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Download/Valuation.Pdf Economic valuation study: action learning project on incentives for improved watershed services in the Buff Bay/Pencar watershed, Jamaica Dennis Pantin and Veronica Reid April 2005 The views represented in this document do not necessarily represent those of the institutions involved, nor do they necessarily represent official UK Government and/or DFID policies. Economic valuation study: action learning project on incentives for improved water services in the Buff Bay/Pencar watershed Contacts: Dennis Pantin and Veronica Reid • Caribbean Natural Resources Institute (CANARI) • Tel: +868 626 6062 • Fax: +868 626 1788 • Email: [email protected] • Website: www.canari.org. Forestry and Land Use, Natural Resources Group, International Institute for Environment and Development, 3 Endsleigh Street, London WC1H 0DD, UK • Tel: +44 (0)20 7388 2117 • Fax: +44 (0)20 7388 2826 • Email: [email protected] Citation: Pantin, D. and V. Reid (2005) Economic valuation study: action learning project on incentives for improved water services in the Buff Bay/Pencar watershed. CANARI Who Pays for Water? Project Document No.2. Caribbean Natural Resources Institute, Laventille, Trinidad and Tobago and International Institute for Environment and Development, London, UK. Developing markets for watershed protection services and improved livelihoods Based on evidence from a range of field sites the IIED project, ‘Developing markets for watershed services and improved livelihoods’ is generating debate on the potential role of markets for watershed services. Under this subset of markets for environmental services, downstream users of water compensate upstream land managers for activities that influence the quantity and quality of downstream water. The project purpose is to increase understanding of the potential role of market mechanisms in promoting the provision of watershed services for improving livelihoods in developing countries. The project is funded by the UK Department for International Development (DFID). Working Paper No. 9 - 2 - Economic valuation study: action learning project on incentives for improved water services in the Buff Bay/Pencar watershed Table of contents Acronyms and abbreviations ............................................................................................... 6 Executive summary ............................................................................................................. 8 1. Introduction.................................................................................................................... 14 2. Physical, hydrological, soil, and water quality characteristics and trends in the Buff Bay/Pencar watershed........................................................................................... 16 2.1 Physical profile......................................................................................................... 16 2.2 Hydrological profile .................................................................................................. 18 2.2.1 Rainfall.................................................................................................................. 18 2.2.2 Temperature ......................................................................................................... 18 2.2.3 Surface water runoff and yield .............................................................................. 19 2.3 Soil profile ................................................................................................................ 19 2.3.1 Sedimentation flow ............................................................................................... 21 2.4 Water quality profile ................................................................................................. 21 2.5 Impacts of deforestation .......................................................................................... 25 2.5.1 The impact of deforestation on water production and quality ............................... 25 2.5.2 The impact on sedimentation................................................................................ 28 2.5.3 The impact on flooding ......................................................................................... 30 3. Socio-economic profile of the Buff Bay/Pencar watershed ........................................... 31 3.1 Demographics of the watershed .............................................................................. 31 3.2 Land access and tenure .......................................................................................... 32 3.3 Economic profile of the Buff Bay/Pencar watershed................................................ 33 3.3.1 Coffee production ................................................................................................. 33 3.3.2 Banana production................................................................................................ 35 3.3.3 Mixed agroforestry ................................................................................................ 35 3.3.4 Timber production................................................................................................. 35 3.3.5 Recreation/tourism................................................................................................ 36 3.4 Summary overview .................................................................................................. 37 4. Review of the general methodology of the economic valuation .................................... 38 4.1 The valuation of forest ecosystems ......................................................................... 38 4.1.1 The economic assessment approach ................................................................... 39 4.1.2 Valuation techniques ............................................................................................ 40 Working Paper No. 9 - 3 - Economic valuation study: action learning project on incentives for improved water services in the Buff Bay/Pencar watershed 5. Main land uses in the Buff Bay/Pencar watershed and estimates of negative impacts .......................................................................................................................... 43 5.1 Present land use in the watershed .......................................................................... 43 5.1.1 Natural forest ........................................................................................................ 44 5.1.2 Ruinate lands........................................................................................................ 44 5.1.3 Secondary forest................................................................................................... 44 5.1.4 Planted forest........................................................................................................ 44 5.1.6 Mangrove forest.................................................................................................... 44 5.2 Dominance of agriculture......................................................................................... 45 5.2.1 Monocultures ........................................................................................................ 45 5.2.2 Agroforestry .......................................................................................................... 45 5.3 Urban coastal development ..................................................................................... 46 5.4 Transportation/roads................................................................................................ 46 5.5 Recreation and tourism............................................................................................ 46 5.6 Land-use change: 1991/2 to 1999 ........................................................................... 46 5.6.1 Impacts of deforestation on water yield ................................................................ 46 5.7 Estimated negative impacts of land-use patterns .................................................... 47 5.7.1 Costing the negative impacts of land-use patterns............................................... 47 5.8 Quantitative estimates of impacts of flooding .......................................................... 48 5.9 Addressing the issue of flooding in the Buff Bay/Pencar watershed ....................... 49 6. Estimated total economic value of the ecosystem services provided by the Buff Bay/Pencar watershed ................................................................. 50 6.1 Direct use values ..................................................................................................... 50 6.1.1 Coffee ................................................................................................................... 50 6.1.2 Bananas................................................................................................................ 51 6.1.3 Timber................................................................................................................... 51 6.1.4 Mixed agroforestry ................................................................................................ 52 6.1.5 Recreation/tourism................................................................................................ 52 6.2 Indirect use values................................................................................................... 53 6.2.1 Water supply........................................................................................................
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