Economic value of non-timber forest products among Paser Indigenous People of East Kalimantan Saragih, B. Citation Saragih, B. (2011, November 10). Economic value of non-timber forest products among Paser Indigenous People of East Kalimantan. Retrieved from https://hdl.handle.net/1887/18078 Version: Not Applicable (or Unknown) Licence agreement concerning inclusion of License: doctoral thesis in the Institutional Repository of the University of Leiden Downloaded from: https://hdl.handle.net/1887/18078 Note: To cite this publication please use the final published version (if applicable). Economic value of non-timber forest products among Paser Indigenous People of East Kalimantan ISBN/EAN 978-90-5113-097-3 © Bernaulus Saragih, 2011 All rights reserved. Save exception stated by the law, no part of this publication may be reproduced, stored in a retrieval system of any nature, of transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, included a complete or partial transcription, without the prior written permission of the author, application for which should be addressed to author. The options expressed in this publication are those of the author and do not necessarily reflect the views of Tropenbos International or University of Leiden. Cover photo: Bernaulus Saragih Cover design: Aritta Suwarno Printed by: Desa Putera, Jakarta, Indonesia Economic value of non-timber forest products among Paser Indigenous People of East Kalimantan Proefschrift ter verkrijging van de graad van Doctor aan de Universiteit Leiden, op gezag van Rector Magnificus prof. mr. P.F. van der Heijden, volgens besluit van het College voor Promoties te verdedigen op 10 november 2011 klokke 16.15 uur door Bernaulus Saragih geboren te Hutatinggir (Indonesië) in 1968 Promotiecommissie Promotor: Prof. dr. G.A. Persoon Co-promotor: Dr. ir. H.H. de Iongh Overige leden: Prof. dr. R. Boot (Universiteit Utrecht) Prof. dr. A.J. Dietz Prof. dr. L.J. Slikkerveer Prof.dr.Wawan Kustiawan (Universitas Mulawarman) iv Table of Contents Acknowledgements ......................................................................................................i Contents .....................................................................................................iii Abbreviations .................................................................................................... xv Chapter 1 Research background Non-timber forest products a neglected resource in forest management 1.1. Introduction ......................................................................................................1 1.2. Valuation of forest ecosystem function ................................................................3 1.2.1. The ecological function of forests ..............................................................3 1.2.1.1. Forest and climate change ...............................................................4 1.2.1.2. Soil protection, flood prevention and water collection.....................5 1.2.2. Products from tropical forests ....................................................................8 1.2.2.1. Timber production from forests ......................................................8 1.2.2.2. Forest as a source of energy ...........................................................10 1.2.2.3. Non-timber forest products...........................................................11 1.2.3. The problem of deforestation ..................................................................13 1.2.3.1. The link between poverty and deforestation ..................................14 1.2.3.2. The role of agriculture in deforestation ..........................................14 1.2.3.3. The role of macro-economics in deforestation ...............................15 1.2.3.4. Property and deforestation ............................................................16 1.3. Research framework and objectives ...................................................................16 1.3.1. Research objectives ..................................................................................17 1.3.2. Research questions ..................................................................................17 1.4. Organization of the book ..................................................................................18 1.5. End notes ....................................................................................................19 v Chapter 2 Theoretical context towards valuation of environment and tropical forest ecosystem 1.1. Introduction ....................................................................................................21 1.2. Theoretical foundation of environmental valuation ...........................................21 2.2.1. Total economic value ...............................................................................22 2.2.2. The use value ...........................................................................................22 2.2.3. The option value .....................................................................................23 2.2.4. The existence value ..................................................................................23 2.2.5. Pareto optimality .....................................................................................23 2.2.6. Market failure and externalities ...............................................................24 2.2.7. Property right and stakeholders ...............................................................24 2.2.8. The nature of public goods ......................................................................25 2.2.9. The concept of shadow pricing ................................................................26 2.3. Time and the problem of discounting in valuation ............................................26 2.31. Cost benefit analysis ................................................................................27 2.3.2. The use of environmental values ..............................................................29 2.3.3. Current techniques of environmental valuation .......................................31 2.3.4. Direct methods of valuation ...................................................................32 2.3.4.1. The travel cost methods ................................................................32 2.3.4.2. Hedonic pricing ...........................................................................33 2.3.4.3. Contingent valuation methods ......................................................34 2.3.5. Indirect methods of valuation..................................................................35 2.3.6. Combining direct and indirect methods ..................................................36 2.4. A critique of valuation methodologies ...............................................................36 2.4.1. General problems with valuation methods ..............................................37 2.4.1.1. Determining what we mean by the environment ..........................37 2.4.1.2. The Problem of Money ................................................................38 2.4.1.3. The problem of compensation ......................................................39 2.4.1.4. The effect of elasticity on value ......................................................39 2.4.1.5. The problem associated with Hedonic pricing ..............................40 2.4.1.6. Problems associated with contingent valuation methods .............40 2.4.1.7. Problems with direct dose-response methods ................................42 2.4.1.8. The need for non-monetary evaluation.........................................42 2.4.1.9. Combining different approach to valuation..................................43 2.5. End notes ....................................................................................................43 Chapter 3 Methods and research framework How is the economic value of non-timber forest products measured? 3.1. Introduction ....................................................................................................45 3.2. Methods of measurement of NTFPs economic values .......................................46 3.2.1. Research village selection methods ......................................................46 vi 3.2.2. Selecting the students and the field assistants ......................................47 3.2.3. Preparation in Samarinda prior to travel to the study sites ..................47 3.2.4. The importance of interaction between the fieldwork team and the ...... villagers ...............................................................................................48 3.3. Field work procedures and data collection in the villages ...................................49 3.3.1. The introductory meeting ...................................................................49 3.3.2. Participatory mapping and landuse of the villages ...............................51 3.3.3. Conducting the households survey .....................................................52 3.4. Methods of estimating proportion and quantities ..............................................53 3.5. Other data collecting activitiesin the fieldwork villages ......................................54 3.6. Collecting data relating to commercial extraction of rattan, honey, and hunting ....................................................................................................55 3.7. Problems with data collection ...........................................................................56