based businesses are above agree level 4. The mean scores of breaking rules for environmental conservation will be punishable by law for villagers, visitors, tourism-based businesses and factories and firms are 3.65, 3.73, 4.01 and 4.63. The mean scores for villagers and visitors are nearly agree level 4 and for tourism-based businesses and Factories and Firms are above agree level 4. It is observed that Government should make breaking rules for environmental conservation will be punishable by law for tourism-based businesses and factories and firms.

114 115 Table 4.8 Attitudes Concerning Public Awareness of Respondents for the Lake Conservation

Tourism- Factories Sr. Villages Visitors based and Statement No (n=700) (n=400) businesses Firms (n=30) (n=30) There are other more Mean 4.14 3.87 3.83 3.97 important 1. environmental Standard 1.01 0.95 1.44 0.72 concerns than Lake deviation conservation. It is everyone’s Mean 3.74 4.54 3.70 4.77 concern to ensure that sustainability of Standard 0.99 0.85 1.32 0.63 2. plants and animals deviation are important for the future. Lakes are important, Mean 3.73 4.11 4.23 4.60 even if there is no 3. human connection Standard 1.14 0.97 1.10 0.72 deviation Citizens should Mean 3.45 3.46 3.63 4.27 contribute to the Lake 4. conservation by Standard 1.25 1.10 1.22 0.87 making cash deviation donations Households who earn Mean 3.40 3.46 3.83 4.03 more income should 5. contribute more to Standard 1.37 1.26 1.29 0.81 the Lake deviation conservation. Source: Survey Data (2018-2019), 5(strongly agree) to 1 (strongly disagree)

Table 4.8 indicates that the result of analysis on attitudes concerning public awareness of respondents for the Lake Conservation. The mean scores of other more important environmental concerns than Lake Conservation for villagers, visitors, tourism-based businesses and factories and firms are 4.14, 3.87, 3.83 and 3.97. The mean scores for villagers are above agree level 4 and the mean score for visitors, tourism-based businesses and factories and firms are nearly agree level 4. It is found that the public has the awareness to protect important environmental conservation. The mean scores of everyone’s concern to ensure that sustainability of plants and animals are important for the future are 3.74, 4.54, 3.70 and 4.77. The mean scores for villagers and tourism-based businesses visitors are above neutral level 3 and visitors 116 and factories and firms are above agree level 4. The mean scores of Lakes are important, even if there is no human connection are 3.73, 4.11, 4.23 and 4.60. These mean scores for visitors, tourism-based businesses and factories and firms are above agree level 4 and the mean scores for villagers are nearly agree level 4. It is observed that the public has attitudes that lakes are important. The mean scores of people reveal that they should contribute to the Lake conservation by making cash donations. These include villagers, visitors, tourism- based businesses and factories and firms. The mean scores are 3.45, 3.46, 3.63 and 4.27. These mean scores for villagers, visitors and tourism-based businesses are above neutral level 3 and factories and firms are above agree level 4. The mean scores of households are 3.40, 3.46, 3.83 and 4.03. This shows that who earn more income should contribute more to the Lake conservation. The mean scores of factories and firms are above agree level 4. The mean scores of others are above neutral level 3. This indicates that for the lake conservation there should be more participation by households. The second part observes perception on the Taung Thaman Lake being a heritage site of Myanmar and assesses the environmental situation of Lake Site, aspect of Lake Value, kind of inconveniences and travel information for visitors. Based on the result of the Table (4.9), 664 (94.9%) of the villagers knew that it is a heritage site in Myanmar. Only 36 (5.1%) of respondents are unaware of this site. Only 295 (42.2%) of respondents answered that the environmental situation of the Lake is worse than before. About 218 (31.1%) of the villagers responded that the environmental situation of the Lake is unchanged. Considering inconveniences, a representative number of 304 (43.4%) of total 400 villagers mentioned about increased waste disposal in the Lake. All tourism-based businesses, factories and firms have acknowledged that it is a heritage site. Most respondents believed that the environmental situation of the Lake has worsened. Only 15 (50%) of the tourism-based businesses and 17 (56.7%) of the factories and firms have expressed about an increase in waste disposal in the Lake. Based on the result of the Table (4.10), 389 (97.3%) of visitors have recognized the Lake as a heritage site. Only 11 (2.7%) of respondents do not know about this site. More than half of visitors responded that there were frequent visits. For most locals, the average mean time to come to the Lake every year is between two to three times. Only 175 (43.7%) of visitors/ respondents have no knowledge of the 117 environmental situation of the Lake. Only 114 (28.5%) of respondents are aware of the worsening environmental situation of the Lake.

Table 4.9 Perception of Villagers, Tourism-based Business and Factories and Firms on the Taung Thaman Lake Tourism-based Factories Sr. Villagers Statement Businesses and Firms No (n=700) (n=30) (n=30)

1. Heritage site 664 30 30 Yes (94.9%) (100.0%) (100.0%) 36 - - No (5.1%) Total 100.0 100.0 100.0

The environmental 2. situation of the Lake 148 5 5 Better (21.1%) (16.7%) (16.7%) 295 19 25 Worse (42.2%) (63.3%) (83.3%) 218 6 - Unchanged (31.1%) (20.0%) 39 - - Don’t Know (5.6%) Total 100.0 100.0 100.0

Kind of 3. inconveniences

Water pollution at the 248 9 10 site (35.4%) (30.0%) (33.3%)

Increase in waste 304 15 17 disposal in the Lake (43.4%) (50.0%) (56.7%) 126 5 3 Difficult to do business (18%) (16.7%) (10.0%)

22 1 Experiencing frequent - disasters (3.2%) (3.3%)

Total 100.0 100.0 100.0

Mean of distance from 4. 2.8 0.13 3.09 the Taung Thaman 118 Lake(miles) Source: Survey Data (2018-2019)

Regarding the value of the Lake, the majority of the visitors placed a high value on the characteristics of peacefulness, scenic beauty, picnic and bird watching. This represents a 188 (47%) of the total 400 respondents.

Table 4.10 Perception and Travel Information for Visitors on the Taung Thaman Lake Sr. Number of Statement Percentage No Visitors

1. Heritage site

Yes 389 97.3

No 11 2.7 Total 400 100.0

2. Ever visited frequently

Yes 237 59.3

No 163 40.7 Total 400 100.0

3. Mean times to come this place every year 2.37

4. The environmental situation of the Lake

Better 45 11.3

Worse 114 28.5

Unchanged 66 16.5

Not Know 175 43.7 Total 400 100.0

5. Aspects of value of the Lake

Peacefulness, scenic beauty, picnic and bird 188 47.0 watching

Storing valuable biodiversity and unique views 134 33.5 78 19.5 A good getaway for the next generation and

119 educational values Total 400 100.0

6. Satisfied visiting the lake

Yes 204 51.0

No 196 49.0

Total 400 100.0

7. Factor of satisfied visiting the lake

Ancient place, peace of mind and environment 14 6.9

Sunset and unique view 65 31.9

Feel exciting to ride the boat 40 19.6

Walking on the U Bein Bridge 55 27.0

Traditional food 30 14.6

Total 204 100.0

8. Kind of inconveniences

Dry and polluted at the site 106 54.1

Unable to find birds 29 14.8

Few places to take a rest 44 22.4

Table 4.10 Continued

Lack of specific indication and information 17 8.7 counter on the site

Total 196 100.0 Groups with visited (%) Family 88 22.0 Family and friends 113 28.3 9. Friends 154 38.5 Organized group (Tour, Organization, etc.) 18 4.5 Alone 27 6.7 Total 400 100.0 10. Mean number of family/ friend members 3.57 The primary reason for visit For relaxing and visiting with my family 198 49.5 11. For walking in nature and for seeing sunset 165 41.3 Having a traditional food 37 9.2

120 Total 400 100.0 A primary destination on this trip (%) 12. Yes 189 47.2 No 211 52.8 Total 400 100.0 The most important reason for visiting the Taung Thaman Lake

I went there to enjoy the place itself 171 42.8 13. I went there because it is a good place to do the 107 26.7 outdoor activities, I enjoy

I went there because I wanted to spend more 122 30.5 time with companions Total 400 100.0 14. Mean of activities at the Lake

Wildlife observation/ Nature Study 2.25

Photography, bicycling, walking for pleasure 2.22 and sightseeing along the Taung Thaman

Spending time 1.67

Wish to come again to this place (%) 15. Yes 370 97.5 No 30 2.5 Total 400 100.0 Source: Survey Data (2018-2019)

Only 134 (33.5%) of respondents appreciated the valuable biodiversity and unique views. Over half of the visitors were found to be satisfied with visiting the Lake Site. Only 196 (49%) of the respondents showed dissatisfaction. Among the factors leading to satisfaction, about 65 (31.9%) of the total respondents of 204 were satisfied to go on sightseeing, sunset along with unique views of the Lake. Only 55 (27%) of the respondents showed satisfaction by taking a walk on the U Bein bridge. Another 40 (19.6%) of the visitors said they enjoyed riding the boats. Among inconveniences, dryness and pollution at the lake Site are highly mentioned, representing 106 (54.1%) of the total of 196 visitors. Only 154 (38.5%) of total respondents visited the Lake with friends while 113 (28.3%) visited with family and friends. The mean number of family and friend members is between 3 and 4. About 198 (49.5%) of the visitors responded that family visits were meant for

121 relaxation. Only 165 (41.3%) of the total respondents said they enjoyed taking a nature walk around the Lake and seeing the sunset. About 211 (52.8%) of total respondents said that trip is for enjoying the beauty of the Lake. Among visitors, the average mean of photographing, cycling, walking for pleasure and sightseeing along the Taung Thaman are 2 to 3 times. Almost visitors said they wished to come again to this place.

4.5.3 A Conservation Program for the Taung Thaman Lake (Willingness to Pay) A conservation program is primarily under consideration for the current environmental quality of the Lake. For assessment on respondents’ view on current environmental quality in the study area, the investigation is done on villagers, tourism-based businesses and factories and firms. Condition of environmental quality of the Taung Thaman Lake is shown in Table (4.11). Based on the following information, the mean scores of water pollution and solid waste management for villagers are 2.87, and 2.16. These are below neutral level 3. For factories and firms, the mean scores of water pollution, solid waste management, biodiversity conservation, deforestation and traffic noise problems are above 2 and 3. These are below neutral level 3. This reveals that local people are fully aware of the low environmental quality of the Lake.

Table 4.11 Condition of Environmental Quality of the Taung Thaman Lake

Tourism-Based Factories and Statement Villagers Businesses Firms Air pollution Mean 3.25 3.13 3.03

Standard (1.01) (1.01) (0.77) Deviation

Water Mean 2.87 3.27 2.37 pollution

122 Standard (0.99) (1.08) (0.62) Deviation Mean 2.16 3.37 2.30 Solid waste management Standard (1.01) (1.07) (0.79) Deviation Mean 3.21 3.10 2.93 Biodiversity conservation Standard (0.88) (0.99) (0.64) Deviation Mean 3.68 3.27 2.63 Deforestation Standard (0.94) (0.94) (0.81) Deviation Mean 3.09 3.14 3.00 Traffic noise problems Standard (0.58) (0.95) (0.00) Deviation Source: Survey Data (2018-2019), 5: very low to 1 very severe

After the study of the current environmental quality condition in the Lake, a conservation program for Taung Thaman Lake (WTP) concerning villagers, visitors, tourism-based businesses and factories and firms are examined. This study is to estimate the characteristics of conservation of the Lake that highly influence the willingness to pay. To process this estimation, an assumption is that there is no WTP for conservation program and to analyze which factors are affecting this negative aspect on the WTP. The examination is done on villagers, tourism-based businesses and factories and firms’ willingness to pay for conservation of water quality improvement and visitors’ willingness to pay for entrance fees regarding U Bein Bridge.

Table 4.12 Number of Villagers, Tourism-based Businesses and Factories and Firms Who Want to Pay and Unwilling to Pay for Conservation of Water Quality Improvement of the Taung Thaman Lake Tourism-based Factories and Respondents’ Villagers Businesses Firms Willingness to Pay n=700 n=30 n=30 Willing to Pay for Conservation of Water Quality of the Lake:

123 583 23 26 Yes: (83.3%) (76.7%) (86.7%) 117 7 4 No: (16.7%) (23.3%) (13.3%) Total 100.0 100.0 100.0 Source: Survey Data (2018-2019)

According to Table (4.12), only 583 (83.3%) of the villagers, 23 (76.7%) of tourism-based businesses and 26 (86.7%) of factories and firms were willing to pay for conservation of water quality improvement of the Taung Thaman Lake. Others are unwilling to pay for the Lake conservation.

Table 4.13 Number of Visitors Who Want to Pay and Unwilling to Pay For Entrance Fees to U Bein Bridge

Visitor’s Willingness to Pay Number of Visitors Percentage Willing to Pay for Entrance fees of U Bein Bridge Yes: 313 78.3 No: 87 21.7 Total 400 100.0 Source: Survey Data (2018-2019)

According to Table (4.13), only 313 (78.3%) of the visitors are willing to pay for entrance fees of U Bein Bridge and 87 (21.7%) are unwilling to pay for the Bridge fees. Hence, the results show that among all 1160 respondents, a number of 583 villagers, 313 visitors, 23 tourism-based businesses and 26 factories and firms answered “Yes” and are willing to support the conservation program while the rest of the respondents said that they are not willing to support the program. Thus, it was found that the majority of the respondents are willing to support the Lake conservation program. In the Lake conservation program, different perceptions arise regarding respondents’ willing to conserve and willing to pay. For those who answered ‘yes’, were required to select the WTP amount, and the reason for that. From this information, the four characteristics of conservation program of the Taung Thaman Lake regarding WTP and the four factors on unwillingness to pay are explored.

124 Table (4.14) and (4.15) show the perceptions why all respondents are willing and unwilling to pay for conservation program of the Taung Thaman Lake.

Table 4.14 Perceptions of Willing to Pay of Respondents for Conservation Program of the Taung Thaman Lake Tourism- Sr. Factories Statement Villagers Visitors based No and Firms Businesses

1. Willing to Pay (yes= 583) (yes=313) (yes=23) (yes=26)

To protect the 40 58 15 3 (a) Lake (6.9%) (18.5%) (65.2%) (11.5%) environment

To prevent encroachment of 61 66 1 2 (b) human & (10.5%) (21.1%) (4.3%) (7.7%) businesses

To preserve cultural heritage 128 122 2 6 (c) sites in the (21.9%) (39.0%) (8.7%) (23.1%) Taung Thaman Lake

To manage 67 sustainable 354 (21.4%) 5 15 (d) development in (60.7%) (21.8%) (57.7%) the Lake environment Source: Survey Data (2018-2019)

According to Table (4.14), the majority of the villagers (60.7%) showed willingness towards managing sustainable development in the Lake environment. and about (21.9%) showed willingness towards preserving cultural heritage sites in the Lake. About (10.5%) showed willingness towards preventing encroachment of human and businesses. The maximum range of visitors who were willing to preserve cultural heritage sites in the Taung Thaman Lake was found to be (39%), and followed by (21%) who are willing for managing sustainable development in the Lake environment and (21.1%) who are willing to prevent encroachment of human and businesses.

125 Only (62.2%) of the tourism-based businesses were found to be willing to protect the Lake environment, followed by (21.8%) who are willing for managing sustainable development in the Lake environment and (8.7%) who are willing to preserve cultural heritage sites in the Taung Thaman Lake. Only (57.7%) of the factories and firms are willing for managing sustainable development in the Lake environment. It was also found that about (23.1%) of the factories and firms were willing to preserve cultural heritage sites in the Lake and only (11.5%) were willing to protect the Lake environment. Therefore, it must be said that the majority of respondents were willing to support the environmental conservation program.

Table 4.15 Perceptions of Unwilling to Pay of Respondents for Conservation Program of the Taung Thaman Lake Tourism- Factories Sr. Statement Villagers Visitors based and No Businesses Firms (no=117) (no=87) (no=7) (no=4) 2. Unwilling to Pay 55 51 7 3 It is mainly (47.0%) (58.6%) (100.0%) (75.0%) (a) responsible by the Government 1 4 - - This activity wastes (b) (0.9%) (4.6%) money 36 29 - 1 The project cannot (30.8%) (33.3%) (25.0%) implement properly (c) due to inefficiencies of public sector 25 3 - - Poverty alleviation is (21.3%) (3.5%) (d) more important than Lake Conservation Source: Survey Data (2018-2019)

Table (4.15) reveals the four factors that lead to unwillingness to pay for conservation program. More than half of all respondents answered that it is the main responsibility of the Government. Only (30.8%) of villagers and (33.3%) of visitors responded the project cannot be implemented properly due to inefficiencies of the public sector. Only (21.3%) of villagers and (3.5%) of visitors said that poverty alleviation is more important than Lake Conservation.

126 Regarding WTP of respondents, the question asked to respondents after the valuation question was to remind them of thinking twice about the answer they have given if they were given the opportunity to pay. Table (4.16) shows the percentage of answers to the follow-up certainty questions of respondents who expressed willingness to pay an amount of money other than 0.

Table 4.16 Follow-up Certainty about Willingness to Pay of Respondents (%)

Sr. Very Very Type Certain Neutral Uncertain Total No Certain Uncertain

Villagers 1. 2.9 39.9 39.0 15.2 3.0 100 (n=583)

Visitors(n= 2. 13.6 44.7 23.7 18.0 - 100 313) Tourism- based- 4. 8.7 47.8 34.7 4.4 4.4 100 Businesses (n=23) Factories 5. and Firms 11.5 46.2 42.3 - - 100 (n=26) Source: Survey Data (2018-2019), 5: Very certain to 1: very uncertain

According to Table (4.16), the majority of villagers (42.8%) answered that they are very certain regarding the WTP while visitors (58.3%) also said about the certainty to pay the WTP for conservation. About 56.5% of businesses and about 57.7% of factories and firms also expressed their certainty to pay the WTP. To adjust for uncertainty and neutral, the study recorded the ‘yes’ respondents to ‘no’ if the respondents were uncertain. This adjustment reduced the percentages of households which, if placed in real market situations, are unquestionably willing to contribute to the conservation of the Lake. Therefore, the average ratio of 50% of the number of households was based on the results of the follow-up certainty percentage of ‘yes’ responses.

127 4.5.4 Estimation of Average Amount of Willingness to Pay of Villagers, Visitors, Tourism-based Businesses and Factories and Firms Specific amount of willingness to pay on monthly payment towards better water quality improvement by villagers, tourism-based businesses and factories and firms is shown in the Tables (4.17), (4.18) and (4.19).

Table 4.17 Specific Amount of Willingness to Pay of Monthly Payment Towards Better Water Quality Conservation of Villagers Bid amount of Number of % of respondents Amount (Kyats) WTP for water villagers saying saying Yes (Bid amount* quality (Kyats) Yes number) 31.7 92,500 500 185 27.6 96,600 600 161 18.4 74,900 700 107 7.5 44,000 1,000 44 5.7 39,600 1,200 33 5.1 45,000 1,500 30 3.9 46,000 2,000 23 100

583 Total 438,600

Average 752 Source: Calculation from Survey Data (2018-2019)

From the Table (4.17), it was found that 185 numbers of village households (31.7%) among the total of 583 respondents saying “Yes” are willing to pay for the bid amount, i.e. Kyats 500. Their average willingness to pay amount is Kyats 752. In the Table (4.18), among a total of 23 tourism- based businesses, only 6 businesses (26.1%) are willing to pay for the bid amount namely Kyats 500, 600, 700 and 1000. The average willingness to pay amount is Kyats 687. Within 26 factories and firms, 11 industries (42.3%) are found to be willing to pay for the bid amount, Kyats 3000 and their average willingness to pay amount is Kyats 9529. What is more, it was also found that other villages located far from the Lake and are not directly benefitted, showed a significant amount of interest in the

128 conservation of the Lake. Likewise, specific amount of willingness to pay towards the entrance fees for U Bein Bridge is shown in Table (4.20).

Table 4.18 Specific Amount of Willingness to Pay of Monthly Tax towards Better Water Quality Conservation of Tourism-based Businesses

Bid amount of Number of % of Amount (Kyats) WTP for respondents respondents (Bid amount* number) water quality saying Yes saying Yes (Kyats) 500 6 26.1 3000 600 6 26.1 3600 700 6 26.1 4200 1,000 5 21.7 5000 100 23 Total 15800 Average 687 Source: Calculation from Survey Data (2018-2019)

Table 4.19 Specific Amount of Willingness to Pay of Monthly Payment towards Better Water Quality Conservation of Factories and Firms

Bid amount of Number of % of Amount WTP for water respondents respondents (Kyats) (Bid amount* quality (Kyats) saying Yes number) 3,000 11 42.3 33,000 5,000 5 19.2 25,000 10,000 4 15.4 40,000 20,000 3 11.5 60,000 30,000 3 11.5 90,000 100 26 Total 248,000 Average 9,539 Source: Calculation from Survey Data (2018-2019)

According to Table (4.20), (125) numbers (39.9%) among total (313) respondents saying “Yes” said that they were willing to pay for the bid amount, Kyats 500. Their mean willingness to pay amount was Kyats 815.

129 Table 4.20 Specific Amount of Willingness to Pay towards Entrance Fees for the U Bein Bridge of Visitors Bid amount Number of visitors % of Amount of WTP for saying Yes respondents (Kyats) entrance fees saying Yes (Bid amount* number) (Kyats) 39.9 62,500 500 125 31.9 60,000 600 100 1000 47 15.0 47,000 9.6 45,000 1500 30 1.9 18,000 3000 6 1.6 22,500 4500 5 100

313 Total 255,000

Average 815 Source: Calculation from Survey Data (2018-2019), *1USD = 1500 Kyats for foreigners’ bid amount

The following table shows the implementation of the Lake conservation program regarding its water quality conservation and information on entrance fees responded by various stakeholders.

Table 4.21 Implementation of the Lake Conservation Program of its Water Quality Conservation and Entrance Fees (%) Sr. Completely Highly Average Not Not at Total Type No Much All

1. Villagers 2.7 43.1 36.7 13.2 4.3 100

2. Visitors 1.3 30.3 23.4 20.6 24.4 100

Tourism-based 3. - 46.6 40.0 6.7 6.7 100 Industry Factories and 4. - 46.7 50.0 3.3 - 100 Firms Source: Survey Data (2018-2019), 5: completely to 1: not at all

130 According to Table (4.21), the majority (43.1%) of the villagers (30.3%) of visitors, (46.6%) of businesses and (46.7%) of factories highly believed that it is important to implement the Lake conservation program.

4.5.5 Economic Value of Crop Production of 4 Villages regarding the Taung Thaman Lake Provisioning Service The Taung Thaman Lake contributes to the increase in productivity of crops through the provision of water for irrigation. It provides irrigation water for cultivated lands in Oh Bo, Semihtun, Htantaw, and Taungthaman villages. Irrigation water is mainly used for agriculture during the summer and winter seasons. The main products of agriculture are paddy, beans and oil seeds. After the rainy season in winter and summer time, local farmers cultivate paddy (Manawthukha, Ayeyarmin (Rice Intensification Syatem-SRI), Ayeyarmin (Seeder), and Shwethweyin), beans( Butter bean , Green gram, Chick pea, Rice bean and Lablab bean) and oil seeds (Sesame, Sunflower and Groundnut) on 50 acres of silted soils on the banks of the Lake. Summer paddy and sesame are mostly grown in February, whileas beans and sunflower are in September, and groundnut is in November. Hence, the market value method can be used to estimate the value of crop production of the Lake provisioning service. The Ayeyarmin (Seeder- Summer paddy) is grown on an area of 10 acres, and output per acre is 94 baskets. The market price was about 10,500 kyats in 2019. An area of 15 acres of Summer Sesame is also grown and output per acre is about 12 baskets. In 2019, the market price of sesame was about 53,300 kyats. An area of 2 acres of Butter Bean (winter crop) is also grown while output per acre is 20 baskets and the market price were about 35,300 kyats. Still, an area of 30 acres is committed to Groundnut while the market price was fetched at 29,760 kyats. An average output per acre is about 30 baskets. The production value of these various types of crops can be calculated according to the formula. Table (4.22) shows the crop production value of the Taung Thaman Lake in the study area. According to Table (4.22), the value of summer crops was 41,694,000 (41.69 million Ks) while the value of winter crops was 36,673,200 (36.67 million Ks) in

131 2018-2019. Hence, the total crop production value of the Taung Thaman Lake was approximately 78,367,200 (78.37 million) kyats per year.

132 Table 4.22 Crop Production Value of 4 Villages on the Taung Thaman Lake Provision Services (2018-2019) Total Per Unit Total Market Sr. Area Production Commodities of Output Amount Price No (Acre) Value (basket) (basket) (Kyats) (Kyats) Summer Crops I. Paddy 1. Manawthukha 5 103 515 7,000 3,605,000 (Summer) 2. Shwethweyin 10 103 1,030 8,500 8,755,000 (Summer) 3. Ayeyarmin 10 94 940 10,500 9,870,000 (Seeder) 4. Ayeyarmin (SRI) 10 94 940 10,500 9,870,000 II Oil Seed 1. Summer Sesame 15 12 180 53,300 9,594,000 Total 50 406 3605 41,694,000

Winter Crops I. Beans 1. Butter Bean 2 20 40 35,300 1,412,000 2. Green Gram 2 12 24 40,000 960,000 3. Chick Pea 2 22 44 27,000 1,188,000 4. Rice Bean 2 25 50 23,000 1,150,000 5. Lablab Bean 2 12 24 28,300 679,200 II. Oil Seed 1. Sunflower 10 30 300 15,000 4,500,000 2. Groundnut 30 30 900 29,760 26,784,000 Total 50 151 1382 36,673,200 Total Value of 78,367,200 Summer and Winter Crop Production Source: * Ministry of Agriculture, Livestock and Irrigation Department, Market Price (1.5.2019) from Mandalay Wholesale Centre and Own Calculation

However, the total cost of production (costs of input and charges for irrigation water) was included in the crop production process. Thereby, the total input costs must be deducted to arrive at the net value of production value. The net production

133 value will provide the real value of crop production in the Lake’s provisioning service. The net crop production value of the Lake is calculated in Table (4.23). According to Table (4.23), costs of production include; land reclamation costs, cultivation costs, material aid, harvesting costs and diesel charges for irrigation water. Irrigation water from the Lake was used by means of diesel-driven pumps. Per acre of summer paddy for one season crop needs six acre-feet/acre of water consumption while other crops need two acre- feet/ acre of water consumption. Estimated diesel charges for irrigation water of summer paddy was 43000Ks per acre and for other crops it was about 14000Ks/per acre. Total costs of production were calculated as the costs of input per acre multiplied by area of cultivated land. Net production value was calculated by subtracting the total costs of production from their respective total production value with the use of the net production method. In 2018-2019, the net value of summer crops was 26,124,000 Ks (26.13 million Ks) while for winter crops it was 23,404,200 Ks (23.40 million Ks). In total, the net crop production value of summer and winter crops was 49,528,200 Ks (49.53 million) kyats per year. As a result, the aggregate economic value of crop production from the Lake provisioning service in 2018-2019 was 49.53 million Kyats per year. In this study, only major products and estimated diesel charges for irrigation water were considered in its production value assessment. In times of cultivated land and pump being rented, hiring charges for land and pump must be added to the input cost. Thereby, the net production value would be much lesser.

134 Table 4.23 The Net Crop Production Value of the Taung Thaman Lake Provisioning Services (2018-2019) Costs of Production per acre Energy Total Costs of Sr. Area Total Production Net Production Commodities Costs of Charges for Production No (Acre) Value (Kyats) Value (Kyats) Input per Irrigation (Kyats) acre Water per acre Summer Crops I. Paddy 1. Manawthukha 279,000 43,000 5 1,610,000 3,605,000 1,995,000 131 (Summer) 2. Shwethweyin 296,000 43,000 10 3,390,000 8,755,000 5,365,000 (Summer) 3. Ayeyarmin 334,000 43,000 10 3,770,000 9,870,000 6,100,000 (Seeder) 4. Ayeyarmin 336,700 43,000 10 3,797,000 9,870,000 6,073,000 (SRI) II Oil Seed 1. Summer 185,700 14,500 15 3,003,000 9,594,000 6,591,000 Sesame Total 1,431,400 186,500 50 15,570,000 41,694,000 26,124,000

135 Table 4.23 Continued

Winter Crops I. Beans 1. Butter Bean 182,500 14,000 2 393,000 1,412,000 1,019,000 2. Green Gram 136,000 14,000 2 300,000 960,000 660,000 3. Chick Pea 202,000 14,000 2 432,000 1,188,000 756,000 4. Rice Bean 160,000 14,000 2 348,000 1,150,000 802,000 5. Lablab Bean 121,500 14,000 2 271,000 679,200 408,200 13 II. Oil Seed 2 1. Sunflower 136,500 14,000 10 1,505,000 4,500,000 2,995,000 2. Groundnut 320,000 14,000 30 10,020,000 26,784,000 16,764,000 Total 1,258,500 98,000 50 13,269,000 36,673,200 23,404,200

Net Value of 49,528,200 Summer and Winter Crop Production Source: * Ministry of Agriculture, Livestock and Irrigation Department, Market Price (1.5.2019) from Mandalay Wholesale Centre and Own Calculation

136 What is more, certain socioeconomic patterns of Oh Bo, Semihtun, Htantaw, Taungthaman villages eventually changed from the production sector to the service sector after 2018. Before these changes, villages were typical agriculture-based mainly with paddy farming and livestock breeding. In 1996 the blocking of water draining in and out of the Lake was done by the Government for the purpose of turning it into a huge fish - breeding ground. This greatly puts a great impact on the livelihoods not only for the peasant families, but also for those doing livestock breeding as their paddy fields and agricultural lands around the Lake. This was due to flooding. Other significant socioeconomic pattern changes were seen in 2000 due to the establishment of Yadanabon University. Many villagers changed their livelihoods from farming to businesses such as opening hostels, grocery shops, restaurants, mobile phone shops, café shops, beauty salon and dress making shops. In terms of other businesses, openly of hostels for university students were commonly seen in Htantaw village. Before 2000, the main business in Htantaw village was agriculture. Main agricultural crops which were paddy, groundnut, peas, corn, tomatoes and vegetables were grown on about 300 acres of arable land. About 200 acres of summer paddy were also grown in the area. There were peasant farmers as well as from laborers in Htantaw village. Factors due to the establishment of Yadanabon University, construction of Yangon-Mandalay highway and storage of water in the Taung Thaman Lake have changed land ownership of farmers and their ways of livelihood. A compensation of 40000 kyats per acre due to the establishment of Yadanabon University was provided to the Htantaw village. Also, after 2015, the Green Company Ltd purchased lands of Htantaw for the Green City project aimed for development of urbanization and environmental development around the Taung Thaman Lake. This also led to the change of livelihood in the area. Similar impacts were also seen in villages like Oh Bo and Semihtun villages. Due to the purchase of lands by Green City Project, most villagers in these villages also changed their livelihoods to opening hostels, grocery shops, tea shops, beauty salon, painters, stores, tailors, vendors, and becoming civil servants, general workers and merchants. 133 Land purchase was also done by Taungthaman Thit Sar Company Ltd after 2015. This project included the construction of a resort, cultural park and tourism service area surrounding the Taung Thaman Lake. Similar changes were also observed in Taungthaman village where villagers changed their livelihoods by doing small private businesses such as house rents, stores, grocery shops after selling off their lands. Some people without investment became painters, general workers, vendors and civil servants. These significant changes in the pattern of livelihoods in the four villages in the Lake area showed some positive impact such as an increase in employment opportunities and income. These changes must be seen as factors leading to the development of urbanization. Nevertheless, there were negative impacts being seen in the area. These include a decrease in agriculture/ farming and migration of the village population.

4.6 Analysis of Survey Results In this section, cross-tabulation and the Chi-square test were used to determine the relationship between willingness to pay and socioeconomic characteristics, spatial factors, attitudes and bid amount of the 10 villagers (Oh Bo, Semihtun, Htantaw, Taungthaman, U Yin Taw, Shan Ka Lay Kyun, Tat Gyi, Hpa Ye Kyun, Souk Taw Wa, and Ba Naw)and visitors (local visitors and foreigners). Binary logistic regression was used to determine the influencing factors on WTP.

4.6.1 Economic Value of Water Quality Improvement Conservation of 10 Villages on the Taung Thaman Lake Regulating Service Mean Willingness to Pay (MWTP) and Aggregate Willingness to Pay of villagers can be used to estimate the value of water quality conservation of the Lake regulating service.

(1) Estimation of Mean Willingness to Pay for Water Quality Conservation of Villagers Table (4.24) shows the result of the regression where the probability of voting ‘yes’ (yes = 1) or ‘no’ (no = 0) was regressed with the bid prices only. The bid variable was found to be significant at the 1% level and the negative coefficient was consistent with economic expectations with the highest bid price. 134

Table 4.24 Variables in the Equation for Villagers B S.E. Wald Sig. Exp(B) Bid amount - .001*** .000 9.600 .002 0.999 Constant 1.128 .175 41.628 .000 3.090 Source: Survey Data (2018-19)

According to the formula, mean WTP of villagers is calculated as constant (β0) divided by the bid amount (β1).

MWTP of Villagers= β0 / β1 = 1.128/.001 = 1,128 Kyats This means that the villagers’ mean willing to pay for water quality conservation is 1,128Kyats/ month/ household.

(2) Estimation of Aggregate Willingness to Pay for Water Quality Conservation of Villagers The MWTP estimated by using the parametric method was used to multiply by 50% of the total number of respondents in each. The average ratio of 50% of the number of households in each used was based on the results of the follow-up certainty percentage of ‘yes’ responses in Table (4.16). Aggregate Willingness to Pay of villagers = Mean WTP × % of the total number of households who answered ‘yes’. Aggregate WTP = MWTP × % NHH AWTP of Villagers = 1,128Ks × (50% of 5084) = 1,128Ks × 2,542 = 2,867,376Ks = (2.8) million Ks/month/households AWTP of Villagers (2018-2019) = 2,867,376 Ks × 12 month= 34,408,512 Ks = (34.41) million kyats/year/households

Therefore, the aggregate economic value of the water quality conservation of the Lake regulating service in 2018-2019 was (34.41) million Kyats/year/households. In this study, 5084 households in 10 villages were considered in its regulating service value assessment. If the average ratio of 50% of the number of total households in 100 villages of 7 miles distance from the Taung Thaman Lake is calculated, regulating service value assessment would be higher.

135 4.6.2 Influencing Factors of Villagers’ Willingness to Pay The factors that influenced the villagers’ WTP were analyzed. Cross- tabulation and the Chi-square test were performed to determine the association between the socioeconomic, distance, bid amount and attitudes of the villagers and their willingness to pay in Table (4.25).

Table 4.25 Association between Willingness to Pay and Socioeconomic Factors, Spatial Factor, Bid Amount and Attitudes of Villagers Variable Description χ2 P-value Other Bid amount factors 500-1000 above 1000 N0 127.1*** 0.000 Socioecono Age mic factors 30 and below 30-40 40-50 50-60 60 and above 31.89*** 0.000 Marital status of household head Single Married 0.516 0.472 Education level Primary Middle High Graduate 27.57*** 0.000 Household size 1-3 4-6 7 and above 4.034 0.133 Main occupation Agriculture/ fishery Government staff Private staff Own business 12.06*** 0.007 Monthly Income 200000 and below 200001-400000 400001-600000 Above 600000 20.19*** 0.000 Spatial Distance factor Below 1 mile 1-3 miles Above 3 miles 15.61*** 0.000 Attitudes of Attitude concerning government future plan villagers Low

136 0.000 High 48.13*** Table 4.25 Continued

Attitude concerning public awareness Low High 4.542** 0.033 Perception of conservation program To protect lake environment To prevent encroachment of human & businesses To preserve cultural heritage site in Taung Thaman Lake To manage sustainable development in lake environment 32.39*** 0.000 ***, **, * Statistically significant at 1%, 5%, and 10% level, Source: Survey Data (2018-19)

According to the results, the bid amount is associated with willingness to pay among villagers at 1% significant level. According to the results of the relationship between socioeconomic factors and willingness to pay among villagers, it was found that age, education level, main occupation and monthly income are associated with willingness to pay among villagers at 1% significant level respectively. However, marital status and household size are not associated with willingness to pay among villagers. According to the results of the relationship between spatial factor and willingness to pay among villagers, it has been found that distance is significantly associated with a willingness to pay among villagers at 1% significant level. In addition, according to the results of the relationship between attitude factors and willingness to pay among villagers, it has been found that perception concerning government future plan and perception of the conservation program is associated with willingness to pay among villagers at 1% significant level. Perception concerning public awareness is related to willingness to pay among villagers at 5% significant level. The binary logistic regression model was provided to explore the influence of socioeconomic, spatial, attitudes factors and bid amount on willingness to pay among villagers. It was categorized into two groups; yes and no. The independent variables are socioeconomic factors such as age,

137 marital status, education level, household size, main occupation, monthly income, spatial factor with distance and attitude factors such as attitudes concerning government future plan, attitudes concerning public awareness, perception of conservation program, and bid amount. The overall model fitting for binary logistic regression analysis is shown in Table (4.26). Table 4.26 Model Fitting Information for Willingness to Pay among Villagers Model fitting criteria 2 df p-value χ value Omnibus Test of Model Coefficient 227.94 25 0.000 Hosmer and Lemeshow Test 11.093 8 0.196 -2 Log Likelihood 403.92 Cox & Snell R Square 0.278 Nagelkerke R Square 0.467 Source: Survey Data (2018-2019)

The Hosmer-Lemeshow test explores whether the predicted probabilities are the same as the observed probabilities. An overall goodness of fit of the model is indicated by the p value > 0.05 (Hosmer & Lemeshow, 2000). There is no evidence of lack of fit based on Hosmer and Lemeshow statistics (Chi-square = 11.093, df = 8, p-value = 0.196 > 0.05). According to the omnibus test of model coefficient give Chi-square of 227.94 on df 25, significant beyond 0.000. It has been concluded that the model for willingness to pay among villagers is significant. Since -2 log likelihood statistic is 403.92, it can be said that the existence of a relationship between the independent variables and dependent variables is supported. The values of R square 0.278 (Cox and Snell R square) and 0.467 (Nagelkerke R square) indicate that 46.7% of the variation in willingness to pay among villagers can be explained by the variation of independent variables. The summary result of socioeconomic, spatial, attitudes factors and bid amount of willingness to pay among villagers in Binary Logistic Model are shown in Table (4. 27). According to the results, bid amount has a negative effect on willingness to pay among villagers. The coefficients of villagers’ bid amount are statistically significant at the 1% level. A villager who pays an amount

138 (above 1000) is about 0.91 times less likely to have a willingness to pay as compared to a villager who pays money (500-1000) (reference category).

Table 4.27 Results of Logistic Regression of Villagers’ Willingness to Pay

B S.E. Wald Sig. Exp(B) Constant -4.744 0.942 25.343 0.000 0.009 Bid amount 500-1000 (ref) Above 1000 -2.449*** 0.404 36.820 0.000 0.086 No 0.184 0.375 0.241 0.623 1.202 Age 30 and below (ref) 30-40 0.996** 0.474 4.421 0.036 2.708 40-50 1.392*** 0.470 8.765 0.003 4.024 50-60 2.145*** 0.481 19.889 0.000 8.545 60 and above 2.282*** 0.547 17.439 0.000 9.799 Marital Status Single (ref) Married 1.190** 0.471 6.393 0.011 3.286 Education Level Primary (ref) Middle 0.989*** 0.348 8.058 0.005 2.688 High 0.859* 0.475 3.272 0.070 2.360 Graduate 1.039** 0.508 4.177 0.041 2.827 Household size 1-3 (ref) 4-6 -0.439 0.332 1.743 0.187 0.645 7 and above 0.741 0.586 1.599 0.206 2.098 Main Occupation Agriculture/fishery

(ref) Government staff 0.951* 0.506 3.535 0.060 2.588 Private staff 2.590*** 0.518 24.989 0.000 13.334 Own business 2.071*** 0.424 23.856 0.000 7.936 Monthly Income 200000 and below (ref) 200001-400000 0.538* 0.300 3.211 0.073 1.712 400001-600000 0.852 0.568 2.249 0.134 2.345 above 600000 1.988*** 0.651 9.329 0.002 7.302 Distance Below 1 miles (ref) 1-3 miles 0.475 0.326 2.120 0.145 1.608 above 3 miles 0.384 0.375 1.046 0.306 1.468 Attitudes concerning government future

139 plan Low (ref) High 0.633** 0.296 4.559 0.033 1.883 Attitudes concerning public awareness Low (ref) High 0.001 0.292 0.000 0.996 1.001

Table 4.27 Continued Perception of conservation program To protect lake environment (ref) To prevent 1.368** 0.557 6.026 0.014 3.928 encroachment of human & businesses To preserve cultural 1.036** 0.485 4.562 0.033 2.818 heritage site in Taung Thaman Lake To manage 1.811*** 0.477 14.414 0.000 6.117 sustainable development in lake environment ***, **, * Statistically significant at 1%, 5%, and 10% level Source: Survey Data (2018-2019)

Age has a positive effect on willingness to pay among villagers. The coefficients of age are statistically significant at 1% and 5% level. A villager with age 30-40 years is 2.71 times more likely to have a willingness to pay as compared to a villager with age 30 years and below (reference category). A villager with age 40-50 years is 4.02 times more likely to have a willingness to pay as compared to a villager with age 30 years and below. A villager with age 50-60 years is 8.55 times more likely to have a willingness to pay as compared to a villager with age 30 years and below. A villager with age 60 years and above is 9.8 times more likely to have a willingness to pay as compared to a villager with age 30 years and below. It is found that villagers’ willingness to pay has increased in the elderly villagers. Marital status has a positive effect on willingness to pay among villagers. The coefficient of marital status is statistically significant at the 5% level. A married villager is 3.29 times more likely to have a willingness to pay as compared to a single villager (reference category).

140 Likewise, education level has a positive effect on willingness to pay among villagers. The coefficients of education level of villagers are statistically significant at 1%, 5% and 10%. A villager with middle education is 2.69 times more likely to have a willingness to pay as compared to a villager with primary education (reference category). A villager with higher education is 2.36 times more likely to have a willingness to pay as compared to a villager with primary education. A graduate villager is 2.83 times more likely to have a willingness to pay as compared to a villager with primary education. It is found that villagers’ willingness to pay has increased among villagers who have higher education. Similarly, the occupation has a positive effect on willingness to pay among villagers. The coefficients of occupation of the villagers are statistically significant at 1% and 10% level. A villager who serves in government staff is 2.59 times more likely to have a willingness to pay as compared to a villager who serves in agriculture/fishery (reference category). A villager who serves as private staff is 13.33 times more likely to have a willingness to pay as compared to a villager who serves in agriculture/fishery. A villager who serves in private-own business is 7.94 times more likely to have a willingness to pay as compared to a villager who serves in agriculture/fishery. Monthly income also has a positive effect on willingness to pay among villagers. The coefficients of income of the villagers are statistically significant at 1% and 10% level. A villager with income level (200001- 400000) is about 1.71 times more likely to have a willingness to pay as compared to a villager with income level (200000 and below) (reference category). A villager with income level (above 600000) is about 7.3 times more likely to have a willingness to pay as compared to a villager with income level (200000 and below). Attitudes concerning government future plan have a positive effect on willingness to pay among villagers. The coefficient of the villagers’ attitude concerning governmental future plan is statistically significant at the 5% level. A villager who has a high level of attitudes concerning governmental future plan is about 1.88 times more likely to have a willingness to pay as compared

141 to a villager who has a low level of attitudes concerning governmental future plan (reference category). On a similar basis, perception of conservation program has a positive effect on willingness to pay among villagers. The coefficients of villagers’ perception of conservation program are statistically significant at 1% and 5% level. A villager who prevent encroachment of human and businesses is about 3.93 times more likely to have a willingness to pay as compared to a villager who protects Lake Environment (reference category). A villager who preserves cultural heritage sites in the Taung Thaman Lake is about 2.82 times more likely to have a willingness to pay as compared to a villager who protects the Lake Environment. A villager who manages sustainable development in Lake Environment is about 6.12 times more likely to have a willingness to pay as compared to a villager who protects the Lake Environment. Therefore, age, material status, education level, main occupation, monthly income, and attitudes (government future plan and perception of conservation program) have positive effects and significant meaning that these are positive and significantly influencing the willingness to pay. These variables are consistent with hypothesized factors from literature because these villagers were more aware of willing to pay for conservation of the Lake. As hypothesized, the bid amount is expected to influence willing to pay with a negative effect. This suggests that the higher the bid amount the lower will be the villagers’ willingness to pay for conservation. Household size, attitudes concerning public awareness and distance are not significant and do not directly affect villagers’ willingness to pay.

4.6.3 Economic Value of Recreation of Visitors and Tourism-based Businesses on the Taung Thaman Lake Cultural Service Mean Willingness to Pay (MWTP) and Aggregate Willingness to Pay of visitors can be used to estimate the value of recreation of the Lake cultural service.

(1) Estimation of Mean Willingness to Pay for Recreation Value of Visitors

142 Table (4.28) shows the result of the regression with the bid prices only. The bid variable was found to be significant at the 5% level and with the negative coefficient. Table 4.28 Variables in the Equation for Visitors B S.E. Wald Sig. Exp(B) Bid amount - .001** .000 5.662 .017 .999 Constant .908 .187 23.653 .000 2.479 Source: Survey Data (2018-2019)

According to the formula, mean WTP is calculated as constant (β0) divided by the bid amount (β1).

MWTP of Visitors= β0/β1 = .908/.001 = 908 Kyats This means that the visitors’ mean willing to pay for an entrance fee for the U Bein Bridge is 908 Kyats per person.

(2) Estimation of Aggregate Willingness to Pay for Recreation Value of Visitors (Tourism) The aggregate WTP or the value of recreation of the Lake cultural service is computed from the result of the mean (WTP). Based on the results of the follow-up certain percentage of ‘yes’ responses in Table (4.16), the average ratio of 50% of the number of respondents in each is used. There are about 118,800 local visitors per year to the Taung Thaman Lake according to Ward and Village-Tract Administration Office (2018-2019) and about 123,000 foreigners visit the Taung Thaman Lake (Ei Myat Mon, 2019). Aggregate Willingness to Pay of visitors = Mean WTP × % of the total number of visitors who answered ‘yes’. Aggregate WTP = MWTP × % NV AWTP of Visitors = 908Ks × (50% of (118,800+123,000) = 908Ks × 120,900 = 109,777,200 million Kyats per year = (109.78) million Kyats per year Therefore, the aggregate economic value of the recreation of visitors of the Lake cultural service in 2018-2019 was (109.78) million Kyats per year.

(3) Total Net Income of Tourism-based Businesses

143 Along with the development of tourism, various types of businesses surrounding the Lake were established. Tourism-based business people include boatmen, cameramen and shops surrounded in the Lake. These shops include (20) fabric shops, (20) restaurants, (10) souvenir shops (20) fancy and grocery stores and (10) art galleries (painting and sculpture shops). Regarding boat services, there are 50 paddlers. There are 25 photographers in the Lake and Bridge area. Tourism peak seasons are usually from October to April with a total of seven months and tourism low seasons are from May to September with a total of five months. Monthly income owing to types of businesses in the tourism low and peak seasons is shown in Table (4.29). Based on the results, it is found that monthly income of tourism-based business in the low and peak tourism seasons are different.

144 Table 4.29 Monthly Income of Tourism-based Businesses

(Kyats/month) Tourism low Tourism peak seasons Sr. No Kinds of Businesses seasons 1. Boatmen 120,000 240,000 2. Cameramen 120,000 200,000 3. Fabric shops 480,000 1,200,000 4. Restaurants 640,000 1,600,000 5. Souvenir shops 160,000 480,000 6. Fancy and grocery stores 240,000 480,000 7. Art galleries 160,000 400,000 Total 1,920,000 4,600,000 Source: Survey Data (2018-2019)

The net income of businesses is a measurement of the total revenue earned from goods and services. The total net benefit of tourism-based businesses in 2018-2019 was estimated from the use of the Lake’s environment for recreation.

Table 4.30 Total Net Income of Tourism-based Businesses (2018- 2019) (Kyats) Seasonally Income per Business % share Total Net Sr. Kinds of Total Income of Total Tourism Quantity Income No Businesses Tourism per business Net low per year peak seasons Income seasons

1. Boatmen 600,000 1,680,000 2,280,000 50 114,000,000 13.62 2. Cameramen 600,000 1,400,000 2,000,000 25 50,000,000 5.98 3. Fabric shops 2,400,000 8,400,000 10,800,000 20 216,000,000 25.81 4. Restaurants 3,200,000 11,200,000 14,400,000 20 288,000,000 34.42 5. Souvenir 800,000 3,360,000 4,160,000 10 41,600,000 4.97 shops 6. Fancy and 1,200,000 3,360,000 4,560,000 20 91,200,000 10.90 grocery stores 7. Art galleries 800,000 2,800,000 3,600,000 10 36,000,000 4.30 Total 9,600,000 32,200,000 41,800,000 836,800,000 100.0

145 Source: Survey Data (2018-2019) According to Table (4.30), the types of businesses which earn tourism peak seasons are above 3 times compared to tourism low seasons. Among the seven types of businesses, restaurants are the largest income earners at 288 million Kyats/year (34.42%), followed by fabric shops with 216 million Kyats /year, (25.81%) in 2018-2019. Therefore, the aggregate monetary value of tourism-based businesses owing to recreation services in 2018-2019 was (836.80) million Kyats per year. This total net income of businesses is added in recreation value of visitors. Recreation value = aggregate value of the recreation of visitors + aggregate value of the recreation of tourism-based businesses = 109.78 + 836.80= 946.58 million Kyats per year Therefore, the aggregate recreation service value (visitors and tourism- based-businesses) from the Lake cultural service in 2018-2019 was (946.58) million Kyats per year.

4.6.4 Influencing Factors of Visitors’ Willingness to Pay Table (4.31) shows that Cross-tabulation and the Chi-square test performed to determine the association between the socioeconomic, visit time, attitudes of visitors, bid amount and their willingness to pay. According to the results, the relationship between the bid amount and willingness to pay among visitors was found to be significant at the 1% level. Concerning the relationship between socioeconomic factors and willingness to pay among visitors, it was found that age and monthly income are associated with willingness to pay at 1% significant level, while marital status and education level are associated at 10% significant level.

146 Table 4.31 Association between Willingness to Pay and Socioeconomic Factors, Spatial Factor and Attitudes of Visitors Variable Description χ2 P-value Other Bid amount Variable 500-1000 Above 1000 No 134.16*** 0.000 Socioeconomic Age factors 30 and below 30-40 40-50 50-60 60 and above 109.27*** 0.000 Marital Status Single Married 3.109* 0.078 Education Level Non graduate Graduate 3.12* 0.077 Household size 1-3 4-6 7 and above 1.74 0.419 Main Occupation Dependent Working 0.35 0.552 Monthly Income 200000 and below 200001-400000 400001-600000 Above 600000 203.96*** 0.000 Spatial factor Visit time 1 2 3 and above 3.782 0.151 Attitudes of Attitudes concerning government Visitors future plan Low High 21.96*** 0.000 Attitudes concerning public awareness Low High 4.966** 0.026 Perception of conservation program To protect lake environment To prevent encroachment of human & businesses To preserve cultural heritage site in Taung Thaman Lake To manage sustainable development in lake environment 34.98*** 0.000 ***, **, * Statistically significant at 1%, 5%, and 10% level Source: Survey Data (2018-2019)

147 On the other hand, household size and main occupation were found to be not related to willingness to pay among visitors. In addition, spatial factor and visit time are not significant meaning that this factor is not associated with willingness to pay among visitors. Further, the results of the relationship between attitude factors and willingness to pay among visitors found that perception concerning government future plan and perception on conservation program are related at the 1% significant level and perception concerning public awareness is associated at 5% significant level. The binary logistic regression model was used to explore the influence of socioeconomic, spatial, attitude factors and bid amount on willingness to pay among visitors. Willingness to pay among visitors was categorized into two groups; yes and no. Independent variables involve socioeconomic factors such as age, marital status, education level, household size, main occupation, monthly income, spatial factor with visit time and attitude factors such as attitudes concerning government future plan, attitudes concerning public awareness, perception of conservation program, and bid amount. The overall model fitting for binary logistic regression analysis is shown in Table (4.32).

Table 4.32 Model Fitting Information for Willingness to Pay among Visitors Model fitting criteria 2 df p-value χ value Omnibus Test of Model Coefficient 303.37 21 0.000 Hosmer and Lemeshow Test 12.958 8 0.113 -2 Log Likelihood 115.62 Cox & Snell R Square 0.532 Nagelkerke R Square 0.819 Source: Survey Data (2018-2019)

The Hosmer-Lemeshow test explores whether the predicted probabilities are the same as the observed probabilities. An overall goodness of fit of the model is indicated by the p value > 0.05 (Hosmer, & Lemeshow, (2000). There is no evidence of lack of fit based on Hosmer and Lemeshow statistics (Chi-square = 12.958, df = 8, p-value=0.113 > 0.05). The omnibus test of model coefficient gives Chi-square of 303.37 on df 21, significant beyond 0.000. It must be concluded that the model for willingness to pay among villagers is significant.

148 Since -2 log likelihood statistic is 115.62, it can be said that the existence of a relationship is supported between the independent variables and dependent variables. The values of R square 0.532 (Cox and Snell R square) and 0.819 (Nagelkerke R square) indicate that 81.9% of the variation in willingness to pay among visitors can be explained by the variation of independent variables. The summary result of socioeconomic, spatial, attitudes factors and bid amount of willingness to pay among visitors in Binary Logistic Model are shown in Table (4.33).

Table 4.33 Results of Logistic Regression of Visitors’ Willingness to Pay B S.E. Wald Sig. Exp(B) Constant -9.011 1.997 20.363 0.000 0.000 Bid amount 500-1000 Above 1000 -2.396*** 0.767 9.749 0.002 0.091 No (ref) 0.627 0.707 0.787 0.375 1.872 Age 30 and below (ref) 30-40 3.714*** 0.818 20.622 0.000 41.005 40-50 2.868*** 0.834 11.834 0.001 17.609 50-60 2.677*** 0.978 7.497 0.006 14.540 60 and above 4.296*** 1.329 10.457 0.001 73.442 Marital status Single (ref) Married 0.004 0.654 0.000 0.995 1.004 Education level Non graduate (ref) Graduate 1.840** 0.894 4.240 0.039 6.296 Household size 1-3 (ref) 4-6 0.837 0.678 1.526 0.217 2.310 7 and above 0.339 0.900 0.142 0.707 1.404 Occupation Dependent (ref) working -0.517 0.882 0.343 0.558 0.596 Income 200000 and below (ref) 200001-400000 2.498*** 0.738 11.467 0.001 12.159 400001-600000 5.287*** 0.956 30.606 0.000 197.781 Above 600000 5.358*** 0.986 29.497 0.000 212.222 Visit time 1 (ref) 2 1.270* 0.734 2.990 0.084 3.560 3 and above 1.199* 0.719 2.783 0.095 3.318

149 Table 4.33 Continued Attitudes concerning government future plan Low (ref) High 1.331** 0.555 5.746 0.017 3.786 Attitudes concerning public awareness Low (ref) High 1.006* 0.579 3.023 0.082 2.734 Perception of conservation program To protect lake environment (ref) To conserve natural 0.945 0.768 1.514 0.218 2.574 environment of human & business To prevent encroachment 2.334*** 0.734 10.119 0.001 10.318 of human & businesses To manage sustainable 2.150** 0.936 5.275 0.022 8.584 development in lake environment ***, **, * Statistically significant at 1%, 5%, and 10% level Source: Survey Data (2018-2019)

The results proved that the bid amount has a negative effect on willingness to pay among visitors. The coefficients of visitors’ bid amount are statistically significant at the 1% level. A visitor who pays an amount (above 1000) is about 0.91 times less likely to have a willingness to pay as compared to a visitor who pays between (500-1000) (reference category). Age shows a positive effect on willingness to pay among visitors. The coefficients of age are statistically significant at the 1% level. Visitors with ages between 30 and 40 are 41.01 times are more likely to have a willingness to pay as compared to visitors with ages 30 years and below (reference category). Visitors with ages 40 to 50 years are 17.61 times more likely to have a willingness to pay as compared to those with ages 30 years and below. Visitors with ages 50 to 60 years are 14.54 times more likely to have a willingness to pay as compared to those with ages 30 years and below. Visitors with aged 60 years and above are 73.44 times more likely to have a willingness to pay as compared to those with age 30 years and below. It is found that visitors’ willingness to pay is higher among the elderly visitors.

150 Similarly, education level also has a positive effect on willingness to pay among visitors. The coefficients of education level of visitors are statistically significant at 5%. A visitor with a graduate degree is 6.3 times more likely to have a willingness to pay as compared to a visitor with no degree (reference category). It is found that visitors’ willingness to pay is higher among visitors with higher levels of education. Monthly income similarly has a positive effect on willingness to pay among visitors. The coefficients of income of visitors are statistically significant at the 1% level. A visitor with income level (200001- 400000) is about 12.16 times more likely to have a willingness to pay as compared to a visitor with income level (200000 and below) reference category. A visitor with income level (400000-600000) is about 197.78 times more likely to have a willingness to pay as compared to a visitor with income level (200000 and below). A visitor with income level (above 600000) is about 212.22 times more likely to have a willingness to pay as compared to a visitor with income level (200000 and below). It is also found that visitors’ willingness to pay is higher among visitors who have higher monthly incomes. Visit time as well has a positive effect on willingness to pay among visitors. The coefficients of visit time of visitors are statistically significant at the 10% level. A visitor with (2) visit times is about 3.56 times more likely to have a willingness to pay as compared to a visitor with (1) visit time (reference category). A visitor with visit time (3 and above) is about 3.32 times more likely to have a willingness to pay as compared to a visitor with (1) visit time (reference category). It is found that visitors’ willingness to pay is higher among visitors who have several visits to the Lake and the Bridge. Attitudes concerning government future plan too has a positive effect on willingness to pay among visitors. The coefficient of the visitors’ attitude concerning government future plan is statistically significant at the 5% level. A visitor who has a high level of attitudes concerning governmental future plan is about 3.79 times more likely to have a willingness to pay as compared to a visitor who has a low level of attitudes concerning governmental future plan (reference category). Attitude concerning public awareness has a positive effect on willingness to pay among visitors. The coefficient of the visitors’ attitude 151 concerning public awareness is statistically significant at the 5% level. A visitor who has a high level of attitudes concerning public awareness is about 2.73 times more likely to have a willingness to pay as compared to a visitor who has a low level of attitudes concerning public awareness (reference category). Perception of conservation program as well has a positive effect on willingness to pay among visitors. The coefficients of visitors’ perception of conservation program are statistically significant at 1% and 5% level. A visitor who wishes to preserve cultural heritage sites in the Taung Thaman Lake is about 10.32 times more likely to have a willingness to pay as compared to a visitor who wishes to protect the Lake environment (reference category). A visitor who believes in sustainable development in the Lake environment is about 8.58 times more likely to have a willingness to pay as compared to a visitor who wishes to protect Lake Environment (reference category). Therefore, age, education level, monthly income, visit time and attitudes (government future plan, public awareness and perception of conservation program) have positive effects and are statistically significant meaning that these are positive and significantly influence the willingness to pay. These variables are consistent with hypothesized factors from literature because these visitors were more aware of willing to pay for the conservation of the Lake. As hypothesized, the bid amount is expected to influence willing to pay with a negative effect. This suggests that the higher the bid amount the lower the visitors’ willingness to pay is likely for conservation. Household size, main occupation and marital status are not significant and do not directly affect visitors’ willingness to pay.

4.6.5 Aggregate Monetary Value of the Taung Thaman Lake Ecosystem Services From direct and indirect use values, the total economic benefits generated from the types of provisioning, regulating, and cultural services being assessed can be assigned. The aggregate monetary value of ecosystem services regarding the Taung Thaman Lake in (2018-2019) is shown in Table (4.34).

152 According to Table (4.34), the majority of the economic value owes to tourism- based businesses which is 836.80 million kyats, (81.20 % of the total value), followed by the value of local visitors and foreigners which is 109.78 million kyats, (10.65 % of the total value). The value of water quality conservation is 34.41 million kyats, (3.34 % of the total value), value of the summer crops is 26.13 million kyats, (2.54 % of the total value), and the value of winter crops is 23.40 million kyats, (2.27 % of the total value).

Table 4.34 The Aggregate Monetary Value of Ecosystem Services of the Taung Thaman Lake

% % Total Value Category Services Sr. Ecosystem (Million Category Share of Share of No Services Kyats/ Total ES Total ES Year) Assessed Assessed 1. Provisioning Summer Crops 26.13 2.54 49.53 Services (4.81%) Winter Crops 23.40 2.27 2. Regulating Water quality 34.41 3.34 34.41 Services conservation (3.34%) 3. Cultural Services Local Visitors 109.78 10.65 946.58 and Foreigners (91.85%) Tourism-based- 836.80 81.20 businesses

Total Economic 1030.52 100.0 Value Source: Survey Data (2018-2019)

The aggregate monetary value of ecosystem services on the Lake was estimated (1030.52) million kyats per year in 2018-2019. Economic benefits generated from cultural services (recreation value; visitors and tourism-based businesses) was the highest at (946.58) million kyats per year, accounting for (91.85) % of the total economic value. Provisioning services (crop production 153 value; summer paddy, summer sesame, winter beans and groundnut) were (49.53) million kyats per year, accounting for (4.81) % of the total economic value. Regulating services (water quality conservation value; flood control and water quality improvement) were valued at (34.41) million Kyats per year, accounting for (3.34) % of the total economic value. Results show that the maximum economic benefits were generated from cultural services (recreation value) on the Taung Thaman Lake. Therefore, by comparing the relative significance of these values, it can effectively determine the significance of each service to the Lake for planning and monitoring the sustainability of the Lake ecosystems with a great contribution to the management of different types of Lake Ecosystems.

154 CHAPTER V CONCLUSION

The estimation of the economic value of ecosystem services is one of the common methods used to determine the value of goods in terms of social and environmental benefits. The objective of this study is to assign monetary value to the Taung Thaman Lake ecosystem services and to examine and investigate the relationships between respondents’ attitudes and their socioeconomic characteristics regarding their WTP towards conservation programs of the Lake. Most of the respondents have a high level of awareness and positive attitudes on Lake Conservation. Moreover, this study found that socioeconomic factors, spatial factors, attitudes and bid amount significantly affected on the willingness to pay for people regarding the Lake conservation. Accordingly, this chapter presents the value of Lake provisioning services, regulating services and cultural services, and aggregate monetary values of ecosystem services in the Taung Thaman Lake.

5.1 Findings Market value method and Contingent Valuation Method are appropriately applied in this study. For that reason, this study explored the direct value of the agricultural sector in the Lake area using the market value method. Additionally, it also estimates the direct use value of the tourism sector that includes both visitors and tourism-based businesses and indirect use value of water quality conservation of villagers through willingness to pay. The conducted survey was to evaluate the level of respondents’ awareness and concern in the conservation of natural values and the willingness to pay for the protection of the Taung Thaman Lake. The Taung Thaman Lake and U Bein Bridge are well-known and prominent for its picturesque landscape as well as home for winter migratory birds plus the cultural heritage of Myanmar. Local people who live near the Taung Thaman area heavily relied on the Lake. Formerly, livelihoods surrounding the Lake area are traditional farming and informal jobs. What is more, the water used to drain into and

154 out of the Lake seasonally until 1996. After 1996, water in the Lake was locked for the purpose of commercialized aquaculture. Subsequent to 2000, the founding of the Yadanabon University along with increasing restaurants, expanding of fabric firms and the establishment of industrial zones in the surrounding Lake area led to the reduction of water quality in the Lake. Ever since 2014, several fish die-offs have occurred in the Lake and about 10,000 fish species diedinSeptember2015.The storage of high level of water in the Lake affects food sources for migratory birds that sequentially impact the tourism sector. At present, factors like climate change, flood, drought, waste disposal, pollution and population density affected a huge decline in the Lake ecosystem. Thereby, the long-term existence and the sustainability of the Taung Thaman Lake conservation becomes a necessity. Results due to socioeconomic characteristics of the respondents revealed that the mean age of villagers was above 50 years while that of businessmen was an average 47 years. The average age of respondents in the factories was 42 years. It was also found that most of the respondents were married 93% (villagers) and 86.7% (business men) and 86.7% of factories and firms. Regarding schoolings, the majority of villagers (44%) received primary education. About 26.7% of businessmen received primary, middle school and graduate level education. About 80% of factory respondents were found to be graduates. The mean household size for villagers was between 4 and 5 members and it was between 5 and 6 members for businesses and factories and firms. Only 11.9% was only employed in subsistence agriculture. Only 36.6% of the tourism-based businesses sold various products. About 33.3% of the firms produced food products. Further, 43% of villagers earned monthly income that is between 200,001 and 400,000 Ks. In this regard, 46.6% of businesses and 53.3% of firms earned more than 600,000 Ks each. The attitudes of stakeholders (villagers, visitors, tourism-based businesses and factories and firms) towards government future plan and public awareness were found at less than 3.5 of low level and above 3.5 of high levels. The mean distance from the Lake was about 2.8 miles for villages while as it was 0.13 miles for tourism- based businesses and 3.1 miles for factories and firms. Based on the results of visitors’ survey, it was found that the mean age of visitors was above 30 years. Regarding the level of schoolings, the majority 91% of visitors were graduates. It was also discovered that the mean household size was between 4 and 5 members and the majority 81.5% of them were income earners.

155 About 32.5% of visitors earned above 600,000 Ks. The mean value of local visits to the Lake every year was between two and three times every year. The results owing to crop production value of 4 villages (Oh Bo, Semihtun, Htantaw, Taungthaman villages) regarding the Lake provisioning services showed that the main products of agriculture were paddy, beans and oil seeds which are cultivated using the Lake water resources in summer as well as in winter seasons during 2018-2019.The estimated net value of summer crops was (26.13 million Ks) while for winter crops, it was (23.40 million Ks). Hence, the net crop production value of summer and winter crops together amounted to (49.53 million) kyats per year. What is more, the results stated that there were considerable changes in the pattern of livelihoods in the four villages surrounded by the Taung Thaman Lake. These changes showed positive impacts and negative impacts as well. Its negative consequences mean challenges and changes in the Lake environment. In 2018-2019, the Binary Logistic Regression results due to the water conservation value of in 10 villages regarding the Lake regulating services indicated that the mean WTP and aggregate WTP for water quality conservation were 1,128Kyats/month/household and 34.41million kyats/year/household respectively. The Binary Logistic Regression analysis also proved that the cross-tabulation and the Chi-square tested were significant at 1% and 5% level. Besides, model fitting criteria (Omnibus test of model coefficient, Hosmer and Lemeshow test, -2 Log Likelihood, Cox & Snell R square and Nagelkerke R square) were also used. This indicated that data were able to explain well using the model. Among the hypothesized 11 explanatory variables, only 8 of them were found to be statistically significant in explaining the WTP at different significance levels (1%, 5%, and 10%). The Binary Logistic Regression showed that bid amount is a significant factor influencing willingness to pay with a negative coefficient. Age, marital status, education level, occupation, monthly income, attitudes concerning government future plan and perception of conservation program are significant factors affecting willingness to pay with positive effects. These variables are consistent with hypothesize factors from literature because these villagers were more aware of willing to pay for conservation of the Lake. Household size, attitude concerning public awareness and distance are not significant and do not directly affect villagers’ willingness to pay. The Binary Logistic Regression results relating to recreation value of visitors and tourism-based businesses in the Lake cultural services revealed that the mean WTP of 156 visitors regarding entrance fees to U Bein Bridge was 908 Kyats/person and the aggregate WTP for visitors was 109.78 million Kyats/year. Hence, the aggregate economic value concerning the recreation of visitors of the Lake cultural services in 2018-2019 was (109.78) million Kyats per year. In addition, the aggregate monetary value of tourism-based businesses from recreation services was (836.80) million Kyats per year in 2018-2019. Therefore, the aggregate recreation value (visitors and tourism-based-businesses) from the Lake cultural services in 2018-2019 was (946.58) million Kyats per year. The Binary Logistic Regression analysis also demonstrated and verified that the cross-tabulation and the Chi-square tests were significant at 1% 5% and 10% level. Furthermore, model fitting criteria (Omnibus test of model coefficient, Hosmer and Lemeshow test, -2 Log Likelihood, Cox & Snell R square and Nagelkerke R square) were also tested. This proved that the data was able to reveal fit with the model. Among the hypothesized 11 explanatory variables, only 8 of them were found to be statistically significant in explaining the WTP at different significance levels (1%, 5%, and 10%). The Binary Logistic Regression analysis further discovered that the bid amount is a significant factor affecting willingness to pay with a negative coefficient. On the other hand, factors like age, education level, monthly income, visit time and attitudes (government future plan, public awareness and perception of conservation program) are found to be significant in influencing willingness to pay with positive effects. These variables are consistent with hypothesize factors from literature because these visitors were more responsive to willing to pay for conservation of the Lake. Based on these findings, it may be concluded that the Lake local communities contributed substantial economic values to the Lake ecosystem. Household size, main occupation and material status were found to be insignificant and of no consequence to influence visitors’ willingness to pay. The results showed that the aggregate monetary value of the Lake ecosystem services on the Taung Thaman Lake was estimated (1030.52) million Kyats per year in 2018-2019. Amongst these services, the aggregate value of cultural services (recreation value; visitors and tourism-based businesses) was maximum at 946.58 million Kyats per year (91.85%), followed by provisioning services (crop production value; summer paddy, summer sesame, winter beans and groundnut) at 49.53 million Kyats per year (4.81%) and regulating services (water quality conservation value; flood control and water quality improvement) at 34.41 million Kyats per year

157 (3.34%). In terms of economic development in view of the Lake ecosystem, these services must be considered for longer- term economic values.

5.2 Recommendations There are numerous environmental issues such as air and water pollution, waste management and recycling, climate mitigation, waste disposal of chemicals, aspects of nature conservation, aspects of noise control, environmental impact assessment and a variety of other issues. It is crucially important for environmental policy makers to address these sensitive issues. For Lake Conservation it is important to have a firm environmental policy stretching out for long-term perspectives. Based on the results and findings, an increase in extended knowledge with reference to environmental conservation would positively lead to an increase regarding respondents’ valuation. This study also discovered that the low level of awareness of the communities in the study area finally led to less awareness of individual responsibility with reference to the Lake conservation. Importantly, it does not influence the WTP of villagers. In order to raise this awareness, a particular need regarding awareness information must be created in the Lake surrounding area through Television, Internet and radio, etc. There is also a need for villages to organize a special communal work on a monthly basis, focusing on activities of conservation of the Lake. This must be organized by village administrative levels. Taking this opportunity, there would be the more awareness being created at the village levels. Village leaders must take this role and responsibility to promote awareness as well as explaining the present and future benefits that would be earned. The question is whether village leaders take this role or leave it to the responsibility of the regional authority. In this perspective, those who live in the surroundings of the lake are closer to being more responsible rather than non-residents. This is mainly because they are the ones that are directly benefitted by the Lake’s ecosystem services. Village leaders and responsible people must take a bigger role to lobby this to the upper hierarchical levels of the Government. There are also religious communities i.e. Buddhist monasteries around the lake environment. Joining hands with the local village leaders would turn into a bigger and stronger force for lobbying this issue to the Mandalay Regional Government or to the respective authorities before it is too late. The important thing is who will take the initiative. The environmental issue is too important to be left in the hands of NGOs 158 and outside lobby organization. It must be remembered that this is the main responsibility of those who choose their lives to live and feed on the Lake. In terms of lobbying by NGOs or in terms of spreading information through the local or foreign media may not be effective as local villagers. In many instances, NGOs are simply doing their paid work and have little concern over local issues particularly that of environmental ones. Likewise, the media people have their own role to play but have more interest in political rather than on environmental issues. Their role may only be a small supportive nature and may not be sufficient to raise awareness among the local populace. If it is lobbied in the right form and time, the authority could take a major role in the conservation of the Lake. Taking into account of all the provisioning and cultural services being rendered by the Lake ecosystems, the regional authority should take the leading role in terms of fund-raising or full implementation of conservation works. In this crucial line of thinking, it must be remembered that without the effective participation of the local villagers, this could never materialize or succeed. Inside the questionnaires, respondents were asked about the future government plan on conservation. The biggest concern is whether there is a real future government plan or not. As discussed earlier, a future conservation plan will never exist if the Regional Government itself is not fully aware of the deteriorating situation in local livelihoods as well as the water quality of the Lake. Raising awareness through local education may have an effect on the future protection of the Lake. Nevertheless, this can only be done on a small scale. This means someone must be responsible for taking the initiative. Focus Group Discussions or local gatherings may not be sufficient. The Regional Government or those from environmental groups led by the Government will be more efficient in this respect. Through education, word must be spread that the protection and conservation of the Lake itself is equal to enhancing the provisional and cultural services of the Lake which is the responsibility of all stakeholders. Through education, particular trainings could be effectively provided to the local communities. Another question arises who will take the initiative for such trainings. Again, this will be the responsibility of the Regional Government and environmental groups. This awareness must place an emphasis on the need to protect the Lake as well as income generating opportunities arising from activities of conservation of the Lake. Intensive training of local people concerning the Lake conservation and other income 159 generating activities would definitely raise their income and employment opportunities. As per the results, an increase in household income and occupation would raise the willingness to pay for the conservation of Lake on a constant basis. In addition to the positive influence of the education level, when more people are educated, the more value is placed on the conservation the Lake system. This study also found that the bid amount has a negative influence on the WTP. Any increase in the bid amount of money would lead to a decrease of the WTP. This shows that it is necessary for respondents to be able to pay for environmental protection using payment systems that are convenient for them. These payments through education and awareness raising must be made known to the local populace that this is for ecological compensation. The authorities concerned should also take this into serious consideration. The environmental conservation plan must include the prevention of encroachment of human and businesses. This must be regarded as essential to preserve cultural heritage and to manage sustainable development of the Lake environment. This is to present as well as consumption for future generations. Another important issue is which organization is going to take responsibility for the collection of funds for the conservation measures. The trust funds should also be properly managed by a team something like a board of trustees from the local populace. Another important issue is how much finds are required for Lake Conservation measures. One effective way could be that of lobbying to the higher authorities by the Hluttaw Representative of that particular region. Therefore, in this respect it must be seen that the Regional Government is the most important stakeholder among all regarding the raising of necessary funds. Again, after the allocation of funds, it is imperative how these funds will be effectively used for conservation works. For any successful implementation, all stakeholders must share responsibility and actively participate in the program. The so-called conservation committee must have a longer perspective on sustainability of both the Lake and the Bridge. Both are crucial for preserving cultural and heritage values of the region. Additionally, it must be remembered that this is an environmental issue and must be given serious consideration. The policy issue would involve not only for the benefit of protecting the environment, but also for the benefit of the local communities around the Lake. There is a need for adequate flow of information going to the local communities in this 160 regard. This is because the effective participation of these local people is as important as the role of the Regional Government in the conservation program. Like in many developing countries, the flow of information or communication is found to be weak in regions particularly in this Lake region. Although the overall conservation program has yet to be realized, it is quite relieved that there are certain segments in the local communities that are fully aware of the deteriorated environment in the region. This study assessed the amount of money that stakeholders are willing to pay for the conservation of the Lake using CVM. It was proven that the CVM methods have more advantages over the valuing different attributes of environmental goods. Another development in the study concerns the consideration of a careful design of the payment vehicle that should capture the respondents’ contribution in kind in order to reduce the number of non-responses. Therefore, there is still need for site-specific studies in the region. This is in order to provide information to policy makers when deciding among alternatives for Lake Conservation. As described earlier, local people place a high value for the Lake and U Bein Bridget regards them as national heritages of Myanmar. For that crucial reason alone, it is vitally important to preserve and conserve the Lake environment. Several recommendations exist that would assist in the conservation measures of the Lake environment. The first is to avoid any activities leading to the creation of air and water pollution around the Lake and the Bridge thus become a cleaner and better place in the region. This is the work of the concerned authorities and importantly the active participation of the local communities. The next is to manage waste disposal around the Lake and Bridge. Again, this is much responsible not only to the Regional Government but also to the local villages around the Lake. These people will have to be better educated on waste and cleanliness issues before it is too late. To arrange a systematic waste management, e.g. placing enough garbage bins, cleaning around the Bridge and the Lake on a regular basis. This is mainly due to the Mandalay Municipal people and to have strict regulations regarding the disposal of garbage since this is a famous tourist attraction center. Another recommendation will be to prevent the free-flowing industrial wastewater into the lake. It becomes necessary that a committee must be formed which will take the responsibility of managing and punishing any illegal activity that could damage the beauty and value of the Lake and Bridge. Instead of putting 161 manufacturing operations to stop, the Mandalay Regional Government must search ways and means to channel this industrial waste water to other outlets. The Irrigation Department people would be of great assistance in providing technical expertise in this matter. Another recommendation will be to lobby awareness of the Central Government through the Mandalay Regional Government regarding the environmental conservation of the Lake and Bridge. It will be not sufficient if the local villagers raised their concerned voices to the Government. The media can also have a bigger role in this matter. It would be appropriate if the Hluttaw Representative form that particular area can lobby that inside the Hluttaw assembly thins would be more effective for reaching the ears of the Central Government. A further recommendation will be to protect the Lake and the Bridge from natural disasters and regular checks and necessary actions being taken for conservation. This has to go through the National Disaster Management Committee formed by the Central Government through the Mandalay Regional Government. To increase environmental protection around the Lake and the Bridge. Again, this is concerned with all stakeholders, including those involved with the National Environment Protection Policy at the top hierarchical levels. Another important recommendation will be to organize allowing vendors and shops on the U Bein Bridge. This is for enhancing the livelihoods and supplementing incomes of those who are much dependent on the Lake environment. A further necessity is to create a better recreation place for local as well as international guests/tourists and to support for the sustainable development for this area. This includes how much funds the Regional Government will allocate to the Lake area as well as how much funds will be collected through willingness to pay schemes. A systematic management team involving many stakeholders (both Government and local) must be formed to take care of this responsibility. Based on the review, it can also be suggested that environmental development supports community development in broad dimensions, associated with community wellness, community economic development and community learning. This study exhibit that community development benefits are extensive and are collectively supportive to social and economic relationships necessary to sustain environmental development. Therefore, respondents in the Lake region are required have a better understanding how to plan these benefits that directly support community 162 empowerment, awareness and training. Positive relationships in the Lake community were emphasized with the opportunity to participate effectively in collective decision- making. It is quite apparent that raising community awareness and environmental management will lead to more control over the Lake resources and participate in sustainable development for the long term. Empowering people and the role of transparency will be of great support to the people of the Lake. On the other hand, the Government must also play a critical role of developing an environmental strategy for the Lake that includes all stakeholders. This represents a big opportunity to develop deep and meaningful collaboration with the Lake communities. From this collaboration, communities around the Lake will be better positioned to take advantage of sustainable economic development opportunities that will benefit the long-term ecosystem services of the Lake itself. It must be remembered that sustainable ecosystem services are part and integral of the overall environmental strategy. With its own biological diversity, the Lake has a very important role to develop the local village people as well as enhance the ecological environment which will improve the overall regional environment. This evaluation of the Lake services can provide suggestions for further study of how the Lake resources are to be economically and sustainably utilized. In other words, the important thing is how the Lake resources will be effectively used for future consumption.

5.3 Limitations and Further Research In the evaluation of crop production value, this study only considered the main products of the Lake. The value of other crops was omitted due to the small cultivated area. This study evaluates the water quality conservation value using the willingness to pay for water quality improvement. This excluded all households which are within the 7 miles distance from the Lake. Therefore, when considering Lake crop production and water quality conservation for further research, these remaining factors should also be considered for long- term economic benefit. Recreation and tourism values were basically estimations. Nevertheless, using a tourism area estimation value can provide reasonable accuracy to a certain level. With the provision of many environmental services, such provision and efficiency of these services have obvious externalities. One limitation is that this research only focused

163 and calculated the use-value for villagers and visitors to the Lake while ignoring the non-use value. The value of tourism-based businesses and factories and firms is only shown in the descriptive analysis because the size of the sample of respondents is small. In addition, because only two methods were used to estimate the Lake services, one limitation includes the establishment of a complete evaluation system. Therefore, it leads to widen the scope for evaluation methods which are in fact really needed for further study. In trying to improve the effective evaluation of Lake Services, there is still a further need for site-specific studies. Since this study has used different methods to obtain the related values of different services in the Lake, it becomes apparent that these affect the results. Thereby, it is very imperative to establish an integrated evaluation criterion that will include the calculation of the willingness to pay and cost and benefits of the market value of different approaches. The present study is that it estimates, market-based approach under revealed preferences and non-market approach under state preferences, and; it does not include travel cost method under surrogate based. Therefore, a new study for estimating surrogate based under revealed preferences need to be evaluated for a well-being comparison.

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177 178 APPENDICES

179 180 APPENDIX-1 Locations of Amarapura Township

Source: Department of Agricultural Land Management and Statistics

181 APPENDIX-2 Locations of the Taung Thaman Lake and Amarapura Township

Chanmyatharzi Township

Amarapura Township

Pyigyidagon Township

Source: ADB (2017), Myanmar: Pro-Poor Community Infrastructure and Basic Services Project.

182 APPENDIX-3 Amarapura Township Map

Source: General Administrative Department (2019)

183 APPENDIX-4 Taung Thaman Lake and U Bein Bridge

Source: Taung Thaman Lake Photo

184 QUESTIONNAIRES

185 QUESTIONNAIRE FOR THE TAUNG THAMAN LAKE CONSERVATION (VILLAGERS/ TOURISM-BASED BUSINESSES/ FACTORIES& FIRMS)

SECTION 1: SOCIOECONOMIC INFORMATION Socioeconomic questions may seem personal, but they are necessary because they help us analyze the results of this survey. Your responses shall be kept completely confidential.

1. Head of Household 1. Male 2. Female 2. Age of Head of Household ____ years

3. Marital Status of the Head 1. Single 2. Married 4. Educational Attainment 1. Primary School 2. Middle School 3. High School 4. Graduate 5. How many people are there in your household, including you? ______How many in your family, including yourself, is/are earning cash income? _____ 6. Main Occupation of the household (1) Agriculture / Fishery (2) Government Staff (3) Private Staff (4) Own Business 7. Main Products of your business (1) Agro -Based (2) Food Products (3) Clothing & Fabric Product (4) Store/ Trading/ Manufacturing 8. How much income did your household earn per month?

1. Equal or lower than 200,000 Ks 2. Between 200,001– 400,000 Ks. 3. Between 400,001 – 600,000 Ks. 4. Above 600,000 Ks 9. Year of living/ business establishment in this area (past and present situation) ______Year 10. Do you own your land? 1. Yes 2. No 11. How do you use your land? ______12. Has your Household made donations to any charitable causes?

1. Yes 2. No 13. Are you a member of any environmental organization? 1. Yes 2. No

186 SECTION 2: ATTITUDE, KNOWLEDGE AND PERCEPTION ON THE TAUNG THAMAN LAKE (Perception on Ecosystem) 14. Do you think the environment and natural resources in Myanmar are properly taken care of? 1. Yes ______2. No ______3. Do Not Know ______15. (a) Please read the following statements and tell us your opinion on a scale of 5 (strongly agree) to 1 (strongly disagree). Please  the column to enter your answer.

Sr STATEMENT Concerning Government . 5 4 3 2 1 Future Plan for the Lake Conservation No

The Government intends to raise more funds to A deal with environmental programs.

The Government plan to collect taxes to pay for B environmental conservation.

Endangered species conservation is a priority C concern of the government.

The Government will invest in helping people D before it spends money on conservation

Breaking rules for environmental conservation E will be punishable by law.

15. (b)

Sr. STATEMENT Concerning Public Awareness 5 4 3 2 1 No for the Lake Conservation

There are other more important other A environmental concerns than Lake conservation.

It is everyone’s concern to ensure that B sustainability of plants and animals are important for the future

187 Lakes are important even if there is no human C connection

Citizens should contribute to Lake conservation D by making cash donations

Households who earn more income should E contribute more to Lake conservation.

16. Do you know that Taung Thaman is a Heritage Site in Myanmar? 1. Yes 2. No 17. How do you assess the environmental situation of Lake Site? 1. Better 2. Worse 3. Unchanged 4. Not Know 18. What kind of inconveniences do you face in this Lake? 1. Water Pollution at the site 2. Increase Waste Disposal in Lake 3. Difficult to do business 4. Experiencing Frequent Disasters 19. Distance from the Taung Thaman Lake ______20. Current environmental quality in the Lake based on your perception. Current Environmental Very Very Severe Neutral Low Quality in the Lake Severe Low

Air pollution

Water pollution

Solid waste management Biodiversity conservation Deforestation

Traffic noise/problems

Enhanced greenhouse effect Other, please specify ______

SECTION 3: A CONSERVATION PROGRAM FOR TAUNG THAMAN LAKE (WILLINGNESS TO PAY) 21. Willing to pay for conservation of water quality improvement and flood control of the Lake 1. Yes 2. No *If YES, please go to Q 24. *If NO, please go to Q 26.

22. If Yes, willing to pay for conservation of water quality improvement of the Lake 188 (i) Less than equal Ks 600 (ii) Ks 601 – 1000 (iii) Ks 1001 – 2000 (iv) Above 2000 23. Is there any specific amount would you like to pay for conservation of water quality of the Lake? Ks ______

24. If YES, what was it that made you be willing to vote for the conservation program? (Please choose the most important one.) 1. To protect the Lake environment 2. To prevent encroachment of human & businesses 3. To preserve cultural heritage site in the Taung Thaman Lake 4. To manage sustainable development in Lake environment 25. How certain are you that you would actually vote this way (or pay this amount) if this referendum (or program) was really happening? Please  ONE NUMBER

1 2 3 4 5

Very uncertain uncertain neutral certain Very certain

26. If NO, can you tell me ONE most appropriate answer why you would vote against the program? 1. It is mainly responsible by government 2. This activity wastes money 3. The project cannot implement properly due to inefficiencies of public sector 4. Poverty alleviation is more important than Lake Conservation 27. How much do you believe that the implementation of the Lake Conservation program in the Taung Thaman could contribute to conservation of its water quality?

1 2 3 4 5

Not at All Not Much Average Highly Completely

28. If you have any concerns or opinions you would like to share concerning the questionnaire or conservation of the Taung Thaman Lake, please use the space provided below: ______

189 Thank you very much for answering this survey!

Appendix: (For Villagers) Estimated Cost per Acre of Paddy, Pulses and Oilseed Production in the Villages (2018-2019) Sr. Subject Unit Quantity Price Total No (Kyats) Costs (Kyat) 1. Land reclamation, Dyke reparation, digging swampy canal and canal around the field 2. Cultivation Price of seeds, sowing the seed in water, covering the seeds, broadcasting seed, pulling out rice seedlings and transplanting paddy 3.U Using material aid Urea, T super, potted of chemical fertilizer, insecticide, wages for insecticide and weeding 4.H Harvesting Carrying a sheaf of paddy, winnowing paddy

5. Energy Charges for Irrigation Water Total Estimated Costs Production Rate per Acre

190 (basket)

QUESTIONNAIRE FOR THE TAUNG THAMAN LAKE CONSERVATION (VISITORS)

SECTION 1: SOCIOECONOMIC INFORMATION Socioeconomic questions may seem personal, but they are necessary because they help us analyze the results of this survey. Your responses shall be kept completely confidential.

1. Age ____ years 2. Age of Head of Visitor ____ years

3. Place of living/ Country of origin ______City/Village 4. Marital Status of the Head

1. Single 2. Married 5. Educational Attainment 1. Non-Graduate 2. Graduate 6. How many people are there in your household, including you? ______7. Main Occupation of the household ______(1) Dependent (2). Working 8. How much income did your household earn per month? USD ______How many in your family, including yourself, is/are earning cash income? _____ 9. Has your Household made donations to any charitable causes? 1. Yes 2. No 10. Are you a member of any environmental organization? 1. Yes 2. No

191 SECTION 2: ATTITUDE, KNOWLEDGE AND PERCEPTION ON THE TAUNG THAMAN LAKE (Perception on Ecosystem) 11. Do you think the environment and natural resources in Myanmar are properly taken care of? 1. Yes ______2. No ______3. Do Not Know ______12. (a) Please read the following statements and tell us your opinion on a scale of 5 (strongly agree) to 1 (strongly disagree). Please  the column to enter your answer.

Sr STATEMENT Concerning Government . 5 4 3 2 1 Future Plan for the Lake Conservation No

The Government intends to raise more funds to A deal with environmental programs.

The Government plan to collect taxes to pay for B environmental conservation.

Endangered species conservation is a priority C concern of the government.

The Government will invest in helping people D before it spends money on conservation

Breaking rules for environmental conservation E will be punishable by law.

12. (b)

Sr. STATEMENT Concerning Public Awareness 5 4 3 2 1 No for the Lake Conservation

There are other more important other A environmental concerns than Lake conservation.

It is everyone’s concern to ensure that B sustainability of plants and animals are important for the future

C Lakes are important even if there is no human

192 connection

Citizens should contribute to Lake conservation D by making cash donations

Households who earn more income should E contribute more to Lake conservation.

13. Do you know that Taung Thaman is a Heritage Site in Myanmar? 1. Yes 2. No 14. Have you ever visited Taung Thaman Lake frequently? 1. Yes 2. No 15. How many times do you come every year? ______times. 16. How do you assess the environmental situation of Lake Site? 1. Better 2. Worse 3. Unchanged 4. Not Know 17. What aspects of this Lake do you value? 1. Peacefulness, scenic beauty, picnic and bird watching 2. Storing valuable biodiversity and unique view 3.Good getaway for the next generation and educational value 18. Are you satisfied during this visit? 1. Yes go to Q 19 2. No go to Q 20 19. What make you satisfy visiting the Lake? ______20. What kind of inconveniences do you face in this Lake? 1. Dry and polluted at the site 2. Unable to find birds 3. Few places to take a rest 4. Lack of specific indication and information counter at the site

TRAVEL INFORMATION 21. How would you describe the group you are with when you visited Taung Thaman Lake? 1. Family 2. Family and Friends 3. Friends 4. Organized Group (Tour, Organization, etc.) 5. Alone 22. The number of families / friend’s members on this trip ______number 23. Please state the primary reason for your visit to the Taung Thaman Lake. ______24. Was Taung Thaman Lake primary destination on this trip? 1. Yes 2. No 25. Place of Origin ______(Township)______(State/ Region)

193 26. Which of the following was the most important reason for visiting Taung Thaman Lake? (Select One)

1. I went there to enjoy the place itself 2. I went there because it is a good place to do the outdoor activities, I enjoy 3. I went there because I wanted to spend more time with companions 27. Please check the activities you participated in while at the Taung Thaman Lake and estimate the amount of time you spent participating in each activity. (Please check and answer) 1. Wildlife observation/ Nature Study ______(Time) 2. Photography, bicycling, walking for pleasure and sightseeing along the Taung Thaman ______(Time) 3. Spending time ______(Time)

28. Do you wish to come again to this place? 1. Yes 2. No

SECTION 3: A CONSERVATION PROGRAM FOR TAUNG THAMAN LAKE We will now provide you with some information about Taung Thaman Lake Threats faced 29. Would you be willing to pay an amount of entrance fees for the U Bein Bridge to support conservation programs for the Taung Thaman Lake? 1. Yes 2. No [Go to Q33] 30. If YES, what amount would this be? Please choose one from the following table. For Local Visitor

1 2 3 4 5 6

Ks Ks50 Ks 600 Ks 800 Ks 900 K1000 300 0

For Foreigner

1 2 3 4 5

USD <= 1 USD 2 USD 3 USD 4 USD 5

194 31. If YES, what was it that made you be willing to vote for the conservation program? (Please choose the most important one.) 1. To protect the Lake environment 2. To prevent encroachment of human & businesses 3. To preserve cultural heritage sites in the Taung Thaman Lake 4. To manage sustainable development in the Lake environment 32. How certain are you that you would actually vote this way (or pay this amount) if this referendum (or program) was really happening? Please  ONE NUMBER

1 2 3 4 5 [Go to Q 34]

Very uncertain uncertain neutral certain Very certain

33. If NO, can you tell me ONE most appropriate answer why you would vote against the program? 1. It is mainly responsible by government 2. This activity wastes money 3. The project cannot implement properly due to inefficiencies of public sector 4. Poverty alleviation is more important than Lake Conservation 34. How much do you believe that the implementation of the Lake Conservation program in Taung Thaman could contribute to conservation of lake in Myanmar?

1 2 3 4 5

Not at All Not Much Average Highly Completely

35. If you have any concerns or opinions you would like to share concerning the questionnaire or conservation of the Taung Thaman Lake, please use the space provided below: ______

Thank you very much for answering this survey!

195