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Establishment of a protected area in Vanuatu

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  • Centre for International Economics
Abstract
The Australian Centre for International Agricultural Research (ACIAR) project ANREI/90/20 assisted in the establishment of a number of protected areas in Vanuatu by improving information flows and by establishing appropriate institutional structures. The total research benefit from this project is estimated to be: - A$1.89 million divided up as follows.$0.14 million is the present value to landowners, based on estimates of the surplus—return on land above logging returns foregone. For most areas, the benefits to the landowners exceeded the returns from logging and the landowners were willing to establish the area without compensation arrangements. - $1.07 million is the project’s contribution to improving the net returns on logging activities—assuming that only 10 per cent of the actual change can be attributed to the project. The project significantly improved the economic outcomes for logged areas through (i) training and (ii) the establishment of institutions that improved control by the Department of Forests (Vanuatu) and strengthened the landowners’ rights. This enabled Vanuatu to negotiate for higher royalties on timber harvests, the acceptance of codes of practice for harvesting, and lower the environmental costs of logging. - $0.67 million is the net present value of tourist payments, assuming a growth in tourism of 1 per cent a year. A willingness-to-pay survey of Australian tourists to Vanuatu, which was part of the project, put a value on protected areas of $20 per tourist. This benefit accrues to Australian tourists unless a charge is levied on tourists. Such a charge is a potential source of income for the Vanuatu economy. When the contributions of the project to the affected landowners, the broader community and Australian tourists are added, the net present value of the project is estimated at just under $1.5 million, a benefit–cost ratio of 4.5:1, at a discount rate of 5 per cent. The internal rate of return is 22 per cent. The project also estimated Australian households were willing to pay, on average, $3 per household to protect forests in Vanuatu. While it was revealed that payment is more likely to be the value placed on forest conservation in the Pacific Islands rather than just in Vanuatu, it provides a basis for justifying assistance by Australia of around $0.5 million a year for improving conservation practices in the region.

Suggested Citation

  • Centre for International Economics, 1998. "Establishment of a protected area in Vanuatu," Impact Assessment Series (IAS) 47192, Australian Centre for International Agricultural Research.
    • Handle: RePEc:ags:aciias:47192
    DOI: 10.22004/ag.econ.47192
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    References listed on IDEAS

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    1. Tacconi, Luca & Bennett, Jeff, 1995. "Economic implications of intergenerational equity for biodiversity conservation," Ecological Economics, Elsevier, vol. 12(3), pages 209-223, March.
    2. Tacconi, Luca & Bennett, Jeffrey W., 1997. "Protected Area Assessment and Establishment in Vanuatu," Monographs, Australian Centre for International Agricultural Research, number 118037.
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    Cited by:

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    2. Pearce, David & Monck, Michael, 2006. "Benefits to Australia of selected CABI products," Impact Assessment Series (IAS) 113171, Australian Centre for International Agricultural Research.
    3. Warner, Robert & Bauer, Marcia, 2002. "Mama Lus Frut scheme: an assessment of poverty reduction," Impact Assessment Series (IAS) 47698, Australian Centre for International Agricultural Research.
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    5. Pearce, David, 2005. "Identifying the Sex Pheromone of the Sugarcane Borer Moth Economic impact of ACIAR project CS2/1991/680," Impact Assessment Series (IAS) 113216, Australian Centre for International Agricultural Research.
    6. McLeod, Ross, 2001. "Control of Footrot in Small Ruminants of Nepal," Impact Assessment Series (IAS) 47694, Australian Centre for International Agricultural Research.
    7. Corbishley, James & Pearce, David, 2006. "Zero Tillage for Weed Control in India: the Contribution to Poverty Alleviation," Impact Assessment Series (IAS) 113172, Australian Centre for International Agricultural Research.
    8. Pearce, David & Monck, Michael & Chadwick, Kevin & Corbishley, James, 2006. "Benefits to Australia from ACIAR-funded Research," Impact Assessment Series (IAS) 113213, Australian Centre for International Agricultural Research.
    9. Pearce, David, 2002. "Measuring the poverty impact of ACIAR projects: a broad framework," Impact Assessment Series (IAS) 47697, Australian Centre for International Agricultural Research.
    10. Jiang, Tingsong & Pearce, David, 2005. "Shelf-life Extension of Leafy Vegetables: Evaluating the Impacts," Impact Assessment Series (IAS) 113218, Australian Centre for International Agricultural Research.
    11. Bauer, Marcia & Pearce, David & Vincent, David P., 2003. "Saving a Staple Crop: Impact of Biological Control of the Banana Skipper on Poverty Reduction in Papua New Guinea," Impact Assessment Series (IAS) 113227, Australian Centre for International Agricultural Research.
    12. van Bueren, Martin, 2004. "Eucalypt Tree Improvement in China," Impact Assessment Series (IAS) 113221, Australian Centre for International Agricultural Research.
    13. McLeod, Ross, 2003. "Improved Methods in Diagnosis, Epidemiology, and Information Management of Foot-and-Mouth Disease in Southeast Asia," Impact Assessment Series (IAS) 113248, Australian Centre for International Agricultural Research.

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