Estimate the economic value of xuan thuy national park nam dinh province

MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT VIETNAM NATIONAL FORESTRY UNIVERSITY STUDENT GRADUATION THESIS ESTIMATE THE ECONOMIC VALUE OF XUAN THUY NATIONAL PARK, NAM DINH PROVINCE Major: Natural Resources Management Faculty: Economic business management Student: Nguyen Hoang Duy Student ID: 1453091946 Class: K59A - Natural Resources Management Course: 2014 - 2018 Supervisor: Vu Thi Minh Ngoc Hanoi, 2018 LIST OF ACRONIM NP : National Park CVM : Contingent Valuation Method TEV : Total Economic Value DUV : Direct use value IUV : Indirect use value OP : Option value BV : Bequest value EV : Existence value WTP : Willingness to pay WTA : Willingness to accept TABLE CONTENTS I Introduction II Goals and objectives III Methodology 3.1 Study site 3.2 Data 3.3 Analysis methods 3.3.1 Descriptive statistic 3.3.2 CVM (Contingent valuation method) 3.3.3 Using TEV IV Results and discussion 4.1 Socio-economic characteristics 4.2 Natural resources 11 4.2.1 Plants 11 4.2.2 Animals and aquatic organisms 11 4.3 Evaluation of total economic value of Xuan Thuy NP 13 4.3.1 Use Value 13 4.3.2 Non-use value 23 4.4 The summary of total value of Xuan Thuy National Park 24 4.5 Discussion 26 V Conclusion 27 VI References 28 APPENDIX 30 APPENDIX 32 LIST OF TABLES Table Total value of wood-based products and NTFPs 15 Table Value of aquatic products harvested annually (2015) 15 Table Total direct use value in research (unit: VND) 17 Table Respondents’ socio-characteristics descriptive analysis 19 Table WTP to forest protection fund by characteristics of respondents (unit: VND) 21 Table Total indirect use value in research (unit: VND) 22 Table Total investment capital for the National Park through the capital sources in the period 1996-2002 25 Table Summary of total value 26 I Introduction In the history of human development, to couple with rapid population economic growth, people have been forced to exploit more and more natural resources Today, the variation of environmental consequences such as droughts, floods, environmental incidents, natural disasters are complicated and unpredictable Therefore, the importance of forests cannot be underestimated Forests are our land of trees and plants that covering a third of the earth's surface, symbolize by the color of green in the common definition of environmentalism They are fundamental to life provide for the continuity of the world's biodiversity which is necessary for economic development, the diversity of life forms, human livelihood, and environmental adaptive responses We depend on forests for our survival, from the air we breathe to the wood we use Besides providing habitats for animals and livelihoods for humans, forests also offer watershed protection, prevent soil erosion and mitigate climate change Forests are of vast economic benefits to us For instance, plantation forests provide humans with wood and timber, which is used in construction and as raw materials for numerous products Also, whenever tourists visit the forest areas to view the beautiful sceneries along the wildlife forms inhabiting the forests, the hosting nations and communities get revenue from tourism Forests are also a source of rare animals like wild rabbits, and foods like vegetables such as berries, tubers, and edible mushrooms that grow on the forest floor In Vietnam, forest and forestland are important roles and sources of livelihood for the population living in or near forests and in mountainous areas of Vietnam It has contributed to the use of bare land, job creation and improvement of livelihoods for 25% of Vietnam's population living in mountainous areas From the practical needs, it is the trend of conservation and development of wetlands have been accepted by many countries in the world and voluntary implementation Xuan Thuy National Park is the first place in Vietnam to join the Ramsar Convention, so evaluation studies are required to fully evaluate its values in order to exploit and use resources in a sustainable way The main purpose of the project is calculating the total economic value of Xuan Thuy NP to fully assess all the social benefits of this natural ecosystem and accurately representing resource resources in economic language Although economic valuation is not the only factor for every decision, it is an input to decision-making along with important political, cultural, social and human factors Located at 150 km South-East of Hanoi, Xuan Thuy National Park (NP) at Giao Thuy district, Nam Dinh province is famous for its natural conditions and habitat of hundreds of precious plant and animal species This lagrest coastal wetland ecosystem has formed a natural reserve with many unique habitats of wetland ecosystems with numerous wildlife and rare migratory birds With a conservation area of 7,100 hectares and a buffer zone of 8,000 hectares, including 3,000 hectares of mangroves and many valuable aquatic species, this has created a wealth of new land Therefore, since January 1989, UNESCO has officially recognized this land as the 50th member of the Ramsar Convention On 2/1/2003, the Prime Minister signed the Decision No 01/2003 / QD-TTg approving the change of Xuan Thuy Wetland Nature Reserve into Xuan Thuy National Park with the main task of preserving protect and manage valuable resources here Resources in Xuan Thuy National Park are not only of value for ecological environment protection but also of economic, cultural, scientific and tourist value Despite many efforts, the management of environmental protection in Xuan Thuy NP still faces many complicated problems One of the main reasons is that the resource value of Xuan Thuy NP is only partially perceived by the villagers through the immediate benefits, while many other unused values remain unanswered Therefore, to assess the economic value, in term of raising awareness and implement measures to preserve the national park, it is the trend of conservation and development of wetlands has been in many countries in the world Implementing the Ramsar Convention in January 1989, requires a through evaluation to fully assess the economic value of a good exploitation, I selected the topic “Estimate the economic value of Xuan Thuy NP, Nam Dinh Province” In addition to the introduction and conclusion, the thesis consists of sections: Goals & objectives, Methods and Results & discussion II Goals and objectives Goals This research aims to evaluate the total economic value of Xuan Thuy NP in order to raising awareness and implement measures to preserve the national park Objectives To reconize economic value components of TEV of Xuan Thuy NP To figure out appropriate methods to evaluate TEV of Xuan Thuy NP To apply evaluation methods to assess economic value components of TEV of Xuan Thuy III Methodology 3.1 Study site According to the report “Experimental evaluation of personal economic development of people in communes in Xuan Thuy National Park” (Vu Huy Phuc, 2015): In term of history, on October 2, 1989, UNESCO officially recognized the Red River estuarine area (Xuan Thuy District) to join the Ramsar International Convention It is the 50th Ramsar site in the world, and the first Ramsar site in the Asean region By the end of 1989, the Xuan Thuy District People's Committee set up a district environmental management board to lay the foundations for the establishment of the nature reserve About the area and location: The total natural area of the NP is 7100 ha, including 3,100 of floating land, 4,000 of wetlands, 65 km of Nam Dinh city and 155 km southeast of Hanoi with coordinates: 20º10’ to 20º15’ North and 106º20’ to 106º32’ East Topographic of the NP is quite flat, sloping from the North to the South, and is a strong tidal flux Average height from 0.5m to 0.9m, especially in Con Lu where the height is 1.2m to 1.5m The intertidal topography is separated by Vop river and Tra river Xuan Thuy NP is located in the Gulf of Tonkin, under the influence of tropical monsoon climate The summer is from May to September with hot and humid weather and often influenced by tropical storms or low pressure The winter season starts from November to March In early winter the air is cold, dry but late winter the air is c old and humid The average annual temperature is about 24ºC, the average annual rainfall is 1,175 mm The buffer zone communities of Xuan Thuy National Park represent the open land culture of Red River Delta residents Cultural activities bearing the imprint of the rice civilization of the Red River delta such as cheo, lion dance, cock fighting, Xuan Thuy National Park uses a community-based ecotourism model, stays at local residents and uses services provided by buffer zone communities Xuan Thuy National Park provides tourist routes through various forms in order to the needs of different objects: an overview of the NP, explore nature and walk through natural habitats 3.2 Data Data in the research is divided into two types: primary data and pre-existing data a Primary data In this research, sampling method is used to collect data It is used to evaluate willingness to pay of people who took part in research A survey including 100 participants who are residents and visitors are present in Xuan Thuy National Park was conducted Because the population in the core zone is quite scattered,it’s take time to collect the data takes Therefore I chose 100 samples Because when I took the survey there were only few foreigners visiting Xuan Thuy NP, I only collected data from domestic respondents The survey included questions which about gender, age, career, education level, member in family and willing to contribution and income b Pre-existing data The research are mainly used pre-existing data in order to analysis and evaluation the value of Xuan Thuy National Park 3.3 Analysis methods 3.3.1 Descriptive statistic: with the data collected in survey, it will be synthesized and evaluated to assess two content in research by using Excel: the willingness to pay (WTP) of respondents and net present value (NPV) The paper uses NPV formula to calculate: NPV = (F: future payment, i: discount rate, n: the number of periods in the future of F) 3.3.2 CVM (Contingent valuation method): CVM is a technique that allows the estimation of the value that people attach to a change in the availability of an environmental good or service by asking directly for their WTP or their willingness to accept (WTA) a compensation It is useful eliciting both use and non use values (it is the only technique available for non use values) It has been used for valuing almost everything (air, water, noise pollution, recreational services, biodiversity, protected areas, transport services) In this research, i designed a survey with questions about basics information of domestics (there are no foreigners) 3.3.3 Using TEV (Total Economic Value) method in order to analyze the data and information on the exploitation and use of natural resources in Xuan Thuy NP, the economic values are being used in Xuan Thuy NP TEV = Use value + Non-use value To clarify the economic value of Xuan Thuy NP, I need to clarify the use value and non-use value a Definition Use value is the value of use is derived from the actual use of the environment, values that satisfy the human needs of using them Non-use value expresses the non-material values in the nature of things, but it does not relate to the actual use, even the choice of the use of things Use Value: Direct Use Value(DUV) + Indirect Use Value(IUV) + Option Value(OV) Non use Value: Bequest Value(BV) + Existence Value(EV) So that: TEV = DUV + IUV + OV + BV + EV Picture The components of total economic value (Crotiou, 2007) (source: African journal of agricultural research, 2010) The direct use value is the value derived from the direct use of the resources of the wetland Examples of direct use values such as wood from mangroves are used as fuel or for construction purposes, fish and crabs caught in streams through mangroves, used in construction (roof and wall), folk remedies derived from plants and species found in wetland ecosystems Calculation formula: X = F {(Q1P1 + + QnPn) x S } X: The total economic value of each UV by unit of value of use F: Relational value function Q: Volume of benefits 4.3.1.3 Option Value Option value associated with the conservation plan is very difficult to quantify The value of these benefits is not always recognized, but may only become apparent when wetlands are preserved Because the selected values arise from the unpredictability of the unknown benefits of the wetland in the future, they are particularly difficult to estimate In order to initially calculate the option value, the research uses the CVM methodology and conducted an investigation to determine the average WTP level for conserving resources at the national park Data collection and survey: with the purpose of the study, the survey covers respondents in the buffer zone communes Information was collected by direct interviews with each household selected for interviewing However, due to time and technical constraints, the sample size chosen for the project is about 100 respondents in buffer zones The form of questionnaire is presented in Appendix Analysis in the study is based on 100 questionnaires Interviews data analysis: Gender, age, career, education level and income are taken completely random However for generalizing data, the research uses a wide range of age and career The willingness to pay (WTP) for a forest protection fund is investigated in 100 respondents The results has shown in tables below 19 Table Respondents’ socio-characteristics descriptive analysis No Characteristics Age Career Gender Education level Income (thousand VND) Amout WTP (thousand VND) Number (people) Proportion (%) 22-30 18 18 31-40 25 25 41-50 37 37 51-60 14 14 61-70 6 Agriculture 43 43 Fishery 36 36 Teacher 1 Civil servants 10 10 Business 8 Other 2 Male 58 58 Female 42 42 Junior high school 28 28 High school 47 47 University 24 24 Other 1 Under 500 0 500 - 1,500 24 24 1,500 - 2,500 49 49 2,500 - 3,500 17 17 Over 3,500 10 10 0 50 48 48 100 26 26 150 20 20 200 6 (Source: Data collection survey and synthesized by the author)) 20 Table WTP to forest protection fund by characteristics of respondents (Unit: VND) WTP intervals No Characteristics Age Career Gender Educati (thousa nd VND) 100,000 200,000 - and 150,000 over Proporti respond on (%) ents 22-30 8 18 18 31-40 12 25 25 41-50 14 18 37 37 51-60 14 14 61-70 6 Agriculture 13 27 43 43 Fishery 13 19 36 36 Teacher 1 Civil servants 2 10 10 Business 8 Other 2 Male 25 27 58 58 Female 15 19 42 42 Junior high school 15 28 28 High school 14 30 47 47 13 24 24 Other 1 Under 500 0 0 500 - 1,500 19 24 24 1,500 - 2,500 28 18 49 49 2,500 - 3,500 17 17 Over 3,500 10 10 on level University Income 50,000 Total (Source : synthesized by the author) In term of gender on effect to thier WTP, it can not be confirmed that gender affects WTP because the sample is small The research also does not reflect local gender status 21 The WTP of older people is higher than youngers’ because when they get older, they realize that resources are exhausting They have to protect resources for the next generation This is consistent with the fact that the higher education, the higher of awareness about natural resources and environment They understand the importance to their lives as well as the community Therefore, they are willing to pay more for the conservation of natural resources In term of career, respondents, who directly use resources, have higher willing to pay than those not relate to it Because participants in the maritime economy understand very well the importance of these resources to local economic development as well as to their daily living standards Respondents with higher incomes will have greater budgets for other tasks than spending to ensure family life It is also possible that high-income local people are more likely to exploit and use marine resources Consequently, their WTP for forest protection fund would be higher In research, I assume random factors are negligible because the sample is small Using the confidence interval estimation method for the mean, I calculated the average WTP value of the sample WTP average is: 92,000 VND Thus, option value of Xuan Thuy NP is: OV = WTP x Total of households = 92,000 x 13285 = 1,222,220,000 (VND/year) Table Total non-direct use value in research (unit: VND) No Products/Functions Value (VND) Protection function of sea dykes and storms Option value Total Proportion (%) 82,821,467,143 98.5 1,222,220,000 1.5 84,043,687,143 100 (Source : synthesized by the author) 22 The value of protection function of sea dykes and storms takes a very highe proportion in non-direct use value (98.5%) 4.3.2 Non-use value 4.3.2.1 Bequest Value The value to return of a area wetland is specified based of the available of the personal returns to the current of destination for the future use Bequest is very hard defined exactly, it depends on the owner of the personal individual Therefore this is a limitation in the paper 4.3.2.2 Existence Value This value is determined based on total domestic and foreign investment flows per year A lots of funds, programs and organizations around the world invested to Xuan Thuy NP (Minh Ha, 2014): In 1998, the Dutch Ambassador provided $ 33,000 to implement the project "Strengthening the capacity of Ramsar Xuan Thuy" In 1999-2000, Global Environment Facility - Project Finance Program (GEF / SGP) donated to the Farmers Union and the Nature Reserve (NR) of the project: "Raising Awareness and Supporting Biodiversity Communities to Protect Biodiversity in the Xuan Thuy Ramsar Area ($ 18,000) In 2001 the Japan Fund for Nature Conservation donated JPY million to carry out the project with Birdlife ($8,000) Since 1995, with the support of the 327 & 661 program of Nam Dinh province, the management board of Xuan Thuy Nature Reserve has invested hundreds of hectares of forest, investment in equipment for management and protection such as: water machine, microwave; repair and upgrade 1.8 km of road 23 Table Total investment capital for the National Park through the capital sources in the period 1996-2002 Unit: million VND Conversation area Buffer zone Total 327,661 National 327,661 National 327,661 National project project project project project project Year Total 1996 65.9 65.9 65.9 1997 106.9 106.9 106.9 1998 10 1999 238 181,5 210 191.5 448 639.5 56.5 200 56.52 200 256.5 2000 24.5 52 24.5 52 76.5 2001 40.2 40.2 120 160.2 2002 44,8 75 44.8 75 119.8 Total 348.8 537 530.3 895 1425.3 120 358 181.5 (Source: Management planning for protection of Xuan Thuy National Park 2004-2010) After initial success of Xuan Thuy NP in protection, in 2003, the Protection of Marine Living invested $100,000 to protect marine at the estuary of Xuan Thuy NP In 2004, Ministry of Science and Technology invested billion VND to Xuan Thuy NP Using NPV formula in methodology part, the research only show the result: Total existence value = 594,850,000 (VND/year) 4.4 The summary of total value of Xuan Thuy National Park 24 Table Summary of total value No Product/ Functions Value (in VND) Value(in USD) Direct use value Wood 8,320,000,000 394,312.79 Firewood 230,743,333 10,732.23 NTFPs 78,000,000 3,627.90 Fishing and aquaculture 30,149,511,000 1,402,302.84 Exploiting natural products 5,250,000,000 248,815.16 Touriest and recreation 1,215,000,000 56,511.62 Wildlife 1,140,000,000 53,023.25 46,383,254,333 2,169,325.79 82,821,467,143 3,852,161.26 1,222,220,000 56,847.44 84,043,687,143 3,909,008.7 - - 594,850,000 27,667.44 130,426,941,476 6,106,001.93 32,606,735.37 1,526.50 Total Non-direct value Protection function of sea dykes and storms Option value Total Non-use value 10 Bequest value 11 Existence value TOTAL Economic value of hectare of mangroves (Source: synthesized by the author) In summary, the minimum annual economic value reflects the direct use values (products) and the indirect uses (functions, services of wetlands) We can see that the total benefits that the NP brings annually are very high at around 32-33 millionVND per hectare However, the 25 above figures are not real value because this study does not take into account some potential values such as values of biodiversity conservation, non-religious values 4.5 Discussion The total economic value of Xuan Thuy NP is 130,426,941,476 VND, it means 32,606,735.37 VND per hectare The TEV of Xuan Thuy NP is relatively high with natural resources and condition From the summary, the fishing and aquaculture is the biggest direct use economic value in Xuan Thuy National Park – 30,149,511,000 VND (1,402,302.84 USD) – 24.2% of total economic value This economic sector should be further invested to become a key economic sector of the region The economic value of Xuan Thuy National Park is divided into groups with different values showing the great economic potential Based on the study, we can see that the potential for economic development is very high in Xuan Thuy National Park Protection function of sea dykes and storms accounts for a large proportion of the total economic value of the region (66.4%) This is a value that is not directly expressed in economic activity because it is calculated based on the extent of damage if there are environmental hazards TEV method in evaluating value of Xuan Thuy National Park uses properly in assessing economic value because it evaluates many features in the economy of Xuan Thuy National Park The results as well as the data in the study may be used in related subjects However, the following research needs to update the data more recently Compared with some of the corresponding economic values of wetlands: Bach Dang river mouth (Hai Phong) is 7,704,600 VND/ha (Ngoc Anh,2015); Van Uc river mouth (Hai Phong) is 11,336,650 VND/ha (Ngoc Anh,2015); Tien river mouth (An Giang); 47,420,200 VND/ha (Ngoc Anh,2015) The economic value of Xuan Thuy National Park is relatively high compared to other wetland economic 26 V Conclusion The research has pointed out economic characteristics and economic value of Xuan Thuy National Park By using economic language and collected data, research has identified outstanding economic values in Xuan Thuy National Park Economic values such as use value and non-use value have been presented in detail, provide an intergrated management view Thus, evaluation and management work will be improved In the research, information about geography, climate, terrain, potential of the ecosystem is provided and assessmented of impacts for conservation purposes The total economic values has been calculated including use value and non-use value with the total amount of 130,426,941,476 VND With extremely difficult values, the methods which used in research are CVM and TEV to collect and calculate data Beside the results, there are still some limitations such as the sample size may not be large enough to avoid error in the analysis process, the process of data collection in a range At certain times, only a fraction of the actual value can be reflected Some data are incomplete or can not be found on reliable sources; Some parts of research does not have new data, so those parts not have enough credibility Despite the best efforts, there are many shortcomings I look forward to the teachers and friends to contribute ideas as well as help me complete the topic Thank you very much! 27 VI References Barbier, E.B., 1993 Valuing tropical wetland benefits: Economic methodologies and applications Ministry of Environmental Resources, Department of Environmental Protection (1996) Ramsar Wetlands Convention, Iran 1971 Intergovermental Panel on Climate Change (IPCC), 2015 Good Practice Guidance for Land Use and Land Use Change and Forestry Management board of Xuan Thuy National Park, March 2018 Research on sustainable use of water resources in Xuan Thuy National Park, Nam Dinh province Maximilian Claessens, June 2018 Economic value estimation – How to estimate economic value? Pham Binh Quyen & Ngo Van Mac, 2007 (VNUF) Nghiên cứu, áp dụng phương pháp lượng giá kinh tế hệ sinh thái rừng ngập mặn phục vụ quản lý bền vững vườn quốc gia Xuân Thủy tỉnh Nam Định Nguyen Phu Hung & Nguyen Tien Binh, 2011 (VNUF) Research and assessment of comanagement practices in the buffer zone of Xuan Thuy National Park, Nam Dinh province, as a basis for sustainable forest protection and development Pham Minh Toai & Nguyen Viet Chung, 2014 (VNUF) Nghiên cứu đặc điểm cấu trúc tái sinh tự nhiên số quần xã thực vật rừng ngập mặn Vườn Quốc Gia Xuân Thủy, tỉnh Nam Định Diamond, Peter A ; Hausman, Jerry A (1994) "Contingent Valuation: Is Some Number Better Than No Number?" 10 Vu Huy Phuc, 2012 (Nam Dinh) Experimental evaluation of personal economic development of people communes in Xuan Thuy National Park 11 Ngoc Anh & Xuan Minh, 2015 (Nam Dinh Forest Management Department) Focusing on forest management, protection and development 28 12 Lam Hanh, 2018 (PLO newspaper) Get rich through Xuan Thuy National Park 13 Nguyen Thanh Nga, 2014 (Japan) Analysis of Wetland Economic Value: Case Study in Xuan Thuy National Park, Viet Nam 14 Nguyen Duc Thang, 2015 ( VNUF) Correlation between the variation of mangrove forest area and local community livelihood in Xuan Thuy National Park, Vietnam 29 APPENDIX Picture Map of Xuan Thuy National Park Picure Map of areas of Xuan Thuy National Park 30 Picure Mangrove forests and typical animals - 31 APPENDIX SURVEY Xuan Thuy National Park has great potential for economic and biodiversity Natural resources are not only valuable in protecting the ecological environment but also in economic and cultural values travel However, this natural resource is being seriously threatened by some uninformed people who have illegally exploited it If this situation continues, the rich ecosystem of the NP is at risk of being lost To address the above mentioned problem, it is assumed that a forest protection fund has been formed to conserve and develop natural resources in the NP to sustain them for the current use of the population Please give your opinion on the following questions Note: This poll is conducted to collect information, for the purpose of research, in fact the respondents will not be required to contribute any money Mark your × in the boxes that you choose Q1: What is your gender? Male Female Q2: How old are you? Q3: How many member in your family? Q4: What education level did you graduate? Junior University High school Other Q5: What is your career? Agriculture Fishery Teacher Civil servants 32 Business Other And is your daily income is related to the natural resources of the NP? Yes No Q6: How much is your monthly income? Under 500,000 VND 500,000 – 1,500,000 VND 1,500,000 – 2,500,000 VND 2,500,000 – 3,500,000 VND Over 3,500,000 VND Q7: Are your family members willing to contribute to fund? Yes No Q8: The highest contribution that your family make to contribute to fund is how much? 50,000 VND 150,000 VND 100,000 VND 200,000 VND Other Q9: Why not you contributing to the fund? Protecting the NP is the responsibility of the Government The amount of donations may be wasted Other Thanks for your help! 33 ... selection of the sum of the economic values of a wetland, the work in this section sums up all direct values, functional values and attributes of the studied area Then compare it with the value of other... evaluating value of Xuan Thuy National Park uses properly in assessing economic value because it evaluates many features in the economy of Xuan Thuy National Park The results as well as the data in the. .. between the variation of mangrove forest area and local community livelihood in Xuan Thuy National Park, Vietnam 29 APPENDIX Picture Map of Xuan Thuy National Park Picure Map of areas of Xuan Thuy National