Protected Area Assessment and Establishment in Vanuatu The Australian Centre for International Agricultural Research (AClAR) was estab­ lished in June 1982 by an Act of the Australian Parliament. Its mandate is to help identify agricultural problems in developing countries and to commission collabo­ rative research between Australian and developing country researchers in fields where Australia has a special research competence. Where trade names are used this constitutes neither endorsement of nor discrimi­ nation against and product by the Centre. I, ACIAR MONOGRAPH SERIES This peer-reviewed series contains the results of original research supported by ACIAR. or material deemed relevant to ACIAR's research objectives. The series is distributed internationally. with an emphasis on developing Australian Centre for International Agricultural Research GPO Box 1571, Canberra ACT 2601, Australia. Tacconi. L. and Bennett, J., ed. 1997. Protected area assessment and establish­ ment in Vanuatu: a socioeconomic approach. ACIAR Monograph No 38, x + 180p. ISBN 1 86320 178 5 Pre-press production by Arawang Information Bureau Pty Ltd, Canberra, Australia. Protected Area Assessment and Establishment in Vanuatu: a Socioeconomic Approach Editors: Luca Tacconi and Jeff Bennett Canberra 1997 Foreword In recent years, the focus of agricultural research and development targeted at improving poverty alleviation and food security has gradually broadened to also include concerns for conservation of natural resources, efficiency in resource use, and inter and intragenerational equity. However, no single theoretical framework is currently available that can be used to fully address all these objectives simultane­ ously and at the same time ensure that the research carried out is both relevant and has an impact on the decision-making process-a process which is particularly dif­ ficult in the presence of imperfect or inadequate information. ACIAR is supporting a number of research activities to help partner countries address their priority agricultural use and management problems while also pro­ moting the development of theoretically sound and policy-relevant practical eco­ nomic frameworks to achieve management goals of resource sustainability, effi­ ciency in resource use and inter and intragenerational equity. A recently completed ACIAR project, The socioeconomic assessment of native forest use in Vanuatu, is one such research activity, the results of which are reported in this book The project helped local communities, and provincial and national govern­ ments, to establish forest and coastal conservation areas on Erromango and Malekula islands in Vanuatu. The researchers adopted a participatory-action approach stimulating local communities and other stakeholders to identify their own needs and wants, and to work closely with each other to design a system of protected areas to suit their respective views regarding forest conservation and management. In such an approach, a policy researcher largely functions as a facil­ itator and 'transdisciplinary' analyst drawing on a range of science and social science disciplinary-based expertise and using an evaluation framework broader than traditional neoclassical cost-benefit analysis. The book makes a significant contribution to the development of the emerging ecological-economics paradigm and its application to resource use and allocation problems in the presence of inadequate ecological and economic infor­ mation and evolving institutional structures. It also demonstrates the need for adopting participatory approach to ensure agricultural research is, on the one hand, relevant to the needs and aspirations of local communities and other stakeholders and, on the other, ensures the development of government policies which are likely to be effective in increasing sustainability, and intra and intergenerational equity in the long term. Padma Lal AClAR 1997 v About the Authors Jeff Bennett is Associate Professor in the School of Economics and Management, The University of New South Wales at the Australian Defence Force Academy, Can­ berra. With a Bachelor of Agricultural Economics degree from the University of New England and a PhD from the Australian National University, his research interests focus generally on environmental and resource economics. He has acts as a con­ sultant to the public and private sectors and has held visiting positions at univer­ sities in the UK, USA and Germany. Glenn F1atley is a Squadron Leader in the Royal Australian Air Force, currently serving in a logistics position at the Amberley Air Base in Queensland. The work reported in Chapter 9 of this monograph was conducted as part of the Masters of Management Economics degree Glenn completed at The University of New South Wales. He has a strong continuing interest in environmental matters and is currently undertaking part-time postgraduate studies in environmental management at Charles Sturt University, Bathurst. Livo Mele is Community and Conservation Liaison Officer with the Department of Forests, Vanuatu. Currently, he is on leave while studying for a Degree in Environ­ mental Management at the University of the South Pacific, Suva, Fiji. He holds a Diploma in Forestry from Bulolo College, Papua New Guinea. John Rolfe is Head of the Emerald Campus of The Central Queensland University where he is a member of the Business Faculty. He holds degrees in both commerce and economics from The University of Queensland. The analysis reported in Chapter 10 of this monograph is an integral component of John's PhD research, which is being undertaken at The University of New South Wales. Luca Tacconi is a Research Fellow with the Department of Forestry, The Australian National University. The research for the ACIAR project was carried out while he was employed as a Research Fellow at The University of New South Wales. His research interests include natural resources management, rural development, project evaluation, ecological economics and forest economics. He holds a Bachelor of Economics from the University of Siena (Italy), a Master of Commerce (Economics) from Melbourne University, and a PhD from The University of New South Wales. He has worked as a consultant for AusAID. Address for correspondence: Luca Tacconi Department of Forestry School of Resource Management and Environmental Science The Australian National University Canberra ACT 0200 vi Contents Foreword v About the Authors vi Preface ix Acknowledgments x Part I - Background I. Introduction - Jeff Bennett and Luca Tacconi 3 2. Forests and Biodiversity in Vanuatu Luca Tacconi and 9 Jeff Bennett Part 11 - Theoretical Aspects 21 3. Building a Socioeconomic Approach to Protected Area Assessment 23 and Establishment - Luca Tacconi and Jetf Bennett 4. Intergenerational Equity and Protected Areas -Luca Tacconi 33 and Jeff Bennett Part III - Assessing and Establishing Protected Areas in Vanuatu 45 5. Overview of the Erromango Kauri Protected Area -Luca Tacconi 47 and Jeff Ben nett 6. Assessment Process of the Erromango Kauri Protected Area 57 Luca Tacconi and Je{{Bennett 7. Sandalwood Cultivation and the Establishment of the 71 Erromango Kauri Protected Area - Luca Tacconi and Uuo Mete 8. Malekula Island Conservation Planning Luca Tacconi 87 9. Estimating Demand from Australians for Vanuatu Forest 109 Conservation - Jett Bennett, Glenn Flatley and John Ro/{e Part IV Conclusion 119 10. Assessing and Establishing Protected Areas - 121 Luca Tacconi References 127 Appendixes 137 1. Description of Forest Vegetation Types 139 vii 2. Deed for Establishment of the Vanuatu Biodiversity 141 Conservation Trust Fund 3. Protected Areas By-Law 167 4. Sample Choice Modelling Set from First Survey 177 5. Sample Choice Modelling Set from Second Survey 178 6. Multinomial Logit Results for First Survey 179 7. Multinomial Logit Results for Second Survey 180 List of Figures Figure 2.1 Map of the Republic of Vanuatu 10 Figure 4.1 The economic system as part of the ecological system. 36 Figure 5.1 Map showing location of the Erromango Protected Area 50 Figure 5.2 Map of the Erromango Kauri Protected Area 51 Figure 8.1 Map of proposed protected areas and non-Ioggable areas of Malekula 95 List of Tables Table 2.1 Vegetation cover of Vanuatu 12 Table 2.2 Vanuatu forest types, areas, locations, and local climate and rainfall 13 Table 2.3 Area (ha) of forests of Vanuatu, by region 14 Table 2.4 Area (ha) of mid height closed canopy forests (CCF) 15 Table 2.5 Estimated sustainable yields for the forest of Vanuatu ('000 m 3) 16 Table 4.1 Functions of natural capital and of manufactured capital 37 Table 5.1 Description of the kauri protected area 52 Table 6.] Volumes of merchantable timber (60 cm diameter at breast height) 60 Table 6.2 Merchantable timber in kauri forest 62 Table 6.3 Merchantable timber for the other forest types 63 Table 6.4 Value of timber royalties (vatu) 63 Table 6.5 Place of collection of medicinal plants and their frequency distribution 65 Table 6.6 Present value of proposed protected area lease and timber royalty 68 Table 7.] Annual average growth rates of sandalwood (girth at 20 cm from 75 ground; total sample 111) Table 7.2 Sandalwood heartwood yields in Erromango and New Caledonia 75 Table 7.3 Summary of costs for the establishment and maintenance of a 77 sandalwood plantation Table 7.4 Heartwood yields (after 20 years) and financial returns from 80 2 a 5000 m sandalwood plantation Table 7.5 Net present value of output from a 10 ha sandalwood plantation 81 Table 8.1 Vegetation cover of Malekula 93 viii Preface The methods of economic analysis of environmental issues have improved signifi­ cantly during recent years, and are evolving continuously. In this context, the eco­ nomic valuation of resources and ecosystems is an area that has received particular attention. Economic valuation studies normally focus on the values (expressed in monetary form) of the environment. This monograph goes beyond the area nor­ mally covered in valuation studies. The work presented here considers ethical issues as they relate to the (economic) management of ecosystems, details the institutional features that influence ecosystem management and attempts to assess the value of ecosystems.