Economic Valuation of Protected Area’s Ecosystem Services: The Case of Mahagnao Volcano Natural Park (MVNP) in Burauen and La Paz, Leyte Philippines

Abstract

Mahagnao Volcano Natural Park (MVNP) provides critically important ecosystem services. The natural ecosystem services of MVNP play an important role in maintaining the well-being of the families in the protected area through the provision of a wide array of services ranging from income support to food and recreation. This resource valuation has helped to put a price tag on the provisioning ecosystem service of MVNP using the standard approaches of the market-based method (MBM) and Contingent Valuation Method (CVM). Results reveal that the annual value of Mahagnao Volcano Natural Park’s (MVNP) provisioning resource for Mahagnao is about PhP2,779,963 per year while for Bocawon is PhP645,745 per year, which translated to a total provisioning value for both communities amounting to PhP3,425,708 per year. On average, each household has benefited PhP90,174 per year. Moreover, survey results reveal that on average, each household’s willingness to pay is PhP486 and PhP178.50 per year from Mahagnao, and Bocawo, respectively. The net benefit that goes to every household from protecting MVNP is PhP82.49 per day. Incorporating the benefit-cost principle provides an alternative practical tool and most relevant approach for measuring both the benefits gained and the willingness to pay for providing improved protection of livelihood and the environment for protected areas in the Philippines rural communities.