Economic valuation of biodiversity conservation of the Las Piñas-Parañaque [Philippines] Critical Habitat and Ecotourism Area (LLPCHEA)

This study aimed to determine how citizens value biodiversity conservation of the Las Piñas-Parañaque Critical Habitat and Ecoourism Area, the lone critical habitat in the Philippines. Contingent Valuation Method was employed to elicit the willingness-to-pay (WTP) of 220 household-respondents for the improved conservation of LPPCHEA systematically selected within the cities of Las Piñas, Parañaque and Pasay. Most of the respondents (57%) had positive WTP mainly attributed to non-use value (existence value, option and bequest value). Those that responded 'no' (43%) to the WTP question cited high bid amount as their primary reason. As expected, bid price significantly and negatively affected respondents' WTP by a factor of 0.95. Educational level and the visit of the respondents to the area also contributed significantly. The mean WTP obtained from the dichotomous choice format was Ph35.00/household/month. The aggregated annual WTP computed was PhP 125 million per year, with a Net Present Value (NPV) of PhP 474 million in 5 years. Based on supplementary open-ended WTP question, those who rejected the bid price presented in the dichotomous choice format had actually a mean WTP of PhP10/household/month. Aggregated with the households in the study sites, the annual WTP was PhP36 million with a Net Present Value (NPV)of PhP135.4 milion (USD 3 million) for 5 years at a discount rate of 10%. To capture the economic benefit provided by the improved conservation of LPPCHEA, the study recommends that a LPPCHEA conservation surcharge be added to the monthly water bill, the conduct of information dissemination and donation campaign, and the imposition of entrance fee. The aggregate WTP value can also be used as input in benefit-cost analysis and can serve as a guide for better decision making. For further study, valuation of use-value should be done. The need for extensive information, education and communication campaign to improve and sustainably conserve the LPPCHEA through participation of various stakeholders is likewise suggested.