by: Joy C. Lizada*, Gay D. Defiesta, Rodelio F. Subade, and Paul Erwen T. Parreño
This study involved the valuation of direct use value of environmental damages due to oil spill in southern part of Guimaras Island. Direct use value is treated as a component of the total economic value (TEV). A field survey was conducted on October 6 – 28, 2006 to generate data on income changes from livelihood activities and changes in recreational benefits of households whose livelihoods and recreational benefits were impaired by the oil spill. The study had a sample size of 615 households and respondents were chosen using stratified random sampling.
The study revealed that the oil spill greatly affected the livelihood and recreation activities of the respondents in Guimaras Island. The foregone income from the livelihood activities affected by the oil spill in southern Guimaras was about P 42 million. Meanwhile, the lost recreational value at wage rate of P12.38 per hour, ranged from about P 43 million at 20% wage rate to P 2 million at full wage rate.
The estimated direct use value of environmental damages due to the oil spill in Guimaras Island ranged from P 42 million at 20% wage rate to P 44 million at full wage rate. Given that the sample was about 4.42 percent of the 13,917 directly affected households, by ratio and proportion the indicative direct use value of environmental damages due to the oil spill in Guimaras Island would range from P970 million to P1 billion. This amount represents the upper bound estimate loss of benefits of affected households due to the oil spill.
Keywords: