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J Primavera Model
United Nations UNEP/GEF South China Sea Global Environment
Environment Programme Project Facility
Reversing Environmental Degradation Trends
in the
South China Sea and Gulf of Thailand
REPORT
Third Meeting of the Regional Task Force
on Economic Valuation
Fangchenggang, China, 18th – 21st April 2005
__________________________________________________________________________________
UNEP/GEF
Bangkok, April 2005
First published in Thailand in 2005 by the United Nations Environment Programme.
Copyright © 2005, United Nations Environment Programme
This publication may be reproduced in whole or in part and in any form for educational or non-profit
purposes without special permission from the copyright holder provided acknowledgement of the
source is made. UNEP would appreciate receiving a copy of any publication that uses this publication
as a source.
No use of this publication may be made for resale or for any other commercial purpose without prior
permission in writing from the United Nations Environment Programme.
UNEP/GEF
Project Co-ordinating Unit,
United Nations Environment Programme,
UN Building, 2nd Floor Block B, Rajdamnern Avenue,
Bangkok 10200, Thailand
Tel. +66 2 288 1886
Fax. +66 2 288 1094
http://www.unepscs.org
DISCLAIMER:
The contents of this report do not necessarily reflect the views and policies of UNEP or the GEF. The
designations employed and the presentations do not imply the expression of any opinion whatsoever
on the part of UNEP, of the GEF, or of any cooperating organisation concerning the legal status of
any country, territory, city or area, of its authorities, or of the delineation of its territories or boundaries.
Cover Illustration: Outline of the Framework for Valuing the Impacts of Land-based Pollution,
John C. Pernetta.
For citation purposes this document may be cited as:
UNEP, 2005. Reversing Environmental Degradation Trends in the South China Sea and Gulf of
Thailand. Report of the Third Meeting of the Regional Task Force on Economic Valuation.
UNEP/GEF/SCS/RTF-E.3/3.
Table of Contents
1. OPENING OF THE MEETING......................................................................................................... 1
1.1 WELCOME ADDRESS ................................................................................................................... 1
1.2 INTRODUCTION OF PARTICIPANTS ................................................................................................ 1
2. ORGANISATION OF THE MEETING ............................................................................................. 1
2.1 DESIGNATION OF OFFICERS......................................................................................................... 1
2.2 DOCUMENTATION AVAILABLE TO THE MEETING............................................................................. 2
2.3 PROGRAMME OF WORK............................................................................................................... 2
3. ADOPTION OF THE MEETING AGENDA...................................................................................... 2
4. THE REPORT ON THE ECONOMIC VALUATION OF THE IMPACTS OF LAND-BASED
POLLUTION .................................................................................................................................... 2
5. DEVELOPMENT OF A MANUAL TO SUPPORT THE FRAMEWORKS AND PROCEDURES
OF ECONOMIC VALUATION ......................................................................................................... 3
6. DETERMINING ECONOMIC VALUES FOR COASTAL HABITATS AND RESOURCES FOR
USE IN THE COST BENEFIT ANALYSIS OF ACTION COMPARED WITH NON-ACTION
CONTAINED IN THE STRATEGIC ACTION PROGRAMME......................................................... 4
6.1 REVIEW OF THE ELEMENTS OF ECONOMIC VALUATION CONTAINED IN THE DEMONSTRATION SITE
ACTIVITIES.................................................................................................................................. 4
6.2 DISCUSSION OF THE PROCEDURES AND ACTIONS REQUIRED TO ASSEMBLE, EMPIRICAL DATA ON
RESOURCE VALUATIONS AT NATIONAL AND REGIONAL LEVELS...................................................... 4
7. WORK PLAN FOR THE REGIONAL TASK FORCE ON ECONOMIC VALUATION.................... 5
8. ANY OTHER BUSINESS ................................................................................................................ 5
9. DATES AND PLACE OF THE NEXT MEETING OF THE TASK FORCE ..................................... 5
10. ADOPTION OF THE REPORT OF THE MEETING........................................................................ 6
11. CLOSURE OF THE MEETING........................................................................................................ 6
List of Annexes
ANNEX 1 List of Participants
ANNEX 2 List of Documents
ANNEX 3 Agenda
ANNEX 4 Framework and Procedures to Value Impacts of Land-based Pollution on
Coastal Habitats
ANNEX 5 Proposed Outline for a Manual on the Evaluation of Ecosystems that are of
Interest to the South China Sea Project
ANNEX 6 Draft Summary Table for Empirical Data Relating to Economic Valuation of
Mangrove Extractive (direct) Uses.
ANNEX 7 Memorandum of Understanding Between the United Nations Environment
Programme and National Institute or Agency of the Members of the Task Force
ANNEX 8 Work Plan for the RTF-E (2005-2006) and Schedule of Meetings for the
UNEP/GEF South China Sea Project
UNEP/GEF/SCS/RTF-E.3/3
Page 1
Report of the Meeting
1. OPENING OF THE MEETING
1.1 Welcome Address
1.1.1 The Project Director, Dr. John Pernetta, welcomed participants to the Third Meeting of the
Regional Task Force on Economic Valuation (RTF-E), and officially opened the meeting on behalf of
Dr. Klaus Töpfer, the Executive Director of the United Nations Environment Programme (UNEP), and
Dr. Ahmed Djoghlaf, Assistant Deputy Executive Director of UNEP and Director, Division of Global
Environment Facility Co-ordination (UNEP/DGEF).
1.1.2 The Project Director noted that the UNEP/GEF South China Sea Project had been under
implementation since early 2002 and that, the two Task Forces had been created by the Project
Steering Committee in December 2002. The fourth meeting of the Project Steering Committee in,
Guilin, China, in December 2004, had decided to allocate financial resources to the two Task Forces
to undertake relevant activities in the second phase of the Project. The Project Director noted that, a
major item for discussion during the meeting was to be the finalisation of the details of the
Memoranda of Understanding between UNEP and members of the Task Force. If it were possible, to
finalise these agreements during the meeting this would ensure timely transfer of the funds for
members to undertake activities related to environmental economic valuation.
1.1.3 The Project Director apologised for the fact that the Project Co-ordinating Unit (PCU) had
been unable to follow up the activities closely following the last meeting, which had resulted from the
fact that the PCU has been operating under severe staffing constraints. He informed the meeting that
the Executive Director of UNEP had recently approved the appointment of two professional staff
members to the PCU, and he expected that the full staffing of the PCU would improve execution of
activities under the Task Force.
1.2 Introduction of Participants
1.2.1 The Project Director noted, with regret that Dr. Thanwa Jitsanguan from Thailand, and
Dr. Nguyen Huu Ninh from Viet Nam, were unable to be present in the meeting and that they had
nominated Dr. Nuchanata Mungkung and Dr. Nguyen The Chinh as alternate members respectively.
In addition, Dr. Herminia A. Francisco had informed the PCU that as of June 2005 she would assume
the post of Deputy Director of the Economy and Environment Program for Southeast Asia and as
such she would be unable to participate in the work of the RTF-E in her personal capacity.
1.2.2 Participants were invited to introduce themselves to the meeting. There followed a tour de
table during which the meeting participants introduced themselves to the meeting. The list of
participants is attached as Annex 1 to this meeting report.
2. ORGANISATION OF THE MEETING
2.1 Designation of Officers
2.1.1 Members were reminded that the Rules of Procedure (UNEP/GEF/SCS/RTF-E.1/Inf.4) for the
RTF-E state, “The Chairperson, Vice–Chairperson and Rapporteur shall hold office until the
subsequent meeting of the Task Force. They shall be eligible for re-election no more than once. No
officer may continue to hold office once the National Technical Focal Point terminates their
membership of the Task Force for the Project.”
2.1.2 Members noted that during the first meeting of the RTF-E convened in Phuket, Thailand
September 2003 Dr. Matius Suparmoko, Dr. Thanwa and Dr. Khalid were elected as Chairperson,
Vice-Chairperson and Rapporteur respectively. During the subsequent meeting held in Cambodia in
June 2004 these officers were re-elected consequently they were no longer eligible for re-election to
the same offices.
UNEP/GEF/SCS/RTF-E.3/3
Page 2
2.1.3 In accordance with the Rules of Procedure, members were invited to nominate individuals to
act as Chairperson, Vice-Chairperson and Rapporteur for the inter-sessional period to the next
meeting. Dr. Suparmoko nominated Dr. Noel Eusebio Oyardo Padilla as the Chairperson, and Dr.
Tridoyo Kusumastanto nominated Dr. Li Kaiming, and Mr. Sy Ramony as Vice-Chairperson and
Rapporteur respectively. There being no other nominations, Dr. Padilla, Dr. Li and Mr. Ramony were
duly elected as Chairperson, Vice-Chairperson and Rapporteur for the meeting.
2.2 Documentation Available to the Meeting
2.2.1 Ms. Sulan Chen, Secretary to the meeting briefly introduced the discussion and information
documents available to the meeting and apologised for their late dispatch to members. The list of
documents is contained as Annex 2 to this meeting report.
2.3 Programme of Work
2.3.1 Ms. Chen briefed participants on the administrative arrangements for the conduct of the
meeting, and the proposed organisation of work (UNEP/GEF/SCS/RTF-E.3/Inf.3). Formal sessions of
the meeting would be conducted in English, and in plenary as far as possible.
2.3.2 Ms. Chen noted that time might be set aside to finalise Memoranda of Understanding
between UNEP and members of the Task Force, and on the last day of the meeting the Project
Document for the Fangchenggang mangrove demonstration site would be signed between UNEP and
the Specialised Executing Agency of the mangrove sub-component. This would involve a short formal
ceremony during which various news agencies would be present together with representatives of the
Provincial and local governments and Xindi Company.
3. ADOPTION OF THE MEETING AGENDA
3.1 The Chairperson introduced the provisional agenda prepared by the PCU as document,
UNEP/GEF/SCS/RTF-E.3/1, and the annotated provisional agenda prepared as document
UNEP/GEF/SCS/RTF-E.3/2 and invited members of the RTF-E to propose any amendments or
additional items for consideration, prior to the adoption of the agenda.
3.2 No additional agenda items or amendments to the provisional agenda were proposed by the
members, and the meeting adopted the provisional agenda without change. The adopted agenda is
attached as Annex 3 to this report.
4. THE REPORT ON THE ECONOMIC VALUATION OF THE IMPACTS OF LAND-BASED
POLLUTION
4.1 Members recalled that during the previous meeting it had been agreed that Dr. Francisco’s
research associate would conduct a literature review on existing studies on economic valuation of the
impacts of land-based pollution. The report had been previously circulated to members and was now
available for consideration by the RTF-E as contained in document UNEP/GEF/SCS/RTF-E.3/4.
4.2 The Chairperson invited the Associate Expert to introduce document UNEP/GEF/SCS/RTF-
E.3/4, which summarises the content of the report. The Associate Expert briefly outlined the
background to the commissioning of this review. She noted that the existing literature covered by the
report does not provide a comprehensive framework for valuing the impacts of land-based pollution,
and that no specific valuation methods or techniques are suggested for the valuation of particular
types of impact resulting from land-based pollution.
4.3 Ms. Chen pointed out that the literature review suggested that most studies in the region were
theoretical, and few studies have been conducted to obtain the monetary value of the impacts of land-
based pollution. She further commented that the majority of cases included in the report were from
China, Philippines, Indonesia and Thailand. No studies had been reviewed in Cambodia, Malaysia
and Viet Nam. The two cases reviewed in China were for inland cities, in Wuhan and Wuxi, which
were geographically distant from the South China Sea marine environment. In addition, the cases in
the report focused on the loss of fisheries from the land-based pollution and ignored other major
impacts resulting from land-based pollution, such as for example loss of amenity value (particularly
tourism), reduction in aquaculture production and human welfare.
UNEP/GEF/SCS/RTF-E.3/3
Page 3
4.4 The report provides an overview of some of the existing frameworks and methodologies for
valuing the impacts of land-based pollution, however, the report did not propose a comprehensive
framework for the economic valuation of the impacts of land-based pollution. The Associate Expert
invited members to formulate an appropriate framework, along with supporting methodologies and
techniques for the valuation of the impacts of land-based pollution.
4.5 There followed a lengthy discussion on the various impacts of land-based pollution and
differing sources of pollution. Members initially attempted to categorise various types of impacts, i.e.
direct or indirect impacts, and tangible and intangible impacts. It was noted that the impacts of land-
based pollution were complex, and some of the impacts were mixed, and reflected impacts
consequent on both land-based and sea-based pollution. The Task Force noted that indirect impacts
were complex, and to some extent very difficult to value. It was agreed that the valuation framework
should focus on three types of direct impacts, i.e. productivity, amenity value and human welfare.
4.6 Several members mentioned the importance of identifying the sources of land-based
pollution. It was then pointed out by the Project Director that it would be more useful to identify the
types of pollutants and their possible impacts on coastal habitats, since the valuation would focus on
the impacts of land-based pollution on habitats, disregarding the sources of the pollution. To formulate
the framework for valuing the impacts of land-based pollution on coastal habitats, the Task Force
agreed to identify types of pollutants, the impacts resulting from each type of pollutant, and to
categorise these impacts under the three classes of changes to production, amenity value and human
welfare. Table 1 of Annex 4 presents a checklist of the impacts of land-based pollution in the four
habitats considered by the project.
4.7 The Task Force identified and discussed various types of pollutants, their possible impacts,
and applicability of these impacts to ecological habitats. Following a consideration of the types of
impacts, the Task Force proceeded to formulate procedures to be used in valuing the impacts
including data needs, and appropriate valuation techniques. Annex 4 of this report contains the tables
of frameworks and procedures for valuing the impacts of land-based pollution, Tables 2.1 to 2.4
outline the impacts of land-based pollution on mangroves, coral reefs, seagrass and wetlands
according to the three classes of changes to economic value; and Tables 3.1 to 3.4 include detailed
procedures to be used in undertaking the valuation of these impacts.
5. DEVELOPMENT OF A MANUAL TO SUPPORT THE FRAMEWORKS AND PROCEDURES
OF ECONOMIC VALUATION
5.1 Members recalled that during the second meeting of the RTF-E it had been agreed that a
manual of procedures and techniques would be developed for use in valuing coastal habitats. It was
further agreed that a draft outline/contents was to have been produced and circulated by the end of
June 2004, at which time members would indicate their willingness to draft particular sections with a
view to producing a final draft by the end of October 2004. Dr. Padilla had drafted an outline of such a
manual and circulated to the RTF-E members according to the original agreement, regrettably no
follow up actions had been undertaken.
5.2 The Chairperson introduced the draft outline for the manual, contained in document
UNEP/GEF/SCS/RTF-E.3/8. Members considered, amended and adopted the outline as included in
Annex 5 of this meeting report.
5.3 The meeting further discussed and agreed upon the individual responsibilities for drafting the
various sections of the manual. Dr. Pernetta indicated that he would circulate a draft introduction to
the Task Force within ten working days of the closure of the meeting. Individual members volunteered
to take the lead in drafting various sections of the manual, as indicated in Annex 5. It was agreed that
all members would circulate their inputs no later than the end of July 2005 following which there
would be one month for member's response and comments and a further month for finalisation of the
text prior to its publication in time for distribution during the Regional Scientific Conference.
UNEP/GEF/SCS/RTF-E.3/3
Page 4
6. DETERMINING ECONOMIC VALUES FOR COASTAL HABITATS AND RESOURCES FOR
USE IN THE COST BENEFIT ANALYSIS OF ACTION COMPARED WITH NON-ACTION
CONTAINED IN THE STRATEGIC ACTION PROGRAMME
6.1 Review of the Elements of Economic Valuation Contained in the Demonstration Site
Activities
6.1.1 The Chairperson invited the Project Director to introduce document UNEP/GEF/SCS/RTF-
E.3/5, which provided an overview of the typical elements of the demonstration site activities, which
encompass the economic valuation of coastal environmental goods and services and the evaluation
of alternative livelihoods. The Project Director noted that likely outputs from these activities would
include economic valuations conducted at a site level according to the agreed frameworks and
procedures recommended by the RTF-E. Consequently, the Task Force could expect to obtain a set
of values collected according to the same regionally agreed frameworks and procedures that might
serve as a yard-stick for comparison of other empirical values.
6.1.2 The meeting noted that in the past two years the expertise of the Task Force had not been
fully utilised by the Specialised Executing Agencies. The meeting took note that the economic
valuation activities included in the demonstration site project documents should follow the frameworks
and procedures formulated by the Task Force, and that the execution of these activities should
involve directly the expert members of the Task Force. The Project Director noted that in the case of
the Trat Province mangrove demonstration site, Dr. Thanwa was directly involved in the study of
alternative livelihood in Trat Province. The Project Director indicated he would continue to encourage
the Specialised Executing Agencies to utilise the expertise of members of the Task Force, and in
appropriate cases members should be financially compensated for their time spent on executing
specific activities.
6.1.3 It was noted that members of the Task Force should be directly involved in the economic
valuation component of the demonstration site activities, and the costs of this work should be paid for
from the demonstration site budget.
6.2 Discussion of the Procedures and Actions Required to Assemble, Empirical Data on
Resource Valuations at National and Regional Levels
6.2.1 The Chairperson invited the Project Director to introduce document UNEP/GEF/SCS/RTF-
E.3/6, which presented alternative approaches to developing a regional database of empirical
economic values for coastal goods and services for discussion and decision by the RTF-E.
Dr. Pernetta noted that one important task of the RTF-E was to develop regionally applicable
valuations of coastal habitats, using empirical data collected in the region and standardised
approaches taken by the demonstration sites.
6.2.2 The RTF-E had already agreed on the need to develop a regionally acceptable “value” for
particular habitats as the basis for determining the economic benefits of action compared to non-
action as previously attempted in the draft Strategic Action Programme. The Regional Task Force,
during its’ second meeting, held preliminary discussion of the need for, and possible alternative
approaches to aggregating local economic values at national level, and national values at the regional
level. It was agreed that an initial step would be the preparation of a database of existing economic
values from the region, although the manner in which this was to be assembled was not finalised.
Members were therefore invited to consider the activities and manner in which such data might be
aggregated.
6.2.3 The Project Director pointed out that values used in the previous cost-benefit analysis had
been taken from studies conducted in other regions. The meeting agreed that a regional database
should be developed to compile values collected in the existing studies undertaken in this region
using local net price.
6.2.4 Members' attention was drawn to a proposed format for the compilation of data and values
taken from valuation studies conducted within the region. The meeting discussed, revised and agreed
on the proposed format for the compilation of data and information on values obtained in various
studies and this format, is included as Table 1 of Annex 6 of this meeting report, which would provide
UNEP/GEF/SCS/RTF-E.3/3
Page 5
guidance to members in compiling data and information for determining regional values of coastal
habitats. The meeting took note that the format provided in Table 1 was specifically designed to
compile information on mangrove valuation. The Task Force should take this format, and based on
the frameworks for valuation of the other habitats, including coral reefs, seagrass and wetlands, adapt
the format for the compilation of data and information on values of the resources and uses of these
other coastal habitats.
6.2.5 The Project Director noted that the Project Steering Committee, during its fourth meeting in
Guilin, China, December 2004 had agreed to allocate financial resources to the execution of the work
of the two Regional Task Forces and it was proposed that Memoranda of Understanding be signed
between UNEP and the members of the RTF-E on behalf of their Institutions that would permit
members to hire research assistants to compile the required national data under their supervision.
Document UNEP/GEF/SCS/RTF-E.3/6 contained a proposed text of a framework Memorandum of
Understanding, which was adopted by the meeting without changes, and is contained in Annex 6 to
this meeting report.
6.2.6 The Project Director informed the meeting that each member should propose a budget based
on the activities to be undertaken during year 2005-2006. The maximum funding for the proposed
activities was set at US$13,000. Members were encouraged to submit their proposed budgets as
promptly as possible, preferably during the meeting of the RTF-E so that a Memorandum of
Understanding could be signed to ensure the transfer of funding from UNEP to the institute or agency
of the Task Force members as promptly as possible.
6.2.7 The Project Director further noted that another addition to the MoU would be the agreed work
plan and timetable that would be finalised under the next agenda item.
7. WORK PLAN FOR THE REGIONAL TASK FORCE ON ECONOMIC VALUATION
7.1 The Chairperson invited the Associate Expert to introduce document UNEP/GEF/SCS/RTF-
E.3/6, Draft Work Plan for the Regional Task Force on Economic Valuation. Members considered,
amended and agreed on the work plan and timetable for the Regional Task Force, which is attached
as Annex 7 to this meeting report.
8. ANY OTHER BUSINESS
8.1 The Chairperson invited members to consider and discuss any additional items of business.
8.2 Dr. Suparmoko inquired whether budgets could be used to support meetings or travel by the
members of the RTF-E, for collecting the data and information needed to compile the regional
database of economic value. The Project Director drew members’ attention to the budget table of the
Project, included in document UNEP/GEF/SCS/PSC.3/3, and invited members to review the project
budget in order to understand what the available funds could be used for.
8.3 In response to an inquiry raised by members regarding the purchase of equipment with UNEP
funds, Dr. Pernetta indicated that the title of any equipment purchased with UNEP funding for the
execution of activities in the Memorandum of Understanding rests with UNEP. In the case of the
project, the Project Director noted that title to such equipment could be transferred to the Institutions
upon completion of the project.
9. DATES AND PLACE OF THE NEXT MEETING OF THE TASK FORCE
9.1 The Chairperson invited members to consider and agree upon the dates and location of the
next meeting of the Regional Task Force on Economic Valuation. In doing so, members should take
into consideration the decision made by the Project Steering Committee that all future regional
meetings take place in potential demonstration sites. The Task Force considered appropriate dates
for the next meeting, and decided that the dates for the fourth meeting of the Task Force will be 27th –
30th March 2006.
9.2 With respect to the venue of next meeting, the Chairperson recalled that during the second
meeting of the RTF-E, Seam Reap, Cambodia, Dr. Ninh had issued an invitation to hold the third
UNEP/GEF/SCS/RTF-E.3/3
Page 6
meeting of the RTF-E in Viet Nam. The Project Director indicated that he would liase with Dr. Ninh to
find out whether the invitation still stood for the next meeting of the RTF-E. The Task Force
considered some appropriate places, including Phu Quoc Island and Balat Estuary in Viet Nam as a
possible venue for the next meeting, and considered that Phu Quoc Island would be the most
suitable.
9.3 In the event that it would not be possible to hold the meeting in Viet Nam, Dr. Khalid indicated
his willingness to host the meeting in Malaysia.
10. ADOPTION OF THE REPORT OF THE MEETING
10.1 The Rapporteur, Mr. Ramony, presented the draft report of the meeting, which was
considered, amended, and adopted as it appears in this document.
11. CLOSURE OF THE MEETING
11.1 The Chairperson invited members to make any final comments and/or remarks prior to calling
for a formal motion to close the meeting. Members expressed their appreciation to the hard work of
the Chairperson and the PCU members, and the hospitability of Fangchenggang local government
and people.
The Chairperson officially closed the meeting at 17:00 on the 21st of April 2005.
11.2
UNEP/GEF/SCS/RTF-E.3/3
Annex 1
Page 1
ANNEX 1
List of Participants
Government Designated Members
Cambodia People’s Republic of China
Mr. Sy Ramony, Chief Dr. Li Kaiming, Vice President
National Park and Wildlife Sanctuary Office South China Institute of Environmental
Department of Nature Conservation and Protection, Sciences, SEPA
Ministry of Environment 7 West Yuancun Road
#48 Samdech Preah Sihanouk Guangzhou 510655
Sangkat Tonle Bassac, Khan Chamkarmon Guangdong Province, China
Phnom Penh, Cambodia
Tel: (86 20) 8554 1496
Mobile: (855) 12 832 933 Fax: (86 20) 8552 4450
Tel/Fax: (855 23) 211 381 E-mail: kmli@scies.com.cn;
Email: Ramony@online.com.kh k_m_li@yahoo.com
Indonesia Malaysia
Dr. Matius Suparmoko Dr. Khalid Abdul Rahim, Professor
Faculty of Economics Faculty of Economics and Management
Jenderal Soedirman University University Putra Malaysia
Kampus Grendeng, PO. Box 109 43400 UPM, Serdang, Selangor, Malaysia
Purwokerto 53122
Central Java, Indonesia Tel: (603) 8946 7653
Fax: (603) 8948 6188
Tel: (62 281) 37970 (O); (62 21) 733 4623 E-mail: khalid@pop.jaring.my;
Fax: (62 281) 40268; (62 21) 733 4623 khalid@econ.upm.edu.my
E-mail: rmoko@cbn.net.id;
suparmoko@yahoo.com
Philippines Thailand
Dr. Noel Eusebio Oyardo Padilla Dr. Nuchanata Mungkung, Lecturer
Development Management Officer V Department of Agricultural and Resource
Policy Studies Division Economics, Faculty of Economics
Planning and Policy Studies Service Kasetsart University
Department of Environment and Natural 50 Phahonyothin Rd., Chatujak
Resources, DENR Compound Bangkok 10900, Thailand
Visayas Ave., Diliman,
Quezon City, Philippines Tel: (662) 942 8649-51 ext. 131;
Mobile: 06 904 2780
Tel: (632) 925 1183; 929 6626-35 local 2046
Fax: (662) 942 8047; 942 8525
Fax: (632) 925 1183
E-mail: feconnm@ku.ac.th
E-mail: nopadilla@yahoo.com
Viet Nam
Dr. Nguyen The Chinh, Ass. Prof. Dr
Senior Economist
Dean of Faculty of Environmental Economics
Hanoi University of Economics
Duong Giai Phong, Hanoi, Viet Nam
Tel: (844) 854 0376; (84) 09 1330 7559
Fax: (844) 869 8231
Email: thechinh@fpt.vn
UNEP/GEF/SCS/RTF-E.3/3
Annex 1
Page 2
Expert Member
Dr. Tridoyo Kusumastanto
Professor of Marine Economics Policy
CCMRS - Bogor Agricultural University
Jl. Sedap Malam II/20
Taman Yasmin, Bogor 16310, Indonesia
Tel: (62 251) 624 815; (62) 81 611 33170
Fax: (62 251) 621 086
E-mail: tridoyo@indo.net.id
Project Co-ordinating Unit Member
Dr. John Pernetta, Project Director
UNEP/GEF Project Co-ordinating Unit
United Nations Environment Programme
2nd Floor, Block B, United Nations Building
Rajdamnern Nok Avenue
Bangkok 10200, Thailand
Tel: (66 2) 288 1886
Fax: (66 2) 288 1094
E-mail: pernetta@un.org
UNEP/GEF Project Co-ordinating Unit
Ms. Sulan Chen, Associate Expert Ms. Sriskun Watanasab, Secretary
UNEP/GEF Project Co-ordinating Unit UNEP/GEF Project Co-ordinating Unit
United Nations Environment Programme United Nations Environment Programme
2nd Floor, Block B, United Nations Building 2nd Floor, Block B, United Nations Building
Rajdamnern Nok Avenue Rajdamnern Nok Avenue
Bangkok 10200, Thailand Bangkok 10200, Thailand
Tel: (66 2) 288 2279 Tel: (66 2) 288 2608
Fax: (66 2) 288 1094 Fax: (66 2) 288 1094
E-mail: chens@un.org E-mail: watanasab@un.org
UNEP/GEF/SCS/RTF-E.3/3
Annex 2
Page 1
ANNEX 2
List of Documents
Discussion documents
UNEP/GEF/SCS/RTF-E.3/1 Agenda
UNEP/GEF/SCS/RTF-E.3/2 Annotated Agenda
UNEP/GEF/SCS/RTF-E.3/3 Report of the Meeting
UNEP/GEF/SCS/RTF-E.3/4 Economic Valuation of the Impacts of Land-based Pollution in
the South China Sea
UNEP/GEF/SCS/RTF-E.3/5 Overview of Demonstration Site Activities, Which Involve the
Economic Valuation of Coastal Environmental Goods and
Services and the Evaluation of Alternative Livelihoods
UNEP/GEF/SCS/RTF-E.3/6 Alternative Approaches to Developing a Regional Database
of Empirical Economic Values for Coastal Goods and
Services
UNEP/GEF/SCS/RTF-E.3/7 Draft Work Plan for the Regional Task Force on Economic
Valuation for 2005-2006
UNEP/GEF/SCS/RTF-E.3/8 Manual for the Valuation of Ecosystems that are of Interest to
the South China Sea Project: Proposed Outline
Information documents
UNEP/GEF/SCS/RTF-E.3/Inf.1 List of Participants
UNEP/GEF/SCS/RTF-E.3/Inf.2 List of Documents
UNEP/GEF/SCS/RTF-E.3/Inf.3 Draft Programme
UNEP/SCS/SAP Ver. 3 Strategic Action Programme for the South China Sea (Draft
Version 3, 24 February 1999) East Asian Seas Regional
Coordinating Unit. 69pp.
UNEP/GEF/SCS/PSC.4/3 Fourth Meeting of the Project Steering Committee for the
UNEP/GEF Project “Reversing Environmental Degradation
Trends in the South China Sea and Gulf of Thailand”. Report
of the Meeting. Guilin, China, 13th – 15th December 2004
UNEP/GEF/SCS/PSC.4/3.
UNEP/GEF/SCS/RSTC.5/3 Fifth Meeting of the Regional Scientific and Technical
Committee for the UNEP/GEF Project “Reversing
Environmental Degradation Trends in the South China Sea
and Gulf of Thailand”. Report of the Meeting. Fangchenggang,
China, 9th – 11th December 2004 UNEP/GEF/SCS/RSTC.5/3.
The following documents are provided in published form.
UNEP/GEF/SCS/RTF-E.2/3 Second Meeting of the Regional Task Force on Economic
Valuation for the UNEP/GEF Project “Reversing Environmental
Degradation Trends in the South China Sea and Gulf of
Thailand”. Report of the Meeting. Siem Reap, Cambodia, 31st
– 2nd June 2004 UNEP/GEF/SCS/RTF-E.2/3.
UNEP/GEF/SCS/PSC.3/3 Third Meeting of the Project Steering Committee for the
UNEP/GEF Project “Reversing Environmental Degradation
Trends in the South China Sea and Gulf of Thailand”. Report
of the Meeting. Manila, Philippines, 25th – 27th February 2004
UNEP/GEF/SCS/PSC.3/3.
UNEP/GEF/SCS/RSTC.4/3 Fourth Meeting of the Regional Scientific and Technical
Committee for the UNEP/GEF Project “Reversing
Environmental Degradation Trends in the South China Sea
and Gulf of Thailand”. Report of the Meeting. Pattaya,
Thailand, 15th – 17th February 2004 UNEP/GEF/SCS/
RSTC.4/3.
UNEP/GEF/SCS/RTF-E.3/3
Annex 3
Page 1
ANNEX 3
Agenda
1. OPENING OF THE MEETING
1.1 Welcome Address
1.2 Introduction of Participants
2. ORGANISATION OF THE MEETING
2.1 Designation of Officers
2.2 Documentation Available to the Meeting
2.3 Programme of Work
3. ADOPTION OF THE MEETING AGENDA
4. THE REPORT ON THE ECONOMIC VALUATION OF THE IMPACTS OF LAND-BASED
POLLUTION
5. DEVELOPMENT OF A MANUAL TO SUPPORT THE FRAMEWORKS AND PROCEDURES
OF ECONOMIC VALUATION
6. DETERMINING ECONOMIC VALUES FOR COASTAL HABITATS AND RESOURCES FOR
USE IN THE COST BENEFIT ANALYSIS OF ACTION COMPARED WITH NON-ACTION
CONTAINED IN THE STRATEGIC ACTION PROGRAMME
6.1 Review of the Elements of Economic Valuation Contained in the Demonstration
Site Activities
6.2 Discussion of the Procedures and Actions Required to Assemble, Empirical Data
on Resource Valuations at National and Regional Levels.
7. WORK PLAN FOR THE REGIONAL TASK FORCE ON ECONOMIC VALUATION
8. ANY OTHER BUSINESS
9. DATES AND PLACE OF THE NEXT MEETING OF THE TASK FORCE
10. ADOPTION OF THE REPORT OF THE MEETING
11. CLOSURE OF THE MEETING
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 1
ANNEX 4
Framework and Procedures to Value Impacts of Land-based Pollution on Coastal
Habitats
Background
During the first meeting of the Regional Task Force on Economic Valuation (RTF-E), Phuket,
Thailand, 11th -13th September 2003, the Task Force agreed on a framework to value coastal habitats
in the South China Sea. The Regional Working Group on Land-based Pollution subsequently sought
assistance from the Task Force in formulating a framework for the valuation of the impacts of land-
based pollution. During the second meeting of the Regional Task Force on Economic Valuation, held
in Siem Reap, Cambodia, 31st May – 2nd June 2004, it was agreed that the Project Co-ordinating Unit
would commission on behalf of the Task Force a literature review of existing studies of the economic
valuation of the impacts of lad-based pollution.
In July 2004, the Project Co-ordinating Unit engaged a consultant and two drafts of the report were
circulated to members of the Task Force for their comments before the finalisation of the report. The
final report was received and circulated to members in December 2004, and included in the
documents available to the meeting.
Framework and Procedures to Value Impacts of Land-based Pollution on Coastal Habitats
During the Third Meeting of the RTF-E in Fangchenggang, China, 18th – 21st April 2005, the Task
Force reviewed the consultant report on existing literature, and considered alternative approaches to
formulate a framework and procedures to value the impacts of land-based pollution on coastal
habitats.
The meeting agreed that the types of pollutants, to some extent, determined the types of impacts on
the coastal habitats, hence it was important to identify types of pollutants and their impacts on coastal
habitats. Table 1 provides a checklist of possible impacts of various pollutants on coastal habitats
relevant to the UNEP/GEF South China Sea Project, mangroves, coral reefs, seagrass and wetlands.
The Task Force recognised that the impacts of land-based pollution on coastal habitats were complex
and intertwined, hence the Task Force decided to narrow down the scope of impacts for economic
valuation, and agreed to include three types of impacts, i.e. productivity, amenity and human welfare.
Tables 2.1 – 2.4 provide a framework for valuing the impacts of land-based pollution on the four
coastal habitats, in terms of productivity, amenity and human welfare.
To assist the technical people working in the demonstration sites to value the impacts of land-based
pollution on coastal habitats, the Task Force decided to outline specific procedures to provide
guidance to technical staff in following the frameworks. The Chairperson took the lead in drafting the
procedures overnight, the meeting reviewed, considered and adopted the procedures, included in
Tables 3.1 – 3.4 to value impacts on mangroves, coral reefs, seagrass and wetlands respectively.
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 2
Table 1 Checklist of the Impacts of Land-based Pollution on Coastal Habitats.
Types of
Impacts Mangroves Coral Reefs Seagrass Wetlands
Pollutants
Heavy metals Water quality v v v v
Reduced reproductive v v v v
capacity in molluscs
Contamination of human v v v v
food sources
Bio-accumulation v v v v
Organic matter Water quality - v v v
Nutrients Eutrophication - v v v
Algal blooms - v v v
Red tides - v v v
Anoxia – fish kills - v v v
Fish shellfish poisoning - v v v
Oil and Contamination/tainting of v v v v
hydrocarbons aquaculture and wild fish
Extreme spills smothering v v v v
of organisms
Sediments Smothering of coral reefs - v v -
and seagrass
Reduced light penetration - v v v
from increased turbidity
leading to reduced
primary production
POPs Water quality v v v v
Contamination of seafood v v v v
Reduced fish
reproductive capacity - v v v
Solid waste Smothering of organisms - v v v
(plastics) Loss of amenity value - v v v
Thermal pollution Reduced productivity v v v v
Loss of species v v v v
Bacterial Loss of amenity value v v v v
contamination Contamination of human v v v v
food sources
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Table 2.1 Framework for Valuing Impacts of Land-based Pollution on Mangroves.
Mangroves
Types of Pollutants Impacts Human
Productivity Amenity
welfare
Heavy metals Water quality v v v
Reduced reproductive capacity in v - -
molluscs - - v
Contamination of human food v - v
sources
Bio-accumulation
Organic matter Water quality - - -
Nutrients Eutrophication - - -
Algal blooms - - -
Red tides - - -
Anoxia – fish kills - - -
Fish shellfish poisoning - - -
Oil and Contamination/tainting of - - v
hydrocarbons aquaculture and wild fish
Extreme spills smothering of v v -
organisms
Sediments Smothering of coral reefs and - - -
seagrass - - -
Reduced light penetration from
increased turbidity leading to reduced
primary production
POPs Water quality - - v
Contamination of seafood - - v
Reduced fish reproductive capacity - - -
Solid waste Smothering of organisms - - -
(plastics) Loss of amenity value - v -
Thermal pollution Reduced productivity v - -
Loss of species v - -
Bacterial Loss of amenity value - v v
contamination Contamination of human food - - v
sources
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Table 2.2 Framework for Valuing Impacts of Land-based Pollution on Coral Reefs.
Coral Reefs
Types of Pollutants Impacts Human
Productivity Amenity
welfare
Heavy metals Water quality v v -
Reduced reproductive capacity in molluscs v - -
Contamination of human food sources - - v
Bio-accumulation v - -
Organic matter Water quality v v -
Nutrients Eutrophication v - -
Algal blooms v - -
Red tides v - -
Anoxia – fish kills v - -
Fish shellfish poisoning - - v
Oil and hydrocarbons Contamination/tainting of aquaculture and - - v
wild fish
Extreme spills smothering of organisms v v -
Sediments Smothering of coral reefs and seagrass v v -
Reduced light penetration from increased v v -
turbidity leading to reduced primary
production
POPs Water quality v - -
Contamination of seafood - - v
Reduced fish reproductive capacity v - -
Solid waste (plastics) Smothering of organisms v v -
Thermal pollution Reduced productivity v - -
Loss of species v - -
Bacterial contamination Contamination of human food sources - - v
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Table 2.3 Framework for Valuing Impacts of Land-based Pollution on Seagrass.
Seagrass
Types of Pollutants Impacts Human
Productivity Amenity
welfare
Heavy metals Water quality v v -
Reduced reproductive capacity in v - -
molluscs
Contamination of human food - - v
sources
Bio-accumulation v - -
Organic matter Water quality v v -
Nutrients Eutrophication v - -
Algal blooms v - -
Red tides v - -
Anoxia – fish kills v - -
Fish shellfish poisoning - - v
Oil and hydrocarbons Contamination/tainting of - - v
aquaculture and wild fish
Extreme spills smothering of v v -
organisms
Sediments Smothering of coral reefs and v v -
seagrass
Reduced light penetration from v v -
increased turbidity leading to
reduced primary production
POPs Water quality v v -
Contamination of seafood - - v
Reduced fish reproductive capacity v - -
Solid waste (plastics) Smothering of organisms v v -
Thermal pollution Reduced productivity v - -
Loss of species v - -
Bacterial contamination Contamination of human food - v v
sources
UNEP/GEF/SCS/RTF-E.3/3
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Page 6
Table 2.4 Framework for Valuing Impacts of Land-based Pollution on Wetlands.
Wetlands
Types of Pollutants Impacts Human
Productivity Amenity
welfare
Heavy metals Water quality v v v
Reduced reproductive capacity in v - -
molluscs
Contamination of human food - - v
sources
Bio-accumulation v - -
Organic matter Water quality v v v
Nutrients Eutrophication v v -
Algal blooms v v -
Red tides v v -
Anoxia – fish kills v - -
Fish shellfish poisoning - - v
Oil and hydrocarbons Contamination/tainting of - - v
aquaculture and wild fish
Extreme spills smothering of v v -
organisms
Sediments Smothering of coral reefs and v v -
seagrass
Reduced light penetration from v - -
increased turbidity leading to
reduced primary production
POPs Water quality v v v
Contamination of seafood - - v
Reduced fish reproductive capacity v - -
Solid waste (plastics) Smothering of organisms v v v
Thermal pollution Reduced productivity v - -
Loss of species v v -
Bacterial contamination Contamination of human food - - v
sources
UNEP/GEF/SCS/RTF-E.3/3
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Page 7
Table 3.1 Procedures to Undertake Valuation of Impacts of Land-based Pollution on Mangroves.
Types of Indicator of
Valuation Technique Data Needed Notes and Assumptions
Impacts
Pollutants Measurement
Productivity
Heavy metals Water quality On site sale value for Total annual value of For direct valuation: Values prior to the impact to be determined.
marketed goods using net production for each On site market price of each product (before and after)
Reduced price product (US$) Quantities of products harvested, sold, given away Market price can be adapted to account for
reproductive and used (before and after) seasonal and other price changes.
capacity in For directly used goods, Total areas under consideration (before and after)
molluscs use market values for Concentration level of heavy metals Market price represents true market value
equivalent goods. If not within a competitive market at equilibrium (i.e.
available use indirect For indirect valuation: prices are not distorted).
opportunity cost approach Price per unit for equivalent goods
(using wages forgone for Cost of material inputs All externalities are identified and included in
harvesting goods) Time spent harvesting/gathering/ culturing product the price.
Equivalent local wage for labour
On site market price of each product (before and Exchange rates and the years of data collected
after degradation of water quality)
Oil and Extreme spills On site sale value for Total annual value of For direct valuation: Values prior to the impact to be determined.
hydrocarbons smothering of marketed goods using net production for each On site market price of each product (before and
organisms price product (US$) after release of oil and hydrocarbon) Market price can be adapted to account for
Quantities of products harvested, sold, given away seasonal and other price changes.
For directly used goods, (before and after)
use market values for Market price represents true market value
equivalent goods. If not Total areas under consideration (before and after) within a competitive market at equilibrium (i.e.
available use indirect prices are not distorted).
opportunity cost approach
All externalities are identified and included in
(using wages forgone for
the price.
harvesting goods)
Exchange rates and the years of data collected
Thermal Reduced On site sale value for Total annual value of For direct valuation: Values prior to the impact to be determined.
pollution productivity marketed goods using net production for each On site market price of each product (before and
price product (US$) after thermal pollution) Market price can be adapted to account for
Quantities of products harvested, sold, given away seasonal and other price changes.
For directly used goods, (before and after)
use market values for Total areas under consideration (before and after) Market price represents true market value
equivalent goods. If not within a competitive market at equilibrium (i.e.
For indirect valuation: prices are not distorted).
available use indirect
opportunity cost approach Price per unit for equivalent goods
(using wages forgone for Cost of material inputs All externalities are identified and included in
harvesting goods) Time spent harvesting/gathering/ culturing product the price.
Equivalent local wage for labour Exchange rates and the years of data collected
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 8
Table 3.1 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Mangroves.
Types of Indicator of
Valuation Technique Data Needed Notes and Assumptions
Impacts
Pollutants Measurement
Loss of On site price for marketed Total annual value of For direct valuation: Values prior to the impact to be determined.
species products production for each On site market price of each product (before and
product (US$) after thermal pollution) Market price can be adapted to account for
Quantities of products harvested, sold, given away seasonal and other price changes.
(before and after)
Total areas under consideration (before and after) Market price represents true market value
within a competitive market at equilibrium (i.e.
For indirect valuation: prices are not distorted).
Price per unit for equivalent goods
Cost of material inputs All externalities are identified and included in
Time spent harvesting/gathering/ culturing product the price.
Equivalent local wage for labour
Exchange rates and the years of data collected
For substitute price approach:
Substitute price of Substitute material acceptable
Price of equivalent goods
products* Market values not distorted
Quantities of equivalent products harvested, sold,
given away (before and after)
For all approaches:
Species identified before and after
Amenity*
Heavy metals Water quality Travel cost: Amount of Annual recreational Data from visitors survey Access to the site is available to all
money and time spent on value of the site (US$) Socio-economic variables Visits have a single purpose
the site Geographic origin (before and after water Demand function relationship can be specified
contamination) No factors aside from travel cost influence site
Time spent travelling (before and after water use
contamination) Market prices used in valuation are not
Expenditures incurred in visiting the site (before and distorted
after water contamination)
Frequency and duration of visits (before and after
water contamination)
Number of visitor-days for the site (before and after
water contamination)
Subjects understand choices offered and give
Contingent valuation: Recreational value of Answers to valuation questions from survey/bidding meaningful and honest answers
willingness to pay for good the site as valued by game technique/ dichotomous choice Subject have sufficient information to give
water quality willingness to pay by informed choices
users (US$) Sample is representative and captures the full
Total cost value spectrum of users who value the site
No free riders
No strategic bias/influences
UNEP/GEF/SCS/RTF-E.3/3
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Page 9
Table 3.1 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Mangroves.
Types of Indicator of
Valuation Technique Data Needed Notes and Assumptions
Impacts
Pollutants Measurement
Replacement cost: cost to Total cost value Type of pollutants Technologies to clean up the pollutants are
clean up heavy metals Sources of pollutants available and the cost of technologies is
affordable
Oil and Extreme spills Travel cost: Amount of Annual recreational Data from visitors survey Access to the site is available to all
hydrocarbons smothering of money and time spent on value of the site (US$) Socio-economic variables Visits have a single purpose
organisms the site Geographic origin (before and after oil/ hydrocarbon Demand function relationship can be specified
spill) No factors aside from travel cost influence site
Time spent travelling (before and after oil/ use
hydrocarbon spill) Market prices used in valuation are not
Expenditures incurred in visiting the site (before and distorted
after oil/ hydrocarbon spill)
Frequency and duration of visits (before and after
oil/ hydrocarbon spill)
Number of visitor-days for the site (before and after
water contamination)
Contingent valuation: Recreational value of Answers to valuation questions from survey/bidding Subjects understand choices offered and give
willingness to pay for good the site as valued by game technique/ dichotomous choice meaningful and honest answers
water quality willingness to pay by Subject have sufficient information to give
users (US$) informed choices
Sample is representative and captures the full
spectrum of users who value the site
No free riders
No strategic bias/influences
Replacement cost: cost to Total cost value Type of pollutants Technologies to clean up the pollutants are
clean up oil and Sources of pollutants available and the cost of technologies is
hydrocarbons Concentration level of oil and hydrocarbons affordable
Solid waste Smothering Travel cost: Amount of Annual recreational Data from visitors survey Access to the site is available to all
(plastics) of organisms money and time spent on value of the site (US$) Socio-economic variables Visits have a single purpose
the site Geographic origin (before and after site Demand function relationship can be specified
contamination by solid waste) No factors aside from travel cost influence site
Time spent travelling (before and after site use
contamination by solid waste) Market prices used in valuation are not
Expenditures incurred in visiting the site (before and distorted
after site contamination by solid waste)
Frequency and duration of visits (before and after
site contamination by solid waste)
Number of visitor-days for the site (before and after
site contamination by solid waste)
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 10
Table 3.1 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Mangroves.
Types of Indicator of
Valuation Technique Data Needed Notes and Assumptions
Impacts
Pollutants Measurement
Contingent valuation: Recreational value of Answers to valuation questions from survey/bidding Subjects understand choices offered and give
willingness to pay for good the site as valued by game technique/ dichotomous choice meaningful and honest answers
water quality willingness to pay by Subject have sufficient information to give
users (US$) informed choices
Sample is representative and captures the full
spectrum of users who value the site
No free riders
No strategic bias/influences
Replacement cost: cost to Total cost value (US$) Sources of solid waste
clean up solid waste Volume of solid waste Technologies to clean up the pollutants are
available and the cost of technologies is
affordable
Bacterial Contamination Travel cost: Amount of Annual recreational Data from visitors survey Access to the site is available to all
contamination of recreational money and time spent on value of the site (US$) Socio-economic variables Visits have a single purpose
areas the site Geographic origin (before and after site Demand function relationship can be specified
contamination by bacteria) No factors aside from travel cost influence site
Time spent travelling (before and after site use
contamination by bacteria) Market prices used in valuation are not
Expenditures incurred in visiting the site (before and distorted
after site contamination by bacteria)
Frequency and duration of visits (before and after
site contamination by bacteria)
Number of visitor-days for the site (before and after
site contamination by bacteria)
Contingent valuation: Recreational value of Answers to valuation questions from survey/bidding Subjects understand choices offered and give
willingness to pay for good the site as valued by game technique/ dichotomous choice meaningful and honest answers
water quality willingness to pay by Subject have sufficient information to give
users (US$) informed choices
Sample is representative and captures the full
spectrum of users who value the site
No free riders
No strategic bias/influences
Prevention cost Total cost to prevent Cost of constructing facilities for individual economic
bacterial contamination activities
Cost of volumes of projected waste
Size of impacted areas
Sources of contaminants
UNEP/GEF/SCS/RTF-E.3/3
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Page 11
Table 3.1 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Mangroves.
Types of Indicator of
Valuation Technique Data Needed Notes and Assumptions
Impacts
Pollutants Measurement
Human Welfare*
Heavy metals Water quality Cost of illness Total l value of lost human Salaries/wages for labour Health and productivity can be restored to
labour (US$), and total Duration of illness and recovery (number of days lost) previous levels
cost of hospitalisation and Hospitalisation and treatment cost
treatment
Contaminatio Substitute price approach: Total annual cost of Quantity of food consumed Equivalent and substitute food available
n of human cost of sourcing food sourcing food from Price per unit quantity of food sourced Food consumed reaches minimum standards
food sources elsewhere/cost of alternative elsewhere/equivalent food set by governments.
equivalent food sites/equivalent food Duration and cost of finding new sources of food.
Transport cost of new sources of food.
Bio- Cost of illness Total value of lost human Salaries/wages for labour Health and productivity can be restored to
accumulation labour (US$), and total Duration of illness and recovery (number of days previous levels
cost of hospitalisation and lost)
treatment Hospitalisation and treatment cost
Oil and Contamination Substitute price approach: Total annual cost of Quantity of food consumed Equivalent and substitute food available
hydrocarbons /tainting of cost of sourcing food sourcing food from Price per unit quantity of food sourced
mariculture elsewhere/cost of alternative elsewhere/equivalent food
and wild fish equivalent food sites/equivalent food Duration and cost of finding new sources of food.
Transport cost of new sources of food
POPs Water quality Cost of illness Total l value of lost human Salaries/wages for labour Health and productivity can be restored to
labour (US$), and total Duration of illness and recovery (number of days previous levels
cost of hospitalisation and lost)
treatment Hospitalisation and treatment cost
Contamination Substitute price approach: Total annual cost of Quantity of food consumed Equivalent and substitute food available
of seafood cost of sourcing food sourcing food from Price per unit quantity of food sourced Food consumed reaches minimum standards
elsewhere/cost of alternative elsewhere/equivalent food set by governments.
equivalent food sites/equivalent food Duration and cost of finding new sources of food.
Transport cost of new sources of food.
Bacterial Contamination Contingent valuation: Recreational value of the Answers to valuation questions from survey/bidding Subjects understand choices offered and give
Contamination of recreational willingness to pay for site as valued by game technique/ dichotomous choice meaningful and honest answers
areas good water quality willingness to pay by users Subject have sufficient information to give
(US$) informed choices
Sample is representative and captures the full
spectrum of users who value the site
No free riders
No strategic bias/influences
UNEP/GEF/SCS/RTF-E.3/3
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Page 12
Table 3.1 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Mangroves.
Types of Indicator of
Valuation Technique Data Needed Notes and Assumptions
Impacts
Pollutants Measurement
Cost of illness Total value of lost human Salaries/wages for labour Health and productivity can be restored to
labour (US$), and total Duration of illness and recovery (number of days lost) previous levels
cost of hospitalisation Hospitalisation and treatment cost
and treatment
Contamination Substitute price approach: Total annual cost of Quantity of food consumed Equivalent and substitute food available
of human food cost of sourcing food sourcing food from Price per unit quantity of food sourced Food consumed reaches minimum standards
sources elsewhere/cost of alternative elsewhere/equivalent food set by governments.
equivalent food sites/equivalent food Duration and cost of finding new sources of food.
Transport cost of new sources of food.
UNEP/GEF/SCS/RTF-E.3/3
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Table 3.2 Procedures to Undertake Valuation of Impacts of Land-based Pollution on Coral Reefs.
Types of Indicator of
Valuation Technique
Impacts Data Needed Notes and Assumptions
Pollutants Measurement
Productivity
Heavy metals Water quality On site sale value for Total annual value For direct valuation: Values prior to the impact to be determined.
marketed goods using net of production for On site market price of each product (before Market price can be adapted to account for
Reduced price each product (US$) and after degradation of water quality) seasonal and other price changes.
reproductive Quantities of products harvested, sold, given Market price represents true market value within a
capacity in fish For directly used goods, away and used (before and after degradation competitive market at equilibrium (i.e. prices are not
species (e.g. use market values for of water quality) distorted).
molluscs) equivalent goods. If not Total areas under consideration (before and All externalities are identified and included in the
available use indirect after) price.
Bio- opportunity cost approach Concentration level of heavy metals Exchange rates and the years of data collected
accumulation (using wages forgone for Heavy metals affect the functions of distance
harvesting goods) For indirect valuation: current and other physical variables
Price per unit for equivalent goods
Cost of material inputs
Time spent harvesting/gathering/ culturing
product
Equivalent local wage for labour
Organic matter Water quality On site sale value for Total annual value For direct valuation: Values prior to the impact to be determined.
marketed goods using net of production for On site market price of each product (before Market price can be adapted to account for
price each product (US$) and after degradation of water quality) seasonal and other price changes.
Quantities of products harvested, sold, given Market price represents true market value within a
For directly used goods, away and used (before and after degradation competitive market at equilibrium (i.e. prices are not
use market values for of water quality) distorted).
equivalent goods. If not Total areas under consideration (before and All externalities are identified and included in the
available use indirect after) price.
opportunity cost approach Concentration level of organic matters Exchange rates and the years of data collected
(using wages forgone for
harvesting goods) For indirect valuation:
Price per unit for equivalent goods
Cost of material inputs
Time spent harvesting/gathering/ culturing
product
Equivalent local wage for labour
Nutrients Eutrophication On site sale value for Total annual value For direct valuation: Values prior to the impact to be determined.
marketed goods using net of production for On site market price of each product (before Market price can be adapted to account for
Algal blooms price each product (US$) and after eutrophication) seasonal and other price changes.
Quantities of products harvested, sold, given Market price represents true market value within a
Red tides For directly used goods, away and used (before and after competitive market at equilibrium (i.e. prices are not
use market values for eutrophication) distorted).
Anoxia – fish equivalent goods. If not Total areas under consideration (before and All externalities are identified and included in the
kills available use indirect after) price.
opportunity cost approach Concentration level of nutrients Exchange rates and the years of data collected
(using wages forgone for
harvesting goods) For indirect valuation:
Price per unit for equivalent goods
Cost of material inputs
Time spent harvesting/gathering/ culturing
product
Equivalent local wage for labour
UNEP/GEF/SCS/RTF-E.3/3
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Table 3.2 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Coral Reefs.
Types of Indicator of
Valuation Technique
Impacts Data Needed Notes and Assumptions
Pollutants Measurement
Oil and Extreme spills On site sale value for Total annual value For direct valuation: Values prior to the impact to be determined.
hydrocarbons smothering of marketed goods using net of production for On site market price of each product (before Market price can be adapted to account for
organisms price each product (US$) and after spills/ release of oil and seasonal and other price changes.
hydrocarbon) Market price represents true market value within a
For directly used goods, Quantities of products harvested, sold, given competitive market at equilibrium (i.e. prices are not
use market values for away (before and after spills/release of distorted).
equivalent goods. If not hydrocarbons) All externalities are identified and included in the
available use indirect Total areas under consideration (before and price.
opportunity cost approach after) Exchange rates and the years of data collected
(using wages forgone for Concentration level of oil and hydrocarbons in
harvesting goods) the water
For indirect valuation:
Price per unit for equivalent goods
Cost of material inputs
Time spent harvesting/gathering/ culturing
product
Equivalent local wage for labour
Sediments Smothering of On site sale value for Total annual value For direct valuation: Values prior to the impact to be determined.
coral reefs marketed goods using net of production for On site market price of each product (before Market price can be adapted to account for
price each product (US$) and after sedimentation) seasonal and other price changes.
Quantities of products harvested, sold, given Market price represents true market value within a
For directly used goods, away and used (before and after competitive market at equilibrium (i.e. prices are not
use market values for sedimentation) distorted).
equivalent goods. If not Total areas under consideration (before and All externalities are identified and included in the
available use indirect after) price.
opportunity cost approach Level of sedimentation and sedimentation rate Exchange rates and the years of data collected
(using wages forgone for
harvesting goods) For indirect valuation:
Price per unit for equivalent goods
Cost of material inputs
Time spent harvesting/gathering/ culturing
product
Equivalent local wage for labour
Reduced light On site sale value for Total annual value For direct valuation: Values prior to the impact to be determined.
penetration from marketed goods using net of production for On site market price of each product (before Market price can be adapted to account for
increased price each product (US$) and after increased turbidity) seasonal and other price changes.
turbidity leading Quantities of products harvested, sold, given Market price represents true market value within a
to reduced For directly used goods, away and used (before and after increased competitive market at equilibrium (i.e. prices are not
primary use market values for turbidity) distorted).
production equivalent goods. If not Total areas under consideration (before and All externalities are identified and included in the
available use indirect after) price.
opportunity cost approach Volume of suspended sediment in the water Exchange rates and the years of data collected
(using wages forgone for
For indirect valuation:
harvesting goods)
Price per unit for equivalent goods
Cost of material inputs
Time spent harvesting/gathering/ culturing
product
Equivalent local wage for labour
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 15
Table 3.2 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Coral Reefs.
Types of Indicator of
Valuation Technique
Impacts Data Needed Notes and Assumptions
Pollutants Measurement
POPs Water quality On site sale value for Total annual value For direct valuation: Values prior to the impact to be determined.
marketed goods using net of production for On site market price of each product (before Market price can be adapted to account for
Reduced fish price each product (US$) and after) seasonal and other price changes.
reproduction Quantities of products harvested, sold, given Market price represents true market value within a
ability For directly used goods, away and used (before and after) competitive market at equilibrium (i.e. prices are not
use market values for Total areas under consideration (before and distorted).
equivalent goods. If not after) All externalities are identified and included in the
available use indirect Concentration level of POPs price.
opportunity cost approach For indirect valuation: Exchange rates and the years of data collected
(using wages forgone for Price per unit for equivalent goods
harvesting goods) Cost of material inputs
Time spent harvesting/gathering/ culturing
product
Equivalent local wage for labour
Solid waste Smothering of On site sale value for Total annual value For direct valuation: Values prior to the impact to be determined.
(plastics) organisms marketed goods using net of production for On site market price of each product (before Market price can be adapted to account for
price each product (US$) and after solid waste contamination) seasonal and other price changes.
Quantities of products harvested, sold, given Market price represents true market value within a
For directly used goods, away and used (before and after solid waste competitive market at equilibrium (i.e. prices are not
use market values for contamination) distorted).
equivalent goods. If not Total areas under consideration (before and All externalities are identified and included in the
available use indirect after) price.
opportunity cost approach Volume of solid waste Exchange rates and the years of data collected
(using wages forgone for
harvesting goods) For indirect valuation:
Price per unit for equivalent goods
Cost of material inputs
Time spent harvesting/gathering/ culturing
product
Equivalent local wage for labour
Thermal Reduced On site sale value for Total annual value For direct valuation: Values prior to the impact to be determined.
pollution productivity marketed goods using net of production for On site market price of each product (before Market price can be adapted to account for
price each product (US$) and after thermal pollution) seasonal and other price changes.
Quantities of products harvested, sold, given Market price represents true market value within a
For directly used goods, away and used (before and after thermal competitive market at equilibrium (i.e. prices are not
use market values for pollution) distorted).
equivalent goods. If not Total areas under consideration (before and All externalities are identified and included in the
available use indirect after) price.
opportunity cost approach Temperature Exchange rates and the years of data collected
(using wages forgone for
harvesting goods) For indirect valuation:
Price per unit for equivalent goods
Cost of material inputs
Time spent harvesting/gathering/ culturing
product
Equivalent local wage for labour
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 16
Table 3.2 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Coral Reefs.
Types of Indicator of
Valuation Technique
Impacts Data Needed Notes and Assumptions
Pollutants Measurement
Loss of species On site price for marketed Total annual value For direct valuation: Values prior to the impact to be determined.
products of production for On site market price of each product (before Market price can be adapted to account for
each product (US$) and after thermal pollution) seasonal and other price changes.
Quantities of products harvested, sold, given Market price represents true market value within a
away (before and after) competitive market at equilibrium (i.e. prices are not
Total areas under consideration (before and distorted).
after) All externalities are identified and included in the
price.
For indirect valuation: Exchange rates and the years of data collected
Price per unit for equivalent goods
Cost of material inputs
Time spent harvesting/gathering/ culturing
product
Substitute price of products Equivalent local wage for labour
For substitute price approach:
Price of equivalent goods
Quantities of equivalent products harvested,
sold, given away (before and after)
For all approaches:
Species identified before and after
Amenity
Heavy metals Water quality Travel cost: Amount of Annual recreational Data from visitors survey Access to the site is available to all
money and time spent on value of the site Socio-economic variables Visits have a single purpose
the site (US$) Geographic origin (before and after water Demand function relationship can be specified
contamination) No factors aside from travel cost influence site use
Time spent travelling (before and after water Market prices used in valuation are not distorted
contamination)
Expenditures incurred in visiting the site
(before and after water contamination)
Frequency and duration of visits (before and
after water contamination)
Number of visitor-days for the site (before and
after water contamination)
Concentration level of heavy metals
Contingent valuation: Recreational value Answers to valuation questions from Subjects understand choices offered and give
willingness to pay for good of the site as survey/bidding game technique/ dichotomous meaningful and honest answers
water quality valued by choice Subject have sufficient information to give informed
willingness to pay choices
by users (US$) Sample is representative and captures the full
spectrum of users who value the site
No free riders
No strategic bias/influences
Replacement cost: cost to Total cost of clean- Type of heavy metals Technologies to clean up the pollutants are
clean up pollutants up (US$) Sources of heavy metals available and the cost of technologies is affordable
Concentration level of heavy metals
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 17
Table 3.2 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Coral Reefs.
Types of Indicator of
Valuation Technique
Impacts Data Needed Notes and Assumptions
Pollutants Measurement
Organic matter Water quality Travel cost: Amount of Annual recreational Data from visitors survey Access to the site is available to all
money and time spent on value of the site Socio-economic variables Visits have a single purpose
the site (US$) Geographic origin (before and after water Demand function relationship can be specified
contamination) No factors aside from travel cost influence site use
Time spent travelling (before and after water Market prices used in valuation are not distorted
contamination)
Expenditures incurred in visiting the site
(before and after water contamination)
Frequency and duration of visits (before and
after water contamination)
Number of visitor-days for the site (before and
after water contamination)
Concentration level of organic matters
Contingent valuation: Recreational value Answers to valuation questions from Subjects understand choices offered and give
willingness to pay for good of the site as survey/bidding game technique/ dichotomous meaningful and honest answers
water quality valued by choice Subject have sufficient information to give informed
willingness to pay choices
by users (US$) Sample is representative and captures the full
spectrum of users who value the site
No free riders
No strategic bias/influences
Replacement cost: cost to Total cost of clean- Type of organic matters Technologies to clean up the pollutants are
clean up organic matters up (US$) Sources of organic matters available and the cost of technologies is affordable
Concentration level of organic matters
Oil and Extreme spills Travel cost: Amount of Annual recreational Data from visitors survey Access to the site is available to all
hydrocarbons smothering of money and time spent on value of the site Socio-economic variables Visits have a single purpose
organisms the site (US$) Geographic origin (before and after oil spill) Demand function relationship can be specified
Time spent travelling (before and after oil spill) No factors aside from travel cost influence site use
Expenditures incurred in visiting the site Market prices used in valuation are not distorted
(before and after oil spill)
Frequency and duration of visits (before and
after oil spill)
Number of visitor-days for the site (before and
after oil spill)
Concentration level of oil and hydrocarbons
Contingent valuation: Recreational value Answers to valuation questions from Subjects understand choices offered and give
willingness to pay for good of the site as survey/bidding game technique/ dichotomous meaningful and honest answers
water quality valued by choice Subject have sufficient information to give informed
willingness to pay choices
by users (US$) Sample is representative and captures the full
spectrum of users who value the site
No free riders
No strategic bias/influences
Replacement cost: cost to Total cost of clean- Type of pollutants Technologies to clean up the pollutants are
clean up oil spills up (US$) Sources of pollutants available and the cost of technologies is affordable
Concentration level of oil and hydrocarbons
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 18
Table 3.2 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Coral Reefs.
Types of Indicator of
Valuation Technique
Impacts Data Needed Notes and Assumptions
Pollutants Measurement
Sediments Smothering of Travel cost: Amount of Annual recreational Data from visitors survey Access to the site is available to all
coral reefs money and time spent on value of the site Socio-economic variables Visits have a single purpose
the site (US$) Geographic origin (before and after Demand function relationship can be specified
sedimentation) No factors aside from travel cost influence site use
Time spent travelling (before and after Market prices used in valuation are not distorted
sedimentation)
Expenditures incurred in visiting the site
(before and after sedimentation)
Frequency and duration of visits (before and
after sedimentation)
Number of visitor-days for the site (before and
after sedimentation)
Sedimentation level and sedimentation rate
Contingent valuation: Recreational value Answers to valuation questions from Subjects understand choices offered and give
willingness to pay for good of the site as survey/bidding game technique/ dichotomous meaningful and honest answers
water quality valued by choice Subject have sufficient information to give informed
willingness to pay choices
by users (US$) Sample is representative and captures the full
spectrum of users who value the site
No free riders
No strategic bias/influences
Replacement cost: cost to Total cost of clean- Type of sediments Technologies to clean up the pollutants are
clean up the sediments up (US$) Sources of sediments available and the cost of technologies is affordable
Sedimentation level and sedimentation rate
Reduced light Travel cost: Amount of Annual recreational Data from visitors survey Access to the site is available to all
penetration money and time spent on value of the site Socio-economic variables Visits have a single purpose
from increased the site (US$) Geographic origin (before and after turbidity) Demand function relationship can be specified
turbidity Time spent travelling (before and after No factors aside from travel cost influence site use
leading to turbidity) Market prices used in valuation are not distorted
degradation of Expenditures incurred in visiting the site
biological (before and after turbidity)
diversity Frequency and duration of visits (before and
after turbidity)
Number of visitor-days for the site (before and Subjects understand choices offered and give
after turbidity) meaningful and honest answers
Volume of suspended sediment in water Subject have sufficient information to give informed
Contingent valuation: choices
willingness to pay for good Recreational value Answers to valuation questions from Sample is representative and captures the full
water quality of the site as survey/bidding game technique/ dichotomous spectrum of users who value the site
valued by choice No free riders
willingness to pay No strategic bias/influences
by users (US$)
Replacement cost: cost to Total cost of clean- Type of pollutants Technologies to clean up the pollutants are
clean up the sediments up (US$) Sources of pollutants available and the cost of technologies is affordable
Level of degradation of biological diversity
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 19
Table 3.2 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Coral Reefs.
Types of Indicator of
Valuation Technique
Impacts Data Needed Notes and Assumptions
Pollutants Measurement
Solid waste Smothering of Travel cost: Amount of Annual recreational Data from visitors survey Access to the site is available to all
(plastics) organisms money and time spent on value of the site Socio-economic variables Visits have a single purpose
the site (US$) Geographic origin (before and after solid Demand function relationship can be specified
waste contamination) No factors aside from travel cost influence site use
Time spent travelling (before and after solid Market prices used in valuation are not distorted
waste contamination)
Expenditures incurred in visiting the site
(before and after solid waste contamination)
Frequency and duration of visits (before and
after solid waste contamination)
Number of visitor-days for the site (before and
after solid waste contamination)
Contingent valuation: Recreational value Answers to valuation questions from Subjects understand choices offered and give
willingness to pay for good of the site as survey/bidding game technique/ dichotomous meaningful and honest answers
water quality valued by choice Subject have sufficient information to give informed
willingness to pay choices
by users (US$) Sample is representative and captures the full
spectrum of users who value the site
No free riders
No strategic bias/influences
Replacement cost: cost to Total cost of clean- Volume of solid waste Technologies to clean up the pollutants are
Sources of solid waste
clean up the plastics up (US$) available and the cost of technologies is affordable
Bacterial Contamination Travel cost: Amount of Annual recreational Data from visitors survey Access to the site is available to all
Contamination of recreational money and time spent on value of the site Socio-economic variables Visits have a single purpose
sites the site (US$) Geographic origin (before and after bacterial Demand function relationship can be specified
contamination) No factors aside from travel cost influence site use
Time spent travelling (before and after Market prices used in valuation are not distorted
bacterial contamination)
Expenditures incurred in visiting the site
(before and after bacterial contamination)
Frequency and duration of visits (before and
after bacterial contamination)
Number of visitor-days for the site (before and
after bacterial contamination)
Level of contamination
Contingent valuation: Recreational value Answers to valuation questions from Subjects understand choices offered and give
willingness to pay for good of the site as survey/bidding game technique/ dichotomous meaningful and honest answers
water quality valued by choice Subject have sufficient information to give informed
willingness to pay choices
by users (US$) Sample is representative and captures the full
spectrum of users who value the site
No free riders
No strategic bias/influences
Replacement cost: cost to Total cost of going Distance of other sites Alternative location comparable/ accessible
visit other areas to see the to alternative sites Cost of going to the site Market price used in valuation are not distorted
species (US$)
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 20
Table 3.2 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Coral Reefs.
Types of Indicator of
Valuation Technique
Impacts Data Needed Notes and Assumptions
Pollutants Measurement
Human Welfare
Heavy metals Contamination Substitute price approach: Total annual cost of Quantity of food consumed Substitute food acceptable
of human food cost of sourcing food sourcing food from Price per unit quantity of food sourced Market prices used in valuation not distorted
sources found elsewhere/cost of alternative elsewhere/equivalent food
in coral reef equivalent food sites/equivalent
habitat food
Cost of illness Total value of lost Total number of people affected Health and productivity can be restored to previous
human labour and Salaries/wages for labour levels
total cost of Duration of illness and recovery (number of Market price used in valuation are not distorted
hospitalisation and days lost)
treatment (US$) Hospitalisation and treatment cost
Nutrients Fish shellfish Substitute price approach: Total annual cost of Quantity of food consumed Substitute food acceptable
poisoning cost of sourcing food sourcing food from Price per unit quantity of food sourced Market prices used in valuation not distorted
elsewhere/cost of alternative elsewhere/equivalent food
equivalent food sites/equivalent
food
Cost of illness Total value of lost Total number of people affected Health and productivity can be restored to previous
human labour and Salaries/wages for labour levels
total cost of Duration of illness and recovery (number of Market price used in valuation are not distorted
hospitalisation and days lost)
treatment (US$) Hospitalisation and treatment cost
Oil and Contamination/ Substitute price approach: Total annual cost of Quantity of food consumed Substitute food acceptable
hydrocarbons tainting of cost of sourcing food sourcing food from Price per unit quantity of food sourced Market prices used in valuation not distorted
mariculture and elsewhere/cost of alternative elsewhere/equivalent food
wild fish equivalent food sites/equivalent
food
Cost of illness Total value of lost Total number of people affected Health and productivity can be restored to previous
human labour and Salaries/wages for labour levels
total cost of Duration of illness and recovery (number of Market price used in valuation are not distorted
hospitalisation and days lost)
treatment (US$) Hospitalisation and treatment cost
POPs Contamination Substitute price approach: Total annual cost of Quantity of food consumed Substitute food acceptable
of seafood cost of sourcing food sourcing food from Price per unit quantity of food sourced Market prices used in valuation not distorted
elsewhere/cost of alternative elsewhere/equivalent food
equivalent food sites/equivalent
food
Cost of illness Total value of lost Total number of people affected Health and productivity can be restored to previous
human labour and Salaries/wages for labour levels
total cost of Duration of illness and recovery (number of Market price used in valuation are not distorted
hospitalisation and days lost)
treatment (US$) Hospitalisation and treatment cost
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 21
Table 3.2 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Coral Reefs.
Types of Indicator of
Valuation Technique
Impacts Data Needed Notes and Assumptions
Pollutants Measurement
Bacterial Contamination Substitute price approach: Total annual cost of Quantity of food consumed Substitute food acceptable
contamination of human food cost of sourcing food sourcing food from Price per unit quantity of food sourced Market prices used in valuation not distorted
sources elsewhere/cost of alternative elsewhere/equivalent food
equivalent food sites/equivalent
food
Cost of illness Total value of lost Total number of people affected Health and productivity can be restored to previous
human labour and Salaries/wages for labour levels
total cost of Duration of illness and recovery (number of Market price used in valuation are not distorted
hospitalisation and days lost)
treatment (US$) Hospitalisation and treatment cost
Table 3.3 Procedures to Undertake Valuation of Impacts of Land-based Pollution on Seagrass.
Types of Indicator of
Impacts Valuation Technique Data Needed Notes and Assumptions
Pollutants Measurement
Productivity
Heavy metals Water quality On site sale value for marketed Total annual For direct valuation: Values prior to the impact to be determined.
goods using net price value of On site market price of each product (before and after Market price can be adapted to account for
production for degradation of water quality) seasonal and other price changes.
For directly used goods, use each product Quantities of products harvested, sold, given away and Market price represents true market value
market values for equivalent (US$) used (before and after degradation of water quality) within a competitive market at equilibrium (i.e.
goods. If not available use Total areas under consideration (before and after) prices are not distorted).
indirect opportunity cost Concentration level of heavy metals All externalities are identified and included in
approach (using wages forgone the price.
for harvesting goods) For indirect valuation: Exchange rates and the years of data
Price per unit for equivalent goods collected
Cost of material inputs Heavy metals affect the functions of distance
Time spent harvesting/gathering/ culturing product current and other physical variables
Equivalent local wage for labour
Reduced On site sale value for marketed Total annual For direct valuation: Values prior to the impact to be determined.
reproductive goods using net price value of On site market price of each product (before and after Market price can be adapted to account for
capacity in fish production for contamination by heavy metals) seasonal and other price changes.
species (e.g. For directly used goods, use each product Quantities of products harvested, sold, given away and Market price represents true market value
molluscs) market values for equivalent (US$) used (before and after contamination by heavy metals) within a competitive market at equilibrium (i.e.
goods. If not available use Total areas under consideration (before and after) prices are not distorted).
indirect opportunity cost Concentration level of heavy metals All externalities are identified and included in
approach (using wages forgone the price.
for harvesting goods) For indirect valuation: Exchange rates and the years of data
Price per unit for equivalent goods collected
Cost of material inputs Time spent
harvesting/gathering/ culturing product
Equivalent local wage for labour
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 22
Table 3.3 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Seagrass.
Types of Indicator of
Impacts Valuation Technique Data Needed Notes and Assumptions
Pollutants Measurement
Bio- On site sale value for marketed Total annual For direct valuation: Values prior to the impact to be determined.
accumulation goods using net price value of On site market price of each product (before and after Market price can be adapted to account for
production for bio-accumulation) seasonal and other price changes.
For directly used goods, use each product Quantities of products harvested, sold, given away and Market price represents true market value
market values for equivalent (US$) used (before and after bio-accumulation) within a competitive market at equilibrium (i.e.
goods. If not available use Total areas under consideration (before and after) prices are not distorted).
indirect opportunity cost Concentration level of heavy metals All externalities are identified and included in
approach (using wages forgone the price.
for harvesting goods) For indirect valuation: Exchange rates and the years of data
Price per unit for equivalent goods collected
Cost of material inputs
Time spent harvesting/gathering/ culturing product
Equivalent local wage for labour
Organic matter Water quality On site sale value for marketed Total annual For direct valuation: Values prior to the impact to be determined.
goods using net price value of On site market price of each product (before and after Market price can be adapted to account for
production for degradation of water quality) seasonal and other price changes.
For directly used goods, use each product Quantities of products harvested, sold, given away and Market price represents true market value
market values for equivalent (US$) used (before and after degradation of water quality) within a competitive market at equilibrium (i.e.
goods. If not available use Total areas under consideration (before and after) prices are not distorted).
indirect opportunity cost Concentration level of organic matters All externalities are identified and included in
approach (using wages forgone the price.
for harvesting goods) For indirect valuation: Exchange rates and the years of data
Price per unit for equivalent goods collected
Cost of material inputs
Time spent harvesting/gathering/ culturing product
Equivalent local wage for labour
Nutrients Eutrophication On site sale value for marketed Total annual For direct valuation: Values prior to the impact to be determined.
goods using net price value of On site market price of each product (before and after Market price can be adapted to account for
Algal blooms production for eutrophication) seasonal and other price changes.
For directly used goods, use each product Quantities of products harvested, sold, given away Market price represents true market value
market values for equivalent (US$) and used (before and after eutrophication) within a competitive market at equilibrium (i.e.
Red tides goods. If not available use Total areas under consideration (before and after) prices are not distorted).
indirect opportunity cost Concentration level of nutrients All externalities are identified and included in
Anoxia – fish approach (using wages forgone the price.
kills for harvesting goods) For indirect valuation: Exchange rates and the years of data
Price per unit for equivalent goods collected
Cost of material inputs
Time spent harvesting/gathering/ culturing product
Equivalent local wage for labour
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 23
Table 3.3 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Seagrass.
Types of Indicator of
Impacts Valuation Technique Data Needed Notes and Assumptions
Pollutants Measurement
Oil and Extreme spills On site sale value for marketed Total annual For direct valuation: Values prior to the impact to be determined.
hydrocarbons smothering of goods using net price value of On site market price of each product (before and after Market price can be adapted to account for
organisms production for spills/ release of oil and hydrocarbon) seasonal and other price changes.
For directly used goods, use each product Quantities of products harvested, sold, given away Market price represents true market value
market values for equivalent (US$) (before and after spills/release of hydrocarbons) within a competitive market at equilibrium (i.e.
goods. If not available use Total areas under consideration (before and after) prices are not distorted).
indirect opportunity cost Concentration level of oil and hydrocarbons All externalities are identified and included in
approach (using wages forgone the price.
for harvesting goods) For indirect valuation: Exchange rates and the years of data
Price per unit for equivalent goods collected
Cost of material inputs
Time spent harvesting/gathering/ culturing product
Equivalent local wage for labour
Sediments Smothering of On site sale value for marketed Total annual For direct valuation: Values prior to the impact to be determined.
sea grass goods using net price value of On site market price of each product (before and after Market price can be adapted to account for
production for sedimentation) seasonal and other price changes.
For directly used goods, use each product Quantities of products harvested, sold, given away and Market price represents true market value
market values for equivalent (US$) used (before and after sedimentation) within a competitive market at equilibrium (i.e.
goods. If not available use Total areas under consideration (before and after) prices are not distorted).
indirect opportunity cost Sedimentation level and sedimentation rate All externalities are identified and included in
approach (using wages forgone the price.
for harvesting goods) For indirect valuation: Exchange rates and the years of data
Price per unit for equivalent goods collected
Cost of material inputs
Time spent harvesting/gathering/ culturing product
Equivalent local wage for labour
Reduced light On site sale value for marketed Total annual For direct valuation: Values prior to the impact to be determined.
penetration from goods using net price value of On site market price of each product (before and after Market price can be adapted to account for
increased production for increased turbidity) seasonal and other price changes.
turbidity leading For directly used goods, use each product Quantities of products harvested, sold, given away and Market price represents true market value
to reduced market values for equivalent (US$) used (before and after increased turbidity) within a competitive market at equilibrium (i.e.
primary goods. If not available use Total areas under consideration (before and after) prices are not distorted).
production indirect opportunity cost Volume of suspended sediment in water All externalities are identified and included in
approach (using wages forgone the price.
for harvesting goods) For indirect valuation: Exchange rates and the years of data
Price per unit for equivalent goods collected
Cost of material inputs
Time spent harvesting/gathering/ culturing product
Equivalent local wage for labour
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 24
Table 3.3 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Seagrass.
Types of Indicator of
Impacts Valuation Technique Data Needed Notes and Assumptions
Pollutants Measurement
POPs Water quality On site sale value for marketed Total annual For direct valuation: Values prior to the impact to be determined.
goods using net price value of On site market price of each product (before and after Market price can be adapted to account for
production for degradation of water quality) seasonal and other price changes.
For directly used goods, use each product Quantities of products harvested, sold, given away and Market price represents true market value
market values for equivalent (US$) used (before and after degradation of water quality) within a competitive market at equilibrium (i.e.
goods. If not available use Total areas under consideration (before and after) prices are not distorted).
indirect opportunity cost Concentration level of POPs All externalities are identified and included in
approach (using wages forgone the price.
for harvesting goods) For indirect valuation: Exchange rates and the years of data
Price per unit for equivalent goods collected
Cost of material inputs
Time spent harvesting/gathering/ culturing product
Equivalent local wage for labour
Reduced fish On site sale value for marketed Total annual For direct valuation: Values prior to the impact to be determined.
reproductive goods using net price value of On site market price of each product (before and after Market price can be adapted to account for
ability production for POPs contamination) seasonal and other price changes.
For directly used goods, use each product Quantities of products harvested, sold, given away and Market price represents true market value
market values for equivalent (US$) used (before and after POPs contamination) within a competitive market at equilibrium (i.e.
goods. If not available use Total areas under consideration (before and after) prices are not distorted).
indirect opportunity cost Concentration level of POPs All externalities are identified and included in
approach (using wages forgone the price.
for harvesting goods) For indirect valuation: Exchange rates and the years of data
Price per unit for equivalent goods collected
Cost of material inputs
Time spent harvesting/gathering/ culturing product
Equivalent local wage for labour
Solid waste Smothering of On site sale value for marketed Total annual For direct valuation: Values prior to the impact to be determined.
(plastics) organisms goods using net price value of On site market price of each product (before and after Market price can be adapted to account for
production for solid waste contamination) seasonal and other price changes.
For directly used goods, use each product Quantities of products harvested, sold, given away and Market price represents true market value
market values for equivalent (US$) used (before and after solid waste contamination) within a competitive market at equilibrium (i.e.
goods. If not available use Total areas under consideration (before and after) prices are not distorted).
indirect opportunity cost Volume of solid waste All externalities are identified and included in
approach (using wages forgone the price.
for harvesting goods) For indirect valuation: Exchange rates and the years of data
Price per unit for equivalent goods collected
Cost of material inputs
Time spent harvesting/gathering/ culturing product
Equivalent local wage for labour
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 25
Table 3.3 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Seagrass.
Types of Indicator of
Impacts Valuation Technique Data Needed Notes and Assumptions
Pollutants Measurement
Thermal Reduced On site sale value for marketed Total annual For direct valuation: Values prior to the impact to be determined.
pollution productivity goods using net price value of On site market price of each product (before and after Market price can be adapted to account for
production for thermal pollution) seasonal and other price changes.
For directly used goods, use each product Quantities of products harvested, sold, given away and Market price represents true market value
market values for equivalent (US$) used (before and after thermal pollution) within a competitive market at equilibrium (i.e.
goods. If not available use Total areas under consideration (before and after) prices are not distorted).
indirect opportunity cost Water temperature All externalities are identified and included in
approach (using wages forgone the price.
for harvesting goods) For indirect valuation: Exchange rates and the years of data
Price per unit for equivalent goods collected
Cost of material inputs
Time spent harvesting/gathering/ culturing product
Equivalent local wage for labour
Loss of species On site price for marketed Total annual For direct valuation: Values prior to the impact to be determined.
products value of On site market price of each product (before and after Market price can be adapted to account for
production for thermal pollution) seasonal and other price changes.
each product Quantities of products harvested, sold, given away Market price represents true market value
(US$) (before and after) within a competitive market at equilibrium (i.e.
Total areas under consideration (before and after) prices are not distorted).
Water temperature All externalities are identified and included in
the price.
For indirect valuation: Exchange rates and the years of data
Price per unit for equivalent goods collected
Cost of material inputs Substitutes are acceptable
Time spent harvesting/gathering/ culturing product
Equivalent local wage for labour
Substitute price of products* For substitute price approach:
Price of equivalent goods
Quantities of equivalent products harvested, sold,
given away (before and after)
For all approaches:
Species identified before and after
Amenity
Heavy metals Water quality Travel cost: Amount of money Annual Data from visitors survey Access to the site is available to all
and time spent on the site recreational Socio-economic variables Visits have a single purpose
value of the site Geographic origin (before and after water Demand function relationship can be specified
(US$) contamination) No factors aside from travel cost influence site
Time spent travelling (before and after water use
contamination) Market prices used in valuation are not
Expenditures incurred in visiting the site (before and distorted
after water contamination)
Frequency and duration of visits (before and after
water contamination)
Number of visitor-days for the site (before and after
water contamination)
Concentration level of heavy metals
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 26
Table 3.3 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Seagrass.
Types of Indicator of
Impacts Valuation Technique Data Needed Notes and Assumptions
Pollutants Measurement
Contingent valuation: Recreational Answers to valuation questions from survey/bidding Subjects understand choices offered and give
willingness to pay for good value of the site game technique/ dichotomous choice meaningful and honest answers
water quality as valued by Subject have sufficient information to give
willingness to informed choices
pay by users Sample is representative and captures the full
(US$) spectrum of users who value the site
No free riders
No strategic bias/influences
Replacement cost: cost to clean Total cost of Type of heavy metals Technologies to clean up the pollutants are
up heavy metals clean-up (US$) Sources of heavy metals available and the cost of technologies is
Concentration level of heavy metals affordable
Organic matter Water quality Travel cost: Amount of money Annual Data from visitors survey Access to the site is available to all
and time spent on the site recreational Socio-economic variables Visits have a single purpose
value of the site Geographic origin (before and after water Demand function relationship can be specified
(US$) contamination) No factors aside from travel cost influence site
Time spent travelling (before and after water use
contamination) Market prices used in valuation are not
Expenditures incurred in visiting the site (before and distorted
after water contamination)
Frequency and duration of visits (before and after
water contamination)
Number of visitor-days for the site (before and after
water contamination)
Concentration level of organic matters
Contingent valuation: Recreational Answers to valuation questions from survey/bidding Subjects understand choices offered and give
willingness to pay for good value of the site game technique/ dichotomous choice meaningful and honest answers
water quality as valued by Subject have sufficient information to give
willingness to informed choices
pay by users Sample is representative and captures the full
(US$) spectrum of users who value the site
No free riders
No strategic bias/influences
Replacement cost: cost to clean Total cost of Type of pollutants Technologies to clean up the pollutants are
up organic matters clean-up (US$) Sources of pollutants available and the cost of technologies is
Concentration level of organic matters affordable
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 27
Table 3.3 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Seagrass.
Types of Indicator of
Impacts Valuation Technique Data Needed Notes and Assumptions
Pollutants Measurement
Oil and Extreme spills Travel cost: Amount of money Annual Data from visitors survey Access to the site is available to all
hydrocarbons smothering of and time spent on the site recreational Socio-economic variables Visits have a single purpose
organisms value of the site Geographic origin (before and after water Demand function relationship can be specified
(US$) contamination) No factors aside from travel cost influence site
Time spent travelling (before and after water use
contamination) Market prices used in valuation are not
Expenditures incurred in visiting the site (before and distorted
after water contamination)
Frequency and duration of visits (before and after
water contamination)
Number of visitor-days for the site (before and after
water contamination)
Concentration level of oil and hydrocarbons
Contingent valuation: Recreational Answers to valuation questions from survey/bidding Subjects understand choices offered and give
willingness to pay for good value of the site game technique/ dichotomous choice meaningful and honest answers
water quality as valued by Subject have sufficient information to give
willingness to informed choices
pay by users Sample is representative and captures the full
(US$) spectrum of users who value the site
No free riders
No strategic bias/influences
Replacement cost: cost to clean Total cost of Type of pollutants Technologies to clean up the pollutants are
up oils and hydrocarbons clean-up (US$) Sources of pollutants available and the cost of technologies is
Concentration level of pollutants affordable
Sediments Smothering of Travel cost: Amount of money Annual Data from visitors survey Access to the site is available to all
seagrass and time spent on the site recreational Socio-economic variables Visits have a single purpose
value of the site Geographic origin (before and after water contamination) Demand function relationship can be specified
(US$) Time spent travelling (before and after water No factors aside from travel cost influence site
contamination) use
Expenditures incurred in visiting the site (before and Market prices used in valuation are not
after water contamination) distorted
Frequency and duration of visits (before and after water
contamination)
Number of visitor-days for the site (before and after
water contamination)
Level of sedimentation and sedimentation rate
Contingent valuation: Recreational Answers to valuation questions from survey/bidding Subjects understand choices offered and give
willingness to pay for good value of the site game technique/ dichotomous choice meaningful and honest answers
water quality as valued by Subject have sufficient information to give
willingness to informed choices
pay by users Sample is representative and captures the full
(US$) spectrum of users who value the site
No free riders
No strategic bias/influences
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 28
Table 3.3 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Seagrass.
Types of Indicator of
Impacts Valuation Technique Data Needed Notes and Assumptions
Pollutants Measurement
Replacement cost: cost to clean Total cost of Type of pollutants Technologies to clean up the pollutants are
up sediments clean-up (US$) Sources of pollutants available and the cost of technologies is
Level of sedimentation and sedimentation rate affordable
Reduced light Travel cost: Amount of money Annual Data from visitors survey Access to the site is available to all
penetration from and time spent on the site recreational Socio-economic variables Visits have a single purpose
increased value of the site Geographic origin (before and after water Demand function relationship can be specified
turbidity leading (US$) contamination) No factors aside from travel cost influence site
to degradation Time spent travelling (before and after water use
of biological contamination) Market prices used in valuation are not
diversity Expenditures incurred in visiting the site (before and distorted
after water contamination)
Frequency and duration of visits (before and after
water contamination)
Number of visitor-days for the site (before and after
water contamination)
Volume of suspended sediment in the water
Subjects understand choices offered and give
Contingent valuation: Recreational Answers to valuation questions from survey/bidding meaningful and honest answers
willingness to pay for good value of the site game technique/ dichotomous choice Subject have sufficient information to give
water quality as valued by informed choices
willingness to Sample is representative and captures the full
pay by users spectrum of users who value the site
(US$) No free riders
No strategic bias/influences
Replacement cost: cost to clean Total cost of Type of pollutants Technologies to clean up the pollutants are
up sediments clean-up (US$) Sources of pollutants available and the cost of technologies is
Volume of suspended sediment in water affordable
POPs Water quality Travel cost: Amount of money Annual Data from visitors survey Access to the site is available to all
and time spent on the site recreational Socio-economic variables Visits have a single purpose
value of the site Geographic origin (before and after water contamination) Demand function relationship can be specified
(US$) Time spent travelling (before and after water No factors aside from travel cost influence site
contamination) use
Expenditures incurred in visiting the site (before and Market prices used in valuation are not
after water contamination) distorted
Frequency and duration of visits (before and after water
contamination)
Number of visitor-days for the site (before and after
water contamination)
Concentration level of POPs
Contingent valuation: Recreational Answers to valuation questions from survey/bidding Subjects understand choices offered and give
willingness to pay for good value of the site game technique/ dichotomous choice meaningful and honest answers
water quality as valued by Subject have sufficient information to give
willingness to informed choices
pay by users Sample is representative and captures the full
(US$) spectrum of users who value the site
No free riders
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 29
Table 3.3 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Seagrass.
Types of Indicator of
Impacts Valuation Technique Data Needed Notes and Assumptions
Pollutants Measurement
No strategic bias/influences
Replacement cost: cost to clean Total cost of Type of pollutants Technologies to clean up the pollutants are
up POPs clean-up (US$) Sources of pollutants available and the cost of technologies is
Level of concentration of pollutants affordable
Solid waste Smothering of Travel cost: Amount of money Annual Data from visitors survey Access to the site is available to all
(plastics) organisms and time spent on the site recreational Socio-economic variables Visits have a single purpose
value of the site Geographic origin (before and after water Demand function relationship can be specified
(US$) contamination) No factors aside from travel cost influence site
Time spent travelling (before and after water use
contamination) Market prices used in valuation are not
Expenditures incurred in visiting the site (before and distorted
after water contamination)
Frequency and duration of visits (before and after
water contamination)
Number of visitor-days for the site (before and after
water contamination)
Volume of solid waste
Recreational Answers to valuation questions from survey/bidding Subjects understand choices offered and give
Contingent valuation: value of the site game technique/ dichotomous choice meaningful and honest answers
willingness to pay for good as valued by Subject have sufficient information to give
water quality willingness to informed choices
pay by users Sample is representative and captures the full
(US$) spectrum of users who value the site
No free riders
No strategic bias/influences
Replacement cost: cost to clean Total cost of Sources of solid waste Technologies to clean up the pollutants are
up sediments clean-up (US$) Volume of solid waste available and the cost of technologies is
affordable
Thermal Loss of species Travel cost: Amount of money Annual Data from visitors survey Access to the site is available to all
pollution and time spent on the site recreational Socio-economic variables Visits have a single purpose
value of the site Geographic origin (before and after water Demand function relationship can be specified
(US$) contamination) No factors aside from travel cost influence site
Time spent travelling (before and after water use
contamination) Market prices used in valuation are not
Expenditures incurred in visiting the site (before and distorted
after water contamination)
Frequency and duration of visits (before and after
water contamination)
Number of visitor-days for the site (before and after
water contamination)
Water temperature
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 30
Table 3.3 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Seagrass.
Types of Indicator of
Impacts Valuation Technique Data Needed Notes and Assumptions
Pollutants Measurement
Contingent valuation: Recreational Answers to valuation questions from survey/bidding Subjects understand choices offered and give
willingness to pay for good value of the site game technique/ dichotomous choice meaningful and honest answers
water quality as valued by Subject have sufficient information to give
willingness to informed choices
pay by users Sample is representative and captures the full
(US$) spectrum of users who value the site
No free riders
No strategic bias/influences
Replacement cost: cost to visit Total cost of Distance of other sites Alternative location comparable/ accessible
other areas to see the species going to Cost of going to the sites Market price used in valuation are not
alternative sites distorted.
(US$)
Bacterial Contamination Travel cost: Amount of money Annual Data from visitors survey Access to the site is available to all
contamination of human food and time spent on the site recreational Socio-economic variables Visits have a single purpose
sources value of the site Geographic origin (before and after site contamination Demand function relationship can be specified
(US$) by bacteria) No factors aside from travel cost influence site
Time spent travelling (before and after site use
contamination by bacteria) Market prices used in valuation are not
Expenditures incurred in visiting the site (before and distorted
after site contamination by bacteria)
Frequency and duration of visits (before and after site
contamination by bacteria)
Number of visitor-days for the site (before and after site
contamination by bacteria)
Level of contamination
Contingent valuation: Recreational Answers to valuation questions from survey/bidding Subjects understand choices offered and give
willingness to pay for good value of the site game technique/ dichotomous choice meaningful and honest answers
water quality as valued by Subject have sufficient information to give
willingness to informed choices
pay by users Sample is representative and captures the full
(US$) spectrum of users who value the site
No free riders
No strategic bias/influences
Prevention cost Total cost to Cost of constructing facilities for individual economic Market prices used in valuation are not
prevent bacterial activities distorted
contamination Volumes of projected waste
(US$) Size of impacted areas
Sources of contaminants
Human Welfare
Heavy metals Contamination Substitute price approach: cost Total annual cost Quantity of food consumed Substitute food acceptable
of human food of sourcing food elsewhere/cost of sourcing food Price per unit quantity of food sourced Market prices used in valuation not distorted
sources of equivalent food from alternative elsewhere/equivalent food
sites/equivalent
food
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 31
Table 3.3 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Seagrass.
Types of Indicator of
Impacts Valuation Technique Data Needed Notes and Assumptions
Pollutants Measurement
Cost of illness Total cost of Total number of people affected Health and productivity can be restored to
hospitalisation Salaries/wages for labour previous levels
and treatment Duration of illness and recovery (number of days lost)
Hospitalisation and treatment cost
Nutrients Fish shellfish Substitute price approach: cost Total annual cost Quantity of food consumed Substitute food acceptable
poisoning of sourcing food elsewhere/cost of sourcing food Price per unit quantity of food sourced Market prices used in valuation not distorted
of equivalent food from alternative elsewhere/equivalent food
sites/equivalent
food
Cost of illness Total cost of lost Total number of people affected Health and productivity can be restored to
human labour and Salaries/wages for labour previous levels
total cost of Duration of illness and recovery (number of days lost) Market prices used in valuation not distorted
hospitalisation and Hospitalisation and treatment cost
treatment (US$)
Oil and Contamination/ Substitute price approach: cost Total annual cost Quantity of food consumed Substitute food acceptable
hydrocarbons tainting of of sourcing food elsewhere/cost of sourcing food Price per unit quantity of food sourced Market prices used in valuation not distorted
mariculture and of equivalent food from alternative elsewhere/equivalent food
wild fish sites/equivalent
food
Cost of illness Total cost of lost Total number of people affected Health and productivity can be restored to
human labour and Salaries/wages for labour previous levels
total cost of Duration of illness and recovery (number of days lost) Market prices used in valuation not distorted
hospitalisation and Hospitalisation and treatment cost
treatment (US$)
POPs Contamination Substitute price approach: cost Total annual cost Quantity of food consumed Substitute food acceptable
of seafood of sourcing food elsewhere/cost of sourcing food Price per unit quantity of food sourced Market prices used in valuation not distorted
of equivalent food from alternative elsewhere/equivalent food
sites/equivalent
food
Cost of illness Total cost of lost Total number of people affected Health and productivity can be restored to
human labour and Salaries/wages for labour previous levels
total cost of Duration of illness and recovery (number of days lost) Market prices used in valuation not distorted
hospitalisation and Hospitalisation and treatment cost
treatment (US$)
Bacterial Contamination Substitute price approach: cost Total annual cost Quantity of food consumed Substitute food acceptable
contamination of human food of sourcing food elsewhere/cost of sourcing food Price per unit quantity of food sourced Market prices used in valuation not distorted
sources of equivalent food from alternative elsewhere/equivalent food
sites/equivalent
food
Cost of illness Total cost of lost Total number of people affected Health and productivity can be restored to
human labour Salaries/wages for labour previous levels
and total cost of Duration of illness and recovery (number of days lost) Market prices used in valuation not distorted
hospitalisation Hospitalisation and treatment cost
and treatment
(US$)
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 32
Table 3.4 Procedures to Undertake Valuation of Impacts of Land-based Pollution on Wetlands.
Types of
Impacts Valuation Technique Indicator of Measurement Data Needed Notes and Assumptions
Pollutants
Productivity
Heavy Water quality On site sale value for Total annual value of For direct valuation: Values prior to the impact to be determined.
metals marketed goods using production for each product On site market price of each product (before Market price can be adapted to account for
Reduced net price (US$) and after) seasonal and other price changes.
reproductive Quantities of products harvested, sold, given Market price represents true market value within a
capacity in fish For directly used away and used (before and after) competitive market at equilibrium (i.e. prices are
species (e.g. goods, use market Total areas under consideration (before and not distorted).
molluscs) values for equivalent after) All externalities are identified and included in the
goods. If not available Concentration level of heavy metals price.
Bio- use indirect Exchange rates and the years of data collected.
accumulation opportunity cost For indirect valuation:
approach (using Price per unit for equivalent goods
wages forgone for Cost of material inputs
harvesting goods) Time spent harvesting/gathering/ culturing
product
Equivalent local wage for labour
Organic Water quality On site sale value for Total annual value of For direct valuation: Values prior to the impact to be determined.
matter marketed goods using production for each product On site market price of each product (before Market price can be adapted to account for
net price (US$) and after degradation of water quality) seasonal and other price changes.
Quantities of products harvested, sold, given Market price represents true market value within a
For directly used away and used (before and after degradation competitive market at equilibrium (i.e. prices are
goods, use market of water quality) not distorted).
values for equivalent Total areas under consideration (before and All externalities are identified and included in the
goods. If not available after) price.
use indirect Concentration level of organic matter Exchange rates and the years of data collected.
opportunity cost
approach (using For indirect valuation:
wages forgone for Price per unit for equivalent goods
harvesting goods) Cost of material inputs
Time spent harvesting/gathering/ culturing
product
Equivalent local wage for labour
Nutrients Eutrophication On site sale value for Total annual value of For direct valuation: Values prior to the impact to be determined.
marketed goods using production for each product On site market price of each product (before Market price can be adapted to account for
Algal blooms net price (US$) and after) seasonal and other price changes.
Quantities of products harvested, sold, given Market price represents true market value within a
Red tides For directly used away and used (before and after) competitive market at equilibrium (i.e. prices are
goods, use market Total areas under consideration (before and not distorted).
Anoxia – fish values for equivalent after) All externalities are identified and included in the
kills goods. If not Concentration level of nutrients price.
available use indirect Exchange rates and the years of data collected.
opportunity cost For indirect valuation:
approach (using Price per unit for equivalent goods
wages forgone for Cost of material inputs
harvesting goods) Time spent harvesting/gathering/ culturing
product
Equivalent local wage for labour
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 33
Table 3.4 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Wetlands.
Types of
Impacts Valuation Technique Indicator of Measurement Data Needed Notes and Assumptions
Pollutants
Oil and Extreme spills On site sale value for Total annual value of For direct valuation: Values prior to the impact to be determined.
hydro- smothering of marketed goods using production for each product On site market price of each product (before Market price can be adapted to account for
carbons organisms net price (US$) and after spills/ release of oil and seasonal and other price changes.
hydrocarbon) Market price represents true market value within a
For directly used Quantities of products harvested, sold, given competitive market at equilibrium (i.e. prices are
goods, use market away (before and after spills/release of not distorted).
values for equivalent hydrocarbons) All externalities are identified and included in the
goods. If not Total areas under consideration (before and price.
available use indirect after) Exchange rates and the years of data collected.
opportunity cost Concentration level of oil and hydrocarbons
approach (using
For indirect valuation:
wages forgone for
Price per unit for equivalent goods
harvesting goods)
Cost of material inputs
Time spent harvesting/gathering/ culturing
product
Equivalent local wage for labour
Sediments Reduced light On site sale value for Total annual value of For direct valuation: Values prior to the impact to be determined.
penetration marketed goods using production for each product On site market price of each product (before Market price can be adapted to account for
from increased net price (US$) and after increased turbidity) seasonal and other price changes.
turbidity Quantities of products harvested, sold, given Market price represents true market value within a
leading to For directly used away and used (before and after increased competitive market at equilibrium (i.e. prices are
reduced goods, use market turbidity) not distorted).
primary values for equivalent Total areas under consideration (before and All externalities are identified and included in the
production goods. If not after) price.
available use indirect Volume of suspended sediment in the water Exchange rates and the years of data collected
opportunity cost
approach (using For indirect valuation:
wages forgone for Price per unit for equivalent goods
harvesting goods) Cost of material inputs
Time spent harvesting/gathering/ culturing
product
Equivalent local wage for labour
POPs Water quality On site sale value for Total annual value of For direct valuation: Values prior to the impact to be determined.
marketed goods using production for each product On site market price of each product (before Market price can be adapted to account for
Reduced fish net price (US$) and after) seasonal and other price changes.
reproduction Quantities of products harvested, sold, given Market price represents true market value within a
ability For directly used away and used (before and after) competitive market at equilibrium (i.e. prices are
goods, use market Total areas under consideration (before and not distorted).
values for equivalent after) All externalities are identified and included in the
goods. If not Concentration level of POPs price.
available use indirect Exchange rates and the years of data collected.
opportunity cost For indirect valuation:
approach (using Price per unit for equivalent goods
wages forgone for Cost of material inputs
harvesting goods) Time spent harvesting/gathering/ culturing
product
Equivalent local wage for labour
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 34
Table 3.4 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Wetlands.
Types of
Impacts Valuation Technique Indicator of Measurement Data Needed Notes and Assumptions
Pollutants
Solid Smothering of On site sale value for Total annual value of For direct valuation: Values prior to the impact to be determined.
waste organisms marketed goods using production for each product On site market price of each product (before Market price can be adapted to account for
(plastics) net price (US$) and after solid waste contamination) seasonal and other price changes.
Quantities of products harvested, sold, given Market price represents true market value within a
For directly used away and used (before and after solid waste competitive market at equilibrium (i.e. prices are
goods, use market contamination) not distorted).
values for equivalent Total areas under consideration (before and All externalities are identified and included in the
goods. If not after) price.
available use indirect Volume of solid waste Exchange rates and the years of data collected
opportunity cost
approach (using For indirect valuation:
wages forgone for Price per unit for equivalent goods
harvesting goods) Cost of material inputs
Time spent harvesting/gathering/ culturing
product
Equivalent local wage for labour
Thermal Reduced On site sale value for Total annual value of For direct valuation: Values prior to the impact to be determined.
pollution productivity marketed goods using production for each product On site market price of each product (before Market price can be adapted to account for
net price (US$) and after thermal pollution) seasonal and other price changes.
Quantities of products harvested, sold, given Market price represents true market value within a
For directly used away and used (before and after thermal competitive market at equilibrium (i.e. prices are
goods, use market pollution) not distorted).
values for equivalent Total areas under consideration (before and All externalities are identified and included in the
goods. If not after) price.
available use indirect Water temperature Exchange rates and the years of data collected
opportunity cost
approach (using For indirect valuation:
wages forgone for Price per unit for equivalent goods
harvesting goods) Cost of material inputs
Time spent harvesting/gathering/ culturing
product
Equivalent local wage for labour
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 35
Table 3.4 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Wetlands.
Types of
Impacts Valuation Technique Indicator of Measurement Data Needed Notes and Assumptions
Pollutants
Loss of species On site price for Total annual value of For direct valuation: Values prior to the impact to be determined.
marketed products production for each product On site market price of each product (before Market price can be adapted to account for
(US$) and after thermal pollution) seasonal and other price changes.
Quantities of products harvested, sold, given Market price represents true market value within a
away (before and after) competitive market at equilibrium (i.e. prices are
Total areas under consideration (before and not distorted).
after) All externalities are identified and included in the
Water temperature price.
Exchange rates and the years of data collected.
For indirect valuation:
Price per unit for equivalent goods
Cost of material inputs
Time spent harvesting/gathering/ culturing
product
Equivalent local wage for labour
Water temperature
Substitute approach: Total cost of sourcing For substitute price approach: Substitute of product/raw materials available and
Price of products/raw products/raw materials from Price of equivalent goods acceptable
materials* other sites Quantities of equivalent products harvested, Market prices used in valuation are not distorted
sold, given away (before and after)
For all approaches:
Species identified before and after
Amenity
Heavy Water quality Travel cost: Amount Annual recreational value of Data from visitors survey Access to the site is available to all
metals of money and time the site (US$) Socio-economic variables Visits have a single purpose
spent on the site Geographic origin (before and after water Demand function relationship can be specified
contamination) No factors aside from travel cost influence site use
Time spent travelling (before and after water Market prices used in valuation are not distorted
contamination)
Expenditures incurred in visiting the site
(before and after water contamination)
Frequency and duration of visits (before and
after water contamination)
Number of visitor-days for the site (before and
after water contamination)
Concentration level of heavy metals
Contingent valuation: Recreational value of the Answers to valuation questions from Subjects understand choices offered and give
willingness to pay for site as valued by willingness survey/bidding game technique/ dichotomous meaningful and honest answers
good water quality to pay by users (US$) choice Subject have sufficient information to give
informed choices
Sample is representative and captures the full
spectrum of users who value the site
No free riders
No strategic bias/influences
Replacement cost: Total cost of clean-up (US$) Types of heavy metals Technologies to clean up the pollutants are
cost to clean up Sources of heavy metals available and the cost of technologies is
pollutants Level of concentration of heavy metals affordable
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 36
Table 3.4 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Wetlands.
Types of
Impacts Valuation Technique Indicator of Measurement Data Needed Notes and Assumptions
Pollutants
Organic Water quality Travel cost: Amount Annual recreational value of Data from visitors survey Access to the site is available to all
matter of money and time the site (US$) Socio-economic variables Visits have a single purpose
spent on the site Geographic origin (before and after water Demand function relationship can be specified
contamination) No factors aside from travel cost influence site use
Time spent travelling (before and after water Market prices used in valuation are not distorted
contamination)
Expenditures incurred in visiting the site
(before and after water contamination)
Frequency and duration of visits (before and
after water contamination)
Number of visitor-days for the site (before and
after water contamination)
Concentration level of organic matters
Contingent valuation: Recreational value of the Answers to valuation questions from Subjects understand choices offered and give
willingness to pay for site as valued by willingness survey/bidding game technique/ dichotomous meaningful and honest answers
good water quality to pay by users (US$) choice Subject have sufficient information to give
informed choices
Sample is representative and captures the full
spectrum of users who value the site
No free riders
No strategic bias/influences
Replacement cost: Total cost of clean-up (US$) Type of pollutants Technologies to clean up the pollutants are
cost to clean up Sources of pollutants available and the cost of technologies is
pollutants Concentration level of pollutants affordable
Nutrients Eutrophication Travel cost: Amount Annual recreational value of Data from visitors survey Access to the site is available to all
of money and time the site (US$) Socio-economic variables Visits have a single purpose
Algal blooms spent on the site Geographic origin (before and after Demand function relationship can be specified
eutrophication) No factors aside from travel cost influence site use
Red tides Time spent travelling (before and after Market prices used in valuation are not distorted
eutrophication)
Expenditures incurred in visiting the site
(before and after eutrophication)
Frequency and duration of visits (before and
after eutrophication)
Number of visitor-days for the site (before and
after eutrophication)
Concentration level of nutrients
Contingent valuation: Recreational value of the Subjects understand choices offered and give
Answers to valuation questions from
willingness to pay for site as valued by willingness meaningful and honest answers
survey/bidding game technique/ dichotomous
good water quality to pay by users (US$) Subject have sufficient information to give
choice informed choices
Sample is representative and captures the full
spectrum of users who value the site
No free riders
No strategic bias/influences
Type of pollutants Technologies to clean up the pollutants are
Replacement cost: Total cost of clean-up (US$)
Sources of pollutants available and the cost of technologies is
cost to clean up
Concentration level of pollutants affordable
nutrients
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 37
Table 3.4 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Wetlands.
Types of
Impacts Valuation Technique Indicator of Measurement Data Needed Notes and Assumptions
Pollutants
Oil and Extreme spills Travel cost: Amount Annual recreational value of Data from visitors survey Access to the site is available to all
hydro- smothering of of money and time the site (US$) Socio-economic variables Visits have a single purpose
carbons organisms spent on the site Geographic origin (before and after oil spill) Demand function relationship can be specified
Time spent travelling (before and after oil spill) No factors aside from travel cost influence site use
Expenditures incurred in visiting the site Market prices used in valuation are not distorted
(before and after oil spill)
Frequency and duration of visits (before and
after oil spill)
Number of visitor-days for the site (before and
after oil spill)
Concentration level of oil and hydrocarbons
Contingent valuation: Recreational value of the Answers to valuation questions from Subjects understand choices offered and give
willingness to pay for site as valued by willingness survey/bidding game technique/ dichotomous meaningful and honest answers
good water quality to pay by users (US$) choice Subject have sufficient information to give
informed choices
Sample is representative and captures the full
spectrum of users who value the site
No free riders
No strategic bias/influences
Replacement cost: Total cost of clean-up (US$) Type of pollutants Technologies to clean up the pollutants are
cost to clean up the Sources of pollutants available and the cost of technologies is
oil spill Concentration level of pollutants affordable
Sediments Increased Replacement cost: Total cost of clean-up (US$) Level of sedimentation Technologies to clean up the pollutants are
difficulty of cost to clean up Sources of sedimentation available and the cost of technologies is
transportation sediments affordable
in wetlands
POPs Water quality Travel cost: Amount Annual recreational value of Data from visitors survey Access to the site is available to all
of money and time the site (US$) Socio-economic variables Visits have a single purpose
spent on the site Geographic origin (before and after water Demand function relationship can be specified
contamination) No factors aside from travel cost influence site use
Time spent travelling (before and after water Market prices used in valuation are not distorted
contamination)
Expenditures incurred in visiting the site
(before and after water contamination)
Frequency and duration of visits (before and
after water contamination)
Number of visitor-days for the site (before and
after water contamination)
Concentration level of POPs
Contingent valuation: Recreational value of the Answers to valuation questions from Subjects understand choices offered and give
willingness to pay for site as valued by willingness survey/bidding game technique/ dichotomous meaningful and honest answers
good water quality to pay by users (US$) choice Subject have sufficient information to give
informed choices
Sample is representative and captures the full
spectrum of users who value the site
No free riders
No strategic bias/influences
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 38
Table 3.4 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Wetlands.
Types of
Impacts Valuation Technique Indicator of Measurement Data Needed Notes and Assumptions
Pollutants
Replacement cost: Total cost of clean-up (US$) Type of pollutants Technologies to clean up the pollutants are
cost to clean up Sources of pollutants available and the cost of technologies is
pollutants Concentration level of pollutants affordable
Solid Smothering of Travel cost: Amount Annual recreational value of Data from visitors survey Access to the site is available to all
waste organisms of money and time the site (US$) Socio-economic variables Visits have a single purpose
(plastics) spent on the site Geographic origin (before and after solid Demand function relationship can be specified
waste contamination) No factors aside from travel cost influence site use
Time spent travelling (before and after solid Market prices used in valuation are not distorted
waste contamination)
Expenditures incurred in visiting the site
(before and after solid waste contamination)
Frequency and duration of visits (before and
after solid waste contamination)
Number of visitor-days for the site (before and
after solid waste contamination)
Contingent valuation: Recreational value of the Answers to valuation questions from Subjects understand choices offered and give
willingness to pay for site as valued by willingness survey/bidding game technique/ dichotomous meaningful and honest answers
good water quality to pay by users (US$) choice Subject have sufficient information to give
informed choices
Sample is representative and captures the full
spectrum of users who value the site
No free riders
No strategic bias/influences
Replacement cost: Total cost of clean-up (US$) Volume of wastes Technologies to clean up the pollutants are
cost to clean up Sources of wastes available and the cost of technologies is
plastics affordable
Thermal Loss of species Travel cost: Amount Annual recreational value of Data from visitors survey Access to the site is available to all
pollution of money and time the site (US$) Socio-economic variables Visits have a single purpose
spent on the site Geographic origin (before and after) Demand function relationship can be specified
Time spent travelling (before and after) No factors aside from travel cost influence site use
Expenditures incurred in visiting the site Market prices used in valuation are not distorted
(before and after)
Frequency and duration of visits (before and
after)
Number of visitor-days for the site (before and
after)
Water temperature
Contingent valuation: Recreational value of the Answers to valuation questions from Subjects understand choices offered and give
willingness to pay for site as valued by willingness survey/bidding game technique/ dichotomous meaningful and honest answers
good vegetation to pay by users (US$) choice Subject have sufficient information to give
informed choices
Sample is representative and captures the full
spectrum of users who value the site
No free riders
No strategic bias/influences
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 39
Table 3.4 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Wetlands.
Types of
Impacts Valuation Technique Indicator of Measurement Data Needed Notes and Assumptions
Pollutants
Replacement cost: Total cost of going to Distance of other sites Alternative location comparable/ accessible
cost to visit other alternative sites (US$) Cost of going to the site Market price used in valuation are not distorted
areas to see the
species
Human Welfare
Heavy Water quality Cost of illness Total value of lost human Salaries/wages for labour Health and productivity can be restored to
metals labour (US$) and total cost Duration of illness and recovery (number of previous levels
of hospitalisation and days lost) Types of water use can be identified
treatment Hospitalisation and treatment cost
Number of affected people
Substitute price Total annual cost of Quantity of food consumed Substitute food acceptable
approach: cost of sourcing food from Price per unit quantity of food sourced Market prices used in valuation not distorted
sourcing food alternative sites/equivalent elsewhere/equivalent food
elsewhere/cost of food
equivalent food
Contamination Cost of illness Total value of lost human Salaries/wages for labour Health and productivity can be restored to
of human food labour (US$) and total cost Duration of illness and recovery (number of previous levels
sources of hospitalisation and days lost) Market price used in valuation are not distorted
treatment Hospitalisation and treatment cost
Number of affected people
Substitute price Total annual cost of Quantity of food consumed Substitute food acceptable
approach: cost of sourcing food from Price per unit quantity of food sourced Market prices used in valuation not distorted
sourcing food alternative sites/equivalent elsewhere/equivalent food
elsewhere/cost of food
equivalent food
Organic Water quality Cost of illness Total value of lost human Salaries/wages for labour Health and productivity can be restored to
matter labour (US$), and total cost Duration of illness and recovery (number of previous levels
of hospitalisation and days lost) Market prices used in valuation not distorted
treatment Hospitalisation and treatment cost
Oil and Contamination/ Substitute price Total annual cost of Quantity of food consumed Substitute food acceptable
hydrocarb tainting of approach: cost of sourcing food from Price per unit quantity of food sourced Market prices used in valuation not distorted
ons aquaculture sourcing food alternative sites/equivalent elsewhere/equivalent food
and wild fish elsewhere/cost of food
equivalent food
Cost of illness Total value of lost human Salaries/wages for labour Health and productivity can be restored to
labour (US$), and total cost Duration of illness and recovery (number of previous levels
of hospitalisation and days lost) Market prices used in valuation not distorted
treatment Hospitalisation and treatment cost
Number of affected people
POPs Water quality Substitute price Total annual cost of Quantity of food consumed Substitute food acceptable
approach: cost of sourcing food from Price per unit quantity of food sourced Market prices used in valuation not distorted
sourcing food alternative sites/equivalent elsewhere/equivalent food
elsewhere/cost of food
equivalent food
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 40
Table 3.4 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Wetlands.
Types of
Impacts Valuation Technique Indicator of Measurement Data Needed Notes and Assumptions
Pollutants
Cost of illness Total value of lost human Salaries/wages for labour Health and productivity can be restored to
labour (US$), and total cost Duration of illness and recovery (number of previous levels
of hospitalisation and days lost) Market prices used in valuation not distorted
treatment Hospitalisation and treatment cost
Number of affected people
Contamination Substitute price Total annual cost of Quantity of food consumed Substitute food acceptable
of human approach: cost of sourcing food from Price per unit quantity of food sourced Market prices used in valuation not distorted
source food sourcing food alternative sites/equivalent elsewhere/equivalent food
elsewhere/cost of food
equivalent food
Cost of illness Total value of lost human Salaries/wages for labour Health and productivity can be restored to
labour (US$), and total cost Duration of illness and recovery (number of previous levels
of hospitalisation and days lost) Market prices used in valuation not distorted
treatment Hospitalisation and treatment cost
Number of affected people
Solid Cost of illness Total value of lost human Salaries/wages for labour Health and productivity can be restored to
waste Breeding labour (US$), and total cost Duration of illness and recovery (number of previous levels
(plastics) ground for of hospitalisation and days lost) Market prices used in valuation not distorted
disease treatment Hospitalisation and treatment cost
Number of affected people
Clean-up cost Total cost of cleaning up Amount of solid waste
solid waste
Bacterial Contamination Substitute price Total annual cost of Quantity of food consumed Substitute food acceptable
contamin of human food approach: cost of sourcing food from Price per unit quantity of food sourced Market prices used in valuation not distorted
ation sources sourcing food alternative sites/equivalent elsewhere/equivalent food
elsewhere/cost of food
equivalent food
Cost of illness Total value of lost human Salaries/wages for labour Health and productivity can be restored to
labour (US$), and total cost Duration of illness and recovery (number of previous levels
of hospitalisation and days lost) Market prices used in valuation not distorted
treatment Hospitalisation and treatment cost
Number of affected people
UNEP/GEF/SCS/RTF-E.3/3
Annex 5
Page 1
ANNEX 5
Proposed Outline for a Manual on the Evaluation of Ecosystems that are of Interest
to the South China Sea Project
I. INTRODUCTION (Dr. Pernetta)
This portion will deal with the importance of doing economic valuation of the ecosystems to
the project. This will also deal with how general valuation framework and the ecosystem-
specific valuation frameworks were arrived at/formulated.
II. COST BENEFIT ANALYSIS (Dr. Thanwa)
This portion will discuss the conceptual frameworks of ordinary and extended cost benefit
analysis, and their major elements or components. It will include the definition of cost and
benefit, formula, indicators and investment criteria (net present value, benefit-cost ratio,
internal rate of return).
A. Ordinary cost benefit analysis
Net present value
Benefit-cost ratio
Internal rate of return
Payback period
Sensitivity analysis
B. Extended cost benefit analysis
External cost and benefit
Net present value
Benefit-cost ratio
Internal rate of return
Payback period
Sensitivity analysis
III. THE GENERAL OVERALL VALUATION FRAMEWORK (Dr. Noel)
This portion will discuss the various elements of the framework (total economic value) use
value (direct, indirect, option), non-use value (quasi-option, bequest, existence). Included
in the discussion is the definition of each element and their appropriate usage.
Total Economic Value
A. Use Value
1. Direct Use (discuss also the types of direct uses i.e., extractive, non-
extractive, etc.)
2. Indirect Use (discuss also the various indirect uses i.e., environmental
services, biological diversity, etc.)
3. Option Use
UNEP/GEF/SCS/RTF-E.3/3
Annex 5
Page 2
B. Non-Use Value
1. Quasi-Option Use
2. Bequest Use
3. Existence Use
III. THE VALUATION TECHNIQUES
This portion will discuss the various techniques and their appropriate usage. The outline for this
section can be as follows:
A. Market Based Value (Dr. Tridoyo)
1. Direct Value (On site value)
2. Indirect Value
a. Change in Productivity
b. Shadow Project
c. Defensive/Preventive Expenditure
d. Cost of Illness
e. Replacement Cost
B. Surrogate Market Based (Dr. Suparmoko)
1. Hedonic Price
2. Travel Cost
C. Simulated Value Survey-Based (Mr. Ramony)
1. Contingent Valuation
2. Choice Modelling
IV. VALUATION OF ECOSYSTEMS
This portion will deal with how to arrive at the economic values of the various ecosystems
(Mangrove, Seagrass, Coral Reef, Wetlands). Included in the discussions are the sources of
values (based on the adopted framework for valuation of mangroves), data required (based on the
agreed matrix) and techniques of generating the data. The outline for this section can be as
follows:
A. Mangrove Ecosystem (Dr. Thanwa)
1. Sources of values and method of computation
a. Direct Use (Extractive)
i. Timber (what are they used for; how is the economic value computed?)
ii. Firewood (uses, e.g., domestic cooking, bakery, etc.; how is the economic
value computed?)
iii. etc.
b. Direct (Non Extractive)
i. Tourism/Recreation (ways of enjoying the ecosystem; how is the economic
value computed?)
ii. Research and education (types of undertakings; how is the economic
value computed?)
c. Indirect (Environmental Services)
i. Shoreline protection (how do they protect?; how is the economic value
computed?)
UNEP/GEF/SCS/RTF-E.3/3
Annex 5
Page 3
ii. Windbreak (how do they function as such?; how is the economic value
computed?)
iii. ETC.
d. Indirect (Biological diversity)
i. Value of genes, etc. (computation of economic value)
ii. ETC.
e. Option (Dr. Chinh)
f. Bequest (Dr. Chinh)
g. Existence (Socio-cultural significance)
i. Religious/spiritual significance (how are they significant?; how is the
economic value computed?)
ii. ETC.
2. Data required and techniques to generate them
This subsection will follow the outline of the previous subsection, this time identifying
the various data requirements and the ways of generating the data to enable the
researcher to compute for the economic value for a particular use.
B. Coral Reef Ecosystem (Dr. Suparmoko)
This section can likewise follow the previous section’s outline and discussion
elements.
C. Wetlands Ecosystem (Dr. Ninh)
This section can follow the outline of the previous section, including the elements of
discussion.
D. Sea grass Ecosystem (Dr. Khalid)
This section can also follow the previous section’s outline and the discussion
elements.
V. VALUING THE IMPACTS OF LAND-BASED POLLUTION (Dr. Noel)
VI. CONCLUSION (Dr. Noel)
This will encourage the reader to apply the methods and techniques indicated.
UNEP/GEF/SCS/RTF-E.3/3
Annex 6
Page 1
ANNEX 6
Table 1 Draft Summary Table for Empirical Data Relating to Economic Valuation of Mangrove Extractive (direct) Uses.
Date of Total Area Volume Unit Net Value Valuation
2
Location Currency
1 3
Valuation (ha) (per ha) Price (per ha) Method
Timber
Reference A
Reference B
Reference C
Firewood
Reference A
Reference B
Poles
Charcoal
Leaves/palm fronds (Thatch,
fodder)
Fruit/propagules
Bark (tanning & dyes)
Medicine
Sap (sugar, alcohol, Acetic acid)
Wood tar
Fish capture
Crab capture
Prawn capture
Shellfish collection
Insect and larvae collection
Worms
Wildlife
Zooplankton
Jellyfish
Honey & wax
Algae
Other uses (specify)
1
Unit net price is the market price minus harvesting and production cost.
2
Currency used in original studies, references or publications.
3
The valuation methods should include details of prices used.
UNEP/GEF/SCS/RTF-E.3/3
Annex 7
Page 1
ANNEX 7
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE UNITED NATIONS ENVIRONMENT PROGRAMME
AND
[Insert National Institute or Agency of the Members of the Task Force] ON THE EXECUTION OF
ACTIVITIES ON ECONOMIC VALUATION FOR THE UNEP/GEF PROJECT ENTITLED:
“REVERSING ENVIRONMENTAL DEGRADATION TRENDS IN THE SOUTH CHINA SEA AND
GULF OF THAILAND”
(Ref.: UNEP/GEF/SCS/Cam/MoU###)
1. PARTIES. This Memorandum of Understanding is entered into between the United Nations
Environment Programme (UNEP), and [Insert National Institute or Agency of the Members of the
Task Force], for the execution of activities on economic valuation under the framework of the
UNEP/GEF Project entitled “Reversing environmental degradation trends in the South China Sea and
Gulf of Thailand”.
2. BACKGROUND. The UNEP/GEF Project Brief entitled “Reversing Environmental
Degradation Trends in the South China Sea and Gulf of Thailand” (hereafter called the South China
Sea Project) was approved by the GEF Council in November 2000, following its approval by the 15th
meeting and special session of COBSEA4, held in Pattaya, Thailand, 11-12th September 2000. The
project brief was endorsed by the GEF Operational Focal Point for [Insert country name] on behalf of
the Government, [Insert date of endorsement].
The overall goals of the South China Sea Project are: to create an environment at the regional level,
in which collaboration and partnership in addressing environmental problems of the South China Sea,
between all stakeholders, and at all levels is fostered and encouraged; and to enhance the capacity of
the participating governments to integrate environmental considerations into national development
planning.
The Regional Task Force on Economic Valuation was established by the Project Steering Committee
(PSC) during its second meeting, in Hanoi, December 2002, to serve as the principal source of
economic advice and information to the PSC, the Regional Scientific and Technical Committee
(RSTC), and Specialised Executing Agencies. To fulfil the tasks stipulated in the Terms of Reference
of the Task Force, and provide the advice regarding economic valuation of coastal habitats and
resources the Regional Task Force on Economic Valuation has developed valuation frameworks for
use in the context of the demonstration sites that will be initiated during 2005.
The role of the members of the RTF-E is primarily to gather and consolidate information on the
economic valuation of coastal environmental goods and services, and provide advice
regarding regional values that can be applied in the framework of the Strategic Action
Programme.
3. PURPOSE. Under this Memorandum of Understanding the [Insert National Institute or
Agency of the Members of the Task Force] agrees to make available the services of [Insert Mr./Dr.
Member of the Task Force] in [Insert Country]. It is critical to the project that all RTF-E members
from the participating countries function effectively if the overall goals of the project are to be
met, hence the [Insert National Institute or Agency of the Members of the Task Force] agrees to
release [Insert Mr./Dr. Member of the Task Force] for an estimated 10% of their time over the next
year in order to fulfil the tasks and responsibilities detailed in this agreement.
4. GENERAL CONDITIONS. The United Nations Standard Conditions for Memoranda of
Understanding are attached as Annex I and form a part of this Memorandum.
4
UNEP, 2000. Report of the Fifteenth Meeting of the Co-ordinating Body for the Seas of East Asia (COBSEA) on the East
Asian Seas Action Plan (Special Session for the UNEP GEF Project in the South China Sea) and Report of the Meeting of
National Experts for the UNEP GEF Project in the South China Sea. UNEP(DEC)/EAS IG.11/3.
UNEP/GEF/SCS/RTF-E.3/3
Annex 7
Page 2
5. TASKS BY DESIGNATED INSTITUTION. The Expert Member on behalf of the Institution, in
close collaboration with the Members of the National Technical Working Group, and with the support
of the National Technical Focal Point, agrees to carry out the tasks, outlined below and in accordance
with the work plan, agreed during the third meeting of the RTF-E (Figure 2).
1. Engage the services, and direct the work of, a research assistant in compiling existing
empirical data regarding the economic values of goods and services in accordance with
the uses listed in the agreed frameworks for Mangroves, coral reefs, seagrass and
wetlands and in the format attached as Annex 2 to this agreement.
2. Direct the work of the assistant in analysing the national information both published and
un-published with a view to providing data regarding standardised values that can be
compared between countries.
3. Produce a synoptic report on the outcome of the review of economic valuations of coastal
resources and environments in [insert name of country].
6. TASKS BY UNITED NATIONS. UNEP agrees to perform the following tasks:
Provide the financial resources according, to the agreed schedule, detailed in Table 1 of this
Memorandum, established between UNEP and [Insert National Institute or Agency of the
Members of the Task Force].
7. TRANSFER OF PAYMENTS AND RELEASE OF FUNDS. Transfer of payments and release
of funds will be undertaken as follows:
i. Monetary contributions by UNEP will be made in US dollars by wire transfer to the
following account:
Name of Account Holder:
Account number:
Name of Bank:
Address of bank:
Swift Code:
ii. The initial cash advance will be made upon final clearance of this agreement by the
GEF and signature by UNEP.
iii. The Specialised Executing Agency shall report the end year expenditure accounts at
31 December, certified by a duly authorised official, but, in addition, UNEP requires that the
end of year expenditure account should be reported in an opinion by a recognized firm of
public accountants (for a government, by Government auditors), which shall be dispatched to
UNEP by 31 March. In particular, the auditors should be asked to report whether, in their
opinion:
• Proper books of account and records have been maintained;
• All project expenditures are supported by vouchers and adequate documentation; and,
• Expenditures have been incurred in accordance with the objectives outlined in the
Memorandum of Understanding.
8. REFUND OF UNSPENT BALANCE. The Designated Institution will refund to UNEP in US
dollars any unspent balance of the funds provided by UNEP within 30 days after completion of the
final task. Such refund should be wired to:
Name of account holder: ESCAP
Account number: 001-1-014313
Name of bank: Chase Manhattan Bank
Address of bank: New York
ABA number: 021000021
UNEP/GEF/SCS/RTF-E.3/3
Annex 7
Page 3
9. CORRESPONDENCE. All correspondence regarding this agreement should be addressed to:
In [Insert Country Name]:
To:
[Insert Co-ordinates of the Member of the Task Force]
Copied to:
[Insert the Co-ordinates of the National Focal Point]
In UNEP:
Project Director,
South China Sea Project Co-ordination Unit,
United Nations Environmental Programme,
United Nations Building, 2nd Floor, Block B,
Rajdamnern Nok Avenue,
Bangkok 10200, Thailand.
Tel: (662) 288 1886
Fax: (662) 288 1094
Copied to:
Chief, Budget and Financial Management Services,
United Nations Office at Nairobi (UNON)
P.O. Box 30552,
Nairobi, Kenya.
Tel: (254 20) 623 637, 623 632
Fax: (254 20) 623 755, 623 614
10. EFFECTIVE DATE. This Memorandum of Understanding shall enter into effect when signed
in duplicate by the authorised persons below and shall expire on 31 December, 2006. Three months
prior to the expiry of this agreement a new agreement may be negotiated taking into account the
decisions of the Project Steering Committee regarding activities to be executed during the remainder
of the project period.
______________________________ ___________________________
Project Director,
Insert Co-ordinates of the Member of
South China Sea Project Co-ordination Unit,
the Task Force
United Nations Environmental Programme,
United Nations Building, 2nd Floor, Block B,
Rajdamnern Nok Avenue,
Bangkok 10200, Thailand.
Date:__________________________ Date:__________________________
UNEP/GEF/SCS/RTF-E.3/3
Annex 8
Page 1
ANNEX 8
Work Plan for the RTF-E (2005-2006) and Schedule of Meetings for the UNEP/GEF South China Sea Project
Table 1 Work Plan for the Regional Task Force on Economic Valuation for 2005-2006.
Year 2005 2006
Month 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12
X
Second Regional Scientific Conference
X
Fourth RTF-E Meeting
1. Development of a framework and procedures to value the impacts of land-
based pollution
rd
1.1 Drafts to be completed during the 3 RTF-E meeting
1.2 Comments or other inputs to be provided to the PCU prior to
3rd
finalisation of the framework and procedures
2. Development of an economic valuation manual for use in the demonstration
sites and pilot activities
X
2.1 Agree on the format and individual responsibilities
2.3 Draft sections circulated by members X
X
2.4 Comments from RTF-E members
X
2.5 Revision of drafts based on comments received
2.6 Manual compiled into first draft for distribution during the second Regional
X
Scientific Conference
2.7 Final editing and clearance of the manual based on feedback from the
X
Regional Working Groups
3. Development of a regional database of empirical economic values for
coastal goods and services
X
3.1 Agree on activities and budgets
X
3.2 Prepare and sign Memoranda of Understanding
3.3 Members undertake the agreed activities
3.4 First compilation of data submitted to the PCU and other members of the
X
RTF-E
3.5 Comments/discussion by Members on the first draft
3.6 Development of procedures for deriving “national” and regional values
X
3.7 Further amplification of data and procedures and compilation of second draft
3.8 Discussion and agreement of procedures for deriving “national” and
“regional” values
X
4. Inputs to the updating of the Strategic Action Programme
UNEP/GEF/SCS/RTF-E.3/3
Annex 8
Page 2
Table 2 Schedule of Meetings for 2005. (RWG = Regional Working Group; -M = Mangroves; -CR = Coral reefs; -SG = Seagrass; -W = Wetlands; -F= Fisheries;
LbP = Land-based Pollution; RTF-E = Regional Task Force on Economic Valuation; RTF-L = Regional Task Force on Legal Matters) (H = United Nations Holidays)
S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M
January 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
H H
February 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
RSTC
Chinese NY H
EXCOM
March 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
RTF-L-3
April 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
RTF-E-3
H H
May 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
H
June 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
July 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
RWG-LbP-6
August 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
RWG-M-6 RWG-CR-6
H
September 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
RWG-F-6 RWG-W-6 RWG-SG-6
October 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
Ramadan
November 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Ramadan RSC-2
H
December 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
RSTC-6 PSC-5 Xmas
H H
Environment Programme Project Facility
Reversing Environmental Degradation Trends
in the
South China Sea and Gulf of Thailand
REPORT
Third Meeting of the Regional Task Force
on Economic Valuation
Fangchenggang, China, 18th – 21st April 2005
__________________________________________________________________________________
UNEP/GEF
Bangkok, April 2005
First published in Thailand in 2005 by the United Nations Environment Programme.
Copyright © 2005, United Nations Environment Programme
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UNEP/GEF
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DISCLAIMER:
The contents of this report do not necessarily reflect the views and policies of UNEP or the GEF. The
designations employed and the presentations do not imply the expression of any opinion whatsoever
on the part of UNEP, of the GEF, or of any cooperating organisation concerning the legal status of
any country, territory, city or area, of its authorities, or of the delineation of its territories or boundaries.
Cover Illustration: Outline of the Framework for Valuing the Impacts of Land-based Pollution,
John C. Pernetta.
For citation purposes this document may be cited as:
UNEP, 2005. Reversing Environmental Degradation Trends in the South China Sea and Gulf of
Thailand. Report of the Third Meeting of the Regional Task Force on Economic Valuation.
UNEP/GEF/SCS/RTF-E.3/3.
Table of Contents
1. OPENING OF THE MEETING......................................................................................................... 1
1.1 WELCOME ADDRESS ................................................................................................................... 1
1.2 INTRODUCTION OF PARTICIPANTS ................................................................................................ 1
2. ORGANISATION OF THE MEETING ............................................................................................. 1
2.1 DESIGNATION OF OFFICERS......................................................................................................... 1
2.2 DOCUMENTATION AVAILABLE TO THE MEETING............................................................................. 2
2.3 PROGRAMME OF WORK............................................................................................................... 2
3. ADOPTION OF THE MEETING AGENDA...................................................................................... 2
4. THE REPORT ON THE ECONOMIC VALUATION OF THE IMPACTS OF LAND-BASED
POLLUTION .................................................................................................................................... 2
5. DEVELOPMENT OF A MANUAL TO SUPPORT THE FRAMEWORKS AND PROCEDURES
OF ECONOMIC VALUATION ......................................................................................................... 3
6. DETERMINING ECONOMIC VALUES FOR COASTAL HABITATS AND RESOURCES FOR
USE IN THE COST BENEFIT ANALYSIS OF ACTION COMPARED WITH NON-ACTION
CONTAINED IN THE STRATEGIC ACTION PROGRAMME......................................................... 4
6.1 REVIEW OF THE ELEMENTS OF ECONOMIC VALUATION CONTAINED IN THE DEMONSTRATION SITE
ACTIVITIES.................................................................................................................................. 4
6.2 DISCUSSION OF THE PROCEDURES AND ACTIONS REQUIRED TO ASSEMBLE, EMPIRICAL DATA ON
RESOURCE VALUATIONS AT NATIONAL AND REGIONAL LEVELS...................................................... 4
7. WORK PLAN FOR THE REGIONAL TASK FORCE ON ECONOMIC VALUATION.................... 5
8. ANY OTHER BUSINESS ................................................................................................................ 5
9. DATES AND PLACE OF THE NEXT MEETING OF THE TASK FORCE ..................................... 5
10. ADOPTION OF THE REPORT OF THE MEETING........................................................................ 6
11. CLOSURE OF THE MEETING........................................................................................................ 6
List of Annexes
ANNEX 1 List of Participants
ANNEX 2 List of Documents
ANNEX 3 Agenda
ANNEX 4 Framework and Procedures to Value Impacts of Land-based Pollution on
Coastal Habitats
ANNEX 5 Proposed Outline for a Manual on the Evaluation of Ecosystems that are of
Interest to the South China Sea Project
ANNEX 6 Draft Summary Table for Empirical Data Relating to Economic Valuation of
Mangrove Extractive (direct) Uses.
ANNEX 7 Memorandum of Understanding Between the United Nations Environment
Programme and National Institute or Agency of the Members of the Task Force
ANNEX 8 Work Plan for the RTF-E (2005-2006) and Schedule of Meetings for the
UNEP/GEF South China Sea Project
UNEP/GEF/SCS/RTF-E.3/3
Page 1
Report of the Meeting
1. OPENING OF THE MEETING
1.1 Welcome Address
1.1.1 The Project Director, Dr. John Pernetta, welcomed participants to the Third Meeting of the
Regional Task Force on Economic Valuation (RTF-E), and officially opened the meeting on behalf of
Dr. Klaus Töpfer, the Executive Director of the United Nations Environment Programme (UNEP), and
Dr. Ahmed Djoghlaf, Assistant Deputy Executive Director of UNEP and Director, Division of Global
Environment Facility Co-ordination (UNEP/DGEF).
1.1.2 The Project Director noted that the UNEP/GEF South China Sea Project had been under
implementation since early 2002 and that, the two Task Forces had been created by the Project
Steering Committee in December 2002. The fourth meeting of the Project Steering Committee in,
Guilin, China, in December 2004, had decided to allocate financial resources to the two Task Forces
to undertake relevant activities in the second phase of the Project. The Project Director noted that, a
major item for discussion during the meeting was to be the finalisation of the details of the
Memoranda of Understanding between UNEP and members of the Task Force. If it were possible, to
finalise these agreements during the meeting this would ensure timely transfer of the funds for
members to undertake activities related to environmental economic valuation.
1.1.3 The Project Director apologised for the fact that the Project Co-ordinating Unit (PCU) had
been unable to follow up the activities closely following the last meeting, which had resulted from the
fact that the PCU has been operating under severe staffing constraints. He informed the meeting that
the Executive Director of UNEP had recently approved the appointment of two professional staff
members to the PCU, and he expected that the full staffing of the PCU would improve execution of
activities under the Task Force.
1.2 Introduction of Participants
1.2.1 The Project Director noted, with regret that Dr. Thanwa Jitsanguan from Thailand, and
Dr. Nguyen Huu Ninh from Viet Nam, were unable to be present in the meeting and that they had
nominated Dr. Nuchanata Mungkung and Dr. Nguyen The Chinh as alternate members respectively.
In addition, Dr. Herminia A. Francisco had informed the PCU that as of June 2005 she would assume
the post of Deputy Director of the Economy and Environment Program for Southeast Asia and as
such she would be unable to participate in the work of the RTF-E in her personal capacity.
1.2.2 Participants were invited to introduce themselves to the meeting. There followed a tour de
table during which the meeting participants introduced themselves to the meeting. The list of
participants is attached as Annex 1 to this meeting report.
2. ORGANISATION OF THE MEETING
2.1 Designation of Officers
2.1.1 Members were reminded that the Rules of Procedure (UNEP/GEF/SCS/RTF-E.1/Inf.4) for the
RTF-E state, “The Chairperson, Vice–Chairperson and Rapporteur shall hold office until the
subsequent meeting of the Task Force. They shall be eligible for re-election no more than once. No
officer may continue to hold office once the National Technical Focal Point terminates their
membership of the Task Force for the Project.”
2.1.2 Members noted that during the first meeting of the RTF-E convened in Phuket, Thailand
September 2003 Dr. Matius Suparmoko, Dr. Thanwa and Dr. Khalid were elected as Chairperson,
Vice-Chairperson and Rapporteur respectively. During the subsequent meeting held in Cambodia in
June 2004 these officers were re-elected consequently they were no longer eligible for re-election to
the same offices.
UNEP/GEF/SCS/RTF-E.3/3
Page 2
2.1.3 In accordance with the Rules of Procedure, members were invited to nominate individuals to
act as Chairperson, Vice-Chairperson and Rapporteur for the inter-sessional period to the next
meeting. Dr. Suparmoko nominated Dr. Noel Eusebio Oyardo Padilla as the Chairperson, and Dr.
Tridoyo Kusumastanto nominated Dr. Li Kaiming, and Mr. Sy Ramony as Vice-Chairperson and
Rapporteur respectively. There being no other nominations, Dr. Padilla, Dr. Li and Mr. Ramony were
duly elected as Chairperson, Vice-Chairperson and Rapporteur for the meeting.
2.2 Documentation Available to the Meeting
2.2.1 Ms. Sulan Chen, Secretary to the meeting briefly introduced the discussion and information
documents available to the meeting and apologised for their late dispatch to members. The list of
documents is contained as Annex 2 to this meeting report.
2.3 Programme of Work
2.3.1 Ms. Chen briefed participants on the administrative arrangements for the conduct of the
meeting, and the proposed organisation of work (UNEP/GEF/SCS/RTF-E.3/Inf.3). Formal sessions of
the meeting would be conducted in English, and in plenary as far as possible.
2.3.2 Ms. Chen noted that time might be set aside to finalise Memoranda of Understanding
between UNEP and members of the Task Force, and on the last day of the meeting the Project
Document for the Fangchenggang mangrove demonstration site would be signed between UNEP and
the Specialised Executing Agency of the mangrove sub-component. This would involve a short formal
ceremony during which various news agencies would be present together with representatives of the
Provincial and local governments and Xindi Company.
3. ADOPTION OF THE MEETING AGENDA
3.1 The Chairperson introduced the provisional agenda prepared by the PCU as document,
UNEP/GEF/SCS/RTF-E.3/1, and the annotated provisional agenda prepared as document
UNEP/GEF/SCS/RTF-E.3/2 and invited members of the RTF-E to propose any amendments or
additional items for consideration, prior to the adoption of the agenda.
3.2 No additional agenda items or amendments to the provisional agenda were proposed by the
members, and the meeting adopted the provisional agenda without change. The adopted agenda is
attached as Annex 3 to this report.
4. THE REPORT ON THE ECONOMIC VALUATION OF THE IMPACTS OF LAND-BASED
POLLUTION
4.1 Members recalled that during the previous meeting it had been agreed that Dr. Francisco’s
research associate would conduct a literature review on existing studies on economic valuation of the
impacts of land-based pollution. The report had been previously circulated to members and was now
available for consideration by the RTF-E as contained in document UNEP/GEF/SCS/RTF-E.3/4.
4.2 The Chairperson invited the Associate Expert to introduce document UNEP/GEF/SCS/RTF-
E.3/4, which summarises the content of the report. The Associate Expert briefly outlined the
background to the commissioning of this review. She noted that the existing literature covered by the
report does not provide a comprehensive framework for valuing the impacts of land-based pollution,
and that no specific valuation methods or techniques are suggested for the valuation of particular
types of impact resulting from land-based pollution.
4.3 Ms. Chen pointed out that the literature review suggested that most studies in the region were
theoretical, and few studies have been conducted to obtain the monetary value of the impacts of land-
based pollution. She further commented that the majority of cases included in the report were from
China, Philippines, Indonesia and Thailand. No studies had been reviewed in Cambodia, Malaysia
and Viet Nam. The two cases reviewed in China were for inland cities, in Wuhan and Wuxi, which
were geographically distant from the South China Sea marine environment. In addition, the cases in
the report focused on the loss of fisheries from the land-based pollution and ignored other major
impacts resulting from land-based pollution, such as for example loss of amenity value (particularly
tourism), reduction in aquaculture production and human welfare.
UNEP/GEF/SCS/RTF-E.3/3
Page 3
4.4 The report provides an overview of some of the existing frameworks and methodologies for
valuing the impacts of land-based pollution, however, the report did not propose a comprehensive
framework for the economic valuation of the impacts of land-based pollution. The Associate Expert
invited members to formulate an appropriate framework, along with supporting methodologies and
techniques for the valuation of the impacts of land-based pollution.
4.5 There followed a lengthy discussion on the various impacts of land-based pollution and
differing sources of pollution. Members initially attempted to categorise various types of impacts, i.e.
direct or indirect impacts, and tangible and intangible impacts. It was noted that the impacts of land-
based pollution were complex, and some of the impacts were mixed, and reflected impacts
consequent on both land-based and sea-based pollution. The Task Force noted that indirect impacts
were complex, and to some extent very difficult to value. It was agreed that the valuation framework
should focus on three types of direct impacts, i.e. productivity, amenity value and human welfare.
4.6 Several members mentioned the importance of identifying the sources of land-based
pollution. It was then pointed out by the Project Director that it would be more useful to identify the
types of pollutants and their possible impacts on coastal habitats, since the valuation would focus on
the impacts of land-based pollution on habitats, disregarding the sources of the pollution. To formulate
the framework for valuing the impacts of land-based pollution on coastal habitats, the Task Force
agreed to identify types of pollutants, the impacts resulting from each type of pollutant, and to
categorise these impacts under the three classes of changes to production, amenity value and human
welfare. Table 1 of Annex 4 presents a checklist of the impacts of land-based pollution in the four
habitats considered by the project.
4.7 The Task Force identified and discussed various types of pollutants, their possible impacts,
and applicability of these impacts to ecological habitats. Following a consideration of the types of
impacts, the Task Force proceeded to formulate procedures to be used in valuing the impacts
including data needs, and appropriate valuation techniques. Annex 4 of this report contains the tables
of frameworks and procedures for valuing the impacts of land-based pollution, Tables 2.1 to 2.4
outline the impacts of land-based pollution on mangroves, coral reefs, seagrass and wetlands
according to the three classes of changes to economic value; and Tables 3.1 to 3.4 include detailed
procedures to be used in undertaking the valuation of these impacts.
5. DEVELOPMENT OF A MANUAL TO SUPPORT THE FRAMEWORKS AND PROCEDURES
OF ECONOMIC VALUATION
5.1 Members recalled that during the second meeting of the RTF-E it had been agreed that a
manual of procedures and techniques would be developed for use in valuing coastal habitats. It was
further agreed that a draft outline/contents was to have been produced and circulated by the end of
June 2004, at which time members would indicate their willingness to draft particular sections with a
view to producing a final draft by the end of October 2004. Dr. Padilla had drafted an outline of such a
manual and circulated to the RTF-E members according to the original agreement, regrettably no
follow up actions had been undertaken.
5.2 The Chairperson introduced the draft outline for the manual, contained in document
UNEP/GEF/SCS/RTF-E.3/8. Members considered, amended and adopted the outline as included in
Annex 5 of this meeting report.
5.3 The meeting further discussed and agreed upon the individual responsibilities for drafting the
various sections of the manual. Dr. Pernetta indicated that he would circulate a draft introduction to
the Task Force within ten working days of the closure of the meeting. Individual members volunteered
to take the lead in drafting various sections of the manual, as indicated in Annex 5. It was agreed that
all members would circulate their inputs no later than the end of July 2005 following which there
would be one month for member's response and comments and a further month for finalisation of the
text prior to its publication in time for distribution during the Regional Scientific Conference.
UNEP/GEF/SCS/RTF-E.3/3
Page 4
6. DETERMINING ECONOMIC VALUES FOR COASTAL HABITATS AND RESOURCES FOR
USE IN THE COST BENEFIT ANALYSIS OF ACTION COMPARED WITH NON-ACTION
CONTAINED IN THE STRATEGIC ACTION PROGRAMME
6.1 Review of the Elements of Economic Valuation Contained in the Demonstration Site
Activities
6.1.1 The Chairperson invited the Project Director to introduce document UNEP/GEF/SCS/RTF-
E.3/5, which provided an overview of the typical elements of the demonstration site activities, which
encompass the economic valuation of coastal environmental goods and services and the evaluation
of alternative livelihoods. The Project Director noted that likely outputs from these activities would
include economic valuations conducted at a site level according to the agreed frameworks and
procedures recommended by the RTF-E. Consequently, the Task Force could expect to obtain a set
of values collected according to the same regionally agreed frameworks and procedures that might
serve as a yard-stick for comparison of other empirical values.
6.1.2 The meeting noted that in the past two years the expertise of the Task Force had not been
fully utilised by the Specialised Executing Agencies. The meeting took note that the economic
valuation activities included in the demonstration site project documents should follow the frameworks
and procedures formulated by the Task Force, and that the execution of these activities should
involve directly the expert members of the Task Force. The Project Director noted that in the case of
the Trat Province mangrove demonstration site, Dr. Thanwa was directly involved in the study of
alternative livelihood in Trat Province. The Project Director indicated he would continue to encourage
the Specialised Executing Agencies to utilise the expertise of members of the Task Force, and in
appropriate cases members should be financially compensated for their time spent on executing
specific activities.
6.1.3 It was noted that members of the Task Force should be directly involved in the economic
valuation component of the demonstration site activities, and the costs of this work should be paid for
from the demonstration site budget.
6.2 Discussion of the Procedures and Actions Required to Assemble, Empirical Data on
Resource Valuations at National and Regional Levels
6.2.1 The Chairperson invited the Project Director to introduce document UNEP/GEF/SCS/RTF-
E.3/6, which presented alternative approaches to developing a regional database of empirical
economic values for coastal goods and services for discussion and decision by the RTF-E.
Dr. Pernetta noted that one important task of the RTF-E was to develop regionally applicable
valuations of coastal habitats, using empirical data collected in the region and standardised
approaches taken by the demonstration sites.
6.2.2 The RTF-E had already agreed on the need to develop a regionally acceptable “value” for
particular habitats as the basis for determining the economic benefits of action compared to non-
action as previously attempted in the draft Strategic Action Programme. The Regional Task Force,
during its’ second meeting, held preliminary discussion of the need for, and possible alternative
approaches to aggregating local economic values at national level, and national values at the regional
level. It was agreed that an initial step would be the preparation of a database of existing economic
values from the region, although the manner in which this was to be assembled was not finalised.
Members were therefore invited to consider the activities and manner in which such data might be
aggregated.
6.2.3 The Project Director pointed out that values used in the previous cost-benefit analysis had
been taken from studies conducted in other regions. The meeting agreed that a regional database
should be developed to compile values collected in the existing studies undertaken in this region
using local net price.
6.2.4 Members' attention was drawn to a proposed format for the compilation of data and values
taken from valuation studies conducted within the region. The meeting discussed, revised and agreed
on the proposed format for the compilation of data and information on values obtained in various
studies and this format, is included as Table 1 of Annex 6 of this meeting report, which would provide
UNEP/GEF/SCS/RTF-E.3/3
Page 5
guidance to members in compiling data and information for determining regional values of coastal
habitats. The meeting took note that the format provided in Table 1 was specifically designed to
compile information on mangrove valuation. The Task Force should take this format, and based on
the frameworks for valuation of the other habitats, including coral reefs, seagrass and wetlands, adapt
the format for the compilation of data and information on values of the resources and uses of these
other coastal habitats.
6.2.5 The Project Director noted that the Project Steering Committee, during its fourth meeting in
Guilin, China, December 2004 had agreed to allocate financial resources to the execution of the work
of the two Regional Task Forces and it was proposed that Memoranda of Understanding be signed
between UNEP and the members of the RTF-E on behalf of their Institutions that would permit
members to hire research assistants to compile the required national data under their supervision.
Document UNEP/GEF/SCS/RTF-E.3/6 contained a proposed text of a framework Memorandum of
Understanding, which was adopted by the meeting without changes, and is contained in Annex 6 to
this meeting report.
6.2.6 The Project Director informed the meeting that each member should propose a budget based
on the activities to be undertaken during year 2005-2006. The maximum funding for the proposed
activities was set at US$13,000. Members were encouraged to submit their proposed budgets as
promptly as possible, preferably during the meeting of the RTF-E so that a Memorandum of
Understanding could be signed to ensure the transfer of funding from UNEP to the institute or agency
of the Task Force members as promptly as possible.
6.2.7 The Project Director further noted that another addition to the MoU would be the agreed work
plan and timetable that would be finalised under the next agenda item.
7. WORK PLAN FOR THE REGIONAL TASK FORCE ON ECONOMIC VALUATION
7.1 The Chairperson invited the Associate Expert to introduce document UNEP/GEF/SCS/RTF-
E.3/6, Draft Work Plan for the Regional Task Force on Economic Valuation. Members considered,
amended and agreed on the work plan and timetable for the Regional Task Force, which is attached
as Annex 7 to this meeting report.
8. ANY OTHER BUSINESS
8.1 The Chairperson invited members to consider and discuss any additional items of business.
8.2 Dr. Suparmoko inquired whether budgets could be used to support meetings or travel by the
members of the RTF-E, for collecting the data and information needed to compile the regional
database of economic value. The Project Director drew members’ attention to the budget table of the
Project, included in document UNEP/GEF/SCS/PSC.3/3, and invited members to review the project
budget in order to understand what the available funds could be used for.
8.3 In response to an inquiry raised by members regarding the purchase of equipment with UNEP
funds, Dr. Pernetta indicated that the title of any equipment purchased with UNEP funding for the
execution of activities in the Memorandum of Understanding rests with UNEP. In the case of the
project, the Project Director noted that title to such equipment could be transferred to the Institutions
upon completion of the project.
9. DATES AND PLACE OF THE NEXT MEETING OF THE TASK FORCE
9.1 The Chairperson invited members to consider and agree upon the dates and location of the
next meeting of the Regional Task Force on Economic Valuation. In doing so, members should take
into consideration the decision made by the Project Steering Committee that all future regional
meetings take place in potential demonstration sites. The Task Force considered appropriate dates
for the next meeting, and decided that the dates for the fourth meeting of the Task Force will be 27th –
30th March 2006.
9.2 With respect to the venue of next meeting, the Chairperson recalled that during the second
meeting of the RTF-E, Seam Reap, Cambodia, Dr. Ninh had issued an invitation to hold the third
UNEP/GEF/SCS/RTF-E.3/3
Page 6
meeting of the RTF-E in Viet Nam. The Project Director indicated that he would liase with Dr. Ninh to
find out whether the invitation still stood for the next meeting of the RTF-E. The Task Force
considered some appropriate places, including Phu Quoc Island and Balat Estuary in Viet Nam as a
possible venue for the next meeting, and considered that Phu Quoc Island would be the most
suitable.
9.3 In the event that it would not be possible to hold the meeting in Viet Nam, Dr. Khalid indicated
his willingness to host the meeting in Malaysia.
10. ADOPTION OF THE REPORT OF THE MEETING
10.1 The Rapporteur, Mr. Ramony, presented the draft report of the meeting, which was
considered, amended, and adopted as it appears in this document.
11. CLOSURE OF THE MEETING
11.1 The Chairperson invited members to make any final comments and/or remarks prior to calling
for a formal motion to close the meeting. Members expressed their appreciation to the hard work of
the Chairperson and the PCU members, and the hospitability of Fangchenggang local government
and people.
The Chairperson officially closed the meeting at 17:00 on the 21st of April 2005.
11.2
UNEP/GEF/SCS/RTF-E.3/3
Annex 1
Page 1
ANNEX 1
List of Participants
Government Designated Members
Cambodia People’s Republic of China
Mr. Sy Ramony, Chief Dr. Li Kaiming, Vice President
National Park and Wildlife Sanctuary Office South China Institute of Environmental
Department of Nature Conservation and Protection, Sciences, SEPA
Ministry of Environment 7 West Yuancun Road
#48 Samdech Preah Sihanouk Guangzhou 510655
Sangkat Tonle Bassac, Khan Chamkarmon Guangdong Province, China
Phnom Penh, Cambodia
Tel: (86 20) 8554 1496
Mobile: (855) 12 832 933 Fax: (86 20) 8552 4450
Tel/Fax: (855 23) 211 381 E-mail: kmli@scies.com.cn;
Email: Ramony@online.com.kh k_m_li@yahoo.com
Indonesia Malaysia
Dr. Matius Suparmoko Dr. Khalid Abdul Rahim, Professor
Faculty of Economics Faculty of Economics and Management
Jenderal Soedirman University University Putra Malaysia
Kampus Grendeng, PO. Box 109 43400 UPM, Serdang, Selangor, Malaysia
Purwokerto 53122
Central Java, Indonesia Tel: (603) 8946 7653
Fax: (603) 8948 6188
Tel: (62 281) 37970 (O); (62 21) 733 4623 E-mail: khalid@pop.jaring.my;
Fax: (62 281) 40268; (62 21) 733 4623 khalid@econ.upm.edu.my
E-mail: rmoko@cbn.net.id;
suparmoko@yahoo.com
Philippines Thailand
Dr. Noel Eusebio Oyardo Padilla Dr. Nuchanata Mungkung, Lecturer
Development Management Officer V Department of Agricultural and Resource
Policy Studies Division Economics, Faculty of Economics
Planning and Policy Studies Service Kasetsart University
Department of Environment and Natural 50 Phahonyothin Rd., Chatujak
Resources, DENR Compound Bangkok 10900, Thailand
Visayas Ave., Diliman,
Quezon City, Philippines Tel: (662) 942 8649-51 ext. 131;
Mobile: 06 904 2780
Tel: (632) 925 1183; 929 6626-35 local 2046
Fax: (662) 942 8047; 942 8525
Fax: (632) 925 1183
E-mail: feconnm@ku.ac.th
E-mail: nopadilla@yahoo.com
Viet Nam
Dr. Nguyen The Chinh, Ass. Prof. Dr
Senior Economist
Dean of Faculty of Environmental Economics
Hanoi University of Economics
Duong Giai Phong, Hanoi, Viet Nam
Tel: (844) 854 0376; (84) 09 1330 7559
Fax: (844) 869 8231
Email: thechinh@fpt.vn
UNEP/GEF/SCS/RTF-E.3/3
Annex 1
Page 2
Expert Member
Dr. Tridoyo Kusumastanto
Professor of Marine Economics Policy
CCMRS - Bogor Agricultural University
Jl. Sedap Malam II/20
Taman Yasmin, Bogor 16310, Indonesia
Tel: (62 251) 624 815; (62) 81 611 33170
Fax: (62 251) 621 086
E-mail: tridoyo@indo.net.id
Project Co-ordinating Unit Member
Dr. John Pernetta, Project Director
UNEP/GEF Project Co-ordinating Unit
United Nations Environment Programme
2nd Floor, Block B, United Nations Building
Rajdamnern Nok Avenue
Bangkok 10200, Thailand
Tel: (66 2) 288 1886
Fax: (66 2) 288 1094
E-mail: pernetta@un.org
UNEP/GEF Project Co-ordinating Unit
Ms. Sulan Chen, Associate Expert Ms. Sriskun Watanasab, Secretary
UNEP/GEF Project Co-ordinating Unit UNEP/GEF Project Co-ordinating Unit
United Nations Environment Programme United Nations Environment Programme
2nd Floor, Block B, United Nations Building 2nd Floor, Block B, United Nations Building
Rajdamnern Nok Avenue Rajdamnern Nok Avenue
Bangkok 10200, Thailand Bangkok 10200, Thailand
Tel: (66 2) 288 2279 Tel: (66 2) 288 2608
Fax: (66 2) 288 1094 Fax: (66 2) 288 1094
E-mail: chens@un.org E-mail: watanasab@un.org
UNEP/GEF/SCS/RTF-E.3/3
Annex 2
Page 1
ANNEX 2
List of Documents
Discussion documents
UNEP/GEF/SCS/RTF-E.3/1 Agenda
UNEP/GEF/SCS/RTF-E.3/2 Annotated Agenda
UNEP/GEF/SCS/RTF-E.3/3 Report of the Meeting
UNEP/GEF/SCS/RTF-E.3/4 Economic Valuation of the Impacts of Land-based Pollution in
the South China Sea
UNEP/GEF/SCS/RTF-E.3/5 Overview of Demonstration Site Activities, Which Involve the
Economic Valuation of Coastal Environmental Goods and
Services and the Evaluation of Alternative Livelihoods
UNEP/GEF/SCS/RTF-E.3/6 Alternative Approaches to Developing a Regional Database
of Empirical Economic Values for Coastal Goods and
Services
UNEP/GEF/SCS/RTF-E.3/7 Draft Work Plan for the Regional Task Force on Economic
Valuation for 2005-2006
UNEP/GEF/SCS/RTF-E.3/8 Manual for the Valuation of Ecosystems that are of Interest to
the South China Sea Project: Proposed Outline
Information documents
UNEP/GEF/SCS/RTF-E.3/Inf.1 List of Participants
UNEP/GEF/SCS/RTF-E.3/Inf.2 List of Documents
UNEP/GEF/SCS/RTF-E.3/Inf.3 Draft Programme
UNEP/SCS/SAP Ver. 3 Strategic Action Programme for the South China Sea (Draft
Version 3, 24 February 1999) East Asian Seas Regional
Coordinating Unit. 69pp.
UNEP/GEF/SCS/PSC.4/3 Fourth Meeting of the Project Steering Committee for the
UNEP/GEF Project “Reversing Environmental Degradation
Trends in the South China Sea and Gulf of Thailand”. Report
of the Meeting. Guilin, China, 13th – 15th December 2004
UNEP/GEF/SCS/PSC.4/3.
UNEP/GEF/SCS/RSTC.5/3 Fifth Meeting of the Regional Scientific and Technical
Committee for the UNEP/GEF Project “Reversing
Environmental Degradation Trends in the South China Sea
and Gulf of Thailand”. Report of the Meeting. Fangchenggang,
China, 9th – 11th December 2004 UNEP/GEF/SCS/RSTC.5/3.
The following documents are provided in published form.
UNEP/GEF/SCS/RTF-E.2/3 Second Meeting of the Regional Task Force on Economic
Valuation for the UNEP/GEF Project “Reversing Environmental
Degradation Trends in the South China Sea and Gulf of
Thailand”. Report of the Meeting. Siem Reap, Cambodia, 31st
– 2nd June 2004 UNEP/GEF/SCS/RTF-E.2/3.
UNEP/GEF/SCS/PSC.3/3 Third Meeting of the Project Steering Committee for the
UNEP/GEF Project “Reversing Environmental Degradation
Trends in the South China Sea and Gulf of Thailand”. Report
of the Meeting. Manila, Philippines, 25th – 27th February 2004
UNEP/GEF/SCS/PSC.3/3.
UNEP/GEF/SCS/RSTC.4/3 Fourth Meeting of the Regional Scientific and Technical
Committee for the UNEP/GEF Project “Reversing
Environmental Degradation Trends in the South China Sea
and Gulf of Thailand”. Report of the Meeting. Pattaya,
Thailand, 15th – 17th February 2004 UNEP/GEF/SCS/
RSTC.4/3.
UNEP/GEF/SCS/RTF-E.3/3
Annex 3
Page 1
ANNEX 3
Agenda
1. OPENING OF THE MEETING
1.1 Welcome Address
1.2 Introduction of Participants
2. ORGANISATION OF THE MEETING
2.1 Designation of Officers
2.2 Documentation Available to the Meeting
2.3 Programme of Work
3. ADOPTION OF THE MEETING AGENDA
4. THE REPORT ON THE ECONOMIC VALUATION OF THE IMPACTS OF LAND-BASED
POLLUTION
5. DEVELOPMENT OF A MANUAL TO SUPPORT THE FRAMEWORKS AND PROCEDURES
OF ECONOMIC VALUATION
6. DETERMINING ECONOMIC VALUES FOR COASTAL HABITATS AND RESOURCES FOR
USE IN THE COST BENEFIT ANALYSIS OF ACTION COMPARED WITH NON-ACTION
CONTAINED IN THE STRATEGIC ACTION PROGRAMME
6.1 Review of the Elements of Economic Valuation Contained in the Demonstration
Site Activities
6.2 Discussion of the Procedures and Actions Required to Assemble, Empirical Data
on Resource Valuations at National and Regional Levels.
7. WORK PLAN FOR THE REGIONAL TASK FORCE ON ECONOMIC VALUATION
8. ANY OTHER BUSINESS
9. DATES AND PLACE OF THE NEXT MEETING OF THE TASK FORCE
10. ADOPTION OF THE REPORT OF THE MEETING
11. CLOSURE OF THE MEETING
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 1
ANNEX 4
Framework and Procedures to Value Impacts of Land-based Pollution on Coastal
Habitats
Background
During the first meeting of the Regional Task Force on Economic Valuation (RTF-E), Phuket,
Thailand, 11th -13th September 2003, the Task Force agreed on a framework to value coastal habitats
in the South China Sea. The Regional Working Group on Land-based Pollution subsequently sought
assistance from the Task Force in formulating a framework for the valuation of the impacts of land-
based pollution. During the second meeting of the Regional Task Force on Economic Valuation, held
in Siem Reap, Cambodia, 31st May – 2nd June 2004, it was agreed that the Project Co-ordinating Unit
would commission on behalf of the Task Force a literature review of existing studies of the economic
valuation of the impacts of lad-based pollution.
In July 2004, the Project Co-ordinating Unit engaged a consultant and two drafts of the report were
circulated to members of the Task Force for their comments before the finalisation of the report. The
final report was received and circulated to members in December 2004, and included in the
documents available to the meeting.
Framework and Procedures to Value Impacts of Land-based Pollution on Coastal Habitats
During the Third Meeting of the RTF-E in Fangchenggang, China, 18th – 21st April 2005, the Task
Force reviewed the consultant report on existing literature, and considered alternative approaches to
formulate a framework and procedures to value the impacts of land-based pollution on coastal
habitats.
The meeting agreed that the types of pollutants, to some extent, determined the types of impacts on
the coastal habitats, hence it was important to identify types of pollutants and their impacts on coastal
habitats. Table 1 provides a checklist of possible impacts of various pollutants on coastal habitats
relevant to the UNEP/GEF South China Sea Project, mangroves, coral reefs, seagrass and wetlands.
The Task Force recognised that the impacts of land-based pollution on coastal habitats were complex
and intertwined, hence the Task Force decided to narrow down the scope of impacts for economic
valuation, and agreed to include three types of impacts, i.e. productivity, amenity and human welfare.
Tables 2.1 – 2.4 provide a framework for valuing the impacts of land-based pollution on the four
coastal habitats, in terms of productivity, amenity and human welfare.
To assist the technical people working in the demonstration sites to value the impacts of land-based
pollution on coastal habitats, the Task Force decided to outline specific procedures to provide
guidance to technical staff in following the frameworks. The Chairperson took the lead in drafting the
procedures overnight, the meeting reviewed, considered and adopted the procedures, included in
Tables 3.1 – 3.4 to value impacts on mangroves, coral reefs, seagrass and wetlands respectively.
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 2
Table 1 Checklist of the Impacts of Land-based Pollution on Coastal Habitats.
Types of
Impacts Mangroves Coral Reefs Seagrass Wetlands
Pollutants
Heavy metals Water quality v v v v
Reduced reproductive v v v v
capacity in molluscs
Contamination of human v v v v
food sources
Bio-accumulation v v v v
Organic matter Water quality - v v v
Nutrients Eutrophication - v v v
Algal blooms - v v v
Red tides - v v v
Anoxia – fish kills - v v v
Fish shellfish poisoning - v v v
Oil and Contamination/tainting of v v v v
hydrocarbons aquaculture and wild fish
Extreme spills smothering v v v v
of organisms
Sediments Smothering of coral reefs - v v -
and seagrass
Reduced light penetration - v v v
from increased turbidity
leading to reduced
primary production
POPs Water quality v v v v
Contamination of seafood v v v v
Reduced fish
reproductive capacity - v v v
Solid waste Smothering of organisms - v v v
(plastics) Loss of amenity value - v v v
Thermal pollution Reduced productivity v v v v
Loss of species v v v v
Bacterial Loss of amenity value v v v v
contamination Contamination of human v v v v
food sources
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Table 2.1 Framework for Valuing Impacts of Land-based Pollution on Mangroves.
Mangroves
Types of Pollutants Impacts Human
Productivity Amenity
welfare
Heavy metals Water quality v v v
Reduced reproductive capacity in v - -
molluscs - - v
Contamination of human food v - v
sources
Bio-accumulation
Organic matter Water quality - - -
Nutrients Eutrophication - - -
Algal blooms - - -
Red tides - - -
Anoxia – fish kills - - -
Fish shellfish poisoning - - -
Oil and Contamination/tainting of - - v
hydrocarbons aquaculture and wild fish
Extreme spills smothering of v v -
organisms
Sediments Smothering of coral reefs and - - -
seagrass - - -
Reduced light penetration from
increased turbidity leading to reduced
primary production
POPs Water quality - - v
Contamination of seafood - - v
Reduced fish reproductive capacity - - -
Solid waste Smothering of organisms - - -
(plastics) Loss of amenity value - v -
Thermal pollution Reduced productivity v - -
Loss of species v - -
Bacterial Loss of amenity value - v v
contamination Contamination of human food - - v
sources
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Table 2.2 Framework for Valuing Impacts of Land-based Pollution on Coral Reefs.
Coral Reefs
Types of Pollutants Impacts Human
Productivity Amenity
welfare
Heavy metals Water quality v v -
Reduced reproductive capacity in molluscs v - -
Contamination of human food sources - - v
Bio-accumulation v - -
Organic matter Water quality v v -
Nutrients Eutrophication v - -
Algal blooms v - -
Red tides v - -
Anoxia – fish kills v - -
Fish shellfish poisoning - - v
Oil and hydrocarbons Contamination/tainting of aquaculture and - - v
wild fish
Extreme spills smothering of organisms v v -
Sediments Smothering of coral reefs and seagrass v v -
Reduced light penetration from increased v v -
turbidity leading to reduced primary
production
POPs Water quality v - -
Contamination of seafood - - v
Reduced fish reproductive capacity v - -
Solid waste (plastics) Smothering of organisms v v -
Thermal pollution Reduced productivity v - -
Loss of species v - -
Bacterial contamination Contamination of human food sources - - v
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Table 2.3 Framework for Valuing Impacts of Land-based Pollution on Seagrass.
Seagrass
Types of Pollutants Impacts Human
Productivity Amenity
welfare
Heavy metals Water quality v v -
Reduced reproductive capacity in v - -
molluscs
Contamination of human food - - v
sources
Bio-accumulation v - -
Organic matter Water quality v v -
Nutrients Eutrophication v - -
Algal blooms v - -
Red tides v - -
Anoxia – fish kills v - -
Fish shellfish poisoning - - v
Oil and hydrocarbons Contamination/tainting of - - v
aquaculture and wild fish
Extreme spills smothering of v v -
organisms
Sediments Smothering of coral reefs and v v -
seagrass
Reduced light penetration from v v -
increased turbidity leading to
reduced primary production
POPs Water quality v v -
Contamination of seafood - - v
Reduced fish reproductive capacity v - -
Solid waste (plastics) Smothering of organisms v v -
Thermal pollution Reduced productivity v - -
Loss of species v - -
Bacterial contamination Contamination of human food - v v
sources
UNEP/GEF/SCS/RTF-E.3/3
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Page 6
Table 2.4 Framework for Valuing Impacts of Land-based Pollution on Wetlands.
Wetlands
Types of Pollutants Impacts Human
Productivity Amenity
welfare
Heavy metals Water quality v v v
Reduced reproductive capacity in v - -
molluscs
Contamination of human food - - v
sources
Bio-accumulation v - -
Organic matter Water quality v v v
Nutrients Eutrophication v v -
Algal blooms v v -
Red tides v v -
Anoxia – fish kills v - -
Fish shellfish poisoning - - v
Oil and hydrocarbons Contamination/tainting of - - v
aquaculture and wild fish
Extreme spills smothering of v v -
organisms
Sediments Smothering of coral reefs and v v -
seagrass
Reduced light penetration from v - -
increased turbidity leading to
reduced primary production
POPs Water quality v v v
Contamination of seafood - - v
Reduced fish reproductive capacity v - -
Solid waste (plastics) Smothering of organisms v v v
Thermal pollution Reduced productivity v - -
Loss of species v v -
Bacterial contamination Contamination of human food - - v
sources
UNEP/GEF/SCS/RTF-E.3/3
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Page 7
Table 3.1 Procedures to Undertake Valuation of Impacts of Land-based Pollution on Mangroves.
Types of Indicator of
Valuation Technique Data Needed Notes and Assumptions
Impacts
Pollutants Measurement
Productivity
Heavy metals Water quality On site sale value for Total annual value of For direct valuation: Values prior to the impact to be determined.
marketed goods using net production for each On site market price of each product (before and after)
Reduced price product (US$) Quantities of products harvested, sold, given away Market price can be adapted to account for
reproductive and used (before and after) seasonal and other price changes.
capacity in For directly used goods, Total areas under consideration (before and after)
molluscs use market values for Concentration level of heavy metals Market price represents true market value
equivalent goods. If not within a competitive market at equilibrium (i.e.
available use indirect For indirect valuation: prices are not distorted).
opportunity cost approach Price per unit for equivalent goods
(using wages forgone for Cost of material inputs All externalities are identified and included in
harvesting goods) Time spent harvesting/gathering/ culturing product the price.
Equivalent local wage for labour
On site market price of each product (before and Exchange rates and the years of data collected
after degradation of water quality)
Oil and Extreme spills On site sale value for Total annual value of For direct valuation: Values prior to the impact to be determined.
hydrocarbons smothering of marketed goods using net production for each On site market price of each product (before and
organisms price product (US$) after release of oil and hydrocarbon) Market price can be adapted to account for
Quantities of products harvested, sold, given away seasonal and other price changes.
For directly used goods, (before and after)
use market values for Market price represents true market value
equivalent goods. If not Total areas under consideration (before and after) within a competitive market at equilibrium (i.e.
available use indirect prices are not distorted).
opportunity cost approach
All externalities are identified and included in
(using wages forgone for
the price.
harvesting goods)
Exchange rates and the years of data collected
Thermal Reduced On site sale value for Total annual value of For direct valuation: Values prior to the impact to be determined.
pollution productivity marketed goods using net production for each On site market price of each product (before and
price product (US$) after thermal pollution) Market price can be adapted to account for
Quantities of products harvested, sold, given away seasonal and other price changes.
For directly used goods, (before and after)
use market values for Total areas under consideration (before and after) Market price represents true market value
equivalent goods. If not within a competitive market at equilibrium (i.e.
For indirect valuation: prices are not distorted).
available use indirect
opportunity cost approach Price per unit for equivalent goods
(using wages forgone for Cost of material inputs All externalities are identified and included in
harvesting goods) Time spent harvesting/gathering/ culturing product the price.
Equivalent local wage for labour Exchange rates and the years of data collected
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 8
Table 3.1 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Mangroves.
Types of Indicator of
Valuation Technique Data Needed Notes and Assumptions
Impacts
Pollutants Measurement
Loss of On site price for marketed Total annual value of For direct valuation: Values prior to the impact to be determined.
species products production for each On site market price of each product (before and
product (US$) after thermal pollution) Market price can be adapted to account for
Quantities of products harvested, sold, given away seasonal and other price changes.
(before and after)
Total areas under consideration (before and after) Market price represents true market value
within a competitive market at equilibrium (i.e.
For indirect valuation: prices are not distorted).
Price per unit for equivalent goods
Cost of material inputs All externalities are identified and included in
Time spent harvesting/gathering/ culturing product the price.
Equivalent local wage for labour
Exchange rates and the years of data collected
For substitute price approach:
Substitute price of Substitute material acceptable
Price of equivalent goods
products* Market values not distorted
Quantities of equivalent products harvested, sold,
given away (before and after)
For all approaches:
Species identified before and after
Amenity*
Heavy metals Water quality Travel cost: Amount of Annual recreational Data from visitors survey Access to the site is available to all
money and time spent on value of the site (US$) Socio-economic variables Visits have a single purpose
the site Geographic origin (before and after water Demand function relationship can be specified
contamination) No factors aside from travel cost influence site
Time spent travelling (before and after water use
contamination) Market prices used in valuation are not
Expenditures incurred in visiting the site (before and distorted
after water contamination)
Frequency and duration of visits (before and after
water contamination)
Number of visitor-days for the site (before and after
water contamination)
Subjects understand choices offered and give
Contingent valuation: Recreational value of Answers to valuation questions from survey/bidding meaningful and honest answers
willingness to pay for good the site as valued by game technique/ dichotomous choice Subject have sufficient information to give
water quality willingness to pay by informed choices
users (US$) Sample is representative and captures the full
Total cost value spectrum of users who value the site
No free riders
No strategic bias/influences
UNEP/GEF/SCS/RTF-E.3/3
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Page 9
Table 3.1 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Mangroves.
Types of Indicator of
Valuation Technique Data Needed Notes and Assumptions
Impacts
Pollutants Measurement
Replacement cost: cost to Total cost value Type of pollutants Technologies to clean up the pollutants are
clean up heavy metals Sources of pollutants available and the cost of technologies is
affordable
Oil and Extreme spills Travel cost: Amount of Annual recreational Data from visitors survey Access to the site is available to all
hydrocarbons smothering of money and time spent on value of the site (US$) Socio-economic variables Visits have a single purpose
organisms the site Geographic origin (before and after oil/ hydrocarbon Demand function relationship can be specified
spill) No factors aside from travel cost influence site
Time spent travelling (before and after oil/ use
hydrocarbon spill) Market prices used in valuation are not
Expenditures incurred in visiting the site (before and distorted
after oil/ hydrocarbon spill)
Frequency and duration of visits (before and after
oil/ hydrocarbon spill)
Number of visitor-days for the site (before and after
water contamination)
Contingent valuation: Recreational value of Answers to valuation questions from survey/bidding Subjects understand choices offered and give
willingness to pay for good the site as valued by game technique/ dichotomous choice meaningful and honest answers
water quality willingness to pay by Subject have sufficient information to give
users (US$) informed choices
Sample is representative and captures the full
spectrum of users who value the site
No free riders
No strategic bias/influences
Replacement cost: cost to Total cost value Type of pollutants Technologies to clean up the pollutants are
clean up oil and Sources of pollutants available and the cost of technologies is
hydrocarbons Concentration level of oil and hydrocarbons affordable
Solid waste Smothering Travel cost: Amount of Annual recreational Data from visitors survey Access to the site is available to all
(plastics) of organisms money and time spent on value of the site (US$) Socio-economic variables Visits have a single purpose
the site Geographic origin (before and after site Demand function relationship can be specified
contamination by solid waste) No factors aside from travel cost influence site
Time spent travelling (before and after site use
contamination by solid waste) Market prices used in valuation are not
Expenditures incurred in visiting the site (before and distorted
after site contamination by solid waste)
Frequency and duration of visits (before and after
site contamination by solid waste)
Number of visitor-days for the site (before and after
site contamination by solid waste)
UNEP/GEF/SCS/RTF-E.3/3
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Page 10
Table 3.1 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Mangroves.
Types of Indicator of
Valuation Technique Data Needed Notes and Assumptions
Impacts
Pollutants Measurement
Contingent valuation: Recreational value of Answers to valuation questions from survey/bidding Subjects understand choices offered and give
willingness to pay for good the site as valued by game technique/ dichotomous choice meaningful and honest answers
water quality willingness to pay by Subject have sufficient information to give
users (US$) informed choices
Sample is representative and captures the full
spectrum of users who value the site
No free riders
No strategic bias/influences
Replacement cost: cost to Total cost value (US$) Sources of solid waste
clean up solid waste Volume of solid waste Technologies to clean up the pollutants are
available and the cost of technologies is
affordable
Bacterial Contamination Travel cost: Amount of Annual recreational Data from visitors survey Access to the site is available to all
contamination of recreational money and time spent on value of the site (US$) Socio-economic variables Visits have a single purpose
areas the site Geographic origin (before and after site Demand function relationship can be specified
contamination by bacteria) No factors aside from travel cost influence site
Time spent travelling (before and after site use
contamination by bacteria) Market prices used in valuation are not
Expenditures incurred in visiting the site (before and distorted
after site contamination by bacteria)
Frequency and duration of visits (before and after
site contamination by bacteria)
Number of visitor-days for the site (before and after
site contamination by bacteria)
Contingent valuation: Recreational value of Answers to valuation questions from survey/bidding Subjects understand choices offered and give
willingness to pay for good the site as valued by game technique/ dichotomous choice meaningful and honest answers
water quality willingness to pay by Subject have sufficient information to give
users (US$) informed choices
Sample is representative and captures the full
spectrum of users who value the site
No free riders
No strategic bias/influences
Prevention cost Total cost to prevent Cost of constructing facilities for individual economic
bacterial contamination activities
Cost of volumes of projected waste
Size of impacted areas
Sources of contaminants
UNEP/GEF/SCS/RTF-E.3/3
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Page 11
Table 3.1 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Mangroves.
Types of Indicator of
Valuation Technique Data Needed Notes and Assumptions
Impacts
Pollutants Measurement
Human Welfare*
Heavy metals Water quality Cost of illness Total l value of lost human Salaries/wages for labour Health and productivity can be restored to
labour (US$), and total Duration of illness and recovery (number of days lost) previous levels
cost of hospitalisation and Hospitalisation and treatment cost
treatment
Contaminatio Substitute price approach: Total annual cost of Quantity of food consumed Equivalent and substitute food available
n of human cost of sourcing food sourcing food from Price per unit quantity of food sourced Food consumed reaches minimum standards
food sources elsewhere/cost of alternative elsewhere/equivalent food set by governments.
equivalent food sites/equivalent food Duration and cost of finding new sources of food.
Transport cost of new sources of food.
Bio- Cost of illness Total value of lost human Salaries/wages for labour Health and productivity can be restored to
accumulation labour (US$), and total Duration of illness and recovery (number of days previous levels
cost of hospitalisation and lost)
treatment Hospitalisation and treatment cost
Oil and Contamination Substitute price approach: Total annual cost of Quantity of food consumed Equivalent and substitute food available
hydrocarbons /tainting of cost of sourcing food sourcing food from Price per unit quantity of food sourced
mariculture elsewhere/cost of alternative elsewhere/equivalent food
and wild fish equivalent food sites/equivalent food Duration and cost of finding new sources of food.
Transport cost of new sources of food
POPs Water quality Cost of illness Total l value of lost human Salaries/wages for labour Health and productivity can be restored to
labour (US$), and total Duration of illness and recovery (number of days previous levels
cost of hospitalisation and lost)
treatment Hospitalisation and treatment cost
Contamination Substitute price approach: Total annual cost of Quantity of food consumed Equivalent and substitute food available
of seafood cost of sourcing food sourcing food from Price per unit quantity of food sourced Food consumed reaches minimum standards
elsewhere/cost of alternative elsewhere/equivalent food set by governments.
equivalent food sites/equivalent food Duration and cost of finding new sources of food.
Transport cost of new sources of food.
Bacterial Contamination Contingent valuation: Recreational value of the Answers to valuation questions from survey/bidding Subjects understand choices offered and give
Contamination of recreational willingness to pay for site as valued by game technique/ dichotomous choice meaningful and honest answers
areas good water quality willingness to pay by users Subject have sufficient information to give
(US$) informed choices
Sample is representative and captures the full
spectrum of users who value the site
No free riders
No strategic bias/influences
UNEP/GEF/SCS/RTF-E.3/3
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Page 12
Table 3.1 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Mangroves.
Types of Indicator of
Valuation Technique Data Needed Notes and Assumptions
Impacts
Pollutants Measurement
Cost of illness Total value of lost human Salaries/wages for labour Health and productivity can be restored to
labour (US$), and total Duration of illness and recovery (number of days lost) previous levels
cost of hospitalisation Hospitalisation and treatment cost
and treatment
Contamination Substitute price approach: Total annual cost of Quantity of food consumed Equivalent and substitute food available
of human food cost of sourcing food sourcing food from Price per unit quantity of food sourced Food consumed reaches minimum standards
sources elsewhere/cost of alternative elsewhere/equivalent food set by governments.
equivalent food sites/equivalent food Duration and cost of finding new sources of food.
Transport cost of new sources of food.
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Table 3.2 Procedures to Undertake Valuation of Impacts of Land-based Pollution on Coral Reefs.
Types of Indicator of
Valuation Technique
Impacts Data Needed Notes and Assumptions
Pollutants Measurement
Productivity
Heavy metals Water quality On site sale value for Total annual value For direct valuation: Values prior to the impact to be determined.
marketed goods using net of production for On site market price of each product (before Market price can be adapted to account for
Reduced price each product (US$) and after degradation of water quality) seasonal and other price changes.
reproductive Quantities of products harvested, sold, given Market price represents true market value within a
capacity in fish For directly used goods, away and used (before and after degradation competitive market at equilibrium (i.e. prices are not
species (e.g. use market values for of water quality) distorted).
molluscs) equivalent goods. If not Total areas under consideration (before and All externalities are identified and included in the
available use indirect after) price.
Bio- opportunity cost approach Concentration level of heavy metals Exchange rates and the years of data collected
accumulation (using wages forgone for Heavy metals affect the functions of distance
harvesting goods) For indirect valuation: current and other physical variables
Price per unit for equivalent goods
Cost of material inputs
Time spent harvesting/gathering/ culturing
product
Equivalent local wage for labour
Organic matter Water quality On site sale value for Total annual value For direct valuation: Values prior to the impact to be determined.
marketed goods using net of production for On site market price of each product (before Market price can be adapted to account for
price each product (US$) and after degradation of water quality) seasonal and other price changes.
Quantities of products harvested, sold, given Market price represents true market value within a
For directly used goods, away and used (before and after degradation competitive market at equilibrium (i.e. prices are not
use market values for of water quality) distorted).
equivalent goods. If not Total areas under consideration (before and All externalities are identified and included in the
available use indirect after) price.
opportunity cost approach Concentration level of organic matters Exchange rates and the years of data collected
(using wages forgone for
harvesting goods) For indirect valuation:
Price per unit for equivalent goods
Cost of material inputs
Time spent harvesting/gathering/ culturing
product
Equivalent local wage for labour
Nutrients Eutrophication On site sale value for Total annual value For direct valuation: Values prior to the impact to be determined.
marketed goods using net of production for On site market price of each product (before Market price can be adapted to account for
Algal blooms price each product (US$) and after eutrophication) seasonal and other price changes.
Quantities of products harvested, sold, given Market price represents true market value within a
Red tides For directly used goods, away and used (before and after competitive market at equilibrium (i.e. prices are not
use market values for eutrophication) distorted).
Anoxia – fish equivalent goods. If not Total areas under consideration (before and All externalities are identified and included in the
kills available use indirect after) price.
opportunity cost approach Concentration level of nutrients Exchange rates and the years of data collected
(using wages forgone for
harvesting goods) For indirect valuation:
Price per unit for equivalent goods
Cost of material inputs
Time spent harvesting/gathering/ culturing
product
Equivalent local wage for labour
UNEP/GEF/SCS/RTF-E.3/3
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Table 3.2 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Coral Reefs.
Types of Indicator of
Valuation Technique
Impacts Data Needed Notes and Assumptions
Pollutants Measurement
Oil and Extreme spills On site sale value for Total annual value For direct valuation: Values prior to the impact to be determined.
hydrocarbons smothering of marketed goods using net of production for On site market price of each product (before Market price can be adapted to account for
organisms price each product (US$) and after spills/ release of oil and seasonal and other price changes.
hydrocarbon) Market price represents true market value within a
For directly used goods, Quantities of products harvested, sold, given competitive market at equilibrium (i.e. prices are not
use market values for away (before and after spills/release of distorted).
equivalent goods. If not hydrocarbons) All externalities are identified and included in the
available use indirect Total areas under consideration (before and price.
opportunity cost approach after) Exchange rates and the years of data collected
(using wages forgone for Concentration level of oil and hydrocarbons in
harvesting goods) the water
For indirect valuation:
Price per unit for equivalent goods
Cost of material inputs
Time spent harvesting/gathering/ culturing
product
Equivalent local wage for labour
Sediments Smothering of On site sale value for Total annual value For direct valuation: Values prior to the impact to be determined.
coral reefs marketed goods using net of production for On site market price of each product (before Market price can be adapted to account for
price each product (US$) and after sedimentation) seasonal and other price changes.
Quantities of products harvested, sold, given Market price represents true market value within a
For directly used goods, away and used (before and after competitive market at equilibrium (i.e. prices are not
use market values for sedimentation) distorted).
equivalent goods. If not Total areas under consideration (before and All externalities are identified and included in the
available use indirect after) price.
opportunity cost approach Level of sedimentation and sedimentation rate Exchange rates and the years of data collected
(using wages forgone for
harvesting goods) For indirect valuation:
Price per unit for equivalent goods
Cost of material inputs
Time spent harvesting/gathering/ culturing
product
Equivalent local wage for labour
Reduced light On site sale value for Total annual value For direct valuation: Values prior to the impact to be determined.
penetration from marketed goods using net of production for On site market price of each product (before Market price can be adapted to account for
increased price each product (US$) and after increased turbidity) seasonal and other price changes.
turbidity leading Quantities of products harvested, sold, given Market price represents true market value within a
to reduced For directly used goods, away and used (before and after increased competitive market at equilibrium (i.e. prices are not
primary use market values for turbidity) distorted).
production equivalent goods. If not Total areas under consideration (before and All externalities are identified and included in the
available use indirect after) price.
opportunity cost approach Volume of suspended sediment in the water Exchange rates and the years of data collected
(using wages forgone for
For indirect valuation:
harvesting goods)
Price per unit for equivalent goods
Cost of material inputs
Time spent harvesting/gathering/ culturing
product
Equivalent local wage for labour
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 15
Table 3.2 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Coral Reefs.
Types of Indicator of
Valuation Technique
Impacts Data Needed Notes and Assumptions
Pollutants Measurement
POPs Water quality On site sale value for Total annual value For direct valuation: Values prior to the impact to be determined.
marketed goods using net of production for On site market price of each product (before Market price can be adapted to account for
Reduced fish price each product (US$) and after) seasonal and other price changes.
reproduction Quantities of products harvested, sold, given Market price represents true market value within a
ability For directly used goods, away and used (before and after) competitive market at equilibrium (i.e. prices are not
use market values for Total areas under consideration (before and distorted).
equivalent goods. If not after) All externalities are identified and included in the
available use indirect Concentration level of POPs price.
opportunity cost approach For indirect valuation: Exchange rates and the years of data collected
(using wages forgone for Price per unit for equivalent goods
harvesting goods) Cost of material inputs
Time spent harvesting/gathering/ culturing
product
Equivalent local wage for labour
Solid waste Smothering of On site sale value for Total annual value For direct valuation: Values prior to the impact to be determined.
(plastics) organisms marketed goods using net of production for On site market price of each product (before Market price can be adapted to account for
price each product (US$) and after solid waste contamination) seasonal and other price changes.
Quantities of products harvested, sold, given Market price represents true market value within a
For directly used goods, away and used (before and after solid waste competitive market at equilibrium (i.e. prices are not
use market values for contamination) distorted).
equivalent goods. If not Total areas under consideration (before and All externalities are identified and included in the
available use indirect after) price.
opportunity cost approach Volume of solid waste Exchange rates and the years of data collected
(using wages forgone for
harvesting goods) For indirect valuation:
Price per unit for equivalent goods
Cost of material inputs
Time spent harvesting/gathering/ culturing
product
Equivalent local wage for labour
Thermal Reduced On site sale value for Total annual value For direct valuation: Values prior to the impact to be determined.
pollution productivity marketed goods using net of production for On site market price of each product (before Market price can be adapted to account for
price each product (US$) and after thermal pollution) seasonal and other price changes.
Quantities of products harvested, sold, given Market price represents true market value within a
For directly used goods, away and used (before and after thermal competitive market at equilibrium (i.e. prices are not
use market values for pollution) distorted).
equivalent goods. If not Total areas under consideration (before and All externalities are identified and included in the
available use indirect after) price.
opportunity cost approach Temperature Exchange rates and the years of data collected
(using wages forgone for
harvesting goods) For indirect valuation:
Price per unit for equivalent goods
Cost of material inputs
Time spent harvesting/gathering/ culturing
product
Equivalent local wage for labour
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 16
Table 3.2 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Coral Reefs.
Types of Indicator of
Valuation Technique
Impacts Data Needed Notes and Assumptions
Pollutants Measurement
Loss of species On site price for marketed Total annual value For direct valuation: Values prior to the impact to be determined.
products of production for On site market price of each product (before Market price can be adapted to account for
each product (US$) and after thermal pollution) seasonal and other price changes.
Quantities of products harvested, sold, given Market price represents true market value within a
away (before and after) competitive market at equilibrium (i.e. prices are not
Total areas under consideration (before and distorted).
after) All externalities are identified and included in the
price.
For indirect valuation: Exchange rates and the years of data collected
Price per unit for equivalent goods
Cost of material inputs
Time spent harvesting/gathering/ culturing
product
Substitute price of products Equivalent local wage for labour
For substitute price approach:
Price of equivalent goods
Quantities of equivalent products harvested,
sold, given away (before and after)
For all approaches:
Species identified before and after
Amenity
Heavy metals Water quality Travel cost: Amount of Annual recreational Data from visitors survey Access to the site is available to all
money and time spent on value of the site Socio-economic variables Visits have a single purpose
the site (US$) Geographic origin (before and after water Demand function relationship can be specified
contamination) No factors aside from travel cost influence site use
Time spent travelling (before and after water Market prices used in valuation are not distorted
contamination)
Expenditures incurred in visiting the site
(before and after water contamination)
Frequency and duration of visits (before and
after water contamination)
Number of visitor-days for the site (before and
after water contamination)
Concentration level of heavy metals
Contingent valuation: Recreational value Answers to valuation questions from Subjects understand choices offered and give
willingness to pay for good of the site as survey/bidding game technique/ dichotomous meaningful and honest answers
water quality valued by choice Subject have sufficient information to give informed
willingness to pay choices
by users (US$) Sample is representative and captures the full
spectrum of users who value the site
No free riders
No strategic bias/influences
Replacement cost: cost to Total cost of clean- Type of heavy metals Technologies to clean up the pollutants are
clean up pollutants up (US$) Sources of heavy metals available and the cost of technologies is affordable
Concentration level of heavy metals
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 17
Table 3.2 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Coral Reefs.
Types of Indicator of
Valuation Technique
Impacts Data Needed Notes and Assumptions
Pollutants Measurement
Organic matter Water quality Travel cost: Amount of Annual recreational Data from visitors survey Access to the site is available to all
money and time spent on value of the site Socio-economic variables Visits have a single purpose
the site (US$) Geographic origin (before and after water Demand function relationship can be specified
contamination) No factors aside from travel cost influence site use
Time spent travelling (before and after water Market prices used in valuation are not distorted
contamination)
Expenditures incurred in visiting the site
(before and after water contamination)
Frequency and duration of visits (before and
after water contamination)
Number of visitor-days for the site (before and
after water contamination)
Concentration level of organic matters
Contingent valuation: Recreational value Answers to valuation questions from Subjects understand choices offered and give
willingness to pay for good of the site as survey/bidding game technique/ dichotomous meaningful and honest answers
water quality valued by choice Subject have sufficient information to give informed
willingness to pay choices
by users (US$) Sample is representative and captures the full
spectrum of users who value the site
No free riders
No strategic bias/influences
Replacement cost: cost to Total cost of clean- Type of organic matters Technologies to clean up the pollutants are
clean up organic matters up (US$) Sources of organic matters available and the cost of technologies is affordable
Concentration level of organic matters
Oil and Extreme spills Travel cost: Amount of Annual recreational Data from visitors survey Access to the site is available to all
hydrocarbons smothering of money and time spent on value of the site Socio-economic variables Visits have a single purpose
organisms the site (US$) Geographic origin (before and after oil spill) Demand function relationship can be specified
Time spent travelling (before and after oil spill) No factors aside from travel cost influence site use
Expenditures incurred in visiting the site Market prices used in valuation are not distorted
(before and after oil spill)
Frequency and duration of visits (before and
after oil spill)
Number of visitor-days for the site (before and
after oil spill)
Concentration level of oil and hydrocarbons
Contingent valuation: Recreational value Answers to valuation questions from Subjects understand choices offered and give
willingness to pay for good of the site as survey/bidding game technique/ dichotomous meaningful and honest answers
water quality valued by choice Subject have sufficient information to give informed
willingness to pay choices
by users (US$) Sample is representative and captures the full
spectrum of users who value the site
No free riders
No strategic bias/influences
Replacement cost: cost to Total cost of clean- Type of pollutants Technologies to clean up the pollutants are
clean up oil spills up (US$) Sources of pollutants available and the cost of technologies is affordable
Concentration level of oil and hydrocarbons
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 18
Table 3.2 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Coral Reefs.
Types of Indicator of
Valuation Technique
Impacts Data Needed Notes and Assumptions
Pollutants Measurement
Sediments Smothering of Travel cost: Amount of Annual recreational Data from visitors survey Access to the site is available to all
coral reefs money and time spent on value of the site Socio-economic variables Visits have a single purpose
the site (US$) Geographic origin (before and after Demand function relationship can be specified
sedimentation) No factors aside from travel cost influence site use
Time spent travelling (before and after Market prices used in valuation are not distorted
sedimentation)
Expenditures incurred in visiting the site
(before and after sedimentation)
Frequency and duration of visits (before and
after sedimentation)
Number of visitor-days for the site (before and
after sedimentation)
Sedimentation level and sedimentation rate
Contingent valuation: Recreational value Answers to valuation questions from Subjects understand choices offered and give
willingness to pay for good of the site as survey/bidding game technique/ dichotomous meaningful and honest answers
water quality valued by choice Subject have sufficient information to give informed
willingness to pay choices
by users (US$) Sample is representative and captures the full
spectrum of users who value the site
No free riders
No strategic bias/influences
Replacement cost: cost to Total cost of clean- Type of sediments Technologies to clean up the pollutants are
clean up the sediments up (US$) Sources of sediments available and the cost of technologies is affordable
Sedimentation level and sedimentation rate
Reduced light Travel cost: Amount of Annual recreational Data from visitors survey Access to the site is available to all
penetration money and time spent on value of the site Socio-economic variables Visits have a single purpose
from increased the site (US$) Geographic origin (before and after turbidity) Demand function relationship can be specified
turbidity Time spent travelling (before and after No factors aside from travel cost influence site use
leading to turbidity) Market prices used in valuation are not distorted
degradation of Expenditures incurred in visiting the site
biological (before and after turbidity)
diversity Frequency and duration of visits (before and
after turbidity)
Number of visitor-days for the site (before and Subjects understand choices offered and give
after turbidity) meaningful and honest answers
Volume of suspended sediment in water Subject have sufficient information to give informed
Contingent valuation: choices
willingness to pay for good Recreational value Answers to valuation questions from Sample is representative and captures the full
water quality of the site as survey/bidding game technique/ dichotomous spectrum of users who value the site
valued by choice No free riders
willingness to pay No strategic bias/influences
by users (US$)
Replacement cost: cost to Total cost of clean- Type of pollutants Technologies to clean up the pollutants are
clean up the sediments up (US$) Sources of pollutants available and the cost of technologies is affordable
Level of degradation of biological diversity
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 19
Table 3.2 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Coral Reefs.
Types of Indicator of
Valuation Technique
Impacts Data Needed Notes and Assumptions
Pollutants Measurement
Solid waste Smothering of Travel cost: Amount of Annual recreational Data from visitors survey Access to the site is available to all
(plastics) organisms money and time spent on value of the site Socio-economic variables Visits have a single purpose
the site (US$) Geographic origin (before and after solid Demand function relationship can be specified
waste contamination) No factors aside from travel cost influence site use
Time spent travelling (before and after solid Market prices used in valuation are not distorted
waste contamination)
Expenditures incurred in visiting the site
(before and after solid waste contamination)
Frequency and duration of visits (before and
after solid waste contamination)
Number of visitor-days for the site (before and
after solid waste contamination)
Contingent valuation: Recreational value Answers to valuation questions from Subjects understand choices offered and give
willingness to pay for good of the site as survey/bidding game technique/ dichotomous meaningful and honest answers
water quality valued by choice Subject have sufficient information to give informed
willingness to pay choices
by users (US$) Sample is representative and captures the full
spectrum of users who value the site
No free riders
No strategic bias/influences
Replacement cost: cost to Total cost of clean- Volume of solid waste Technologies to clean up the pollutants are
Sources of solid waste
clean up the plastics up (US$) available and the cost of technologies is affordable
Bacterial Contamination Travel cost: Amount of Annual recreational Data from visitors survey Access to the site is available to all
Contamination of recreational money and time spent on value of the site Socio-economic variables Visits have a single purpose
sites the site (US$) Geographic origin (before and after bacterial Demand function relationship can be specified
contamination) No factors aside from travel cost influence site use
Time spent travelling (before and after Market prices used in valuation are not distorted
bacterial contamination)
Expenditures incurred in visiting the site
(before and after bacterial contamination)
Frequency and duration of visits (before and
after bacterial contamination)
Number of visitor-days for the site (before and
after bacterial contamination)
Level of contamination
Contingent valuation: Recreational value Answers to valuation questions from Subjects understand choices offered and give
willingness to pay for good of the site as survey/bidding game technique/ dichotomous meaningful and honest answers
water quality valued by choice Subject have sufficient information to give informed
willingness to pay choices
by users (US$) Sample is representative and captures the full
spectrum of users who value the site
No free riders
No strategic bias/influences
Replacement cost: cost to Total cost of going Distance of other sites Alternative location comparable/ accessible
visit other areas to see the to alternative sites Cost of going to the site Market price used in valuation are not distorted
species (US$)
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 20
Table 3.2 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Coral Reefs.
Types of Indicator of
Valuation Technique
Impacts Data Needed Notes and Assumptions
Pollutants Measurement
Human Welfare
Heavy metals Contamination Substitute price approach: Total annual cost of Quantity of food consumed Substitute food acceptable
of human food cost of sourcing food sourcing food from Price per unit quantity of food sourced Market prices used in valuation not distorted
sources found elsewhere/cost of alternative elsewhere/equivalent food
in coral reef equivalent food sites/equivalent
habitat food
Cost of illness Total value of lost Total number of people affected Health and productivity can be restored to previous
human labour and Salaries/wages for labour levels
total cost of Duration of illness and recovery (number of Market price used in valuation are not distorted
hospitalisation and days lost)
treatment (US$) Hospitalisation and treatment cost
Nutrients Fish shellfish Substitute price approach: Total annual cost of Quantity of food consumed Substitute food acceptable
poisoning cost of sourcing food sourcing food from Price per unit quantity of food sourced Market prices used in valuation not distorted
elsewhere/cost of alternative elsewhere/equivalent food
equivalent food sites/equivalent
food
Cost of illness Total value of lost Total number of people affected Health and productivity can be restored to previous
human labour and Salaries/wages for labour levels
total cost of Duration of illness and recovery (number of Market price used in valuation are not distorted
hospitalisation and days lost)
treatment (US$) Hospitalisation and treatment cost
Oil and Contamination/ Substitute price approach: Total annual cost of Quantity of food consumed Substitute food acceptable
hydrocarbons tainting of cost of sourcing food sourcing food from Price per unit quantity of food sourced Market prices used in valuation not distorted
mariculture and elsewhere/cost of alternative elsewhere/equivalent food
wild fish equivalent food sites/equivalent
food
Cost of illness Total value of lost Total number of people affected Health and productivity can be restored to previous
human labour and Salaries/wages for labour levels
total cost of Duration of illness and recovery (number of Market price used in valuation are not distorted
hospitalisation and days lost)
treatment (US$) Hospitalisation and treatment cost
POPs Contamination Substitute price approach: Total annual cost of Quantity of food consumed Substitute food acceptable
of seafood cost of sourcing food sourcing food from Price per unit quantity of food sourced Market prices used in valuation not distorted
elsewhere/cost of alternative elsewhere/equivalent food
equivalent food sites/equivalent
food
Cost of illness Total value of lost Total number of people affected Health and productivity can be restored to previous
human labour and Salaries/wages for labour levels
total cost of Duration of illness and recovery (number of Market price used in valuation are not distorted
hospitalisation and days lost)
treatment (US$) Hospitalisation and treatment cost
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 21
Table 3.2 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Coral Reefs.
Types of Indicator of
Valuation Technique
Impacts Data Needed Notes and Assumptions
Pollutants Measurement
Bacterial Contamination Substitute price approach: Total annual cost of Quantity of food consumed Substitute food acceptable
contamination of human food cost of sourcing food sourcing food from Price per unit quantity of food sourced Market prices used in valuation not distorted
sources elsewhere/cost of alternative elsewhere/equivalent food
equivalent food sites/equivalent
food
Cost of illness Total value of lost Total number of people affected Health and productivity can be restored to previous
human labour and Salaries/wages for labour levels
total cost of Duration of illness and recovery (number of Market price used in valuation are not distorted
hospitalisation and days lost)
treatment (US$) Hospitalisation and treatment cost
Table 3.3 Procedures to Undertake Valuation of Impacts of Land-based Pollution on Seagrass.
Types of Indicator of
Impacts Valuation Technique Data Needed Notes and Assumptions
Pollutants Measurement
Productivity
Heavy metals Water quality On site sale value for marketed Total annual For direct valuation: Values prior to the impact to be determined.
goods using net price value of On site market price of each product (before and after Market price can be adapted to account for
production for degradation of water quality) seasonal and other price changes.
For directly used goods, use each product Quantities of products harvested, sold, given away and Market price represents true market value
market values for equivalent (US$) used (before and after degradation of water quality) within a competitive market at equilibrium (i.e.
goods. If not available use Total areas under consideration (before and after) prices are not distorted).
indirect opportunity cost Concentration level of heavy metals All externalities are identified and included in
approach (using wages forgone the price.
for harvesting goods) For indirect valuation: Exchange rates and the years of data
Price per unit for equivalent goods collected
Cost of material inputs Heavy metals affect the functions of distance
Time spent harvesting/gathering/ culturing product current and other physical variables
Equivalent local wage for labour
Reduced On site sale value for marketed Total annual For direct valuation: Values prior to the impact to be determined.
reproductive goods using net price value of On site market price of each product (before and after Market price can be adapted to account for
capacity in fish production for contamination by heavy metals) seasonal and other price changes.
species (e.g. For directly used goods, use each product Quantities of products harvested, sold, given away and Market price represents true market value
molluscs) market values for equivalent (US$) used (before and after contamination by heavy metals) within a competitive market at equilibrium (i.e.
goods. If not available use Total areas under consideration (before and after) prices are not distorted).
indirect opportunity cost Concentration level of heavy metals All externalities are identified and included in
approach (using wages forgone the price.
for harvesting goods) For indirect valuation: Exchange rates and the years of data
Price per unit for equivalent goods collected
Cost of material inputs Time spent
harvesting/gathering/ culturing product
Equivalent local wage for labour
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 22
Table 3.3 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Seagrass.
Types of Indicator of
Impacts Valuation Technique Data Needed Notes and Assumptions
Pollutants Measurement
Bio- On site sale value for marketed Total annual For direct valuation: Values prior to the impact to be determined.
accumulation goods using net price value of On site market price of each product (before and after Market price can be adapted to account for
production for bio-accumulation) seasonal and other price changes.
For directly used goods, use each product Quantities of products harvested, sold, given away and Market price represents true market value
market values for equivalent (US$) used (before and after bio-accumulation) within a competitive market at equilibrium (i.e.
goods. If not available use Total areas under consideration (before and after) prices are not distorted).
indirect opportunity cost Concentration level of heavy metals All externalities are identified and included in
approach (using wages forgone the price.
for harvesting goods) For indirect valuation: Exchange rates and the years of data
Price per unit for equivalent goods collected
Cost of material inputs
Time spent harvesting/gathering/ culturing product
Equivalent local wage for labour
Organic matter Water quality On site sale value for marketed Total annual For direct valuation: Values prior to the impact to be determined.
goods using net price value of On site market price of each product (before and after Market price can be adapted to account for
production for degradation of water quality) seasonal and other price changes.
For directly used goods, use each product Quantities of products harvested, sold, given away and Market price represents true market value
market values for equivalent (US$) used (before and after degradation of water quality) within a competitive market at equilibrium (i.e.
goods. If not available use Total areas under consideration (before and after) prices are not distorted).
indirect opportunity cost Concentration level of organic matters All externalities are identified and included in
approach (using wages forgone the price.
for harvesting goods) For indirect valuation: Exchange rates and the years of data
Price per unit for equivalent goods collected
Cost of material inputs
Time spent harvesting/gathering/ culturing product
Equivalent local wage for labour
Nutrients Eutrophication On site sale value for marketed Total annual For direct valuation: Values prior to the impact to be determined.
goods using net price value of On site market price of each product (before and after Market price can be adapted to account for
Algal blooms production for eutrophication) seasonal and other price changes.
For directly used goods, use each product Quantities of products harvested, sold, given away Market price represents true market value
market values for equivalent (US$) and used (before and after eutrophication) within a competitive market at equilibrium (i.e.
Red tides goods. If not available use Total areas under consideration (before and after) prices are not distorted).
indirect opportunity cost Concentration level of nutrients All externalities are identified and included in
Anoxia – fish approach (using wages forgone the price.
kills for harvesting goods) For indirect valuation: Exchange rates and the years of data
Price per unit for equivalent goods collected
Cost of material inputs
Time spent harvesting/gathering/ culturing product
Equivalent local wage for labour
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 23
Table 3.3 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Seagrass.
Types of Indicator of
Impacts Valuation Technique Data Needed Notes and Assumptions
Pollutants Measurement
Oil and Extreme spills On site sale value for marketed Total annual For direct valuation: Values prior to the impact to be determined.
hydrocarbons smothering of goods using net price value of On site market price of each product (before and after Market price can be adapted to account for
organisms production for spills/ release of oil and hydrocarbon) seasonal and other price changes.
For directly used goods, use each product Quantities of products harvested, sold, given away Market price represents true market value
market values for equivalent (US$) (before and after spills/release of hydrocarbons) within a competitive market at equilibrium (i.e.
goods. If not available use Total areas under consideration (before and after) prices are not distorted).
indirect opportunity cost Concentration level of oil and hydrocarbons All externalities are identified and included in
approach (using wages forgone the price.
for harvesting goods) For indirect valuation: Exchange rates and the years of data
Price per unit for equivalent goods collected
Cost of material inputs
Time spent harvesting/gathering/ culturing product
Equivalent local wage for labour
Sediments Smothering of On site sale value for marketed Total annual For direct valuation: Values prior to the impact to be determined.
sea grass goods using net price value of On site market price of each product (before and after Market price can be adapted to account for
production for sedimentation) seasonal and other price changes.
For directly used goods, use each product Quantities of products harvested, sold, given away and Market price represents true market value
market values for equivalent (US$) used (before and after sedimentation) within a competitive market at equilibrium (i.e.
goods. If not available use Total areas under consideration (before and after) prices are not distorted).
indirect opportunity cost Sedimentation level and sedimentation rate All externalities are identified and included in
approach (using wages forgone the price.
for harvesting goods) For indirect valuation: Exchange rates and the years of data
Price per unit for equivalent goods collected
Cost of material inputs
Time spent harvesting/gathering/ culturing product
Equivalent local wage for labour
Reduced light On site sale value for marketed Total annual For direct valuation: Values prior to the impact to be determined.
penetration from goods using net price value of On site market price of each product (before and after Market price can be adapted to account for
increased production for increased turbidity) seasonal and other price changes.
turbidity leading For directly used goods, use each product Quantities of products harvested, sold, given away and Market price represents true market value
to reduced market values for equivalent (US$) used (before and after increased turbidity) within a competitive market at equilibrium (i.e.
primary goods. If not available use Total areas under consideration (before and after) prices are not distorted).
production indirect opportunity cost Volume of suspended sediment in water All externalities are identified and included in
approach (using wages forgone the price.
for harvesting goods) For indirect valuation: Exchange rates and the years of data
Price per unit for equivalent goods collected
Cost of material inputs
Time spent harvesting/gathering/ culturing product
Equivalent local wage for labour
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 24
Table 3.3 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Seagrass.
Types of Indicator of
Impacts Valuation Technique Data Needed Notes and Assumptions
Pollutants Measurement
POPs Water quality On site sale value for marketed Total annual For direct valuation: Values prior to the impact to be determined.
goods using net price value of On site market price of each product (before and after Market price can be adapted to account for
production for degradation of water quality) seasonal and other price changes.
For directly used goods, use each product Quantities of products harvested, sold, given away and Market price represents true market value
market values for equivalent (US$) used (before and after degradation of water quality) within a competitive market at equilibrium (i.e.
goods. If not available use Total areas under consideration (before and after) prices are not distorted).
indirect opportunity cost Concentration level of POPs All externalities are identified and included in
approach (using wages forgone the price.
for harvesting goods) For indirect valuation: Exchange rates and the years of data
Price per unit for equivalent goods collected
Cost of material inputs
Time spent harvesting/gathering/ culturing product
Equivalent local wage for labour
Reduced fish On site sale value for marketed Total annual For direct valuation: Values prior to the impact to be determined.
reproductive goods using net price value of On site market price of each product (before and after Market price can be adapted to account for
ability production for POPs contamination) seasonal and other price changes.
For directly used goods, use each product Quantities of products harvested, sold, given away and Market price represents true market value
market values for equivalent (US$) used (before and after POPs contamination) within a competitive market at equilibrium (i.e.
goods. If not available use Total areas under consideration (before and after) prices are not distorted).
indirect opportunity cost Concentration level of POPs All externalities are identified and included in
approach (using wages forgone the price.
for harvesting goods) For indirect valuation: Exchange rates and the years of data
Price per unit for equivalent goods collected
Cost of material inputs
Time spent harvesting/gathering/ culturing product
Equivalent local wage for labour
Solid waste Smothering of On site sale value for marketed Total annual For direct valuation: Values prior to the impact to be determined.
(plastics) organisms goods using net price value of On site market price of each product (before and after Market price can be adapted to account for
production for solid waste contamination) seasonal and other price changes.
For directly used goods, use each product Quantities of products harvested, sold, given away and Market price represents true market value
market values for equivalent (US$) used (before and after solid waste contamination) within a competitive market at equilibrium (i.e.
goods. If not available use Total areas under consideration (before and after) prices are not distorted).
indirect opportunity cost Volume of solid waste All externalities are identified and included in
approach (using wages forgone the price.
for harvesting goods) For indirect valuation: Exchange rates and the years of data
Price per unit for equivalent goods collected
Cost of material inputs
Time spent harvesting/gathering/ culturing product
Equivalent local wage for labour
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 25
Table 3.3 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Seagrass.
Types of Indicator of
Impacts Valuation Technique Data Needed Notes and Assumptions
Pollutants Measurement
Thermal Reduced On site sale value for marketed Total annual For direct valuation: Values prior to the impact to be determined.
pollution productivity goods using net price value of On site market price of each product (before and after Market price can be adapted to account for
production for thermal pollution) seasonal and other price changes.
For directly used goods, use each product Quantities of products harvested, sold, given away and Market price represents true market value
market values for equivalent (US$) used (before and after thermal pollution) within a competitive market at equilibrium (i.e.
goods. If not available use Total areas under consideration (before and after) prices are not distorted).
indirect opportunity cost Water temperature All externalities are identified and included in
approach (using wages forgone the price.
for harvesting goods) For indirect valuation: Exchange rates and the years of data
Price per unit for equivalent goods collected
Cost of material inputs
Time spent harvesting/gathering/ culturing product
Equivalent local wage for labour
Loss of species On site price for marketed Total annual For direct valuation: Values prior to the impact to be determined.
products value of On site market price of each product (before and after Market price can be adapted to account for
production for thermal pollution) seasonal and other price changes.
each product Quantities of products harvested, sold, given away Market price represents true market value
(US$) (before and after) within a competitive market at equilibrium (i.e.
Total areas under consideration (before and after) prices are not distorted).
Water temperature All externalities are identified and included in
the price.
For indirect valuation: Exchange rates and the years of data
Price per unit for equivalent goods collected
Cost of material inputs Substitutes are acceptable
Time spent harvesting/gathering/ culturing product
Equivalent local wage for labour
Substitute price of products* For substitute price approach:
Price of equivalent goods
Quantities of equivalent products harvested, sold,
given away (before and after)
For all approaches:
Species identified before and after
Amenity
Heavy metals Water quality Travel cost: Amount of money Annual Data from visitors survey Access to the site is available to all
and time spent on the site recreational Socio-economic variables Visits have a single purpose
value of the site Geographic origin (before and after water Demand function relationship can be specified
(US$) contamination) No factors aside from travel cost influence site
Time spent travelling (before and after water use
contamination) Market prices used in valuation are not
Expenditures incurred in visiting the site (before and distorted
after water contamination)
Frequency and duration of visits (before and after
water contamination)
Number of visitor-days for the site (before and after
water contamination)
Concentration level of heavy metals
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 26
Table 3.3 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Seagrass.
Types of Indicator of
Impacts Valuation Technique Data Needed Notes and Assumptions
Pollutants Measurement
Contingent valuation: Recreational Answers to valuation questions from survey/bidding Subjects understand choices offered and give
willingness to pay for good value of the site game technique/ dichotomous choice meaningful and honest answers
water quality as valued by Subject have sufficient information to give
willingness to informed choices
pay by users Sample is representative and captures the full
(US$) spectrum of users who value the site
No free riders
No strategic bias/influences
Replacement cost: cost to clean Total cost of Type of heavy metals Technologies to clean up the pollutants are
up heavy metals clean-up (US$) Sources of heavy metals available and the cost of technologies is
Concentration level of heavy metals affordable
Organic matter Water quality Travel cost: Amount of money Annual Data from visitors survey Access to the site is available to all
and time spent on the site recreational Socio-economic variables Visits have a single purpose
value of the site Geographic origin (before and after water Demand function relationship can be specified
(US$) contamination) No factors aside from travel cost influence site
Time spent travelling (before and after water use
contamination) Market prices used in valuation are not
Expenditures incurred in visiting the site (before and distorted
after water contamination)
Frequency and duration of visits (before and after
water contamination)
Number of visitor-days for the site (before and after
water contamination)
Concentration level of organic matters
Contingent valuation: Recreational Answers to valuation questions from survey/bidding Subjects understand choices offered and give
willingness to pay for good value of the site game technique/ dichotomous choice meaningful and honest answers
water quality as valued by Subject have sufficient information to give
willingness to informed choices
pay by users Sample is representative and captures the full
(US$) spectrum of users who value the site
No free riders
No strategic bias/influences
Replacement cost: cost to clean Total cost of Type of pollutants Technologies to clean up the pollutants are
up organic matters clean-up (US$) Sources of pollutants available and the cost of technologies is
Concentration level of organic matters affordable
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 27
Table 3.3 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Seagrass.
Types of Indicator of
Impacts Valuation Technique Data Needed Notes and Assumptions
Pollutants Measurement
Oil and Extreme spills Travel cost: Amount of money Annual Data from visitors survey Access to the site is available to all
hydrocarbons smothering of and time spent on the site recreational Socio-economic variables Visits have a single purpose
organisms value of the site Geographic origin (before and after water Demand function relationship can be specified
(US$) contamination) No factors aside from travel cost influence site
Time spent travelling (before and after water use
contamination) Market prices used in valuation are not
Expenditures incurred in visiting the site (before and distorted
after water contamination)
Frequency and duration of visits (before and after
water contamination)
Number of visitor-days for the site (before and after
water contamination)
Concentration level of oil and hydrocarbons
Contingent valuation: Recreational Answers to valuation questions from survey/bidding Subjects understand choices offered and give
willingness to pay for good value of the site game technique/ dichotomous choice meaningful and honest answers
water quality as valued by Subject have sufficient information to give
willingness to informed choices
pay by users Sample is representative and captures the full
(US$) spectrum of users who value the site
No free riders
No strategic bias/influences
Replacement cost: cost to clean Total cost of Type of pollutants Technologies to clean up the pollutants are
up oils and hydrocarbons clean-up (US$) Sources of pollutants available and the cost of technologies is
Concentration level of pollutants affordable
Sediments Smothering of Travel cost: Amount of money Annual Data from visitors survey Access to the site is available to all
seagrass and time spent on the site recreational Socio-economic variables Visits have a single purpose
value of the site Geographic origin (before and after water contamination) Demand function relationship can be specified
(US$) Time spent travelling (before and after water No factors aside from travel cost influence site
contamination) use
Expenditures incurred in visiting the site (before and Market prices used in valuation are not
after water contamination) distorted
Frequency and duration of visits (before and after water
contamination)
Number of visitor-days for the site (before and after
water contamination)
Level of sedimentation and sedimentation rate
Contingent valuation: Recreational Answers to valuation questions from survey/bidding Subjects understand choices offered and give
willingness to pay for good value of the site game technique/ dichotomous choice meaningful and honest answers
water quality as valued by Subject have sufficient information to give
willingness to informed choices
pay by users Sample is representative and captures the full
(US$) spectrum of users who value the site
No free riders
No strategic bias/influences
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 28
Table 3.3 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Seagrass.
Types of Indicator of
Impacts Valuation Technique Data Needed Notes and Assumptions
Pollutants Measurement
Replacement cost: cost to clean Total cost of Type of pollutants Technologies to clean up the pollutants are
up sediments clean-up (US$) Sources of pollutants available and the cost of technologies is
Level of sedimentation and sedimentation rate affordable
Reduced light Travel cost: Amount of money Annual Data from visitors survey Access to the site is available to all
penetration from and time spent on the site recreational Socio-economic variables Visits have a single purpose
increased value of the site Geographic origin (before and after water Demand function relationship can be specified
turbidity leading (US$) contamination) No factors aside from travel cost influence site
to degradation Time spent travelling (before and after water use
of biological contamination) Market prices used in valuation are not
diversity Expenditures incurred in visiting the site (before and distorted
after water contamination)
Frequency and duration of visits (before and after
water contamination)
Number of visitor-days for the site (before and after
water contamination)
Volume of suspended sediment in the water
Subjects understand choices offered and give
Contingent valuation: Recreational Answers to valuation questions from survey/bidding meaningful and honest answers
willingness to pay for good value of the site game technique/ dichotomous choice Subject have sufficient information to give
water quality as valued by informed choices
willingness to Sample is representative and captures the full
pay by users spectrum of users who value the site
(US$) No free riders
No strategic bias/influences
Replacement cost: cost to clean Total cost of Type of pollutants Technologies to clean up the pollutants are
up sediments clean-up (US$) Sources of pollutants available and the cost of technologies is
Volume of suspended sediment in water affordable
POPs Water quality Travel cost: Amount of money Annual Data from visitors survey Access to the site is available to all
and time spent on the site recreational Socio-economic variables Visits have a single purpose
value of the site Geographic origin (before and after water contamination) Demand function relationship can be specified
(US$) Time spent travelling (before and after water No factors aside from travel cost influence site
contamination) use
Expenditures incurred in visiting the site (before and Market prices used in valuation are not
after water contamination) distorted
Frequency and duration of visits (before and after water
contamination)
Number of visitor-days for the site (before and after
water contamination)
Concentration level of POPs
Contingent valuation: Recreational Answers to valuation questions from survey/bidding Subjects understand choices offered and give
willingness to pay for good value of the site game technique/ dichotomous choice meaningful and honest answers
water quality as valued by Subject have sufficient information to give
willingness to informed choices
pay by users Sample is representative and captures the full
(US$) spectrum of users who value the site
No free riders
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 29
Table 3.3 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Seagrass.
Types of Indicator of
Impacts Valuation Technique Data Needed Notes and Assumptions
Pollutants Measurement
No strategic bias/influences
Replacement cost: cost to clean Total cost of Type of pollutants Technologies to clean up the pollutants are
up POPs clean-up (US$) Sources of pollutants available and the cost of technologies is
Level of concentration of pollutants affordable
Solid waste Smothering of Travel cost: Amount of money Annual Data from visitors survey Access to the site is available to all
(plastics) organisms and time spent on the site recreational Socio-economic variables Visits have a single purpose
value of the site Geographic origin (before and after water Demand function relationship can be specified
(US$) contamination) No factors aside from travel cost influence site
Time spent travelling (before and after water use
contamination) Market prices used in valuation are not
Expenditures incurred in visiting the site (before and distorted
after water contamination)
Frequency and duration of visits (before and after
water contamination)
Number of visitor-days for the site (before and after
water contamination)
Volume of solid waste
Recreational Answers to valuation questions from survey/bidding Subjects understand choices offered and give
Contingent valuation: value of the site game technique/ dichotomous choice meaningful and honest answers
willingness to pay for good as valued by Subject have sufficient information to give
water quality willingness to informed choices
pay by users Sample is representative and captures the full
(US$) spectrum of users who value the site
No free riders
No strategic bias/influences
Replacement cost: cost to clean Total cost of Sources of solid waste Technologies to clean up the pollutants are
up sediments clean-up (US$) Volume of solid waste available and the cost of technologies is
affordable
Thermal Loss of species Travel cost: Amount of money Annual Data from visitors survey Access to the site is available to all
pollution and time spent on the site recreational Socio-economic variables Visits have a single purpose
value of the site Geographic origin (before and after water Demand function relationship can be specified
(US$) contamination) No factors aside from travel cost influence site
Time spent travelling (before and after water use
contamination) Market prices used in valuation are not
Expenditures incurred in visiting the site (before and distorted
after water contamination)
Frequency and duration of visits (before and after
water contamination)
Number of visitor-days for the site (before and after
water contamination)
Water temperature
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 30
Table 3.3 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Seagrass.
Types of Indicator of
Impacts Valuation Technique Data Needed Notes and Assumptions
Pollutants Measurement
Contingent valuation: Recreational Answers to valuation questions from survey/bidding Subjects understand choices offered and give
willingness to pay for good value of the site game technique/ dichotomous choice meaningful and honest answers
water quality as valued by Subject have sufficient information to give
willingness to informed choices
pay by users Sample is representative and captures the full
(US$) spectrum of users who value the site
No free riders
No strategic bias/influences
Replacement cost: cost to visit Total cost of Distance of other sites Alternative location comparable/ accessible
other areas to see the species going to Cost of going to the sites Market price used in valuation are not
alternative sites distorted.
(US$)
Bacterial Contamination Travel cost: Amount of money Annual Data from visitors survey Access to the site is available to all
contamination of human food and time spent on the site recreational Socio-economic variables Visits have a single purpose
sources value of the site Geographic origin (before and after site contamination Demand function relationship can be specified
(US$) by bacteria) No factors aside from travel cost influence site
Time spent travelling (before and after site use
contamination by bacteria) Market prices used in valuation are not
Expenditures incurred in visiting the site (before and distorted
after site contamination by bacteria)
Frequency and duration of visits (before and after site
contamination by bacteria)
Number of visitor-days for the site (before and after site
contamination by bacteria)
Level of contamination
Contingent valuation: Recreational Answers to valuation questions from survey/bidding Subjects understand choices offered and give
willingness to pay for good value of the site game technique/ dichotomous choice meaningful and honest answers
water quality as valued by Subject have sufficient information to give
willingness to informed choices
pay by users Sample is representative and captures the full
(US$) spectrum of users who value the site
No free riders
No strategic bias/influences
Prevention cost Total cost to Cost of constructing facilities for individual economic Market prices used in valuation are not
prevent bacterial activities distorted
contamination Volumes of projected waste
(US$) Size of impacted areas
Sources of contaminants
Human Welfare
Heavy metals Contamination Substitute price approach: cost Total annual cost Quantity of food consumed Substitute food acceptable
of human food of sourcing food elsewhere/cost of sourcing food Price per unit quantity of food sourced Market prices used in valuation not distorted
sources of equivalent food from alternative elsewhere/equivalent food
sites/equivalent
food
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 31
Table 3.3 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Seagrass.
Types of Indicator of
Impacts Valuation Technique Data Needed Notes and Assumptions
Pollutants Measurement
Cost of illness Total cost of Total number of people affected Health and productivity can be restored to
hospitalisation Salaries/wages for labour previous levels
and treatment Duration of illness and recovery (number of days lost)
Hospitalisation and treatment cost
Nutrients Fish shellfish Substitute price approach: cost Total annual cost Quantity of food consumed Substitute food acceptable
poisoning of sourcing food elsewhere/cost of sourcing food Price per unit quantity of food sourced Market prices used in valuation not distorted
of equivalent food from alternative elsewhere/equivalent food
sites/equivalent
food
Cost of illness Total cost of lost Total number of people affected Health and productivity can be restored to
human labour and Salaries/wages for labour previous levels
total cost of Duration of illness and recovery (number of days lost) Market prices used in valuation not distorted
hospitalisation and Hospitalisation and treatment cost
treatment (US$)
Oil and Contamination/ Substitute price approach: cost Total annual cost Quantity of food consumed Substitute food acceptable
hydrocarbons tainting of of sourcing food elsewhere/cost of sourcing food Price per unit quantity of food sourced Market prices used in valuation not distorted
mariculture and of equivalent food from alternative elsewhere/equivalent food
wild fish sites/equivalent
food
Cost of illness Total cost of lost Total number of people affected Health and productivity can be restored to
human labour and Salaries/wages for labour previous levels
total cost of Duration of illness and recovery (number of days lost) Market prices used in valuation not distorted
hospitalisation and Hospitalisation and treatment cost
treatment (US$)
POPs Contamination Substitute price approach: cost Total annual cost Quantity of food consumed Substitute food acceptable
of seafood of sourcing food elsewhere/cost of sourcing food Price per unit quantity of food sourced Market prices used in valuation not distorted
of equivalent food from alternative elsewhere/equivalent food
sites/equivalent
food
Cost of illness Total cost of lost Total number of people affected Health and productivity can be restored to
human labour and Salaries/wages for labour previous levels
total cost of Duration of illness and recovery (number of days lost) Market prices used in valuation not distorted
hospitalisation and Hospitalisation and treatment cost
treatment (US$)
Bacterial Contamination Substitute price approach: cost Total annual cost Quantity of food consumed Substitute food acceptable
contamination of human food of sourcing food elsewhere/cost of sourcing food Price per unit quantity of food sourced Market prices used in valuation not distorted
sources of equivalent food from alternative elsewhere/equivalent food
sites/equivalent
food
Cost of illness Total cost of lost Total number of people affected Health and productivity can be restored to
human labour Salaries/wages for labour previous levels
and total cost of Duration of illness and recovery (number of days lost) Market prices used in valuation not distorted
hospitalisation Hospitalisation and treatment cost
and treatment
(US$)
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 32
Table 3.4 Procedures to Undertake Valuation of Impacts of Land-based Pollution on Wetlands.
Types of
Impacts Valuation Technique Indicator of Measurement Data Needed Notes and Assumptions
Pollutants
Productivity
Heavy Water quality On site sale value for Total annual value of For direct valuation: Values prior to the impact to be determined.
metals marketed goods using production for each product On site market price of each product (before Market price can be adapted to account for
Reduced net price (US$) and after) seasonal and other price changes.
reproductive Quantities of products harvested, sold, given Market price represents true market value within a
capacity in fish For directly used away and used (before and after) competitive market at equilibrium (i.e. prices are
species (e.g. goods, use market Total areas under consideration (before and not distorted).
molluscs) values for equivalent after) All externalities are identified and included in the
goods. If not available Concentration level of heavy metals price.
Bio- use indirect Exchange rates and the years of data collected.
accumulation opportunity cost For indirect valuation:
approach (using Price per unit for equivalent goods
wages forgone for Cost of material inputs
harvesting goods) Time spent harvesting/gathering/ culturing
product
Equivalent local wage for labour
Organic Water quality On site sale value for Total annual value of For direct valuation: Values prior to the impact to be determined.
matter marketed goods using production for each product On site market price of each product (before Market price can be adapted to account for
net price (US$) and after degradation of water quality) seasonal and other price changes.
Quantities of products harvested, sold, given Market price represents true market value within a
For directly used away and used (before and after degradation competitive market at equilibrium (i.e. prices are
goods, use market of water quality) not distorted).
values for equivalent Total areas under consideration (before and All externalities are identified and included in the
goods. If not available after) price.
use indirect Concentration level of organic matter Exchange rates and the years of data collected.
opportunity cost
approach (using For indirect valuation:
wages forgone for Price per unit for equivalent goods
harvesting goods) Cost of material inputs
Time spent harvesting/gathering/ culturing
product
Equivalent local wage for labour
Nutrients Eutrophication On site sale value for Total annual value of For direct valuation: Values prior to the impact to be determined.
marketed goods using production for each product On site market price of each product (before Market price can be adapted to account for
Algal blooms net price (US$) and after) seasonal and other price changes.
Quantities of products harvested, sold, given Market price represents true market value within a
Red tides For directly used away and used (before and after) competitive market at equilibrium (i.e. prices are
goods, use market Total areas under consideration (before and not distorted).
Anoxia – fish values for equivalent after) All externalities are identified and included in the
kills goods. If not Concentration level of nutrients price.
available use indirect Exchange rates and the years of data collected.
opportunity cost For indirect valuation:
approach (using Price per unit for equivalent goods
wages forgone for Cost of material inputs
harvesting goods) Time spent harvesting/gathering/ culturing
product
Equivalent local wage for labour
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 33
Table 3.4 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Wetlands.
Types of
Impacts Valuation Technique Indicator of Measurement Data Needed Notes and Assumptions
Pollutants
Oil and Extreme spills On site sale value for Total annual value of For direct valuation: Values prior to the impact to be determined.
hydro- smothering of marketed goods using production for each product On site market price of each product (before Market price can be adapted to account for
carbons organisms net price (US$) and after spills/ release of oil and seasonal and other price changes.
hydrocarbon) Market price represents true market value within a
For directly used Quantities of products harvested, sold, given competitive market at equilibrium (i.e. prices are
goods, use market away (before and after spills/release of not distorted).
values for equivalent hydrocarbons) All externalities are identified and included in the
goods. If not Total areas under consideration (before and price.
available use indirect after) Exchange rates and the years of data collected.
opportunity cost Concentration level of oil and hydrocarbons
approach (using
For indirect valuation:
wages forgone for
Price per unit for equivalent goods
harvesting goods)
Cost of material inputs
Time spent harvesting/gathering/ culturing
product
Equivalent local wage for labour
Sediments Reduced light On site sale value for Total annual value of For direct valuation: Values prior to the impact to be determined.
penetration marketed goods using production for each product On site market price of each product (before Market price can be adapted to account for
from increased net price (US$) and after increased turbidity) seasonal and other price changes.
turbidity Quantities of products harvested, sold, given Market price represents true market value within a
leading to For directly used away and used (before and after increased competitive market at equilibrium (i.e. prices are
reduced goods, use market turbidity) not distorted).
primary values for equivalent Total areas under consideration (before and All externalities are identified and included in the
production goods. If not after) price.
available use indirect Volume of suspended sediment in the water Exchange rates and the years of data collected
opportunity cost
approach (using For indirect valuation:
wages forgone for Price per unit for equivalent goods
harvesting goods) Cost of material inputs
Time spent harvesting/gathering/ culturing
product
Equivalent local wage for labour
POPs Water quality On site sale value for Total annual value of For direct valuation: Values prior to the impact to be determined.
marketed goods using production for each product On site market price of each product (before Market price can be adapted to account for
Reduced fish net price (US$) and after) seasonal and other price changes.
reproduction Quantities of products harvested, sold, given Market price represents true market value within a
ability For directly used away and used (before and after) competitive market at equilibrium (i.e. prices are
goods, use market Total areas under consideration (before and not distorted).
values for equivalent after) All externalities are identified and included in the
goods. If not Concentration level of POPs price.
available use indirect Exchange rates and the years of data collected.
opportunity cost For indirect valuation:
approach (using Price per unit for equivalent goods
wages forgone for Cost of material inputs
harvesting goods) Time spent harvesting/gathering/ culturing
product
Equivalent local wage for labour
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 34
Table 3.4 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Wetlands.
Types of
Impacts Valuation Technique Indicator of Measurement Data Needed Notes and Assumptions
Pollutants
Solid Smothering of On site sale value for Total annual value of For direct valuation: Values prior to the impact to be determined.
waste organisms marketed goods using production for each product On site market price of each product (before Market price can be adapted to account for
(plastics) net price (US$) and after solid waste contamination) seasonal and other price changes.
Quantities of products harvested, sold, given Market price represents true market value within a
For directly used away and used (before and after solid waste competitive market at equilibrium (i.e. prices are
goods, use market contamination) not distorted).
values for equivalent Total areas under consideration (before and All externalities are identified and included in the
goods. If not after) price.
available use indirect Volume of solid waste Exchange rates and the years of data collected
opportunity cost
approach (using For indirect valuation:
wages forgone for Price per unit for equivalent goods
harvesting goods) Cost of material inputs
Time spent harvesting/gathering/ culturing
product
Equivalent local wage for labour
Thermal Reduced On site sale value for Total annual value of For direct valuation: Values prior to the impact to be determined.
pollution productivity marketed goods using production for each product On site market price of each product (before Market price can be adapted to account for
net price (US$) and after thermal pollution) seasonal and other price changes.
Quantities of products harvested, sold, given Market price represents true market value within a
For directly used away and used (before and after thermal competitive market at equilibrium (i.e. prices are
goods, use market pollution) not distorted).
values for equivalent Total areas under consideration (before and All externalities are identified and included in the
goods. If not after) price.
available use indirect Water temperature Exchange rates and the years of data collected
opportunity cost
approach (using For indirect valuation:
wages forgone for Price per unit for equivalent goods
harvesting goods) Cost of material inputs
Time spent harvesting/gathering/ culturing
product
Equivalent local wage for labour
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 35
Table 3.4 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Wetlands.
Types of
Impacts Valuation Technique Indicator of Measurement Data Needed Notes and Assumptions
Pollutants
Loss of species On site price for Total annual value of For direct valuation: Values prior to the impact to be determined.
marketed products production for each product On site market price of each product (before Market price can be adapted to account for
(US$) and after thermal pollution) seasonal and other price changes.
Quantities of products harvested, sold, given Market price represents true market value within a
away (before and after) competitive market at equilibrium (i.e. prices are
Total areas under consideration (before and not distorted).
after) All externalities are identified and included in the
Water temperature price.
Exchange rates and the years of data collected.
For indirect valuation:
Price per unit for equivalent goods
Cost of material inputs
Time spent harvesting/gathering/ culturing
product
Equivalent local wage for labour
Water temperature
Substitute approach: Total cost of sourcing For substitute price approach: Substitute of product/raw materials available and
Price of products/raw products/raw materials from Price of equivalent goods acceptable
materials* other sites Quantities of equivalent products harvested, Market prices used in valuation are not distorted
sold, given away (before and after)
For all approaches:
Species identified before and after
Amenity
Heavy Water quality Travel cost: Amount Annual recreational value of Data from visitors survey Access to the site is available to all
metals of money and time the site (US$) Socio-economic variables Visits have a single purpose
spent on the site Geographic origin (before and after water Demand function relationship can be specified
contamination) No factors aside from travel cost influence site use
Time spent travelling (before and after water Market prices used in valuation are not distorted
contamination)
Expenditures incurred in visiting the site
(before and after water contamination)
Frequency and duration of visits (before and
after water contamination)
Number of visitor-days for the site (before and
after water contamination)
Concentration level of heavy metals
Contingent valuation: Recreational value of the Answers to valuation questions from Subjects understand choices offered and give
willingness to pay for site as valued by willingness survey/bidding game technique/ dichotomous meaningful and honest answers
good water quality to pay by users (US$) choice Subject have sufficient information to give
informed choices
Sample is representative and captures the full
spectrum of users who value the site
No free riders
No strategic bias/influences
Replacement cost: Total cost of clean-up (US$) Types of heavy metals Technologies to clean up the pollutants are
cost to clean up Sources of heavy metals available and the cost of technologies is
pollutants Level of concentration of heavy metals affordable
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 36
Table 3.4 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Wetlands.
Types of
Impacts Valuation Technique Indicator of Measurement Data Needed Notes and Assumptions
Pollutants
Organic Water quality Travel cost: Amount Annual recreational value of Data from visitors survey Access to the site is available to all
matter of money and time the site (US$) Socio-economic variables Visits have a single purpose
spent on the site Geographic origin (before and after water Demand function relationship can be specified
contamination) No factors aside from travel cost influence site use
Time spent travelling (before and after water Market prices used in valuation are not distorted
contamination)
Expenditures incurred in visiting the site
(before and after water contamination)
Frequency and duration of visits (before and
after water contamination)
Number of visitor-days for the site (before and
after water contamination)
Concentration level of organic matters
Contingent valuation: Recreational value of the Answers to valuation questions from Subjects understand choices offered and give
willingness to pay for site as valued by willingness survey/bidding game technique/ dichotomous meaningful and honest answers
good water quality to pay by users (US$) choice Subject have sufficient information to give
informed choices
Sample is representative and captures the full
spectrum of users who value the site
No free riders
No strategic bias/influences
Replacement cost: Total cost of clean-up (US$) Type of pollutants Technologies to clean up the pollutants are
cost to clean up Sources of pollutants available and the cost of technologies is
pollutants Concentration level of pollutants affordable
Nutrients Eutrophication Travel cost: Amount Annual recreational value of Data from visitors survey Access to the site is available to all
of money and time the site (US$) Socio-economic variables Visits have a single purpose
Algal blooms spent on the site Geographic origin (before and after Demand function relationship can be specified
eutrophication) No factors aside from travel cost influence site use
Red tides Time spent travelling (before and after Market prices used in valuation are not distorted
eutrophication)
Expenditures incurred in visiting the site
(before and after eutrophication)
Frequency and duration of visits (before and
after eutrophication)
Number of visitor-days for the site (before and
after eutrophication)
Concentration level of nutrients
Contingent valuation: Recreational value of the Subjects understand choices offered and give
Answers to valuation questions from
willingness to pay for site as valued by willingness meaningful and honest answers
survey/bidding game technique/ dichotomous
good water quality to pay by users (US$) Subject have sufficient information to give
choice informed choices
Sample is representative and captures the full
spectrum of users who value the site
No free riders
No strategic bias/influences
Type of pollutants Technologies to clean up the pollutants are
Replacement cost: Total cost of clean-up (US$)
Sources of pollutants available and the cost of technologies is
cost to clean up
Concentration level of pollutants affordable
nutrients
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 37
Table 3.4 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Wetlands.
Types of
Impacts Valuation Technique Indicator of Measurement Data Needed Notes and Assumptions
Pollutants
Oil and Extreme spills Travel cost: Amount Annual recreational value of Data from visitors survey Access to the site is available to all
hydro- smothering of of money and time the site (US$) Socio-economic variables Visits have a single purpose
carbons organisms spent on the site Geographic origin (before and after oil spill) Demand function relationship can be specified
Time spent travelling (before and after oil spill) No factors aside from travel cost influence site use
Expenditures incurred in visiting the site Market prices used in valuation are not distorted
(before and after oil spill)
Frequency and duration of visits (before and
after oil spill)
Number of visitor-days for the site (before and
after oil spill)
Concentration level of oil and hydrocarbons
Contingent valuation: Recreational value of the Answers to valuation questions from Subjects understand choices offered and give
willingness to pay for site as valued by willingness survey/bidding game technique/ dichotomous meaningful and honest answers
good water quality to pay by users (US$) choice Subject have sufficient information to give
informed choices
Sample is representative and captures the full
spectrum of users who value the site
No free riders
No strategic bias/influences
Replacement cost: Total cost of clean-up (US$) Type of pollutants Technologies to clean up the pollutants are
cost to clean up the Sources of pollutants available and the cost of technologies is
oil spill Concentration level of pollutants affordable
Sediments Increased Replacement cost: Total cost of clean-up (US$) Level of sedimentation Technologies to clean up the pollutants are
difficulty of cost to clean up Sources of sedimentation available and the cost of technologies is
transportation sediments affordable
in wetlands
POPs Water quality Travel cost: Amount Annual recreational value of Data from visitors survey Access to the site is available to all
of money and time the site (US$) Socio-economic variables Visits have a single purpose
spent on the site Geographic origin (before and after water Demand function relationship can be specified
contamination) No factors aside from travel cost influence site use
Time spent travelling (before and after water Market prices used in valuation are not distorted
contamination)
Expenditures incurred in visiting the site
(before and after water contamination)
Frequency and duration of visits (before and
after water contamination)
Number of visitor-days for the site (before and
after water contamination)
Concentration level of POPs
Contingent valuation: Recreational value of the Answers to valuation questions from Subjects understand choices offered and give
willingness to pay for site as valued by willingness survey/bidding game technique/ dichotomous meaningful and honest answers
good water quality to pay by users (US$) choice Subject have sufficient information to give
informed choices
Sample is representative and captures the full
spectrum of users who value the site
No free riders
No strategic bias/influences
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
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Table 3.4 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Wetlands.
Types of
Impacts Valuation Technique Indicator of Measurement Data Needed Notes and Assumptions
Pollutants
Replacement cost: Total cost of clean-up (US$) Type of pollutants Technologies to clean up the pollutants are
cost to clean up Sources of pollutants available and the cost of technologies is
pollutants Concentration level of pollutants affordable
Solid Smothering of Travel cost: Amount Annual recreational value of Data from visitors survey Access to the site is available to all
waste organisms of money and time the site (US$) Socio-economic variables Visits have a single purpose
(plastics) spent on the site Geographic origin (before and after solid Demand function relationship can be specified
waste contamination) No factors aside from travel cost influence site use
Time spent travelling (before and after solid Market prices used in valuation are not distorted
waste contamination)
Expenditures incurred in visiting the site
(before and after solid waste contamination)
Frequency and duration of visits (before and
after solid waste contamination)
Number of visitor-days for the site (before and
after solid waste contamination)
Contingent valuation: Recreational value of the Answers to valuation questions from Subjects understand choices offered and give
willingness to pay for site as valued by willingness survey/bidding game technique/ dichotomous meaningful and honest answers
good water quality to pay by users (US$) choice Subject have sufficient information to give
informed choices
Sample is representative and captures the full
spectrum of users who value the site
No free riders
No strategic bias/influences
Replacement cost: Total cost of clean-up (US$) Volume of wastes Technologies to clean up the pollutants are
cost to clean up Sources of wastes available and the cost of technologies is
plastics affordable
Thermal Loss of species Travel cost: Amount Annual recreational value of Data from visitors survey Access to the site is available to all
pollution of money and time the site (US$) Socio-economic variables Visits have a single purpose
spent on the site Geographic origin (before and after) Demand function relationship can be specified
Time spent travelling (before and after) No factors aside from travel cost influence site use
Expenditures incurred in visiting the site Market prices used in valuation are not distorted
(before and after)
Frequency and duration of visits (before and
after)
Number of visitor-days for the site (before and
after)
Water temperature
Contingent valuation: Recreational value of the Answers to valuation questions from Subjects understand choices offered and give
willingness to pay for site as valued by willingness survey/bidding game technique/ dichotomous meaningful and honest answers
good vegetation to pay by users (US$) choice Subject have sufficient information to give
informed choices
Sample is representative and captures the full
spectrum of users who value the site
No free riders
No strategic bias/influences
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 39
Table 3.4 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Wetlands.
Types of
Impacts Valuation Technique Indicator of Measurement Data Needed Notes and Assumptions
Pollutants
Replacement cost: Total cost of going to Distance of other sites Alternative location comparable/ accessible
cost to visit other alternative sites (US$) Cost of going to the site Market price used in valuation are not distorted
areas to see the
species
Human Welfare
Heavy Water quality Cost of illness Total value of lost human Salaries/wages for labour Health and productivity can be restored to
metals labour (US$) and total cost Duration of illness and recovery (number of previous levels
of hospitalisation and days lost) Types of water use can be identified
treatment Hospitalisation and treatment cost
Number of affected people
Substitute price Total annual cost of Quantity of food consumed Substitute food acceptable
approach: cost of sourcing food from Price per unit quantity of food sourced Market prices used in valuation not distorted
sourcing food alternative sites/equivalent elsewhere/equivalent food
elsewhere/cost of food
equivalent food
Contamination Cost of illness Total value of lost human Salaries/wages for labour Health and productivity can be restored to
of human food labour (US$) and total cost Duration of illness and recovery (number of previous levels
sources of hospitalisation and days lost) Market price used in valuation are not distorted
treatment Hospitalisation and treatment cost
Number of affected people
Substitute price Total annual cost of Quantity of food consumed Substitute food acceptable
approach: cost of sourcing food from Price per unit quantity of food sourced Market prices used in valuation not distorted
sourcing food alternative sites/equivalent elsewhere/equivalent food
elsewhere/cost of food
equivalent food
Organic Water quality Cost of illness Total value of lost human Salaries/wages for labour Health and productivity can be restored to
matter labour (US$), and total cost Duration of illness and recovery (number of previous levels
of hospitalisation and days lost) Market prices used in valuation not distorted
treatment Hospitalisation and treatment cost
Oil and Contamination/ Substitute price Total annual cost of Quantity of food consumed Substitute food acceptable
hydrocarb tainting of approach: cost of sourcing food from Price per unit quantity of food sourced Market prices used in valuation not distorted
ons aquaculture sourcing food alternative sites/equivalent elsewhere/equivalent food
and wild fish elsewhere/cost of food
equivalent food
Cost of illness Total value of lost human Salaries/wages for labour Health and productivity can be restored to
labour (US$), and total cost Duration of illness and recovery (number of previous levels
of hospitalisation and days lost) Market prices used in valuation not distorted
treatment Hospitalisation and treatment cost
Number of affected people
POPs Water quality Substitute price Total annual cost of Quantity of food consumed Substitute food acceptable
approach: cost of sourcing food from Price per unit quantity of food sourced Market prices used in valuation not distorted
sourcing food alternative sites/equivalent elsewhere/equivalent food
elsewhere/cost of food
equivalent food
UNEP/GEF/SCS/RTF-E.3/3
Annex 4
Page 40
Table 3.4 continued Procedures to Undertake Valuation of Impacts of Land-based Pollution on Wetlands.
Types of
Impacts Valuation Technique Indicator of Measurement Data Needed Notes and Assumptions
Pollutants
Cost of illness Total value of lost human Salaries/wages for labour Health and productivity can be restored to
labour (US$), and total cost Duration of illness and recovery (number of previous levels
of hospitalisation and days lost) Market prices used in valuation not distorted
treatment Hospitalisation and treatment cost
Number of affected people
Contamination Substitute price Total annual cost of Quantity of food consumed Substitute food acceptable
of human approach: cost of sourcing food from Price per unit quantity of food sourced Market prices used in valuation not distorted
source food sourcing food alternative sites/equivalent elsewhere/equivalent food
elsewhere/cost of food
equivalent food
Cost of illness Total value of lost human Salaries/wages for labour Health and productivity can be restored to
labour (US$), and total cost Duration of illness and recovery (number of previous levels
of hospitalisation and days lost) Market prices used in valuation not distorted
treatment Hospitalisation and treatment cost
Number of affected people
Solid Cost of illness Total value of lost human Salaries/wages for labour Health and productivity can be restored to
waste Breeding labour (US$), and total cost Duration of illness and recovery (number of previous levels
(plastics) ground for of hospitalisation and days lost) Market prices used in valuation not distorted
disease treatment Hospitalisation and treatment cost
Number of affected people
Clean-up cost Total cost of cleaning up Amount of solid waste
solid waste
Bacterial Contamination Substitute price Total annual cost of Quantity of food consumed Substitute food acceptable
contamin of human food approach: cost of sourcing food from Price per unit quantity of food sourced Market prices used in valuation not distorted
ation sources sourcing food alternative sites/equivalent elsewhere/equivalent food
elsewhere/cost of food
equivalent food
Cost of illness Total value of lost human Salaries/wages for labour Health and productivity can be restored to
labour (US$), and total cost Duration of illness and recovery (number of previous levels
of hospitalisation and days lost) Market prices used in valuation not distorted
treatment Hospitalisation and treatment cost
Number of affected people
UNEP/GEF/SCS/RTF-E.3/3
Annex 5
Page 1
ANNEX 5
Proposed Outline for a Manual on the Evaluation of Ecosystems that are of Interest
to the South China Sea Project
I. INTRODUCTION (Dr. Pernetta)
This portion will deal with the importance of doing economic valuation of the ecosystems to
the project. This will also deal with how general valuation framework and the ecosystem-
specific valuation frameworks were arrived at/formulated.
II. COST BENEFIT ANALYSIS (Dr. Thanwa)
This portion will discuss the conceptual frameworks of ordinary and extended cost benefit
analysis, and their major elements or components. It will include the definition of cost and
benefit, formula, indicators and investment criteria (net present value, benefit-cost ratio,
internal rate of return).
A. Ordinary cost benefit analysis
Net present value
Benefit-cost ratio
Internal rate of return
Payback period
Sensitivity analysis
B. Extended cost benefit analysis
External cost and benefit
Net present value
Benefit-cost ratio
Internal rate of return
Payback period
Sensitivity analysis
III. THE GENERAL OVERALL VALUATION FRAMEWORK (Dr. Noel)
This portion will discuss the various elements of the framework (total economic value) use
value (direct, indirect, option), non-use value (quasi-option, bequest, existence). Included
in the discussion is the definition of each element and their appropriate usage.
Total Economic Value
A. Use Value
1. Direct Use (discuss also the types of direct uses i.e., extractive, non-
extractive, etc.)
2. Indirect Use (discuss also the various indirect uses i.e., environmental
services, biological diversity, etc.)
3. Option Use
UNEP/GEF/SCS/RTF-E.3/3
Annex 5
Page 2
B. Non-Use Value
1. Quasi-Option Use
2. Bequest Use
3. Existence Use
III. THE VALUATION TECHNIQUES
This portion will discuss the various techniques and their appropriate usage. The outline for this
section can be as follows:
A. Market Based Value (Dr. Tridoyo)
1. Direct Value (On site value)
2. Indirect Value
a. Change in Productivity
b. Shadow Project
c. Defensive/Preventive Expenditure
d. Cost of Illness
e. Replacement Cost
B. Surrogate Market Based (Dr. Suparmoko)
1. Hedonic Price
2. Travel Cost
C. Simulated Value Survey-Based (Mr. Ramony)
1. Contingent Valuation
2. Choice Modelling
IV. VALUATION OF ECOSYSTEMS
This portion will deal with how to arrive at the economic values of the various ecosystems
(Mangrove, Seagrass, Coral Reef, Wetlands). Included in the discussions are the sources of
values (based on the adopted framework for valuation of mangroves), data required (based on the
agreed matrix) and techniques of generating the data. The outline for this section can be as
follows:
A. Mangrove Ecosystem (Dr. Thanwa)
1. Sources of values and method of computation
a. Direct Use (Extractive)
i. Timber (what are they used for; how is the economic value computed?)
ii. Firewood (uses, e.g., domestic cooking, bakery, etc.; how is the economic
value computed?)
iii. etc.
b. Direct (Non Extractive)
i. Tourism/Recreation (ways of enjoying the ecosystem; how is the economic
value computed?)
ii. Research and education (types of undertakings; how is the economic
value computed?)
c. Indirect (Environmental Services)
i. Shoreline protection (how do they protect?; how is the economic value
computed?)
UNEP/GEF/SCS/RTF-E.3/3
Annex 5
Page 3
ii. Windbreak (how do they function as such?; how is the economic value
computed?)
iii. ETC.
d. Indirect (Biological diversity)
i. Value of genes, etc. (computation of economic value)
ii. ETC.
e. Option (Dr. Chinh)
f. Bequest (Dr. Chinh)
g. Existence (Socio-cultural significance)
i. Religious/spiritual significance (how are they significant?; how is the
economic value computed?)
ii. ETC.
2. Data required and techniques to generate them
This subsection will follow the outline of the previous subsection, this time identifying
the various data requirements and the ways of generating the data to enable the
researcher to compute for the economic value for a particular use.
B. Coral Reef Ecosystem (Dr. Suparmoko)
This section can likewise follow the previous section’s outline and discussion
elements.
C. Wetlands Ecosystem (Dr. Ninh)
This section can follow the outline of the previous section, including the elements of
discussion.
D. Sea grass Ecosystem (Dr. Khalid)
This section can also follow the previous section’s outline and the discussion
elements.
V. VALUING THE IMPACTS OF LAND-BASED POLLUTION (Dr. Noel)
VI. CONCLUSION (Dr. Noel)
This will encourage the reader to apply the methods and techniques indicated.
UNEP/GEF/SCS/RTF-E.3/3
Annex 6
Page 1
ANNEX 6
Table 1 Draft Summary Table for Empirical Data Relating to Economic Valuation of Mangrove Extractive (direct) Uses.
Date of Total Area Volume Unit Net Value Valuation
2
Location Currency
1 3
Valuation (ha) (per ha) Price (per ha) Method
Timber
Reference A
Reference B
Reference C
Firewood
Reference A
Reference B
Poles
Charcoal
Leaves/palm fronds (Thatch,
fodder)
Fruit/propagules
Bark (tanning & dyes)
Medicine
Sap (sugar, alcohol, Acetic acid)
Wood tar
Fish capture
Crab capture
Prawn capture
Shellfish collection
Insect and larvae collection
Worms
Wildlife
Zooplankton
Jellyfish
Honey & wax
Algae
Other uses (specify)
1
Unit net price is the market price minus harvesting and production cost.
2
Currency used in original studies, references or publications.
3
The valuation methods should include details of prices used.
UNEP/GEF/SCS/RTF-E.3/3
Annex 7
Page 1
ANNEX 7
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE UNITED NATIONS ENVIRONMENT PROGRAMME
AND
[Insert National Institute or Agency of the Members of the Task Force] ON THE EXECUTION OF
ACTIVITIES ON ECONOMIC VALUATION FOR THE UNEP/GEF PROJECT ENTITLED:
“REVERSING ENVIRONMENTAL DEGRADATION TRENDS IN THE SOUTH CHINA SEA AND
GULF OF THAILAND”
(Ref.: UNEP/GEF/SCS/Cam/MoU###)
1. PARTIES. This Memorandum of Understanding is entered into between the United Nations
Environment Programme (UNEP), and [Insert National Institute or Agency of the Members of the
Task Force], for the execution of activities on economic valuation under the framework of the
UNEP/GEF Project entitled “Reversing environmental degradation trends in the South China Sea and
Gulf of Thailand”.
2. BACKGROUND. The UNEP/GEF Project Brief entitled “Reversing Environmental
Degradation Trends in the South China Sea and Gulf of Thailand” (hereafter called the South China
Sea Project) was approved by the GEF Council in November 2000, following its approval by the 15th
meeting and special session of COBSEA4, held in Pattaya, Thailand, 11-12th September 2000. The
project brief was endorsed by the GEF Operational Focal Point for [Insert country name] on behalf of
the Government, [Insert date of endorsement].
The overall goals of the South China Sea Project are: to create an environment at the regional level,
in which collaboration and partnership in addressing environmental problems of the South China Sea,
between all stakeholders, and at all levels is fostered and encouraged; and to enhance the capacity of
the participating governments to integrate environmental considerations into national development
planning.
The Regional Task Force on Economic Valuation was established by the Project Steering Committee
(PSC) during its second meeting, in Hanoi, December 2002, to serve as the principal source of
economic advice and information to the PSC, the Regional Scientific and Technical Committee
(RSTC), and Specialised Executing Agencies. To fulfil the tasks stipulated in the Terms of Reference
of the Task Force, and provide the advice regarding economic valuation of coastal habitats and
resources the Regional Task Force on Economic Valuation has developed valuation frameworks for
use in the context of the demonstration sites that will be initiated during 2005.
The role of the members of the RTF-E is primarily to gather and consolidate information on the
economic valuation of coastal environmental goods and services, and provide advice
regarding regional values that can be applied in the framework of the Strategic Action
Programme.
3. PURPOSE. Under this Memorandum of Understanding the [Insert National Institute or
Agency of the Members of the Task Force] agrees to make available the services of [Insert Mr./Dr.
Member of the Task Force] in [Insert Country]. It is critical to the project that all RTF-E members
from the participating countries function effectively if the overall goals of the project are to be
met, hence the [Insert National Institute or Agency of the Members of the Task Force] agrees to
release [Insert Mr./Dr. Member of the Task Force] for an estimated 10% of their time over the next
year in order to fulfil the tasks and responsibilities detailed in this agreement.
4. GENERAL CONDITIONS. The United Nations Standard Conditions for Memoranda of
Understanding are attached as Annex I and form a part of this Memorandum.
4
UNEP, 2000. Report of the Fifteenth Meeting of the Co-ordinating Body for the Seas of East Asia (COBSEA) on the East
Asian Seas Action Plan (Special Session for the UNEP GEF Project in the South China Sea) and Report of the Meeting of
National Experts for the UNEP GEF Project in the South China Sea. UNEP(DEC)/EAS IG.11/3.
UNEP/GEF/SCS/RTF-E.3/3
Annex 7
Page 2
5. TASKS BY DESIGNATED INSTITUTION. The Expert Member on behalf of the Institution, in
close collaboration with the Members of the National Technical Working Group, and with the support
of the National Technical Focal Point, agrees to carry out the tasks, outlined below and in accordance
with the work plan, agreed during the third meeting of the RTF-E (Figure 2).
1. Engage the services, and direct the work of, a research assistant in compiling existing
empirical data regarding the economic values of goods and services in accordance with
the uses listed in the agreed frameworks for Mangroves, coral reefs, seagrass and
wetlands and in the format attached as Annex 2 to this agreement.
2. Direct the work of the assistant in analysing the national information both published and
un-published with a view to providing data regarding standardised values that can be
compared between countries.
3. Produce a synoptic report on the outcome of the review of economic valuations of coastal
resources and environments in [insert name of country].
6. TASKS BY UNITED NATIONS. UNEP agrees to perform the following tasks:
Provide the financial resources according, to the agreed schedule, detailed in Table 1 of this
Memorandum, established between UNEP and [Insert National Institute or Agency of the
Members of the Task Force].
7. TRANSFER OF PAYMENTS AND RELEASE OF FUNDS. Transfer of payments and release
of funds will be undertaken as follows:
i. Monetary contributions by UNEP will be made in US dollars by wire transfer to the
following account:
Name of Account Holder:
Account number:
Name of Bank:
Address of bank:
Swift Code:
ii. The initial cash advance will be made upon final clearance of this agreement by the
GEF and signature by UNEP.
iii. The Specialised Executing Agency shall report the end year expenditure accounts at
31 December, certified by a duly authorised official, but, in addition, UNEP requires that the
end of year expenditure account should be reported in an opinion by a recognized firm of
public accountants (for a government, by Government auditors), which shall be dispatched to
UNEP by 31 March. In particular, the auditors should be asked to report whether, in their
opinion:
• Proper books of account and records have been maintained;
• All project expenditures are supported by vouchers and adequate documentation; and,
• Expenditures have been incurred in accordance with the objectives outlined in the
Memorandum of Understanding.
8. REFUND OF UNSPENT BALANCE. The Designated Institution will refund to UNEP in US
dollars any unspent balance of the funds provided by UNEP within 30 days after completion of the
final task. Such refund should be wired to:
Name of account holder: ESCAP
Account number: 001-1-014313
Name of bank: Chase Manhattan Bank
Address of bank: New York
ABA number: 021000021
UNEP/GEF/SCS/RTF-E.3/3
Annex 7
Page 3
9. CORRESPONDENCE. All correspondence regarding this agreement should be addressed to:
In [Insert Country Name]:
To:
[Insert Co-ordinates of the Member of the Task Force]
Copied to:
[Insert the Co-ordinates of the National Focal Point]
In UNEP:
Project Director,
South China Sea Project Co-ordination Unit,
United Nations Environmental Programme,
United Nations Building, 2nd Floor, Block B,
Rajdamnern Nok Avenue,
Bangkok 10200, Thailand.
Tel: (662) 288 1886
Fax: (662) 288 1094
Copied to:
Chief, Budget and Financial Management Services,
United Nations Office at Nairobi (UNON)
P.O. Box 30552,
Nairobi, Kenya.
Tel: (254 20) 623 637, 623 632
Fax: (254 20) 623 755, 623 614
10. EFFECTIVE DATE. This Memorandum of Understanding shall enter into effect when signed
in duplicate by the authorised persons below and shall expire on 31 December, 2006. Three months
prior to the expiry of this agreement a new agreement may be negotiated taking into account the
decisions of the Project Steering Committee regarding activities to be executed during the remainder
of the project period.
______________________________ ___________________________
Project Director,
Insert Co-ordinates of the Member of
South China Sea Project Co-ordination Unit,
the Task Force
United Nations Environmental Programme,
United Nations Building, 2nd Floor, Block B,
Rajdamnern Nok Avenue,
Bangkok 10200, Thailand.
Date:__________________________ Date:__________________________
UNEP/GEF/SCS/RTF-E.3/3
Annex 8
Page 1
ANNEX 8
Work Plan for the RTF-E (2005-2006) and Schedule of Meetings for the UNEP/GEF South China Sea Project
Table 1 Work Plan for the Regional Task Force on Economic Valuation for 2005-2006.
Year 2005 2006
Month 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12
X
Second Regional Scientific Conference
X
Fourth RTF-E Meeting
1. Development of a framework and procedures to value the impacts of land-
based pollution
rd
1.1 Drafts to be completed during the 3 RTF-E meeting
1.2 Comments or other inputs to be provided to the PCU prior to
3rd
finalisation of the framework and procedures
2. Development of an economic valuation manual for use in the demonstration
sites and pilot activities
X
2.1 Agree on the format and individual responsibilities
2.3 Draft sections circulated by members X
X
2.4 Comments from RTF-E members
X
2.5 Revision of drafts based on comments received
2.6 Manual compiled into first draft for distribution during the second Regional
X
Scientific Conference
2.7 Final editing and clearance of the manual based on feedback from the
X
Regional Working Groups
3. Development of a regional database of empirical economic values for
coastal goods and services
X
3.1 Agree on activities and budgets
X
3.2 Prepare and sign Memoranda of Understanding
3.3 Members undertake the agreed activities
3.4 First compilation of data submitted to the PCU and other members of the
X
RTF-E
3.5 Comments/discussion by Members on the first draft
3.6 Development of procedures for deriving “national” and regional values
X
3.7 Further amplification of data and procedures and compilation of second draft
3.8 Discussion and agreement of procedures for deriving “national” and
“regional” values
X
4. Inputs to the updating of the Strategic Action Programme
UNEP/GEF/SCS/RTF-E.3/3
Annex 8
Page 2
Table 2 Schedule of Meetings for 2005. (RWG = Regional Working Group; -M = Mangroves; -CR = Coral reefs; -SG = Seagrass; -W = Wetlands; -F= Fisheries;
LbP = Land-based Pollution; RTF-E = Regional Task Force on Economic Valuation; RTF-L = Regional Task Force on Legal Matters) (H = United Nations Holidays)
S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M
January 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
H H
February 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
RSTC
Chinese NY H
EXCOM
March 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
RTF-L-3
April 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
RTF-E-3
H H
May 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
H
June 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
July 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
RWG-LbP-6
August 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
RWG-M-6 RWG-CR-6
H
September 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
RWG-F-6 RWG-W-6 RWG-SG-6
October 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
Ramadan
November 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Ramadan RSC-2
H
December 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
RSTC-6 PSC-5 Xmas
H H