Non-Use Values in Natural Resource Damage Assessment An Estimate for the MT Solar 1 Oil Spill Offshore Guimaras, Philippines


by: Rodelio SubadeĀ 


This paper assessed whether non use values were affected due to the oil spill from the M/T Solar 1, which sank offshore south Guimaras on August 11, 2006. Contingent valuation survey was conducted through personal interviews of 250 randomly selected respondents in Poblacion, Calinog, Iloilo. Results confirmed there were non use values reflecting preference towards the prevention of oil spills similar to what happened in Guimaras and vicinity. Moreover, 41% of the respondents would be willing to pay a contribution which will build a trust fund to be allocated for a program that will minimize or prevent the occurrence of oi l spil ls. Respondent WTP was computed using the survivor function, at PhP74.50, which could translate to PhP92.5 million for the whole Western Visayas, and can reach PhP1.1 billion for the whole country. This confirmation of affected nonuse values and its potential magnitude if included in oil spill damage compensation can prevent or decrease possible occurrence of similar oil spill(s) in the future.

Keywords: Non use values, economic valuation, Solar 1 oil spill