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c.1 Valuation of Tropical
Coastal Resources:
Theory and Application
of Linear Programming
Edited by
Annabelle Cruz-Trinidad

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International Center for Living Aquatic
Resources Management
 C
Valuation of Tropical Coastal Resources:
~ h k o and
r ~ Application of Linear Programming

Edited by
Annabelle Cruz-Trinidad

International Center for Living Aquatic

for Latin America and the Caribbean IMWRM Resources Management
Valuation of Tropical Coastal Resources:
Theory and Application of Linear Programming

Edited by
ANNABELLE
CRUZ-TRINIDAD

1996

Printed in Manila, Philippines

Published by the United Nations Economic Commission for Latin America and the Caribbean (ECLAC),
Casilla 179-D, Santiago, Chile; and the International Center for Living Aquatic Resources Management (ICLARM),
MCPO Box 263 1, 07 18 Makati City, Philippines

ICLARM's technical services were developed in response to the lack of existing publishing
outlets for longer papers on tropical fisheries research.
The ICLARM Studies and Reviews series consist of cimcise documents providing thorough
coverage of topics of interest to the Center, which are undertaken by staff or by external specialists
on commission.
Essentially, all documents in the series are carefully peer reviewed externally and internally.
A number have been rejected. Those published are thus primary literature. Between 600 and 1,000
copies of each title are disseminated - sold or provided in exchange or free of charge.

Cruz-Trinidad. A,, Editor 1996. Valuation of tropical coastal resources: theory and application of linear
progmmming. ARM Stud. Rev. 25, 108 p.
AF

Copyediting and indexing: Leticia B. Dizon

Gmphs and artwork: Albert B. Contemprate
Layout: Arid C. Aquisap and Ma. Graciela R. Balleras

Cover. An abstmction of the multiactivity feature of the coastal zone. Lines represent the diverse resource use
and the hatched (shaded) area, the optimal allocation of resources. Illustration by Chris Bunao.
constraints

ISSN 01 15-4389
ISBN 97 18709-72-X

ICLARM Contribution No. 1223

 Contents

Foreword M. J. Williams, ZCLARM and A. Dourojeanni, ECLAC .................................................... v

Foreword D. Pauly ........................................................................................................................... vi

...
Preface A. Cruz-Trinidad ................................................................................................................ VIII

The Integrated Functional Coefficients Method for Coastal Resources Valuation

M. Aguero, A. Cruz-Trinidad, E. Gonzalez and E Bell ...................................................................... 1

Valuation ConcepB and Techniques with Applications to Coastal Resources

M. Aguero and X. Flores .................................................................................................................... 9

Options for Mangrove Management in the Gulf of Guayaquil, Ecuador

F: Bell and A. Cruz-Trinidad............................................................................................................ 17

Optimization of Economic Benefits from Fishery, Forestry and Tourism in Bio-Bio, Chile
E. Araneda, A. Cruz-Trinidad, I.: Morales and A. Arellano ............................................................ 32

Options for Land Use Management in Lingayen Gulf, Philippines

A. Cruz-Trinidad, 2. Alojado and A. Cargamento .......................................................................... 64

Optimal Fleet Configuration in San Miguel Bay, Philippines:

A Simple Linear Programming Approach
A. Cruz-Trinidad and L. R. Garces ................................................................................................... 78

OPUS: Interactive Software for Solving Linear Programming Models Using

the Simplex Algorithm M. Agiiero and StafSof ICLARM-ECLAC Project ..................................... 87

Appendix 1 - Documentation of LP Tableaus .................................................................................... 97

Appendix 2 - Glossary of Technical Terms ........................................................................................ 97

Authormame Index .......................................................................................................................... 100

Geographic Index .............................................................................................................................. 102

Species Index .................................................................................................................................... 104

 Foreword

This volume marks the culmination of ICLARM and ECLAC's collaboration which started in 1990
via the project entitled "Socioeconomic Valuation of Coastal Resources in Southwest Latin America."
The worldwide trend in environmental degradation has not spared Latin America, particularly that
involving large-scale mangrove conversion into shrimp ponds, and conflicting use of aquatic resources
such as by fisheries and by other industries. The project aims to derive appropriate social and economic
values for selected coastal resources in order to help rationalize their present use and management. The
project's important achievements include a linear programming software package, OPUS; applications
of linear programming models to four selected sites in Latin America and the Philippines; and a review
of existing valuation methods for environmental and natural resources. The essence of the work done
by ICLARM and ECLAC is fully captured in this volume.
We would like researchers and managers to use and review our work in order to better understand
the dynamics of coastal management problems and to appreciate decision tools such as OPUS. We
commend all the authors including ICLARM and ECLAC staff who contributed their efforts to this
book.

MERYL
J. WILLIAMS AXELDOUROJEANNI
Director General Chiej Division of Natural
ICLARM Resources and Energy
ECLAC- United Nations
 Foreword
This book concludes a joint project on "Socioeconomic Valuation of Coastal Resources in Southwest
Latin America" between the United Nations Economic Commission for Latin America and the Caribbean
(ECLAC), Santiago, Chile, and the International Center for Living Aquatic Resources Management
(ICLARM), Manila, Philippines, initiated in 1990, but whose antecedents reach much deeper. One key
starting point was the doctoral thesis of the leader of that project, Dr. Max Agiiero, on Chilean fisheries,
which used Linear Programming (LP) as its major tool. Dr. Max Agiiero joined ICLARM in March
1986 and had soon convinced his colleagues that LP could serve as framework for studies of complex
biosocioeconornic systems such as the pelagic fisheries of Peru, or the floodplain fisheries of Bangladesh,
studied in the context of a Ph.D. thesis that he supervised.
It was logical thus to assume that LP would also be applicable to the study of coastal areas, whose
apparent complexity then seemed to defy formal analysis, allowing only conceptual description. A
project to test the suitability of LP-based approaches for the analysis of intersectoral interaction and the
valuation of coastal resources was thus conceived, and ECLAC identified as the best possible partner
for such venture.
Dr. M. Agiiero relocated from Manila to Santiago in April 1990, and immediately built a team
consisting of young researchers and a programmer to develop and test suitable LP software, and to
apply the LP approach to various sites in Chile and the Ecuadorian coast.
For the project to have developed its own LP software ("OPUS", see below) may appear unnecessary,
as commercial packages exist - as stand alone applications, or as part of spreadsheet programs (e.g.,
Microsoft Excel, Quattro Pro) - which can handle such problems. However, spreadsheets with LP
applications did not exist when the project started, and were not anticipated.
One particular problem which the project had to tackle was the costing of nonmarket goods and
services, i.e., the "internalization" of (or: explicitly accounting for) what economists call "externalities".
The contributions in this book provide some practical approaches for doing this. Still, this vexing problem
is going to continue to be with us and continue to be a major cause for environmental degradation and
pollution.
The ICLARM-ECLAC Coastal Valuation Project was foreseen to have two phases, Phase I for
concept and software development and Phase 11, for their application to various sites in Chile and
elsewhere in South America. In June 1992, an external review panel led by Dr. L. Fallon-Scura concluded
that the project was "technically sound, the methods developed potentially useful, is compatible with
the future ICLARM and therefore, should continue with Phase II". Unfortunately, ICLARM did not
have the core funds required for Phase I1 of the project.
Ms. Abbie Cruz-Trinidad, an ICLARM researcher who had previously collaborated with Dr. Agiiero,
took over the task of completing and editing the publication from the numerous internal reports prepared
during Phase I of the project, and thus documenting the application of OPUS to various sites in Chile
and Ecuador. Moreover, she teamed up with staff from two other ICLARM research projects - one
covering San Miguel Bay, the other, Lingayen Gulf, both in the Philippines, to show that the LP approach
developed by the ICLARM-ECLAC team also would work in the Southeast Asian context.
We take the success of this transfer from South America to Southeast Asia as implying that the
approach documented in this book can be applied to any coastline. However, we do not suggest that this
approach should ever be used alone: the complexities within and among sectoral interactions occurring
along the coastlines of the world cannot be described, let alone predicted by the variables - however
numerous they may be - of any single model. This implies that wherever possible, a wide variety of
methodological approaches should be used with the one presented in this book being one among others.
I congratulate the authors of the contributions included in this book, especially Dr. Max Agiiero, for
their daring to quantify and thus render available for analysis coastal interactions which others would
have only talked about, and Ms. Abbie Cruz-Trinidad, for rising to the challenge of editing this volume.
Finally, I thank the Economic Commission for Latin America and the Caribbean (ECLAC) for
being a gracious host to the project that led to this book, and for its help in maintaining communications
between the editors and the now scattered contributors.

DANIELPAULY
Principal Science Advisol; ICLARM

vii
 Preface

This volume contains seven papers, two of which tackle the conceptual elements of Linear
Programming and resources valuation; four are application papers while the last is the users' manual in
support of OPUS, the LP software developed by this project. Two application papers are from Latin
America: one from the Bio-Bio region in Chile and the other from the Gulf of Guayaquil, Ecuador. The
other two are from the Philippines: San Miguel Bay, in Bicol province, for which ICLARM conducted
multidisciplinary studies in 1980 and 1992; and Lingayen Gulf, also the site of ICLARM7scoastal area
management project (1986- 1991) and later, Geographic Information Systems (GIs) applications. The
LP tableaus used for these application papers are available in spreadsheet form and are described in
Agiiero et al. (this vol.)
I examine in many ways the limitations posed by LP and the importance one must must give to the
data used by the model. But then, every model, no matter how elaborate, has its limitations. It is how we
interpret the models and their outputs that matters. As for the usefulness of this exercise, I invite the
readers to decide.
I leave for last that which I relish most-to give credit to those who made this volume possible. I
thank Mr. Alexis Fabunan who painstakingly reconstructed the LP tableaus under the most constraining
circumstances (a 286 computer with some 4 megabytes of RAM to handle a 780 x 560 matrix!); Mr.
Alvin Catalan who helped me complete the bibliographic entries, developed the glossary of technical
terms, and finalized the indices; Mr. F.S.B. Torres, Jr. for helping me with the species index and the
Appendix to the paper by Araneda et al.; Dr. William Sunderlin, former ICLARM staff, now with the
Center for International Forestry Research (CIFOR) who helped me reconstruct the species appendix
for the forestry sector of Bio-Bio; Mr. F.C. Gayanilo, Jr. and Mr. Eli Garnace for reviewing the software
and for revising the user's manual; Ms. Merly Medina for her assistance in the typing and printing of
manuscripts and tables; Drs. Robert Pomeroy and Mahfuz Ahmed, for taking time out to read the
concept papers and for freely providing some constructive comments; and Dr. Meryl Williams, for her
support of the whole project.
This work would not have been possible without the foresight, industry and talent of Dr. Max
Agiiero and his team of experts from the ICLARM-ECLAC project, specifically Ms. Fabiola Bell, Ms.
Angelica Arellano, Mr. Edgardo Araneda, Mr. Francisco Morales, all authors of the papers in this
volume. I thank my co-authors, specifically, Ms. Zoraida Alojado and Mr. Len Garces of ICLARM and
Ms. Agnes Grace Cargamento of the National Economic and Development Authority of the Philippines
(NEDA-Region I) for their cooperation despite the short notice and extremely tight schedules.
I thank Dr. Daniel Pauly whose unfailing support and encouragement I began to experience in 1986
when he was then Director of the Resource Assessment and Management Program, later to become the
Capture Fisheries Management Program. I thank him most especially because as a scientist from another
discipline, he did not hamper my professional and intellectual interests in the 'other' sciences (i.e.,
economics) and had in fact encouraged me to produce work that I am very proud of today.

ANNABELLE
CRUZ-TRINIDAD
Research Associate, ICLARM
The Integrated Functional Coefficients
including: optimal development strategies for
Method for Coastal Resources Valuation* mangroves in the Gulf of Guayaquil, Ecuador (Bell
and Cruz-Trinidad, this vol.) and land use in the
MAX A G ~ ~ E R ICLARM-ECLAC
O', Project on the Lingayen Gulf area, Philippines (Cruz-Trinidad et al.,
Socioeconomic Valuationof Coastal Resources in Southwest this vol.); optimal fleet allocation in San Miguel Bay,
Latin America, Casilla 179-0, Santiago, Chile
Philippines (Cruz-Trinidad and Garces, this vol.); and
optimal production and marketing strategies for
ANNABELLE CRUZ-TRINIDAD, International Centerfor Living fisheries and forestry in Bio-Bio, Chile (Araneda et
Aquatic Resources Management (ICLARM), MCPO Box
al., this vol.).
2631, 0718 Makati City, Philippines
The IFC method was designed to consolidate all
negative (costs) and positive (revenues) flows resulting
EXEQUEL
GONZALEZ~,
ICLARM-ECLAC Project on the
Socioeconomic Valuation of Coastal Resources in Southwest from different levels of resource exploitation activities
Latin America, Casilla 179-0, Santiago, Chile into a single numeraire, i.e., economic value. The IFC
method derived its name from its features, namely: (i)
FABIOLA
BELL^, ICLARM-ECLAC Project on the the highly integrated approach to management of
Socioeconomic Valuation of Coastal Resources in Southwest resource systems and (ii) the use of functional
Latin America, Casilla 179-0, Santiago, Chile coefficients to represent input-output efficiency.

AGuERO, M., A. CRUZ-TRINIDAD, E. GONZALEZandF, BELL. 1996. Framework for Analyzing

The integrated functional coefficients method for coastal resources Coastal Resource Systems
valuation, p. 1-8. In A. Cruz-Trinidad (ed.) Valuation of tropical
coastal resources: theory and application of linear programming.
ICLARM Stud. Rev. 25, 108 p.
A coastal resource system can be conceptualized
as encompassing the interactions between and among
the biophysical, terrestrial and marine environments
Abstract and human activities, including the governing
institutional and organizational arrangements (Scura
The integrated functional coefficients method is described as a linear
programming algorithm that permits analysis of coastal systems with
et al. 1992). The coastal area is characterized by
diverve and conflicting economic uses. A simple guide to the application multiple resources and by multiple users and uses of
of the technique is provided. resources leading to potential conflict, mismanage-
ment, and ultimately, economic loss.
Introduction
Two basic paradigms were used: i) the Total
The Integrated Functional Coefficients (IFC) Economic Value (TEV) which is used to identify
method is a tool based on linear programming theory different sources of value emanating from various
that was enhanced and tested by a pro-ject jointly coastal resources, and ii) the systems approach, to
implemented by the International Center for Living analyze the whole system, its components, and
Aquatic Resources Management (ICLARM) and the interactions.
Economic Commission for Latin America and the Several sources of value can be attributed to coastal
Caribbean (ECLAC) on Socioeconomic Valuation resources including its use and nonuse values. A
of Coastal Resources in Latin America from May resource, such as a fish stock or charcoal, can either
1990 to January 1993. Complementarily, linear be directly valued as an economic good, or indirectly
programming software3was developed and applied in valued for its potential or ecological functions. The
various sites and problems of varying complexity, valuation of indirect goods and services is not as
straightforward as those of the marketable kind but
'" ICLARM Contribution No. 1217. potentially applicable methods are available (see
'Present address: International Center for Sustainable Ecological
Development (ICSED), Casilla 27004, Santiago, Chile. Agiiero et al., this vol.). A useful exercise in valuation
'Present address: Calle Edinburgo 520, Depto. 102, Las Condes, is the identification of interrelationships between
Santiago, Chile. resources and their components.
'OPUS is linear programming software developed by the ICLARM-
ECLAC Pmject on Socioeconomic Valuation of Coastal Resources in Latin Interrelationships between a resource or its
America. The user's manual is on p. 89. component is marked by a (+) if it is used as an input
2
to another activity and a (-) if use of a resource impinges quantified, such that the effect on TEV of changes in
on the current and potential use of another (Table I). resource endowment or linkages can be anticipated.
Aquaculture and urban expansion often necessitate The TEV for the coastal system is not a simple
mangrove conversion (see Bell and Cruz-Trinidad, this summation of the value of different sectors. Instead,
vol.) and are thus marked as (-). Mangroves and, to a the TEV accounts for dynamic functions within the
certain extent, seagrass beds, provide critical habitats system. This dynamism is embedded in the constraints
for the juveniles of coral reef fish and crustaceans as posed by the use and dependency on a single resource
well; these are marked (+) in the matrix. The negative base (natural, human and technological), the functional
impact of aquaculture, agriculture, and mineral relationships between and among production inputs and
extraction on capture fisheries and coral reef and output, and by the sequence of activities leading to an
seagrass ecosystems is via pollutants emanating from economic good. Thus, negative externalities caused by
productive processes. For each resource category, there mismanagement of a particular resource would lead to
are market and nonmarket goods and services that add the detriment of those marked (-) in the matrix and
to the economic value. The matrix is particularly helpful would ultimately cause a reduction in the TEV.
in identifying indirect values or externalities imposed Perhaps the most common conflicts occur at the
on certain resources. level of goal-setting. In the paper by Araneda et al.
After relevant valuation work has been made, the (this vol.) the choice as to whether fishery, forestry or
mode of analysis conforms to the "systems approach" tourism should be developed is of importance because
which Mattessich (1984) described as having strong the priority given to one activity implies that fewer
emphasis on input-output features and a purpose resources are made available for other possible uses.
orientation. In addition, Laszlo (1972) noted that it is a Bell and Cruz-Trinidad (this vol.) also posed a crucial
"way of thinking aboutphenomenon in terms of wholes, question as to the conversion vis-a-vis conservation of
including all of the parts, components or subsystems mangroves, which involves foregoing present short-
and their interrelationships." term gains from shrimp aquaculture for longer-term
The coastal zone can be viewed as an entity benefits. Such is also the problem recognized by Cruz-
comprised of several interacting sources of value. The Trinidad et al. (this vol.) in the conversion of low-
magnitude and direction of interrelationships between yielding rice farms to shrimp and/or milkfish culture.
these sources should then be identified and, if possible, Within the San Miguel Bay fishery (Cruz-Trinidad and

Table 1. Example of some coastal resourceslactivities and related influences and impacts.

Influences and impacts'

Resourceslactivities' MG AQ CF CR SG AG MN OG SP SM HB UD CV

Mangrovelnlpa swamp (MG) XXX + + + +

Aquaculture (AQ) - XXX o o 0
Capture fishery (CF) o o XXX - o o o 0 0
Coral reefs (CR) + + + XXX + + +
Seagrass beds (SG) + + + XXX - +
Agriculture (AG) - XXX o o 0
Mineral extlactlon (MN) - XXX o o o +
011and gas (OG) - XXX +
Salt production (SP) o o o o o - XXX o 0
Sand rnlnlng (SM) - o o o 0 XXX +
Habltat nesting (HB) + + + + XXX +
Urban development (UD) + + + + XXX
Coastal vegetation (CV) + o + + - + - XXX

'Adapted from Dixon (1989).

'Prepared by Mr Keene Haywood, Reefbase volunteer, February-June 1995.
+ = Input
- = negatlve Impact.
o = minimal Impact, may be (+) or (-)
 3
licts arise from the choice of + ani2x2+ ..... + <= bill
alllllxn ...4)

Programming
Equation (1) is the objective function, here, a
on indicates that for a particular
maximization problem. The X's are the unknowns or
1decisions are to be made. This
decision variables while the P's are the relative
:of possible tools to enable the
contribution of each variable to the value of the
ve at a decision and further objective function. The a,llll'srepresent the amount of
used by changes in resource resource b needed by activity or sector, X. The bill's are
e interrelationships between
the upper or lower limit of a resource use and in an LP
In variable. tableau are usually referred to as the right-hand 4ide
(RHS) limits. Equations (2) to (4) are the constraints;
Equation (5) is the nonnegativity clause. The above
formulation is also called the pr~malproblem.
g (LP) is an operations research The dual, which is the converse of the primal, is
the 1940s for use in military formulated as follows:
widely used in business and
cations of the method assumed Minimize
wior, a single-period planning
:ration for risk and uncertainty. blwl+ b2w2+.... + blllwlll
nents, however, proved that
in be more realistic and flexible. subject to
xhniques include multiperiod
multi-objective modeling, allWl+ a,,w, + ..... + al,,lw,ll'= PI
ng, game theory models and
>= P2
a,,w, + a,,w, + ..... + a,ll?_WI1l
g (Hazell and Norton 1986).
ss a single, linear objective
zd subject to a set of rigid linear
15). Assumptions implicit in the
resources and activities in the q n w ,+ a,l,w, + ..... + a,lll,wlll
>= Pll
node1 include: optimization,
determinism, homogeneity, Wl, W >,...,Will >= 0.
tionality (Hazell and Norton

tion of a linear program is as Note that the dual formulation is actually equivalent
to the primal, i.e., the maximization problem (primal)
and the inverse of the minimum (dual) are one and the
same. The solution to the primal problem provides the
optimizing values of the variables and the resulting
PnXn ...1) value of the objective function.
The existence of the dual solution in any
conventional LP formulation is one of the more
important reasons for its popularity. The dual can be
- alllxn<= b, -2) interpreted as shadow price or opportunity cost of a
particular resource. As such, it is also a measure of the
t a2,,Xn<= '32 -3 marginal increase in the objective function given an
4
increase in the availability of the resource. Sensitivity The applications of programming models to
analysis permits further analysis by varying coefficients economic-environmental systems are diverse, ranging
in both the objective and input-output matrices, right- from forest management, environmental quality
hand side limits, and the inclusion of a new goal or models, petroleum refining and electric power
constraint. This was done for the San Miguel Bay study, generation, to complex regional and national models
i.e., level of fishery net revenues as affected by changes for optimal utilization of water resources (Hufschmidt
in total allowable catch rates and minimum wage rates et al. 1983).
(Cruz-Trinidad and Garces, this vol.). Despite the fast-paced development in mathe-
matical programming techniques, LP applications in
Applications developing countries in both fisheries and coastal
environments are few. Two have been identified in the
Linear programming was first applied to fisheries literature, the works of Padilla (1991), using
by Rothschild and Balsiger (1971) to allocate the catch multiobjective programming to determine optimal
of sockeye salmon during a run in Bristol Bay. Siege1 effort in the small pelagics fishery in the Guimaras
et al. (1979) used LP to maximize catches of the New Strait, Western Visayas, Philippines, and Ahmed
England otter trawl fishery subject to total allowable (199 I), using price endogenous linear programming
catch, processing and harvesting capacity, based on an to estimate net social benefits of different types of
earlier work by Mueller (1976). Agiiero (1987) used fisheries, i.e., hilsa, prawn, catfish and carp in the
LP to model the Peruvian fishery and utilized six floodplains of Bangladesh. The latter also involved
sequential activity blocks beginning from harvesting segmentation of both objective function and constraints
to processing, storage, transport, marketing and sales into harvesting, postharvest and marketing blocks. The
to arrive at, among other things, optimal rates of apparent underutilization of mathematical program-
resource exploitation, plant rated capacities and prices. ming and its enormous potential for use in fisheries
Subsequent developments permit the incorporation and coastal systems in developing economies, show
of multiple-planning periods, risk and uncertainty into that the applications in this volume, and the use of
the model. McCarl and Spreen (1980) have suggested OPUS, the LP software developed for this purpose,
that price need not be an exogenous variable in LP can be a significant contribution to the literature.
formulations while Shepherd and Garrod (1980)
developed a method of cautious nonlinear optimization Potentially Applicable Techniques
which resolves the tendency of LP results to be
"extreme, sparse and ruthless" and which "considers Hufschmidt e t a l . ( 1 9 8 3 ) suggested t w o
the initial state of the system when seeking the analytical frameworks for multiactivity economic-
optimum". These improvements are incorporated via environmental models: linear programming and
a composite objective function which consists of input-output (1-0) models. The latter was developed
penalties for (i) failing to conform to one or more by Leontief (1936) [thus, the alternate term, Leontief
constraints, i.e., quota allocations and (ii) a penalty for matrix] and emphasizes the interrelationships
departing from the status quo, i.e. historical average between production activities. Each productive
catch rates, and (iii) one or more objectives to be activity assumes dual roles: first, as a supplier of
minimized. Huppert and Squires (1986) applied this output to other activities and final buyers and
technique to the Pacific coast groundfish trawl fishery second, as a buyer of inputs including land, labor,
and estimated maximum economic surplus and optimal capital and the outputs of other activities. As in
fleet configuration. standard economic systems, the final demand for
Further development in the area of mathematical goods and services determines the 1-0 coefficients
programming has resulted in dynamic optimization as of economic-environmental models. 1 - 0 analysis
used by Dow (I 993) in the regulation of bowhead whales permits the decisionmaker to simulate changes in
and Kennedy and Watkins (1986) in the southern bluefin economic and environmental quality variables
tuna fishery. Wallace and Brekke (1986) used stochastic related to different economic development scenarios
optimization in the Norwegian purse seiner and summer and/or changes in final demand for goods and
capelin fishery in the Barents Sea. services (Hufschmidt et al. 1983).
 The following analytical techniques are extracted The IFC Method and Its Implementation
from a list provided by Hyman and Stiftel (1988) for
Environmental Impact Assessment @A), which we have The integrated functional coefficients method was
identified to be relevant to coastal resources as well. designed to determine the social and economic value
Sorenson (1971) devised a network or stepped matrix for of coastal resources within an integrated concept of
which the primary focus is the environmental cost of the coastal ecosystem and its functions. The elements
coastal land uses. Fifty-five coastal zone uses are entered are the same as that of standard LP formulation except
in the matrix rows. The columns represent i) causal factors, that the definitions are largely expansive. The objective
i.e., specific activities associated with particular land uses; function (Net Social Benefit Function) is structured in
ii) initial conditions; iii) secondary impacts; iv) ultimate terms of the Total Economic Value concept (Randall
environmental effects and v) management interventions. 1987) allowing externalities and nonmarket goods,
The Sorenson network has been applied to commercial, services and functions to be considered. Unit cost
residential and transportation development in the coefficients and prices are exogenous to the model and
Californian coastal zone. determined using statistical techniques andlor
Hill (1968) developed the multiple objective analysis econometrics, whichever is applicable. The resulting
or goals achievementmatrix. This procedure involves the measure of net revenue is a measure of Net Social
definition of important objectives and the subsequent Benefit valued at the best alternative use given the
assignment of weights. The crucial step is the anticipation constraints imposed on the system.
of impacts of each objective. Hill and Alterman (1974) Each activity is constrained by resources
used multiple objective analysis to assess alternativesites availability, technological efficiency, cost structures,
for power plants. A related procedure is decision analysis input and output market conditions and institutional
(Keeney and Raffia 1976) although this technique places factors. The methodology is derived from the
greater emphasis on systems modeling and evaluation integration of several sources of value under several
under risk and uncertainty. The first step is the restraining conditions.
identification of objectives and assignment of "attributes" The elements of an IFC linear program as applied
per objective. The next steps involve prediction of future in a coastal resource system are as follows:
values for each alternative plan and selection of
preferences among the various alternatives. (i) Objective Function
Decisionmakers base their final decision on the alternative
which maximizes utility. Decision analysis was used to
predict the impact of a nuclear power plant on salmonid
Maximize n
stocks (Keeney and Robilliard 1977).
The United States Fish and Wildlife Service (1980)
developed a Habitat Evaluation Procedure (HEP),
which evaluates the effects of development on a single
aspect of the environment -fish and wildlife habitats. where
The HEP enables decisionmakers to select among
different project alternatives and to design mitigation n = net social benefit function
and compensation measures. First, the habitat types in
the area are mapped out and indicator species identified 'ijklmnop
= good or service corresponding to
on the basis of economic or social importance,
sensitivity to proposed actions, role in nutrient cycling i = spatial location of the resource, i.e.,
and energy flows, and representativeness in various country, region, zone, subzone;
ecological niches. The decision rule is then based on
potential changes in "habitat units" (habitat area j = economlc sector, i.e., fisheries, tourism,
multiplied by habitat sustainability index). forestry, mining, aquaculture;
6
k = economic activity, i.e, harvesting, An additional standard restriction is the
processing, transporting, storage, nonnegativity constraint which provides for all
marketing, consumption; Xijklmnop's
to be positive or equal to zero.
The mathematical programming problem is
1 = resource, i.e., fish, tree, mangrove, solved by means of the simplex algorithm (Revised
beach, coral reef; Simplex Method) using OPUS, a computer software
package (see Agiiero et al., this vol.). The optimization
m = product, i.e., in the fishery, fishmeal, oil, process, i.e., the search for the best (optimal) value of
frozen fish; from the forestry sector, the control variables (level of resource uselexploitation)
boards, chips, pulp; from tourism, within the feasible set of alternatives, determines the
recreational facilities, hotels, beach economic value of each resource in its best alternative
resort; use. The vector of shadow prices indicates how the net
social benefits change as one additional unit of a
n = technology, i.e., capital intensive, labor resource is made available, reflecting in this way, its
intensive; social value.

o = scale, i.e., large scale, medium scale, Use and Implementation of the IFC Method
small scale; and
Modeling the coastal ecosystem for valuation
p = gear or equipment, i.e., in the fishery, purposes under a mathematical programming structure
net, boat, hook, harpoon; in the forestry requires a sound knowledge and understanding of the
sector, axe, electric chain; and in the various resources, activities and processes taking place
tourism industry, car, bicycle, train. in the coastal area. It is essential to fully understand
the various interactions to establish the limits defining
Pijklmnop
and Cijklmnop
= price and cost estimates each system and their linkages with each other.
of each variable. The use of the IFC method involves two phases:
(i) conceptual formulation and (ii) application of
Further specifications to distinguish features of mathematical programming. Conceptual formulation
the resource, products or markets can be made, e.g., is the more critical of the tasks and involves steps 1 to
distinguishing frozen fish in blocks (round or fillets) 6 in the list provided below. This phase entails
or boxes of different weights or grade. Similarly, understanding the human and natural dynamics of the
markets can be distinguished as local, domestic and coastal zone, determining the sources of economic
foreign, etc. Because of the numerous options to value and its components, and assigning appropriate
disaggregate any one variable, each application paper measures of value. These elements, when translated
in this volume provides a detailed explanation of the into algebraic terms, become the elements of the LP
LP elements. tableau. The programming application, especially with
\ the use of available software, i.e., OPUS, becomes
purely mechanical.
(ii) Functional Restrictions The following is a list of steps necessary to
accomplish this task.
1. Characterize the coastal system. This is done
AX.I <= bj by preparing a "profile" or description of the
coastal area. The profile describes the macro-
AX.I indicates technical coefficients associated to environment, both natural and human, in
the Xtil;llnnp> which the relevant economic sectors operate.
Some examples of profiles are those
b. indicates resource endowments, yield at .prepared by the ASEANIUS Coastal
differknt levels of use, demand for different price Resources Management Project in Brunei
ranges, installed capacities, balance indicators, etc. (Chua et al. 1987), South Johore, Malaysia
 7
(ASEANIUS CRMP 199I), Lingayen Gulf, of economic (primal) as well as social (dual-
Philippines (McManus and Chua 1990), Ban shadow vector) values. Sensitivity analysis
Don Bay and Phangnga Bay, Thailand (Paw measures the effect of exogenous changes
et al. 1988), Segara Anakan-Cilacap, in prices and resources availability on the
Indonesia (White et al. 1989). net social benefit (Value of the Objective
Determine relevant sectors and activities. Function) and those of the variables.
Economic activities should be based on the
following factors: output (production in Discussion
physical and monetary terms); yield (net
natural growth per unit of input); em- There are no hard and fast rules in the use of IFC
ployment (per category of skills required); methods especially when applied to diverse environ-
income (per location, category of em- ments such as coastal zones. The list shown above,
ployment; locallforeign); spatial location, though uncomfortably loose, provides the basic
and impact on other sectors. elements for the analysis and application of the
Identify variables that either contribute to or technique. This is borne by the four application papers
minimize economic value and determine in this volume which may have varied applications but
thereafter, the activities or elements which, nevertheless, manifest all these elements.
influencing such. For example, if the relevant A critical, though exogenous, aspect of this
sectors are aquaculture and forestry, the exercise is the use of appropriate price coefficients,
variables that add to economic value may especially when imperfect market conditions exist or
include shrimps and logs, respectively. The when nonmarket transactions occur. The whole area
export of shrimp would require the following of valuation and applicable techniques are discussed
activities: clearing of mangroves, stocking in Agiiero and Flores (this vol.).
of ponds, harvesting, processing, trans- This volume does not attempt to break new
porting, and marketing, each of which is ground in methodological development; rather, the
characterized by different price vectors as emphasis is on using tested techniques on broader
well as constraints. applications. Thus, the development of the conceptual
Collect data required, including market and issues is of greater weight than the application of the
nonmarket prices, production levels, technique itself. Complementarily, we invoke Holling's
technological capacities and magnitude of (1978) caveat on the use of mathematical programming
externalities. techniques: while we should not be slaves of the model,
Establish functional relationships among the it offers a sensible start for analytical and predictive
components, determining production, yield purposes.
and demand functions.
Construct the mathematical programming
tableau structure including the objective References
function, input-output matrix, and restriction
vector (right-hand side). Agiiero, M. 1987. A bioeconomic model of the Peruvian pelagic fishery,
Feed the tableau and conduct preliminary p. 307-324. In D. Pauly and I. Tsukayama (eds.) The Peruvian
anchoveta and its upwelling ecosystem: three decades of change.
consistency tests, i.e., degeneracy, ICLARM Stud. Rev. 15, 35 1 p.
unboundness, etc. 'Ahmed, M. 1991. A model to determine benefits obtainable from the
Run OPUS and determine necessary management of riverine fisheries of Bangladesh. ICLARM Tech.
Rep. 28, 133 p.
improvements in data quality. 'ASEANIUS CRMP. 1991. The coastal environmental profile of South
Analyze and validate results. Verify that Johore, Malaysia. ICLARM Tech. Rep. 24, 65 p.
results obtained in actual application are 'Chua, T.E., L.M. Chou and M.S.M Sadorra, Editors. 1987. The coastal
environmental profile of Brunei Darossalam: resource assessment
consistent with theory and the control factors and management issues. ICLARM Tech. Rep. 18, 193 p.
pre-established for this purpose JDixon, J.A. 1989. Coastal resources: assessing alternatives, p. 153-162.
In T.-E. Chua and D. Pauly (eds.) Coastal area management in
Interpret final results and conduct sensitivity Southeast Asia: policies, management strategies and case studies.
analvsis. The final results ~ r o v i d eestimates
-2 --- - -
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8
Dow, J.P., Jr. 1993. Dynamic regulation of fisheries: the case of the k c M a n u s , L.T. and T.-E. Chua. Editors. 1990. The coastal
bowhead whale. Mar. Res. Econ. 8:145-154. environmental profile of Lingayen Gulf, Philippines. ICLARM
Hazell, B.R. and R.D. Norton. 1986. Mathematical programming for Tech. Rep. 22, 69 p.
economic analysis in agriculture. Macmillan, New York. Mueller, J.J. 1976. A linear programming discussion model for
Hill, M. 1968. A goal achievement matrix for evaluating alternative maximizing the net revenues from a multispecies fishery. US
plans." J. Am. Inst. Planners 34:19-28. National Marine Fisheries Service. 13 p.
Hill, M. and R. Alterman. 1974. Power plant site evaluation: the case of Padilla, J.E. 1991. Managing tropical multispecies fisheries with
the Sharon plant in Israel." J. Env. Econ. Manage. 2:179-196. multiple objectives. Simon Fraser University, Canada. PhD
Holling, C., Editor. 1978. Adaptive environmental assessment and J dissertation.
management. Wiley-Interscience, New York. Paw, J.N., S. Bunpapong, A.T. White and M.S.M. Sadorra, Editors.
Hufschmidt, M.M., D.E. James, A.D. Meister, B.T. Bower and J.A. 1988. The coastal environmental profile of Ban Don Bay and
Dixon. 1983. Environment, natural systems, and development: Phangnga Bay, Thailand. ICLARM Tech. Rep. 20, 78 p.
an economic valuation guide. John Hopkins Press Ltd., London. Randall, A. 1987. Total economic value as a basis for policy. Trans.
Huppert D.D. and D. Squires. 1986. Potential economic benefits of Am. Fish. Soc. 116:325.
limited access in the Pacific coast trawl fishery: a linear Rothschild, B.J. and J.W. Balsiger. 1971. A linear programming
programming approach. Administrative Report LJ-86-01. US
Southwest Fisheries Center, NOAA, California. 59 p. j Scura,solution to salmon management. U.S. Fish. Bull. 69:117-139.
L.F., T.-B. Chua, M.D. Pido and J.N. Paw. 1992. Lessons for
Hyman, E.L. and B. Stiftel. 1988. Combining facts and values in integrated coastal zone management: the ASEAN experience, p.
environmental impact assessment: theories and techniques. 1-70. In T.-E. Chua and L.F. Scura (eds.) Integrative framework
Westview Press, London. and methods for coastal area management. ICLARM Conf. Proc.
ignizio, J.P. 1985. Introduction to linear goal programming. Sage 37, 169 p.
Publications, California. Sheperd, J.G. and D.J. Garrod. 1980. Modeling the response of a
Keeney, R. and H. Raffia. 1976. Decision with multiple objectives: fishing fleet to changing circumstances, using cautious non-linear
preferences and value tradeoffs. Wiley, New York. optimization. 1. Cons. CIEM 39:231-238.
Keeney, R. and G. Robilliard. 1977. Assessing and evaluating Siegel, R.A., J.J. Mueller and B.J. Rothschild. 1979. A linear
environmental impacts at proposed nuclear power plant sites. J. programming approach to determining harvesting capacity: a
Env. Econ. Manage. 4:153-166. multiple species fishery. U S . Fish. Bull. 77:425-433.
Kennedy, J. 0 . S. and J. W. Watkins. 1986. Time-dependent quotas for the Sorenson, J. 1971. A framework for identification and control of
southem bluefin tuna fishery. Mar. Res. Econ. 2 (4):293-313. resource degradation and conflict in the multiple use of the
Laszlo, E. 1972. Introduction to systems philosophy - towards a new coastal zone. University of California, Department of Landscape
paradigm of contemporary thought. Gordon and Breach Science Architecture, Berkeley.
Publishers, New York. United States Fish and Wildlife Service. 1980. Habitat evaluation
Leontief, W.W. 1936. Quantitative input and output relations in the economic procedures. Revised ed. Documents ESM 101 t o 104.
system of the United States. Rev. Econ. Stat. 28(3):105-125. Government Printing Office, Washington, DC.
Mattessich, R., 1984. The systems approach: its variety of aspects. General Wallace, S.W. and K. Brekke. 1986. Optimal fleet size when national
Systems 18:3-12. J quotas can be traded. Mar. Res. Econ. 2:315-330.
l , and T.H.Spreen. 1980. Price endogenous
~ c ~ a rB.A. - mathematical White, A.T., P. Martosubroto ahd M.S.M. Sadorra, Editors. 1989. The
programming as a tool for sector analysis. Am. J. Ag. - Econ. coastal environmental profile of Segara Anakan-Cilacav, South
62(i):87-10< Java, Indonesia. ICLARM Tech. ~ e i 25, . 82 p.
Valuation Concepts and Techniques effectiveness of resource exploitation activities. As a
with Applications to Coastal Resources* consequence, developing nations are increasingly
viewing the exploitation of their coastal renewable
MAXAGUERO' FLORES',
AND XIMENA ICLARM-ECLAC
resources as a source of foreign exchange, employment
Collaborative Project on the Socioeconomic Valuation of and food supply. In fact, most government policies of
Coastal Resources in Southwest Latin America, Casilla 179- developing countries, in one way or another, promote
D, Santiago, Chile coastal exploitation to solve pressing social needs.
The limits to which these resources can be
AGUERO, M. and X. FLORES. 1996. Valuation concepts and techniques exploited on sustained basis, however, are not yet well
with applications to coastal resources, p. 9- 16. In A. Cruz-Trinidad known or understood, but decreasing yields in many
(ed.) Valuation of tropical coastal resources: theory and application
of linear programming. ICLARM Stud. Rev. 25, 108 p.
renewable resources such as fish stocks, indicate that
very probably, they are already being overexploited
(Garcia and Newton 1995).
Abstract One of the causes of the abovementioned problem
is the absence of well developed markets for many
Overexploitation of natural resources is linked to the use of valuation
goods, services and functions performed by coastal
techniques that do not consider nonmarket environmental goods and
services. The Total Economic Value (TEV) concept is discussed and its resources like mangroves and coral reefs. The failure
relevance to natural resources valuation is highlighted. Lastly, techniques of existing methods to properly account for them results
for resources valuation are presented. along with an example referring to
the mangroves around the Gulf of Guayaquil, Ecuador.
in undervaluation of total benefits and consequently, a
bias towards overexploitation or conversion of
resources to alternative options. Examples of this
Introduction
process are the increasing tendency to convert
mangrove areas into shrimp ponds, the increasing
Coastal ecosystems and their resources throughout degradation of the environment (pollution,
the developing world are being increasingly mis-
sedimentation, etc.) and discharge of urban waste into
managed and exploited beyond the limits of their the ocean without prior treatment. The overall result is
sustainability. Furthermore, destructive techniques for
rent dissipation and resource degradation (Fig. 1).
resource exploitation are proliferating in many poor Moreover, coastal resources exploitation does not
coastal areas where both resources and the functional take place in isolation. The allocation of inputs to a
integrity of the ecosystem are being seriously threatened
specific process prevents its use in others, changing
by illegal or uncontrolled human activities (Chua and their relative availability to alternative activities. Also,
Fallon-Scura 1992).
exploitation activities generate several residuals and
In recent times, research efforts and policy analysis
spill-over effects affecting the performance of others.
emphasize the need to properly manage and preserve
These effects, better known as "externalities", are
natural resources and the environment. Abundant
generally not accounted for by their generating source,
literature from all disciplines has been produced
but borne by society without due compensation. A
describing, quantifying and denouncing undesirable
divergence between social and private costs is thus
human interventions in the ecosystem, namely, those
created with misleading signals for an efficient resource
related to pollution, waste disposal and other global
allocation process. These signals, namely, unrealistic
environmental damage (Panayotou 1993; Pearce and
high profit margins and larger expected long-term
Moran 1994).
yields, by default do not account for resource users'
Moreover, population growth and higher incomes,
costs (value of fish in the water, clean air, etc.) nor for
especially in developed nations, have increased trade
negative externalities imposed on society (like water
opportunities for developing coastal nations with rich
pollution from fishmeal plants, siltation/sedimentation
renewable resources. Increased technological
from logging, and solid wastes from tourism). When
efficiency, on the other hand, has improved the cost
the outputs of these resource exploitation activities are
exported to markets with very high price elasticities,
*ICLARM Contribution No. 12 18.
'Present address: International Center for Sustainable Ecological e.g., fishmeal, considerable rents are transferred to the
Development (ICSED), Casilla 27004, Santiago, Chile. importing country, creating a paradoxical flow of value
 ecosystems (Aylward and Barbier 1992). Valuation then
becomes an interface between ecology and economics
because of the use of certain commonalities from two
otherwise divergent realms. First is the equivalence of
what economists would refer to as "goods" to the
structural component of an ecosystem, i.e., wood, fish,
and water, and what economists would refer to as
"services" with environmental functions such as natural
protection from storms and breeding grounds for fish.
Actual valuation is the next step and can be defined
as a quantitative assessment of the value of these
"goods" and "services". Money is usually used as a
numeraire for this purpose, since it allows aggregation
and comparison of heterogenous elements through a
common unit. It is then possible to compare values of
fishery resources with forestry or industrial output for
example. Furthermore, it allows consistency in ranking
priorities for investment decisions and policy design.
Several criteria are used for this purpose, but
relative scarcity and human appreciation of the resource
are most relevant. For valuation purposes, coastal
resources are viewed in their capacity to generate a
flow of goods, services and ecological functions that
can satisfy human needs of various kinds, whether
directly or indirectly. In this capacity, they are valued
by individuals and society according to the net benefits
they provide. In other words, natural resources are
considered in economic terms only in their capacity to
Fig. 1 . Nonaccountability of externalities and other nonuse values satisfy human needs and therefore, valued as far as they
results in exploitation beyond economically optimum levels (MEY)
in A: the divergence between MEY and OAE, or the downward
enter in human preference scales. This approach is also
shift of supply curve, S1 to S2, results in rent dissipation equivalent shared in cost-benefit analysis, in which scarcity is also
to lJKL in B. considered as a determining factor.
Although the concept of value, indicating worth,
has been analyzed and formalized in various ways and
given several interpretations over time, it is becoming
(a sort of subsidy) from poor to rich countries. The well accepted now within the concept of Total
increasing rate of resource exploitation now taking Economic Value (TEV). This concept was first
place in many developing countries is a clear evidence articulated by Weisbrod ( 1964) and Krutilla (1 967)
of the above problem. It also shows the urgent need to stating that the total value of a resource includes its
incorporate new valuation techniques to improve use and nonuse values.
resource management. The total value of a private good is usually defined
as the maximum amount of money an individual is
Valuation Concepts and Techniques willing to pay for it over and above the consumer
surplus. For a natural resource, however, the total
Total Economic Value economic value IS defined as "use value" plus "nonuse
value". Use value is referred to costs and benefits of a
Interest in natural resources valuation stems from resource for which a market exists; it can be direct (in
the realization that the economic sector is part of a wider situ) or indirect use. Direct use may be "consumptive"
arena that consists of multiple life-supporting (that is, usedlenjoyed by someone, thus, depriving
 11
others of its use) or nonconsumptive, meaning that Gregory (1987) found it useful to assess the
others may also enjoy its benefits. nonmonetary benefits of extramarkets of environmental
The concept of nonuse value has received special services, albeit their inclusion in TEV was not
attention in recent years due to the growing concern considered.
for the environment and sustainable use of resources, Although these preservation and nonuse values are
as it applies to the value individuals place on resources, not clearly attached to any particular component of a
regardless of their presentlfuture or consumptive/ given resource, they tend to be associated with it as a
nonconsumptive use. Several categories are included, whole. Thus, the role of a resource (like mangroves) in
namely, existence value (value of a resource for just preserving biodiversity or the role in determining the
knowing it exists or will be preserved); option value uniqueness to culture and heritage (the condor in Chile,
(willingness to pay for the option of using/consuming the bald eagle in the USA, the Pirineos in Europe, etc.)
the resource in the future); quasi-option (willingness contribute to the existence, bequest and option value
to pay to have the option of deciding in the future about that individuals attach to preservation.
its use); and bequest/heritage and preservation value The TEV concept was applied by Spurgeon (1 992)
(value to know future generations will have the on coral reefs. Use values were classified as extractive
opportunity to use the resource). or nonextractive. Among the extractive values are those
Hyman and Stiftel (1988) pointed out five of fishing, pharmaceutical, and construction and the
alternative uses of option value: risk aversion; quasi- nonextractive are tourism, education and social value.
option demand; existence value; vicarious use value; Among the techniques listed that use market or pseudo-
and beq~iestvalue which altogether possess some market prices are cost-benefit analysis, change in
interchangeable features. productivity and measures of consumer surplus.
Still another category of resource use, the indirect Simulated markets are used in contingent valuation
~tsefor which the valuation depends on the "processes" methods (CVM) and travel cost (TC) technique to
that ultimately provide economic value, was proposed evaluate value of tourism spots, for example. As for
by Aylward and Barbier (1992). Some indirect uses of the indirect uses of coral reefs, like biological support,
wetlands include groundwater recharge or discharge, the author suggested the use of change in productivity
flood and flow control, shoreline or bank stabilization, in "with or without the reef' situations and a percentage
sediment retention and nutrient retention (Barbier dependence technique for which the biological support
1989).These environmental functions must be analyzed value is the value of the supported activity multiplied
wlthin the broader framework of biological diversity by an estimated percentage dependence of that activity
as this implies a corresponding analysis of the linkages on the reef's presence. For nonuse values, such as
In the ecological chain and how changes within the existence and option value, an extensive CVM survey
system affect the environmental functions supported is suggested as was implemented by Hundloe (1989)
by it. in the estimation of the vicarious value (option plus
Measures of indirect uses are based on whether existence value) of the Great Barrier Reef which
such functions support economic production or protect amounted to AUS $ 4 5 millionlyear.
the conduct of economic activity. A measure of the The application of TEV in this volume has been
consumer's willingness to pay (WTP) or willingness slightly modified in the net social benefit function of
to accept (WTA) may take the form of changes in the "integrated functional coefficient method" to
product~vity,alternative/substitute costs, or actual capture the net value (positive or negative) of
expenditures. Valuation techniques used to estimate externalities (Fig. 2).
WTA mclude preventive expenditure, damage costs Aylward and Barbier (1992) pointed out some
avoided, alternative or substitute cost and relocation caveats in the use of the TEV especially with respect
costs. In both cases, an immense amount of data is to double accounting of goods and services. This occurs
requ~redespecially in developing-country situations. when the direct use of the resource is valued in addition
Moreover, some measures may prove irrelevant due to to themdirect functions that support these direct uses.
the absence of technology that would, for instance, For example, mangrove forest litter that provides food
restore the nutrient retention capabilities of mangroves. for fish and shrimp larvae is an environmental function
 NBSF = C (TR-TC)
= '* saro * Pso- C X s a r o *saro
C
+ ' saro
*ECsaro+ x X saro* F Bsr
Subject to: NBSF = net benefit P = price
Biomass abundance social function C = cost of production
Infrastructure capacity TR = total revenue EC = environmental cost
Capital availability TC = total cost FB = foregone benefits
Labor availability X = quantity of goods1
Environmental carrying capacity service produced
where
Sectors (s) 1 Fishery Forestry Tourism Environment

Preparation Preparation Preparation + Transportation

Stocking Planting Building -+ (Destruction1
Activities (a) Harvesting Logging Visiting + enhancement)
Processing Processing Transporting + Externality
Marketing Marketing Marketing + (+ -)

Resource use (r) Produce Produce Service Function

Fresh fish Wood Parks, beach

Output (0) Processed Logs, timber and camping visit
Fish meal Charcoal Motel, hotel, restaurant
Others Cellulose Package use, etc.
Others Others

Fig. 2. A typical objective function characterizing a multiresource coastal zone and elaboration of coefficients.

which "can" be valued. However, if goods such as erences for closely related goods that differ marginally
shrimps are valued likewise, some double accounting in the quantity or quality of their attribute.
may occur. Likewise, some ambiguities arise as to the Classification of valuation techniques as discussed
classification of option value which can be classified here will be based on three market categories:
as a nonuse value, because it is not actually used, at conventional, implicit or artificial although other
present. Again, we invoke the influence of neoclassical authors have developed additional levels of
economics on natural resources valuation, i.e., that classification. For example, Munasinghe and Lutz
individual satisfaction is paramount. (1993) also used actual versus potential behavior while
Dixon et al. (1988) used the categories: generally
applicable, potentially applicable, survey-based and
Valuation Techniques nonwillingness to pay-based methods.
Valuation techniques based on conventional
Many techniques for ~~aluation of nonmarket goods markets are based on market prices. These techniques
and services are based on the hedonic price theory of are particularly useful when environmental impacts
consumer choice. Goods are not valued in and of have direct effects on goods and services which are
themselves but rather as a composite of different priced. Under perfect competition, market prices
attributes. Thus, the valuation of each of these attributes indicate the real value to both consumers and suppliers.
can be computed backwards if the market value of the However, when market conditions are imperfect (i.e.,
product is known or if the market value of related goods monopoly, collusion), or do not exist (i.e., environ-
and services is known. The derived demand curve can mental goods and services), or exist but fail (i.e., public
thus be constructed by comparing each attribute with goods and externalities), market prices may not be an
comparisons of actual expenditures or survey pref- appropriate measure. A proposed alternative is the use
 13
of shadow pricing which can be used in impact mitigate environmental impacts, e.g., wastewater
assessment of environmental services (Hyman and treatment facilities. In this case, the value of water
Stiftel 1988) and when compensating for distortions pollution is taken to be the equivalent of preventing it
in the costs of capital, foreign exchange, land and labor. by way of technological costs. Replacement cost is the
All techniques, whether they be survey based or cost of substituting particular features of a resource to
otherwise, attempt to capture the willingness to pay approximate its natural characteristic. For example,
(WTP) [in some cases, willingness to accept (WTA) Folke and Karberger (199 1) estimated replacement
<compensation>] criteria discussed above as the costs for loss of wetland productivity while Araneda
ultimate measure of utility. A societal demand curve is et al. (this vol.) used the value of freshwater needed to
then constructed by horizontally summing up the dilute polluted bay waters to acceptable levels.
individual demand curves as discussed below. Randall
(1987) suggests that a cross-corroboration technique IMPLICIT MARKETS
is desirable in nonmarket valuation.
A taxonomy of valuation techniques based on
Valuation techniques falling under this category
market category is presented in Table I .
are based on the premise that some market goods can
be related to particular environmental attributes that
Table 1. Techniques currently used for natural resources valuation
according to market category. are not priced. Thus, property values and wage
differences, both hedonic methods, are approximations
Conventional Implicit Constructed of the overall environmental quality. Property values,
Change of productivity Travel cost Artificial market for example, are dependent on the environmental
quality of a particular housing site, e.g., a polluted site
Loss of earnings Wage differences n.a. causes a drop in assessment rate; for the same reason,
Defensive expenditures Property values n.a.
this same polluted site would have to offer higher wages
Replacement cost n.a. Contingent to attract labor. Bell (1989) used the land value
Shadow project n.a. valuation
approach in the valuation of Florida fisheries. The
travel cost method is commonly used for determining
CONVENTIONAL MARKETS
the value of a recreational site. Travel expenses, fees
paid on site, and the opportunity cost of travel time are
taken to represent "entrance fees". This information
When environmental functions result in measurable
will allow the researcher to construct a demand
changes in the production or productive capacity of a
schedule based on the number of potential vacationists
certain good or service, conventional market techniques
as a function of travel cost; thus, consumer surplus can
can be used, i.e., the WTP is taken to be equal to the
be estimated. The travel cost method was applied by
market price. In cases where noncompetitive markets
Costanza et al. (1989) in the valuation of wetlands and
exist, the shadow price or opportunity cost is taken in
by Hundloe (1 989) in the Great Barrier Reef.
lieu of current price.
Change in prod~~ctivity estimates changes in
production arising from a particular intervention or CONSTRUCTED MARKETS

natural resource state. This approach is by far the most

common method used in coastal resources (Bell 1989; Also called "hypothetical valuation" (Hyman and
Hodgson and Dixon 1992; Ruitenbeek 1992; Sawyer Stiftel 1988), the basic premise is to create a "market"
1992). A case was made by Hodgson and Dixon (1988) for a specific environmental attribute by simulating
in their estimates of the effects of sedimentation on demand and supply conditions. Some survey-based
coral diversity and ultimately on fish production in techniques suggested by Hyman and Stiftel (1988)
Palawan, Philippines. The loss of earnings technique include: direct questioning, bidding games, use
estimates foregone earnings arising when a number of estimation games and trade-off analysis. In the first two
people are affected by changes in environmental quality, techniques, the respondent is made to assess either the
e.g., declining catch rates for small-scale fishers due WTP or WTA of a stated quantity or quality of a
to trawling. Defensive expenditures are applied to particular environmental good. In bidding games,
14
however, the determination of the value is more of an Nonmonetary Measures
iterative process with the researcher posing an initial
bid with subsequent increments. The WTP or WTA is Gregory ( 1987) focused on nonmonetary
then the maximum (minimum) value to the user. measures to value nonmarket attributes of environ-
The validity of these techniques can be evaluated mental resources but did not discuss whether these
by comparison with results of elaborate market research measures, when monetized, could be integrated into
surveys for consumer products. Several studies show one or another of the components of TEV. These
that respondents did not actually behave as they had include measures of social well-being, psychophysical
reflected in the market surveys and that several measures, attitude measures and rnc~ltiattrib~rte
consumer products miserably failed (Spindler 1975; measures. The first measure can be simply stated by
Schuman and Johnson 1976). It is thus expected that asking the respondents if a scenario would affect their
surveys of environmental goods, which are less tangible happiness. Some indicators can be developed such as
than consumer products, would result in inaccuracy. equity, people empowerment, participation of women
The use of such techniques in LDC countries where and the availability of social services.
education and incomes are low are likewise cautioned In psychophysical evaluations, a particular aspect
by Hufschmidt and Hyman (1982). of the physical environment is used as a stimulus to
Contingent valuation (CV) is so called because potential resource users. The stimulus-response
"contingent" conditions are simulated and the relationship then can be modeled statistically, by means
respondents' behavior subject to these conditions is of rank orders, rating scales, paired comparisons, or
measured. In contingent valuation, estimates of magnitude estimates. Psychophysical measures have been
consumer's surplus are based on the direct questioning used to value some landscape features (Buhyoff and
nf participants. Most questions are designed to elicit Wellman 1980) but applications in the fishery are rare.
information on the monetary value that an individual Multiattribute models provide a rigorous means of
places on participation in a given activity - sportfishing analyzing preferences and quantifying decision outcomes
for instance (Glass and Muth 1987). Bishop et al. (1987) between alternatives that vary in multiple dimensions.
applied CV techniques to estimate the preservation For example, Keeney ( 1 977) employed multiattribute
value of striped shiners; Notropis chrysocephalus, an procedures to study fisheries management policy
endangered cyprinid in Lake Michigan. Whitehead alternatives on a river, and Walker et al. (1 983) used the
( 1993) used CV to estimate preservation values of technique to analyze trade-offs between management
coastal marine wildlife in North Carolina. plans for different stocks of coho salmon.
CV methods have come under attack as A multiattribute approach has also been applied,
inappropriate for measuring nonuse values. While being both passively, in identifying range of stakeholder
reliable for measuring use values, i.e., respondents had concerns (Edwards 1977) and actively, in bargaining
actual experience and can thus identify values to them, and negotiation (Ulvila and Snyder 1980; Raffia 1982)
values resulting from CV methods were unbelievably to assess the values that stakeholder groups (people
huge. First applications of CV to nonuse values showed with relatively coherent views about a problem) attach
that the method might not be reliable when measuring to environmental impacts of risky technologies (von
unfamiliar commodities. This problem was realized by Winterfeldt and Edwards 1986).
Lazo et al. ( 1992) and by Pearce et al. (1 989) and had For interested readers, Barton (1 994) provides an
prompted the group to devise survey questionnaires that indepth analysis of popular valuation techniques with
provided "perfect information" and "complete annotations on supporting economic theories, a
psychological context of the economic decision" description of the method, assumptions and other
(Fischhoff and Furby 1988). Concern regarding the limitations, and applications to coastal studies.
validity of CV methods was earlier summarized by By way of example, a typology of different use
Scott (1965) as "ask a hypotl~eticnlqciestion arld you and nonuse values for mangroves in the Gulf of
get n h.ypothetica1answer". Nevertheless, CV remains Guayaquil, Ecuador, and application valuation
popular and studies fail to indicate evidence of techniques is shown in Fig. 3. These values were
substantial bias. derived from the profile and application papers of LP
 Q 7 9+
d,
Direct Indirect Option Bequest Existence

Output/services Functional Future use Value to future Value from continued

Definition that can be benefits generations knowledge of
I
directly consumed I existence
All direct and
indirect uses
Goods Forest products: Habitat for flora All direct and
firewood and fauna indirect uses -- biodiversity
alcohol -- flora and fauna
tannin Substrate for bivalves -- habitat
timber
pulp Nursery grounds
forage
fertilizer Primary production
fibers from forest litter

Fishery products: Natural barrier against

finfish wind and tides
molluscs
crustaceans

Level of High Medium Low Low Low

tangibility
Valuation Change in productivity Property values Contingent valuation Contingent valuation Contingent valuation
techniques Loss of earnings Wage differentials Nonmonetary measures Nonmonetary measures Nonmonetary measures
Defense expenditure Travel cost
Replacement cost Contingent valuation
Nonmonetary measures

Fig. 3. Use and nonuse values of mangroves in the Gulf of Guayaquil, Ecuador; associated levels of tangibility and potentially useful valuation techniques.
 16
on the same site. The goods and services listed are the Global Trends, 14-16 June 1994. Seattle, USA. 63 p.
dominant uses of mangrove resources in the area. Glass, R.J. and R.M. Muth. 1987. Pitfalls and limitations in the use of
fishery valuation techniques. Trans. Am. Fish. Soc. 116:381-389.
Option, bequest and existence values are distinct but Gregory, R. 1987. Nonmonetary measures of nonmarket fishery resource
are all based on the deferment of direct and indirect benefits. Trans. Am. Fish. Soc. 116 (3):374-380.
uses for varying reasons (and thus values). 4odgson, Ci. and l. Dixon 1988. Measuring economic losses due to sediment
pollution: logging versus tourism and fisheries. Trop. Coast. Area
An argument has been made that, to a large extent, Manage. 3(1):5-8.
worldwide trends in resources overexploitation is an Hodgson, G. and J. Dixon. 1992. Sedimentation damage to marine
effect of flawed techniques for resources valuation. The resources: environmental and economic analysis, p. 421-446. In J.B.
Marsh (ed.) Resources and environment in Asia's marine sector. Taylor
imperfections stem from rigidities in traditional and Francis, Wishington.
valuation techniques to account for the following Hufschmidt, M. and E. Hyman, Editors. 1982. Economic approaches to
features: market failures caused by externalities and natural resource and environmental quality analysis. Tycooly Press,
Dublin.
public goods; nonmarket goods and services; inter- and Hundloe, T. 1989. Measuring the value of the great barrier reef. Australian
intra-generational equity; and discounting to name a Parks and Recreation 3: 11- 15.
few. However, the strong linkages fostered between the Hyman, E.L. and B. Stiftel. 1988. Combining facts and value in
environmental impact assessment. Westview Press, London.
fields of economics, the biological sciences, and public Keeney, R. 1977. A utility function for examining policy affecting the
policy have led to the development of techniques as salmon in the Skeena River. J. Fish. Res. Board Can. 34:49-63.
discussed. The work that has led to these techniques Krutilla, J.V. 1967. Conservation reconsidered. Am. Econ. Rev. 57:777-
786.
implies a new consciousness. The next step is using Lazo, J.K., W.D. Schulze, G.H. McClelland and J.K. Doyle. 1992. Can
these measures properly, and communicating the contingent valuation measure nonuse values? Am. J. Agric. Econ.
implications of the resulting studies to policymakers. 74:1126-1132.
Munasinghe, M. and E. Lutz. 1992. Environmental-economic valuation
of projects and policies for sustainable development. Environment
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Aylward, B. and E.B. Barbier. 1992. Valuing environmental functions in policies. Environ. Sci. Technol. 27:2270-2274.
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Barton, D.N. 1994. Economic factors and valuation of tropical coastal Raffia, H. 1982. The art and science of negotiation. Harvard University
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Og Ressursstudier, Norway. Randall, A. 1987. Total economic value as a basis for policy. Trans. Am.
Bell, F.W. 1989. Application of wetland valuation theory to Floridafisheries. Fish. Soc. 116:325-335.
Florida Sea Grant College and Department of Economics, Florida Ruitenbeek, H.J. 1992. Mangrove management: an economic analysis of
State University, Florida. 95 p. management options with a focus on Bintuni Bay, Irian Jaya.
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Master's thesis.
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Chua, T.-E. and L. Fallon-Scura, Editors. 1992. Integrative framework
Scott, A. 1965. The valuation of game resources: some theoretical aspects.
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Can. Fish. Rep. 4.
37, 169 p.
Spindler, J. 1975. The accuracy of consumer surveys in describing markets
Costanza, R., S.C. Farber and J. Maxwell. 1989. Valuation and management
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Spurgeon, J.P.G. 1992. The economic valuation of coral reefs. Mar. Pollut.
Dixon., J.A., R.A. Carpenter, L.A. Fallon, P.B. Sherman and S. Manopimoke.
Bull. 24:529-536.
1988. Economic analysis of the environmental impacts of
Ulvila, J. and W. Snyder. 1980. Negotiationson internationaltimber standards:
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an application of multiattribute value theory. Operations Res. 28:81-
Edwards, W. 1977. How to use multiathibute utility measurement for social
96.
decision valuing. IEEE (Institute of Electrical and Electronics
Engineers) Transactions, Systems, Man and Cybernetics 7: 326-340. von Winterfeldt, D. and W. Edwards. 1986. Decision analysis and behavioral
Fischhoff, B. and L. Furby. 1988. Measuring values: aconceptual framework research. Cambridge University Press, Cambridge.
for interpreting transactions with special reference to contingent Walker, K., B. Rettig, and R. Hilbom. 1983. Analysis of multiple objectives
valuation of visibility. J. Risk and Uncertainty 1:147-184. in Oregon coho salmon policy. Can. J. Fish. Aquat. Sci. 40:580-587.
Folke, C. and T. Karberger, Editors. 1991. Linking the natural environment Weisbrod, B.A. 1964. Collective-consumptive services of individual-
and the economy: essays from the Eco-Eco Group. 2nd ed. Kluwer consumption goods. Q. J. Econ. 78:471-477.
Academic Publishers, Dordrecht. Whitehead, J.C. 1993. Total economic values for coastal and marine wildlife:
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Options for Mangrove Management surface water. These oceanographic characteristics are
in the Gulf of Guayaquil, Ecuador* seasonal in nature and dependent on the intensity and
permanence of the front. The coastal areas of Ecuador
likewise experience& El Niiio phenomenon, an event
FAB~OLA
BELL',ICURM-ECLAC Collaborative Project on
the Socioecononzic Valuation of Coastal Resources in generally occurring every 3-7 years, characterized by
Sout17west Latin America, Casilla 179-0, Santiago, Chile high water temperatures for periods ranging from 6 to
18 months, and heavy rains.
ANNABELLE CRUZ-TRINIDAD, International Centerfor Living According to the Koppen classification, Guayas
Aquatic Resources Management (ICLARM), MCPO Box has three climate types which distinguish the north from
2631, 0718 Makati City, Philippines the south: semi arid or steppe climate, with rainfall
lower than 250 mm annually; arid, with rainfall lower
BELL, F. and A. CRUZ-TRINIDAD. 1996. Options for mangrove than 500 mm from the months of January to April. In
management in the Gulf of Guayaquil, Ecuador, p. 17-3 1. In A. Cruz- the zone of the Guayas River, the climate is tropical
Trinidad (ed.) Valuation of tropical coastal resources: theory and humid and savannah.
application of linear programming. ICLARM Stud Rev. 25, 108 p.

Abstract Characteristics of the Mangroves

of Guayas, Ecuador
The economic and ecological costs and benefits of two management
strategies: (1) mangrove conversion and (2) sustainable exploitation are
identified and set up as a linear programming problem. The maximization Environmental conditions in Ecuador, as in most
objective is to increase Total Economic Value (TEV) from these strategies tropical countries, are conducive to the growth and
satisfying constraints pertaining to land, labor, availability of penaeid
shrimp fry, rated capacity of processing plants and product demand. development of mangrove forests. Total mangove area
Aggregate benefits resulting from a combination of both strategies is in Guayas is 116,000 ha, representing 66% of total
US$ 174.10"f which 60% is contributed by sustainable exploitation of
mangroves (US$ 18.4.10Vrom forestry and US$ 87.6.10" from fishery);
mangove area in Ecuador (CLIRSEN 1987).
the remaining amount is accounted for by conversion to shrimp farms. Mangroves and salt flats are found in the intertidal
These beliefits correspond to the sustainable exploitation of 120.109a of zone; further inwards are the higher grounds, which
mangroves and conversion of 5.5.10" ha.
are never flooded. The mangroves are found in areas
closer to the sea and as such are frequently inundated,
General Description of Study Site whereas the salt flats are periodically inundated and,
in most cases, occur behind mangroves. In most cases,
The Coast of Guayas clayey or muddy soils are rather impermeable and easily
get flooded during high tides. Areas which do not have
Guayas Province is one of four politico-adminis- any form of vegetation have high concentrations of salt
trative regions of Ecuador and consists of 20,900 km2 while those in the higher areas are more conducive to
or 34% of the national surface area. The province is agriculture (Fig. 2).
bounded by the Gulf of Cuayaquil and is the site of The mangrove forests of Guayas are characterized
various social and economic activities (Fig. 1). by two zones: I ) the river fringes, where Rhizophora
Mangroves and shrimp farms are found in the coastal spp. (red mangrove) occur and 2) the innermost to rear
area with the latter comprising 30,000 ha. areas, where a mix of Avicerznia spp. (black mangrove)
An important feature of the region's oceanography and Lagunc~tlarinspp. occurs (Terchunian et al. 1986).
is the equatorial front, normally located between 0" The Rhizophora strip occurs in the zone inundated 445
and 3", and which separates the cold and nutrient rich to 700 times per year (Cintrbn and Schaefer 1983)
waters of the Humboldt current and the extension of whereas the other zone is inundated 184 to 445 times
the Equatorial subcurrent from warm nutrient poor per year. Mangrove forests may also contain zones of
salt deposits (salitmles) and mud deposits (lodo or
pantone) both of which are inundated less than 184
- times per year. Due to the high salinity in this zone, the
" ICLARM Contribution No. 1222. mangrove forests are collectively called salirzns
'Present address: Calle Edinburgo 520, Depto. 102. Las Condes
Santiago, Chile. (Terchunian et al. 1986).
 products and services derived
from it. The ecological functions
of the mangrove include the
export of organic material to
estuaries which serves as food for
juvenile shrimps and fish and/or
their prey; the root system of
mangrove trees enables the
retention of sediments, preventing
erosion and also for shoreline
protection; and lastly, providing a
habitat for many aquatic species
in the mud flats and roots.
Three alternative uses of the
mangroves in Guayas, Ecuador,
include: 1) capture fisheries,
indirect use via the protection and
nourishment provided to target
Legend: species and direct use via the
V Maritime transport exploitation of fish and
i Catdment of agri B
.
industrial waste crustaceans; 2) forestry, direct
- Town
-
-f and node
centers
exploitation of marketable goods;
and 3) aquaculture, complete
conversion of the physical and
ecological dynamics of the
ecosystem. The three uses occur
simultaneously and result in a
measurable quantity of economic
benefits. However, mangrove
Fig. 1 . The coastal zone bordering the Gulf of Guayaquil, Ecuador, as the site of multiple
economic and resource-based activities. conversion to shrimp aquaculture
has been their main use in the last
The Rhizophora, Avicennia and Laguncularia attain two decades because of attractive returns in the export
heights of >I5 m, 6-15 m and c 5 m, respectively. Some market.
mangrove trees are known to reach heights of Of the three alternative uses, mangrove conversion
35 m and a density of 365 trees per hectare compared to results in the gravest damage to the environment (Paw
an optimum of 800 trees per hectare (FPVM 1987). In and Chua 1991). Mangrove conversion to shrimp
Guayas, standing density is only 185 t.ha-I, an indicator mariculture results in a vicious cycle because of the
of overexploitation (Twilley 1989). Characteristics of loss of breeding grounds for larvae which are critical
mangroves are shown in Table 1. These species are inputs to the shrimp industry. Other impacts observed
utilizable as timber and other wood products. in Guayas include change in water quality in the coastal
zone due to discharges of shrimp ponds brought about
by water exchange which Twilley (1989) estimates to
Alternative Uses for Mangroves: Fishery,
reach 20 million t-day-'.
Forestry and Aquaculture Both aquaculture and forestry activities were
observed to have adverse effects on the environment
Veiasc6 (1987) synthesizes the role of mangroves including a decline in the production of mussels, oysters
as: 1 ) economic and therefore exploitable and 2) and cockles. The felling of trees causes thinning of
ecological and therefore conservable. The economic forest cover which results in direct penetration of solar
importance of the mangrove ecosystem arises from the rays, increasing land temperature and salinity and
 19
decline in oxygen levels contributing to the
disappearanceof species that exist in muddy substrates.
It likewise causes a decrease in natural barriers that
protect against surf, and with wind action causing
Coastal zone
erosion and increased salinity of interior lands.

Fishery

Commercially important species associated with

mangrove include shrimp of the genus Penaeus: P.
vannamei, P. stylirostris, P. occidentalis and P.
californiensis. These species have a particular
migratory cycle and appear strongly dependent on the
mangroves. Other crustaceans found in mangroves
include crabs (Local: jaiba) (Ucides spp., Uca spp.,
Callinectes toxotes). Commercially important molluscs
include Anadara tuberculosa, Anadara similis,
Anadara grandis, Mytella guayanensis, Ostrea
columbiensis and Chione subrugosa.
Only one fish species appears to be completely
dependent on mangroves, Mugil curema mullet (Lisa),
a detritus feeder.

THE COMMERCIAL AND ARTISANAL SECTOR

I I I I I

The commercially important species are exploited

by both the artisanal and commercial fleet. The
commercial fleet exploits the shrimp fishery which is
a prominent feature in the Gulf of Guayaquil (Cun and
Marin 1982). Shrimp fishing is conducted throughout
Fig. 2. Zonation, uses and products/goods derived from coastal the entire coast in 60 m. Main gears used are
areas in the Gulf of Guayaquil, Ecuador. pair trawlers with lengths of 10 to 25 m and 190 to
500 hp or greater.
The shrimp fishery contributed 10 to 12% of total
production of shrimps in Ecuador in recent years with

Table 1 . Commercially important mangrove species in Gnayas, Ecuador.

- -

Famly and specles

Rhrzophora Avrcennra Luguncularra Conocurpus
mangle harrrsonrr racemosa nrtrda erectus

Common name(s) m. cholo m. rojo m. de pava m. salado m. bhnco Jeli prieto

m. gateado caballero m. iguaner m. hembra m. macho
m. gatucho m. bobo

Average height, Ecuador (m) 12 51 30 30 18

Average height, general (m) 7-8 ; 10-12 15-35 ; 50-60 8-25

Source: Horna (1983); Rollet (1986).

20
the remaining contributed by culture. Catch of fully- Most mangrove products are used for construction.
grown shrimp and larvae amounted to 10,800 t and Red and white mangroves are valued for their pulp
6.4.1 O9 larvae in 1988, respectively. As for larvae, actual which is used for the manufacture of boards, panels
catch can be as high as 1.3.101°larvae (assuming a 50% and wood chips. The red mangrove is used for charcoal
mortality rate), and at a price of US$8.6 per thousand and from its bark is tannin sourced; the latter is merely
larvae, and can be valued at US$55.109 to 110.106per a by-product and is exploited on a small scale.
year.
The artisanal fishery uses small vessels such as PRODUCTION
rafts, canoes, boats and barges, many of which have
been used since the 16th century (Lenz-Volland and Growth of mangroves is slow. The red mangrove,
Volland 1992) to catch fish, molluscs and crustaceans. for example, takes about 25 to 30 years to attain
The most important crustaceans are penaeid shrimps maturity, while the other species take 15 to 20 years
and lobsters which are sold fresh, frozen, cooked, (Horna 1983).
canned or salted. Larval and juvenile shrimp are also Wood: The density of red mangrove is 0.9 to 1.2
captured for rearing in hatcheries. These are captured t.m-3. To estimate yield per hectare, we consider
throughout the coastline year-round but are most biomass per hectare with the following percentage
abundant during the rainy months from November to distribution per species:
April (McPadden 1985). The artisanal fleet also catches
berried shrimp females using trammel nets. R. mangle L. racemosa
-
Crabs are captured in marshes using manual Roots 20
methods, traps and baits. These are sold fresh and Trunk 65 86
consumed locally and exported as well. Molluscs are Branches 12 10
manually extracted from the mud, during low tide. Leaves 3 4
These are sold and consumed as fresh and unshelled
and in some cases, canned or frozen. The market is Charcoal: The yield of wood charcoal is 0.5 m3 of
domestic except in the case of Anadara tuberculosa charcoal per m3 of wood, at a 50% conversion rate.
which is also exported. The fish species captured by Thus, given a density of 680 kg.m-%f wood carbon,
the artisanal sector are varied and consumed as fresh, this translates to 340 kg carbon per m" of wood.
cooked, salted or canned and are consumed by domestic Tannin:It is possible to obtain up to 90 kg of tree
and foreign markets. bark from a mature tree from which 30% can be
extracted as tannin. Extraction rates of tannin from the
Forestry bark and leaves are 15 to 42% and 22%, respectively.

The exploitation of mangrove forests in Ecuador Aquaculture

is small scale, done mostly by family groups, which
have maintained the traditional exploitation systems The geographical conditions of the coastal zone
over the years. The main modes of exploitation are are conducive to the growth of the shrimp aquaculture
partial and selective logging. Partial logging involves industry which in 1988 became the second most
the felling of alternate strips of trees perpendicular to important source of foreign exchange next to petroleum
waterways every 15 years; this permits the natural (Solorzano 1989). Presently, Ecuador accounts for 76%
regeneration of the forest. Selective logging is the of shrimp production in the western hemisphere, is the
felling of trees with diameter greater than 5 to 12 cm, second largest exporter of pond-raised shrimp in the
while the smaller ones are left standing along with those world, and the fourth largest producer (Agiiero and
which bear seeds to allow regeneration of the forest. Gonzalez 1991). While initiated in 1968, the period gf
The principal use of wood includes felling of trees robust growth was between 1980 and 1987 from
for charcoal and firewood, and the manufacture of wood whence growth stabilized. This development has
products for construction. It is presumed that present directly caused the destruction of around 30,000 ha of
exploitation systems have not changed much from mangrove forest; the Manabi region suffered the most
traditional forms (Horna 1980). and at present has 50% of forest cover (Table 2).
 21
Shrimp farms were initially constructed in salt flats (Table 3). The culture systems used in Ecuador and
and areas of sparse vegetation; here, costs of their characteristics include the extensive system,
construction were minimal. Later, mangrove and accounting for 35% of total pond area, practiced in El
intertidal areas and lands formerly used for agriculture Oro Province; the semi-extensive system, accounting
were also tapped (Snedaker et al. 1988). To date, shrimp for 55% of total pond area, prevalent in Guayas
farms comprise 35 to 48% of the total area in hilly Province; and the semi-intensive system, which
grounds, 27 to 34% in salt flats and 25 to 30% in operates under professional, and .oftentimes, foreign
mangroves (Meltzoff and LiPuma 1986). management (Meltzoff and LiPuma 1986).
In Guayas Province alone, 9,500 ha of mangroves Shrimp mariculture begins with the capture of
and 31,000 ha of salt flats were converted to shrimp larvae by semilleros (larvae collectors) in estuaries,
farms from 1969 to 1987. Overall, inEcuador, 117,000 although recently trawlers were observed to capture
ha of shrimp farms have been constructed as of 1987, gravid females for hatchery production (Meltzoff and
63% of which is concentrated in Guayas. LiPuma 1986). Larvae production has been quite
erratic with peaks occurring in 1982 and 1983 being
attributable to the "El Nifio" phenomenon. The
Table 2. Area of mangroves, salt flats and shrimp farms in Ecuador, 1969-
1987, by province.
development cycle of shrimp mariculture is observed
to be self-defeating with the construction of ponds
Province Year Mangroves Salt flats Shnmp ponds causing widespread mangrove destruction (Terchunian
Esmeraldas 1969 32.0 et al. 1984) and the inevitable loss of breeding grounds
1984 30.2 1.6 for shrimp larvae. Thus, while shrimp pond coverage
1987 29.3 2.6 has been increasing, the availability of larvae for
Manabi 1969 12.4 845.0
1984 8.0 164.0 8.4 stocking has approached crisis levels.
1987 6.6 164.0 10.0
Guayas 1969 125.5 40.1
1984 119.6 17.3 52.6 COSTS
1987 116.1 9.8 74.4
El Oro 1969 33.6 9.8
1984 24.4 2.5 26.5
The costs associated with aquaculture include the
1987 23.4 2.5 29.7 cost of land, construction costs and operating expenses.
Total 1969 203.6 51.5 The cost of land varies according to its location, source
1984 182.2 20.0 89.1
1987 175.5 12.4 116.8 of water and soil quality. Highlands and mangroves
are priced at US$l,OOO.ha-' and US$6,000.ha-',
respectively. Saltbeds are priced in between (Horna
CULTURE SYSTEMS 1983). In Guayaquil, agricultural land convertible (to
shrimp farms) costs around US$2,000.ha-'.
Shrimp farms culture the white shrimp, Penaeus Cost of infrastructure and equipment depends on
vannamei, which is more adaptable to existing culture the technology used. Construction and equipment costs
methods; of secondary importance is Penaeus may range from US$4,000 to 7,700.ha-' with an
stylirostris (Aquacop 1979). economic lifetime of 5 to 10 years.
Shrimp culture requires the construction of tanks The major components of variable costs include
or ponds with heights ranging from 0.5 to 1.2 m. The costs of larvae, food and energy. Price of larvae
larvae are captured in estuaries by artisanal fishers and depends on availability. Depending on the point of sale,
transported to stocking tanks. The larvae are either source and time of year, the price of larvae in recent
brought to grow-out farms or to hatcheries. Survival years fluctuated from US$ I to 13.5.thousand-'.
rate is low through the various stages of production
(capture, transport and stocking) ranging from 1 to 5% FINAL PRODUCT AND PRODUCTION TRENDS
and mortality may reach as high as 50 to 100% per
stage. Upon harvest, shrimps are processed via steaming
Prevailing culture systems are differentiated and their tails removed. Headless shrimps have final
according to the level of technology, stocking density, weights of about 66-67% of live weight. These are
feeding regime, fertilization and water management packed and frozen for transport and selling.
Table 3. Main features of shrimp culture systems in Ecuador. ine ear programming Application
Parameters Extensive Semi-extensive Semi-intensive to the Mangroves of Guayas, Ecuador
Stockmg density 10-10.5 30-35 80-100
(PL.lO".haI ) The Optimization Model
Yield (Ib.ha '.year ') 300-800 975-1,300 1,900-3,250

Weight (g) 23-35 18-21.5 15-18 A model was constructed which seeks to
none only in final stage throughout cycle
optimize Total Economic Value (TEV) derived
Supplementary
feeding oflifecycle Feeding ratio: 1.3-2 from the mangrove ecosystem in Guayas,
Ecuador. Optimum TEV is arrived at by
Fertilizers none Yes Yes
combining development strategies (see Fig. 3),
Breeding tanks none Yes Yes ranging from the extreme options of conservation
(40-45 days) or conversion, or an intermediate option, i.e.,
Water management seawater pumped aeration partial removal of mangrove and sustained
exploitation of the remainder.
Area (ha) > loo >1,000 Conservation does not yield any form of
% of use in Ecuador 35 55 10 goods but generates benefits via services and
functions (discussed in previous section).
Source. McPadden (1985); Espinoza (1989).
Sustainable exploitation involves the extraction
of forestry and fishery goods in a fashion that assures
future generations of the same quality of life (World
Commission on Environment and Development 1987).
This includes the indirect benefits associated with
mangroves such as the services and ecological functions
Cultured shrimp production reached 77,800 t in derived from them. Conversion involves a partial or
1988 with a value amounting to US$322 million. Total complete alteration of the geophysical attributes of the
production by both capture and culture amounts to resource. We consider only the conversion to shrimp
about US$416 millionlyear, which is about 4.2% of ponds because its prevalence in our project site has
GNP and 28.3% of primary production (FEDECAM elevated it to a management concern. Conversion results
1989). The export market, notably the United States, in a particular commodity, shrimps, and incurs costs
absorbs 92% of total production while the remaining associated with operati& shrimp farms and costs
is absorbed by the domestic market. attributed to loss of mangrove resource, scarcity costs
Production has declined in recent years. In 1989 and compensation costs.
and 1990, only 64,000 and 69,000 t of shrimp, The model consists of the objective function, the
respectively, were produced by the aquaculture sector; constraints and the technical coefficients. The mathema-
64% of total production is accounted for by the semi- tical formulation of these components are discussed and
intensive farms and the remainder is produced by summarized as a representative tableau (Fig. 4).
extensive farms. The objective function consists of decision variables
To date, the most critical factor that affects the which affect the maximization objective either positively
viability of shrimp culture as a whole, and the or negatively depending on the value and sign of the
hatcheries, in particular, is the availability of natural coefficient and on the magnitude of the decision variable.
larvae for stocking in grow-out ponds and for breeding The decision variables in our objective function are
in hatcheries. In 1988, for example, the aquaculture influenced by two broad development options, conversion
sector utilized a total of 9.10y larvae, 72% of which and sustainable exploitation, and their respective costs
was provided by the artisanal fishery. A record of and benefits.
operational shrimp farms in 1988 ranged from
61,000 ha to 123,000ha, respectively. In Guayas, where A general formulation is:
there are a total of 88,000 ha, roughly 48,000 ha or
53% is operational (Meltzoff and LiPuma 1986). MaxZ = C NBq+C NB,
 23

Potential uses of mangrove

1 1
Conservation Susta~nableexplo~tat~on
Conversion
I I I
I

,
Benetlts Beneflts Cost

r--l
I I I
l-'--l Sewlces
Sew~ces Environment Goods Ennronment Goods
4'7
Tourlsm Transport
4 FY
Forest Flshery Tour~sm Transpolt
cost of
exiractlon
cap~tal
and
Benetlts
I
Goods
Costs
I
Production cost
charcoal flsh
p~le shrmps and fry
operatlons
cost (shnmp) .
.
construct~on
operatlons
posts monuscs
tannm crustaceans

Fig. 3. Potential uses of mangroves and associated costs and benefits per category of usage.

where NB, is the net benefit associated with shrimp coefficients of the objective function and assume values
culture and NB, is the net benefit associated with pertaining to costs or prices.
sustainable development of the mangrove. The subindices represent:
1) a = land use, a = {C,M);
The mathematical formulation of the LP model C = area devoted to construction of shrimp
is: ponds; and
M = area devoted to conservation of
mangrove, sustainable exploitation.
2) b = use of resources, b = {G, S, F, FV);
G = resources used for the production of
goods;
S t U V W Y
S = resources used for the delivery of
services;
F = resources used for the maintenance of
ecological functions; and
The principal subindices define the variable
FV= resources devoted for future use,
according to the option of conservation or conversion
existence value, and other values not
to shrimp farms, the area or zone of exploitation, type
previously considered.
of use of the resource and ecosystem based on its source
3) c = productive sector; c = {F, P, A ) ;
of value, the productive sector, level of conversion,
F = forestry;
technology applied, resources used and final products.
P = fishery; and
The nomenclature adopted for decision variables
A = aquaculture.
has the form:
Note that the subindex c, for the aquaculture sector,
is not written; instead is assumed implicit in all
X . * *The t y p d var~ablesIn the model start w ~ t hthe letter X and refer to
abc'A jN klrnn quantltles (e g , hectarage, number of postlarvae, h e r s of tannln) Cases
where the var~ablebeglns w ~ t ha letter other than X represent sltuatlons
where such variable is a component of mother or apercentage of mother:
'abci~ ,Nklmn and CabciAjNHmn
refer to the these vanables take on a value between 0 and I
24
activities concerning shrimp farming, or where For the forestry sector, it was assumed thatAvicennia
subindex a=c. is the only species extracted from Area 1 and from Area
4) i = processing activity, i = ( 1,....s) 2, the red mangrove. The frnal products are firewood from
For the productive sector, the numbering of Avicennia trees 0, piles from red mangrove trees (P),
activities is based on the chronology: extraction, and tannin from red mangrove trees (T).
transport, processing and sales. In the fishery, the final products include molluscs,
5) A, = area where activity i occurs crabs, shrimp fry, adult shrimps and fish. These
The A,'s are the different zones of the mangrove products, as defined, assume no need for further
as outlined below. The delineations are based on processing. We assume a certain percentage loss for
different ecological functions. cleaning, for example, in the case of headless shrimps.
Zone A: open seas, with high saline concentration
Zone B: swamps and estuaries where salinity is Constraints
intermediate
Zone C: coastal fringes, frequently inundated, Constraints include resource constraints and others
dominant species is the red mangrove related to linear programming, including balance
Zone D: interior zone of the mangrove which is equations, convex equations and counters. The
inundated less frequently than Zone C, dominant constraints are formulated as equalities or inequalities
species are black mangrove and white mangrove in which the right-hand side (RHS) determines the limit.
Zone E: salt flats, rarely inundated and no existing The coefficients are referred to as input-output
vegetation coefficients or technical coefficients and represent the
Zone F: higherlsloping grounds, never inundated, amount of each resource required by each decision
generally used by agriculture variable.
level of conversion of mangrove The relevant resource constraints are:
area, k = { 1,..4} (see Table 4) 1) Land
level of technology (Table 5)
(EJ} , m = ( l,..4}, m is stocking
density
extensive culture system
semi-intensive culture system
natural resource1 final product for all types of land area j = (1,...4)

Table 4. Assumed conversion levels for mangrove zones C, D, and C and

D, in Guayas, Ecuador, in lo3ha.

Conversion Zone
level (k) C D C&D

Table 5. Assumed levels of stocking density and effort for forestry and aquaculture corresponding to various
levels of technology.

Stocking density Aquacl

(m) Extensive Sem
(PL. 109,ha-I) (Treesha-'.year1)
 Mangrove cowerston Sustainable exploitation

Max TEV Costs Benefits Casts Benefits RHS

Land Construction Operating Harvesting Sales Land [Forestry) Fishing Sales
Exploitation Processing Effort

Decision land area converted area converted quantlty of quantity of land forest area quantity of Fishing effort quantity of <=Aj
variables area to shrmp farms to shrimp farms shrimp shrimp area exploited trees felled per zone and fishery and <=LA
with references harvested sold per species forestry <=LF
to technology products <=Lp
sold <=PI
<=Pr
<=Ps
<=QF
<=QP
<=F
<=K,
<=Ks
Balance equations
Convex equations
Counters

= mangiove area from zones I, .6 Ps = plant capacity, sawmill

= labor, aquaculture sector Q, = demand, forestry products
L, = labor, forestry sector QF = demand, fishery products
L, = labor, fishery sector F = fishing effort
Pp = plant capacity, p8ckapinp K, = capital, small-scale
Pp = plant capacity, freezing K, = capital, large-scale

Fig. 4. The LP tableau for mangrove utilization in Guayas, Ecuador.

2) Maximum carrying capacity of forest, given = density of resource or species n,

R~~j~yl,,,,,
existing mangrove area or level of conversion and for type of land A,, conversion
maximum biomass based on level of effort level N,, for level of technology
1 and effort m
4) Postlarvae

t u v w y
the maximum biomass of species Z Z Z ~ X c s c l ~ j <=
~w m j, N~) + CPL
PLM(A
n, for type of conversion N,, Aj,l Nk=ll=l m=l n=l
given by level of technology 1and
effort level m CPL = capacity of hatcheries
PLM (A,, Nk) = availability of seeds from the wild
is the density of resource or as a function of area and level of
species n, per type of mangrove conversion
zone A,, given conversion level
N,, and level of technology 1and 5 ) Labor
effort level m

3) Maximum carrying capacity of the fishery, given

existing mangrove area or level of conversion and
maximum biomass based on applied effort in the fishery
MMOc = labor available for sector c
Rcin = coefficient of productivity of
activity I

6) Maximum effort per productive sector, i.e,

machinery, number of nets, boats available
= maximum biomass of species n,
.Aj
R ~ ~ j ~ W m n V W V
for level of conversion N,, and
level of technology 1and effort m
 maximum effort for sector c. Number able to simulate the resource flow to final product,
of machines, nets, boats. passing all stages and undergoing and capturing losses
extraction rate (probability of and wastage to the environment.
capture), per effort applied, per level The equation can be expressed as:
of technology applied
*
X a B ~ l ~ , ~ k l rRma ~ ~ l l m n- X
FaE3~~,+l~~J~kh
7 ) Maximum processing capacity per productive
sector
= percentage usage of resource
Ra~~~lmny*
between successive activities.
i.e., i+l.
Counters have a similar purpose except that these
are used when decision variables are broken down into
R lmn = coefficient or rate of production per several components, e.g., hectarage, and do not refer
type of technology m utilized to product transformation. Convex equations are
included to assure compliance with segmentation
CPc2n = maximum capacity of plant, sector defined by piecewise linearization used in incorporating
c for product line n. nonlinear functions.
Lastly, we also include the nonnegativity
constraints with reference to our decision variables.
8) Maximum capacity of cold storage per
productive sector Values of the Constants
V W V

The constants include the coefficients of the

decision variables in the objective function, the
= volume occupied in transport sector
technical coefficients, and the right-hand side (RHS)
Rc3lmn elements. The first element defines the columns of the
m, per unit of product n transported
LP tableau which is a 141 x 115 matrix whereas the
CPc3n = maximum capacity of warehouse, last two make up the rows of the tableau. The elements
freezers in sector c for product line n of the LP tableau are described in more detail in
Appendix 1.
9) Capital availability for small and large investors
in the aquaculture sector COEFFICIENTS OF THE OBJECTIVE FUNCTION

'' '
t u

A .=I N k = l m=l n=l

J
w y

*
k ~l ~mj ~n k l m n<=
X ~ ~ ~ l ~ j ~ R Y*
I
The coefficients of the objective function reflect
the contribution of a particular activity to the value of
the objective function (VOF). Thus, costs tend to
depress VOF while revenues increase it.
initial investment (infrastructure and The costs considered include those of land
other operating costs) for shrimp farms conversion (construction of shrimp tanks), shrimp
located in area A, operating under fry, and extraction and processing cost for forestry
system 1 and fishing. The prices refer to those of finished
amount of credit available for products which include shrimps f r o m the
investments in technology system 1. aquaculture sector (whole and headless); from the
forestry sector, firewood, posts and tannin; and from
Balance Equations, Counters and Convex Sets the fishery sector, molluscs, c r a b s , shrimp
postlarvae, adult shrimps and fish. Prices of finished
Balance equations were set up for successive products and that of production inputs are based on
activities in the production process. With these we are current market prices.
 Construction costs range from US$100 to Table 6. Average costs and market prices of products derived from the
US$10,400.ha-I depending on the mangrove zone and mangrove of Guayas, Ecuador.
areal coverage. Development costs are higher in salt Exploitation/
flats and sloping grounds than in Zones A to D. For Commodities processing costs' Market price
example, conversion costs in Zone A for a 10,000 ha
Aquaculture US$.t-'
farm costs US$SOO.ha I as compared to 60,000 ha in whole n.a. 7,500
Zone E which costs US$9,150.ha-I. Costs are generally headless n.a. 6,700
Fishery US$.tP
higher for the same level of areal conversion in Zone E. clams 1,000 2,000
Construction costs of extensive farms is crabs 1,000 4,000
US$8,490+ha-'while that of semi-intensive farms is postlarvae 10,000 8,600
shrimps 5,000 6,700
US$32,460.ha1 which remains constant despite fish 5,000 2,500
different stocking regimes. An important determinant Forestry US$m '
of stocking is the cost of postlarvae (PL) and related firewood 5 50
posts 3 10
operational costs associated with feeding and air and tannin 5 150
water management. These costs range from
'For foresty products.
US$8.6.thousand-' PL (extensive, 10,000 ha) to Source: FPVM (1987); FEDECAM (1989).
US$16.9.thousand-' PL (extensive, 125,000 ha).
Harvesting cost is US$6OO.t-I and is uniform for all
types of operations and areal coverage. Total net benefits that would accrue to
Sustainable exploitation of the mangrove forest simultaneous conversion and exploitation of Guayas
involves costs of extraction and processing. Extraction mangroves amount to US$174.106.year-' . Of the total,
costs for Avicennia in Zone D with area of 10,000 ha US$106. 106is accounted for by sustainable exploitation
ranges from US$300.ha1 to 700.ha-' while for red of the mangrove: US$18-to6from the forestry sector,
mangrove in Zone C, same areal coverage, ranges from US$88.106 from the fishery, and US$68.10"rom the
US$225.ha-' to 525.ha-'. aquaculture sector, in which US$2.5.106 represents the
In the fishery, collection of clams and crabs occurs costs of transforming the mangrove.
In Zone C; that of shrimp fry in Zone B; and for adult The above estimates are based on the sustainable
shrimps and fish, in Zone A, or open seas. Collection exploitation of 119.5.1O3 ha of mangroves distributed
costs for these products as well as market prices of in Zones C (46%) and D (54%) and the conversion of
mangrove-derived commodities are shown in Table 6. 5.5.103ha preferably sited in Zone C because of the
lower costs (construction and opportunity costs)
TECHNICAL COEFFICIENTSAND RHS VALUES
incurred. Optimal area of shrimp farm is 49.1O3 ha with
areal distribution as follows: mangroves, 11%; salt flats,
In the case of a resource constraint, the technical 64%; and the remaining 25%, sloping grounds. The
coefficients represent the contribution of a particular distribution of shrimp farms according to mode of
resource, i.e., labor, to a particular decision variable operation is 37.103 ha for extensive farms, 84% of
included in the maximand. which are located in salt flats, and 13.103ha for semi-
Right hand side values define the limits of the intensive farms, all located in sloping grounds.
restrictions enumerated above or, in the case of resource Operations in mangrove areas are extensive. Though
constraints, the supply or availability of the resource. less in area, semi-intensive farms would provide
approximately 45 million t of shrimps (heads-on) or
Results and Discussion 64% of total production.
Comparing the parameter estimates with actual
Solutions to the Primal Problem values shows that mangrove conversion has clearly
gone beyond sustainable levels, i.e., by about 200%.
The solutions to the primal problem are provided in The estimates furthermore show the preference of siting
Table 7. These include the optimal value of the objective ponds in mangroves rather than in salt flats and sloping
function and the values of the decision variables. grounds which are both underutilized.
 Table 7. Parameter estimates of the primal LP problem for three alternative uses of mangroves in Guayas, Ecuador

Parameters Unit Model Actual*

Option: Aquaculture
Extensive shrimp farms ha. lo3
Semi-intensive shrimp farms
Shrimp farms, mangrove area 1
Shrimp farms, mangrove area 2
Total area of shrimp farms, mangrove
Extensive shrimp farms, salt flats
Semi-intensive shrimp farms, salt flats
Total area of shrimp farms, salt flats
Semi-intensive shrimp farms, sloping ground
Total area of shrimp farms, sloping ground
Total extensive shrimp farms
Total semi-intensive shrimp farms
Total shrimp farms
Shrimp fry sourced from the wild PL.~O~
Shrimp fry sourced from labs
Total fry used
Production, extensive systems t.103
Production, semi-intensive systems
Total shrimp production (heads-on)
Sales of shrimp, heads-on
Sales of shrimp, headless
Total costs US$ 1O6.year'
Gross income
Net income
Option: sustainable exploitation
Mangrove area in Zone 1 ha.103
Mangrove area in Zone 2
Total mangrove area
Sector: forestry
Avicennia felled cu.m lo3
Rhizophora felled
Sale of firewood
Sale of posts
Sale of tannin 1.10'
Total costs US$ 1O3.year1
Gross income
Net income
Sector: fishery
Sale of molluscs t.103
Sale of crabs - bundles lo3
Sale of fry PL. I 03
Sale of shrimps, heads-on t.103
Sale of fish
Total costs US$ 10"yearl
Gross income
Net income
Net benefits, service and function
Total cost of conservation
Net income of conservation
Net benefit
Total net benefit

*Based on 66% of total figures for Ecuador given that Guayas accounts for same % mangrove.
'k*Only for capture PL.

Solutions to the Dual Problem interpretation as the rate of change in the VOF given a
corresponding change in resource availability has
The dual formulation of the linear programming immense economic implications: the dual values
problem resulted in the same level of net benefits, i.e., provide measures of opportunity costs for intermediate
value of the objective function (VOF). Its mathematical goods and services such as labor while in the case of
 29
final goods, dual values represent the consumer's Table 8. Parameter estimates of the dual LP problem for the mangroves of
Guayas, Ecuador.
willingness to pay (Table 8).
In the case of land, the dual value is the value of Parameter Dual value Unit
foregone production if the land were used alternatively.
Thus, the VOF is estimated to increase by US$344 and Mangrove area, Zone 3
US$294 for every hectare converted into shrimp ponds Mangrove area, Zone 4
Shrimps farms, Zone 5
in Zones C and D, respectively. The ecological Avicennia
functions performed in Zone C resulted in a higher Rhizophora
shadow price than Zone D. Results show that each Firewood
Posts
additional hectare of shrimp farm in Zone E, salt flats, Tannin
would add an average of US$677 to total net benefits Molluscs
notwithstanding the fact that it has already reached Crab
Shrimp fry
suboptimum levels. This is due to the fact that more Shrimps
than 90% of shrimp production is derived from this Fish
Fry sourced from wild
zone. Fry destined for hatcheries
The dual values estimated for forestry and fishery Capital, extensive system
products approximate their market prices. The higher Capital, intensive system
shadow prices assigned to fishery products, especially
that of shrimp fry, emphasizes the role of the mangrove
2) changes in the supply of natural fry as a
in the sustenance of coastal marine resources. Another function of El Nifio occurrences;
possible justification is that forestry products can be
3) availability of capital for investment in the
sourced from nonmangrove forests including aquaculture sector. An increase in investment can be
dipterocarp and hardwood forests; thus, the lower interpreted as a technological breakthrough or infusion
shadow price. of foreign investment.
Fry obtained from the wild have a positive shadow In Scenarios 1 and 2, the area converted to shrimp
price but that obtained from the hatcheries have a zero farms in Zone C was assumed to increase with the
shadow price indicating that the resource is nonscarce, additional area being released from Zone F (higher
i.e., the demand is less than the installed capacity. grounds) and from the area originally intended for
Results further indicate that packaging and freezing sustainable management. In both cases, total net benefit
capacity of the aquaculture sector as well as sawmilling
is lower than the base situation. In the case of
capacity in forestry are in excess of demand, i.e.,
aquaculture, the decline in net income is greater in
shadow price is zero. Likewise, there is a surplus of
Scenario 2 due to the additional assumption of a drop
available labor in aquaculture, forestry and the artisanal
in the supply of natural fry. Net income from the forestry
fishery relative to the exploitable resource. Thus, sector dropped because of a decrease in exploitable
increasing labor supply will not result in any change in
area for red mangroves, and thus, firewood sales,
the optimal benefits provided by mangrove conversion
whereas sales of shrimp larvae and of adult shrimp
and/or sustainable exploitation. caused the slide in the fishery sector.
In Scenario 3, the increase in naturally supplied
Sensitivity Analysis fry compensates for the total loss of hatchery fry.
resulting in a net income higher than the base situation.
A sensitivity analysis was conducted to determine Net income from the fishery is likewise improved
the effect of altering vital parameters on the net benefit mainly through higher sales of shrimp larvae. However,
(Table 9). The base scenario represents the primal an increase in natural fry was not shown to impact on
problem while the additional seven scenarios the supply of adult shrimp and that of finfish, in general.
considered are based on the following: Scenarios 4 and 5 have a strong conservationist bias
1) relaxation of the restriction pertaining to the but nevertheless resulted in net incomes higher than the
location of fish farms, particularly, to assess the base situation. Scenarios 4 and 5 assume changes in the
feasibility of locating in other mangrove zones; siting of shrimp ponds in Zones E and F and with no
30
Table 9. Sensitivity analysis of primal problem parameter for five scenarios and effects on total net benefits.

Scenarios
Base 1 2 3 4 5

Aquaculture sector
Zone E conversion (ha1 03)
Zone F conversion (ha1 0')
Shrimp farms in salt flats (ha,103)
Shrimp farms in hilly grounds (halo3)
Natural fry (PL.1 09)
Hatchery fry (PL.109)
Shrimp production head-on (,lo3)
Net income (US$106.year1)

Sustainable exploitation

Forestry sector
Zone 3 conservation (halo3)
Zone 4 conservation (ha1 O")
Sales of firewood (m3.1O3)
Sales of posts (m3.1W)
Sales of tannin (m3.10')
Net income (US$1O6.year1)

Fishery sector
Sales of molluscs (t.10')
Sales of crabs (t. 10')
Sales of larvae (t. lo3)
Sales of shrimp, head-off (t.103)
Sales of fish (t. LO')
Net income (US$lO"yearl)
Net benefit (services, function) (US$lOh.year
Net benefit mangrove (US$lOh,year-')
Total net benefit ([email protected])

conversion in Zones C and D which are mangrove areas. detriment of the environment which is being viewed as
Scenario 4 resulted in a 22% increase in total net benefit, being "subservient to immediate individual economic
the increase being accounted for by increased production objectives ". Possession of shrimp farms is, furthermore,
of the aquaculture sector. Scenario 5 resulted in a 57% considered to be a status symbol, in the same way as
increase in total net benefit because of the additional possessing a hacienda. The financial sector complements
assumption of peak production of natural fry. Both this with its preference for short-term businesses (fast
scenarios also resulted in an increase in net income from payback period) with low start-up as well as operating
the fishery sector, from sales of larvae and shrimps, albeit costs (i.e., shrimp ponds).
to a greater extent for Scenario 5. This confirms the Preference for short-term gains, especially in relation
important ecological functions of mangroves and their to conservation, can be perceived as rational given the
complex linkages with the entire cycle of shrimp growth lack of information,uncertainty and risk involved in long-
and maturation, which also affects production both from term investments (including investing in the environment).
trawl fisheries and aquaculture (McPadden 1985; Pauly Furthermore, such behavior is not a distinguishing
and Ingles 1988). characteristic of shrimp farmers in Ecuador.When choices
between development and conservation have to be made,
Conclusion expressing the resulting options in numbers, preferably
in currency terms, permits the decisionmaker to assess
In Ecuador, the phenomena1 growth of shrimp short-term gains vis-a-vis ecological integrity which
mariculture has been observed by Meltzoff and LiPuma minimizes risk, uncertainty and absence of information.
(1 986) to be consistent with the nation's social character LP is one of several available techniques that
and financial environment. The authors point out a enables quantification of total benefits arising from
tendency for business to value short-term gains to the simultaneous use of resources. The LP exercise is useful
 31
in three ways: 1) in developing the LP tableau, the FPVM (Fundacion Pedro Vicente Maldonado). 1987. Ecuador. Perfil de
resource system, its different components and their FPVMsus(Fundacion recursos costeros. PMRC. Guayaquil, Ecuador. 269 p.
Pedro Vicente Maldonado). 1989. Ecuador. Vision
interlinkages, is structured and quantified; 2) through global del desarrollo de la costa. PMRC. Guayaquil, Ecuador. 241 p.
the primal and dual solution, benchmarks for Holling, C.S., Editor. 1978. Adaptive environmental assessment and
decisionmakers are provided; and 3) through sensitivity Horna,management. Wiley Interscience, New York.
R. 1980. Relacion suelo mangle, p. 195-214. En Estudio Cientifico
analysis, alternative environmental and economic e Impacto Humano en el Ecosistema de Manglares. Memorias Del
scenarios are simulated. In this exercise, we proved Seminario Organizado Por Unesco, Con el Auspicio Del Gobierno
de Colombia (Cali, 27 de Noviembre a1 10 de Diciembre de 1978),
the compatibility between economics and ecology by
Oficina Regional de Ciencia y Tecnologia Para America Latina y el
showing that conservationist approaches to mangrove Caribe, Montevideo, Uruguay.
management would result in greater net benefits. More Horna, R. 1983. Diagnostic0 del ecosistema de Manglares Ecuador, p.
importantly, we have shown how the short-term gains 321-328. En Trabajos Presentados a la Conferencia Internacional
Sobre Recursos Marinos Del Pacifico, 16-20 Mayo 1983, Vina Del
of mangrove conversion to shrimp ponds can be wiped Mar, Chile.
out by severe declines in larval production, its most J ~ e n z - ~ o l l a n dB., and M. Volland. 1992. Distribuci6n geogrifica y
critical input. This has been done given the interlinkages tkcnicas de la pesca en la Costa Ecuatoriana durante el period0
colonial [Geographic distribution and gears of the Ecuadorian
between ecological parameters specified in the objective fisheries during the colonial period], p. 92-113. In M. Aguero
function. (ed.) Contribuciones para el estudio de la pesca artesanal en
Our approach is a form of 'adaptive management' America Latina. ICLARM Conf. Proc. 35, 113 p.
McPadden, C.A. 1985. A brief review of the Ecuadorian shrimp fishery.
(Holling 1978), which emphasizes variability in time Tec. Inst. Nac. Pesca Ecuador 8(1):1-68.
and space boundaries as well as uncertainties. Thus, Meltzoff, S.K. and E. LiPuma. 1986. The social and political economy of
what others perceive to be rational appears to be a case coastal zone management: shrimp mariculture in Ecuador. Coastal
,/ Zone Manage. J. 14(4):349-380.
of misinformed decisionmaking. We have shown Pauly, D. and J. Ingles. 1988. The relationship between shrimp yields and
through this exercise how it is possible to depict an intertidal vegetation (mangrove) areas, p. 277-283. In A.
array of options that span long-term as well as short- Yaiiez-Arancibiaand D. Pauly (eds.) Proceedings of the IREPIOSLR
Workshop on the Recruitment of Coastal Demersal Communities,
term planning horizons and thus, make rational 21-25 April 1986, Campeche, Mexico. IOC (UNESCO)
decisions on the basis of perfect information. Supplementary Papers Workshop Rep. No. 44.
jPaw, J.N and T.-E Chua. 1991. An assessment of the ecological and
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lnternacional 3(10):31-43. Seminaries Nacionales en America Latina. FO: MISC18614. FAO,
Aquacop. 1979. Penaeid reared brood stock: closing the cycle of P. Roma, Italia. 100 p.
morzodon, P. s/ylirostris and P: vannurnei. Proc. World Maricult. Soc. Snedaker, S.C. et al. 1988. Ubicacion de piscinas camaronem y altemativas
10:445-452. de manejo en ecosistemas de manglares en el Ecuador. Proyecto de
Cintrbn, G. and Y. Schaefer. 1983. Introduccion a la ecologia dei manglar. Manejo de Recursos Costeros. Serie de Estudios No. 2. Fundacion
Oficina Regional de Ciencia y Tecnologia de la UNESCO para Pedro Vicente Maldonado. Guayaquil, Ecuador. 86 p.
AmCrica Latina y el Caribe. Montevideo, Uruguay. Solorzano, C. 1989. La industria del camaron en Ecuador. Instituto
CLIRSEN. 1987. Estudio multitemporal de 10s manglares, camaroneras y Centroamericano de Administration de Empresas INCAE.
areas salinas de In costa ecuatoriana mediante informacion de sensores Terchunian, A,, V. Klemas and A. Segovia. 1986. Mangrove mapping in
remotos. Memoria Tecnica. Quito, Ecuador. 35 p. Ecuador: the impact of shrimp pond construction. Environ. Manage.
Cun. M. and C. Marin. 1982. Estudio de 10s desembarques del camaron lO(3): 345-350.
(gen. Penueus) en el Golfo de Guayaquil (1965-1979). Boletin Twilley, R. 1989. Impacts of shrimps mariculture practices on the
Cientifico y TCcnico S(3). Instituto Nacional de Pesca, Guayaquil, ecology of coastal ecosystems in Ecuador, p. 91-120. In Olsen
Ecuadoc et al. (ed.) A sustainable shrimp mariculture industry for Ecuador.
Espinoza, F. 1989. Situaci6n actual de la maricultura del camar6n en el Technical Report Series TR-E-6. International Resources
Ecuador y estrategias para su desarollo sostenido. Memorias del Management Project, USA.
Seminario y Documento TCcnico. lnstituto de Estrategias Velasco, A. 1987. Socioeconomic aspect of mangrove management, p. 67-
Agropecuarias. Doc. Tec. No. 2 1, 2 13 p. 73. In State of the art: mangrove research. Philippine Council for
FEDECAM. 1989. Serie: analisis sectorial. Doc. No. 10. La production Agriculture, Forestry, and Natural Resources Research and
camnronera en Ecuador. Octubre, 1989. Eduardo Egas Pena. Development, Los Bafios, Laguna, Philippines.
Optimization of Economic Benefits Description of Study Site
from Fishery and Forestry in Bio-Bio, Chile*
Physical Attributes
EDGARDO
ARANEDA',
ICLARM-ECLAC Collaborative
Project on the Socioeconomic Valuation of Coastal
LOCATION AND TOPOGRAPHY
Resources in Southwest Latin America, Casilla 179-0,
Santiago, Chile
Bio-Bio is one of Chile's thirteen political and
ANNABELLE CRUZ-TRINIDAD, International Centerfor Living administrative districts. This region covers a total area
Aquatic Resources Management (ICLARM), MCPO Box of 36,820 km2 and consists of 49 municipalities
2631, 0718 Makati City, Philippines including ~ u b l e Bio-Bio,
, Arauco, Talcahuano and
Concepcion, the capital. Also included are the islands
FRANCISCO
MORALES',
ICLARM-ECLAC Collaborative of Quiriquina, Mocha and Santa Maria (Fig. 1).
Project on the Socioeconomic Valuation of Coastal The major topographical features of the region
Resources in Southwest Latin America, Casilla 179-0, include:
Santiago, Chile 1) Andean mountain range: heights reach over
2,000 m, dotted with numerous volcanoes and the snow-
ANGELICA
ARE LLANO^, ICLARM-ECLAC Collaborative
capped Mt. ChillBn (3,122 m), Antuco (2,985 m) and
Project on the Socioeconomic Valuation of Coastal
Resources in Southwest Latin America, Casilla 179-0,
Callaqui (3,080 m);
Santiago, Chile 2) mountains situated between the intermediate
depression and the Andean mountain range;
ARANEDA, E., A. CRUZ-TRINIDAD, F. MORALES and A. ARELLANO. 3) an intermediate depression in the northern part
1996. Optimization of economic benefits from fishery and forestry of the region, approximately 100 km latitude from
in Bio-Bio, Chile, p. 32-62. In A. Cruz-T~inidad(ed.) Valuation of
tropical coastal resources: theory and applications of linear Chillfin and rolling plains south of the Bio-Bio River;
programming. ICLARM Stud. Rev. 25, 108 p. 4) a coastal range north of the region which
weakens to a series of ridges with intermediate
Abstract catchment areas; to the south of the Bio-Bio River, the
coastal range sharply increases to a height of 1,000 m
and acquires a wall-like feature, the Nahuelbuta Range;
The net economic value of fishery and forestry in Bio-Bio, Chile was
estimated with the environment as a third sector accounting for positive 5 ) rocky coast to the north of the Bio-Bio River
and negative externalities. with minor coastal plains; in contrast, south of the river
The main produce of the pelagic fishery is jack mackerel (Trachurus
niurphyi) and is caught mostly by small boats and barges while hake
is the smooth Arauco-Caiiete plain with an average
(Merluccius jiuyi) is targetted by purse seines. An average of 95% of fishery width of 25 km;
production is converted into fishmeal 50% of which is sold to foreign 6) continental shelf: contiguous and parallel to the
markets. From the forestry sector, the pine (Pinus r-udiuta) is transformed
into logs for sawmilling and pulp. coast extending 70 km towards the Tumbes peninsula
Optimum net economic value is estimated at US$1.37 billion.year~' and from Concepcion, decreasing to 40 km towards
87% of which is accounted for by the forestry sector. Exports of wood
chips from eucalyptus trees as well as logs and other wood products from
Arauco; and
pine contribute the bulk of earnings of this sector. The fishery sector 7) continental slope: the zone arising from the
contributed US$171 million mainly through the exports of fishmeal. continental trench up to the continental shelf.
However, water pollution caused by fishmeal plants diminished total
economic value by at least US$20 million.year-l.
The coastal zone includes the 49 municipalities in
Fig. 1, the coastal cordilleras, the littoral plains, the Bio-
Bio estuarine system and the coastal system of the
Arauco Gulf and the Bay of San Vicente. The Bio-Bio
estuary is a brackish interphase between the river
*ICLARM Contribution No. 1219.
'Present address: JosC Manuel Infante No 2802, Nuiioa, Santiago, system and the Arauco Gulf. Parallel to the Bio-Bio
Chile. estuarine system is the Bay of San VicenteIArauco Gulf
'Present address: Calk Edipo Rey 5751, Las Condes, Santiago, Chile.
'Present address: Stationary Sources Emissions Central Program
system, characterized by the influx of equatorial waters
(PROCEFF), Olivares 1229, 6 Piso, Santiago, Chile. during spring and summer.
 33
CLIMATE AND OCEANIC CURRENTS

Regional climate ranges from wintry

rains to prolonged dry seasons, the latter
ranging from seven to eight months. The
coastal cordillera acts as a climatic
barrier affecting temperature and
distribution of rainfall. Offshore, the
Humboldt Current (Fig. 2) transports
cold and low salinity waters laden with
nutrients from the subantarctic region.
Also, water is upwelled from the deepest
zones replacing warmer and nutrient-
deficient shallow waters. Nutrient
enrichment processes contribute to a high
primary (phytoplankton) production and
thus, to large stocks of fish.

Social and Economic Attributes

POPULATION CHARACTERISTICS
Fig. 1. The Chilean coastline and location of Region VIII, Bio-Bio (left), and the
coastal municipalities bordering Arauco Gulf and Bay of San Vicente (right). Region VIII is the second most
populated region of the country with estimates for
1990 at 1.7 million, about 13% of Chile's total
population. Densely populated cities include
Concepcion (48%), ~ u b l e(25%) and Bio-Bio
HYDROGRAPHY
(19%). Population density is 45 persons.km-' at the
regional level with variation between towns, i.e.,
Concepcion (231 p e r ~ o n s . k m - ~ and
) Bio-Bio (20
The region's hydrographic network is shaped by p e r s ~ n s . k m - ~Regional
). population growth is 1 . I %,
both the Andean range and river systems. The Andean
less than the national average of 1.6%. Almost 80%
rivers, namely, the Bio-Bio, ~ u b l eand
, Laja, originate
of the region's population live in urban areas.
from the internal areas of the Andean mountain range,
i.e, from the melting of snow which results in a larger
volume during the end of spring. The nonAndean rivers, INCOME AND EMPLOYMENT

the ChillBn, Diguillin, CholguBn, Itata, Duqueco and

MulchCn, originate from the western sectors of the The regional contribution to GDP was 9% to
mountain range; water supply comes from both rain 10% in the last decade. Manufacturing accounted
and snow. Thus, the flow of water is as high in summer for an average of 33% of regional GDP (1985-89),
as in spring. while the forestry sector ranked second, at 13%.
The Bio-Bio River is one of the largest in Chile The labor force in Region VIII reached 600,000
draining an area of 24,000 km2 at a flow rate of 900 persons in 1990 or 12.8% of the national labor force.
m3.second-'. Its principal tributaries are the Vergara, Of the total, 568,000 people were fully employed.
Laja, Malleco, Rahue, Ranquil, Queco, Duqueco and Among the productive sectors, agriculture, fisheries
Bureo rivers. The Itata River drains an area of 11,500 and forestry contributed 23%; services, 23%;
km2 with a flow rate of 140 mxsecond-'. Its major industry, 17.8%; and commerce, 16%. The growth
tributaries are the ~ u b l e Cato,
, Chillin, Palpal, in employment in the region, which is 5.8% is greater
Diguillin and Larqui rivers. than the national average of 4.7%.
 Panamericana which runs from north to south
and cuts through the cities of Chilliin and Los
Angeles. The coastal road network covers a
length of 313 km and cuts through the cities of
Quirihue and Tinia. Road networks branch out
from the main highway, connecting the towns
of Bulnes and Chaimhvida, and Cabrero and
Chaimhvida.
The railway system covers 795 km, 200
km of which belong to the central railways and
the remaining, the minor lines. Most of the
railway traffic is directed towards Concepcion.
In 1990, 3 million t of cargo were transported
via the railway system with 60% being
accounted for by wood and wood products. The
other commodities include salt and sugar,
imported wheat, fertilizers, cement and
petrochemicals.
The major ports in the province are
likewise concentrated in Concepcion. Among
the more important ones are Puerto de San
Vicente, which handles about 1.04 million
t-year-' of wood products; Lirquen, which is a
private port; and Muelle CAP which has a
combined capacity of 2.5 million t.yearl. The
latter's northern sector caters to bulk cargo
I I I I handling while the southern sector is presently
) 90 80 70 60
Longitude (OW)
plagued with idle capacity because of the weak
steel market.
Fig. 2. Oceanic currents influencing Chile's coast.
The region has three important airports:
Carrie1 Sur in Concepcion; Mara Dolores in Los
Angeles; and Bernardo O'Higgins in Chillhn. There
The fishery sector employs over 25,000 persons are also 20 small airfields scattered in the coast and in
with the artisanal sector accounting for about 15,000 the cordilleras.
fishers. Of major significance is the industrial fishery,
which employs 10,000 persons, 60% of whom are SOCIAL ISSUES
employed at fishmeal plants. The region contributes
50% of employment in the forestry sector with the
Region VIII experiences more acute social
following breakdown: 57%, plantation and silviculture;
problems than the other regions of Chile. According to
39%, industrial forestry; and 62%, forestry services.
CEPAL (1990), 46% of the regional population earn
incomes insufficient to meet basic needs, 18% are
INFRASTRUCTURE indigents, and 25% are below poverty levels. The
largest proportion of the poor population is found in
The transport system of Region VIII consists of urban areas. About 47% of the population live in
road networks, railways, ports and airports. The poverty in the cities but indigence is relatively greater
regional road network is constructed along the in the rural areas. This is manifested in low income
longitude of the Central Depression with connections levels while indigence, in addition to the former, is
to the coast, particularly in the city of Concepcion, and characterized by a dearth in infrastructure and basic
the Andean range. The main highway is the Carretera services.
 Natural Resources Endowment, Usage
and Impacts in the Coastal Zone

Three decades prior to 1975, economic growth of

the region was oriented towards import substitution. -Yo

The emphasis was on the production of basic metals,

chemicals and food. In the 1980s, there was a shift
towards the exploitation of natural resources such as -43O
fish stocks and forests. This steered economic
Arouco
development towards the export market, particularly
thia of wood products and fishmeal. The trend in natural
resource dependency, particularly in the coastal zone,
is depicted in Fig. 3. Note that the economic activities
use coastal and marine resources as raw materials for
further processing or for waste deposition from the
interior areas where human settlements and other
economic activities abound.
The environs of the Bay of San Vicente provide
excellent examples of multipurpose resources. The Bay
is the site of a major port area, catering to both the
I
industrial fishing industry as well as to commercial and ~egend:
passenger cargo, fishmeal plants, iron and steel plants @ Therrnoelectrtc plants Artrsanal f~shers

and chemical plants. Tourist beaches are found in &Forestry

Lenga, Ramuntcho and Recoto while small fishing X Mining
communities are in the coastal towns of San Vicente
and Lenga. The other economic activities in the area
R Beaches ' B ports

include: artisanal and industrial fishing, industrial wood Fig. 3. The coastal area of Region VIII, Bio-Bio, Chile and the
plants (Cia. Chilena de Astillas in Schwager and various resource-dependent economic activitjes situated here.
ASTEX in Colcura), mines (Cia. Carbonifera in
Schwager and ENACAR in Puerto Lota), beaches in The marine species of commercial importance
Playa Blanca, Colcura, Chivilingo and Laraquete, and number about 125 (IFOP 1988), 64 of which are
sawmills and thermoelectric plants in Puerto Coronel. captured in Region VIII and which include fish (34),
Artisanal fishing communities and tourist beaches molluscs (12), crustaceans (9), algae (7) and
ar~escattered over the Arauco coastline in the towns of echinoderms (1) (see Annex 1 for a complete list). The
Arauco, Llico, Tubul and Punta Lavapie. The town of bulk of regional landings consists of fish species which
Arauco is the site of forest plantations and related include Trachurus murphyii (Chilean jack mackerel;
industries, i.e., Forestal Arauco, Forestal Carampangue local name, jurel), Sardinops sagax (South American
and Celulosa Arauco y Constitucion. pilchard; local name, sardina espaiiola),and Engraulis
ringens (Peruvian anchovy; local name, anchoveta).
Fisheries Fig. 4 depicts the historical trend in the total
landings of important pelagic species in the Talcahuano
Fishery resource distribution in Chile is heterogenous area. Note the sharp increase in jack mackerel landings
due to the wide range of environmental conditions that beginning in the 1970s against the drop in sardines and
determine productivity. The waters of Region VIII, anchoveta. Presently, the fisheries deemed fully
especially in the Gulf of Arauco, support the highest exploited include jack mackerel among the pelagics,
catches; the total landings of marine resources reached and hake and lobsters among the demersals.
3.2 million t in 1991 representing 53% of the national On average, 95% of the total fish catch are
landings. processed into fishmeal while the rest is processed
36
into canned and frozen fish; molluscs are mostly jack mackerel, the South American pilchard, and
canned while crustaceans are marketed in frozen Clupea bentincki Araucanian herring (local name,
form (Table 1). sardina comlin); these stocks are mainly exploited by
the purse seine fleet; 2) the demersal fishery which
TYPES OF FISHERIES includes the following species: Merluccius gayi hake
(merluza c o m h ) , Genypterus maculatus black cusk-
eel (congrio negro) and Dissostichus eleginoides
Four types of fisheries operate in the region: I) the
Patagonian toothfish (bacalao de profundidad); these
pelagic fishery for which the major species include the
stocks are mainly exploited by the trawler fleet; 3) the
crustaceans which are likewise exploited by the trawler
fleet with major species including the lobsters,
Pleuroncodes monodon red squat lobster (langostino
colorado) and Cervimunida johni yellow lobster
(langostino amarillo) and shrimps, Heterocarpus reedi
Chilean nylon shrimp (Camardn nailon); and 4 ) the
benthic fishery which is an artisanal one and which
exploits the molluscs Gari solida (culengue), Ensis
macha (huepo) and Tagelus dombeii (navajuela).
Fig. 5 shows the location and distribution of three
important pelagic species: the Peruvian anchovy;
Spanish sardines; and jack mackerel. The distribution
of mackerel extends from the Galhpagos Islands in
Ecuador to the Straits of Magallanes (IFOP 1988). It
extends lengthwise to around 1500 miles in the Chilean
coast and corresponds to a total area of 1 million square
miles (IFOP 1988). The depth distribution is to 300 m
in the south, but closer to the shore, where the upwelling
is more pronounced, the depth is between 20 and 60 m.
The distribution of the common sardine is from
Coquimbo up to Isla Mocha and possibly extending to
Chi106 to a depth of 50 m.
The fishery in Region VIII can be classified into
artisanal and industrial subsectors. Artisanal fishing is
Year defined by the General Law of Fishery and Aquaculture
as conducted within 5 miles from the coastline while
Fig. 4. Landings of major pelagic species in the Talcahuano area,
1963-1984,
the industrial fishery goes beyond this limit, extending
to the territorial seas and the EEZ. The industrial fishery
also includes the harvesting of fish and/or the
Table I . Utilization of catch in Region VIII, Chile, 1991, in tonnes.
processing of such into finished products.
Region VIII contributes, on the average, half of
Type of resource the catches of the artisanal and industrial sectors (Table
Product type Fish Molluscs Crustaceans Others 2). Anchoveta and jack mackerel are the most important
species caught by the artisanal and industrial fishery,
Fresh 1,027 19
Frozen 57,694 830 1,112 534
respectively. The high volume of fish landings in the
Saltedldried 3,582 65 artisanal sector, roughly 64% of national fish catch
Smoked 34 levels, and the proliferation of fishing communities
Canned 119,791 3,439
Fishmeal 3,010,812 along the coast, prove the enormous social and
Dehydrated 413 economic impact of fisheries in the region. During the
Total 3,192,940 4,288 1,112 1,012 explosive growth period of 1980-90, average landings
 37
Table 2. National and regional landings of the artisanal and industrial fishery (in
Longitude i o W ) tonnes) by maior species, and production of the industrial fishery, by product type,
1989.

Artisanal Industrial

Species National Regional National Regional

Fish
Peruvian anchovy 183,315 152,840 1,504,039 84,226
Araucanian herring 53,17 1 46,899 106,479 106,454
Chilean jack mackerel 16,879 10,235 2,372,982 1,751,486
Hake 10,909 3,276
Patagonian grenadier 2,744 2,676 207,209 207,157
South American pilchard - 1,564,674 28,437
Others 86,838 12,37 1 99,950 33,544

Molluscs
Snails
Cockle
Clam
Mussels
Others

Crustaceans
Shrimps 5,575 1,196
Crab 3,288 453
Conch 1,193 328
Prawns 573 573
Algae 178,480 24,036
Other species 28.887 1,110 4,541 1,769

Product type
Fishmeal
Species distribution Mojor fisheries
Oil
Canned
Frozen
Fig. 5. Distribution of anchoveta (A), sardines (B) and
Total 676,178 256,501 7,615,102 2,883,707
jack mackerel (C) along the Chilean coast, and location
of the main fisheries.

of the artisanal sector increased from 33 t to 151 t but crew cabins. The mode of propulsion may either be
this is nevertheless a minor percentage relative to the inboard motor, outboard motor or oar. Crew size is
growth in the industrial sector. usually 2 to 4 people. The gears often used include gill
Artisanal. Artisanal fishing communities are nets, trammel nets, longlines, compressed air diving
distributed along the coast of the Bay of San Vicente and traps.
but most especially along the Gulf of Arauco due to Barges are longer than 10 m, and generally have
the diversity of marine resources landed here. The crew cabins and wheelhouses, with an inboard motor
major fishing towns are Concepcion, San Vicente and and a crew of 4 to 10 people. Barges use mechanized
Coliumo, Gulf of Arauco, Santa Maria Island and equipment such as sonar and radar. The gears usually
between Lebu and Isla Mocha (Fig. 6). Boats usually used are longlines, gill nets and trammel nets. The fish
fish within 5 km from the coastline reaching a targetted by artisanal vessels are shown in Table 3.
maximum of 100 km depending on the kind of boat Barges account for 89% of the catches of large pelagics
and on the species targetted. and offshore demersals while the smaller boats (both
The artisanal fleet is comprised of two types of mechanized and nonmechanized) target coastal
fishing vessels: boats and barges. Boats are generally demersals such as hake and grouper. A characterization
made of wood with a length of 10 m or less and without of the artisanal capture fishery according to target
 The communities of San Vicente and Lo Rojas have
the largest number of vessels, with barges and sail-
powered boats accounting for the largest share.
Medium-size vessels (boats with inboard and outboard
motors) are more prevalent in the communities of Tubul
and Laraquete.
Fish landed at the ports of San Vicente and Lota
are consumed fresh by the adjacent communities while
those landed at the port of Coronel are used as inputs
for fishmeal factories in the area. A small percentage
of the fishery catch is processed, i.e., smoked, dried/
salted or salted.
ZndustriaE. The industrial fishery consists of two
major components: capture fishery and processing. The
capture fishery is conducted in various fishing grounds
depending on the fleet and on the target species. On
the average, the trawler fleet reaches a distance of 20
to 25 km from the coast while the purse seine fleet
operates from Isla Mocha up to San Antonio and further
up to a distance of 130 km.
Target species include the hake, black cusk-eel and
Fig. 6. Location of the artisanal fishing communities in the Bay of
Patagonian toothfish. Jack mackerel landings of the
San Vicente and Gulf of Arauco area, Chile. industrial sector account for 94 to 96% of the total
volume of landings at the national level with the region
Table 3. Type and number of artisanal fishing crafts and target species contributing 38% to the total.
in the Bay of San Vicente, Concepcion, Chile. The industrial fishery uses fishing vessels of weight
Target species Barge Motor boat Sail boat greater than 50 GT and includes purse seiners and
trawlers. Gears used and operational regimes vary
Large pelagics and offshore
demersals (albacore.
according to targetted resources (Table 6).
deepsea cod, golden eel) 39 Industrial processing consists of the reduction of
fish into meal and/or oil, canned and frozen fish. In
Small pelagics (Spanish
sardine, common sardine, 1989, the country produced 1.8 million t of fish
anchovy. Chilean jack products, 77% of which was fishmeal. Region VIII
mackerel) 3
accounts for an average of 38% of total fishmeal
Medium pelagics (grunt. production (Table 2). Major species processed as
chub mackerel. bonito. fishmeal ~ncludeChilean jack mackerel, sardines and
eel. bream) 2 5 I
anchovies. These species are also canned in addition
Benthic invertebrates to molluscs.
(squids, snails, mussels, Most of the fishmeal factories are found in the
crabs) 17 8
landing centers of the industrial fleet including the ports
Coastal demersals (hake, of Talcahuano (27), San Vicente (6), Coronel (8) and
grouper) Tom6 (I), where most of the fishmeal factories are
Other co:lstal resources found (Table 7). Table 8 shows pertinent characteristics
(algae. red fish. silversides) 4 7 of fish processing activities in the region.

species, vessel, engine, equipment and gear as well as Forestry

average fishing distance is presented in Table 4.
Artisanal vessels (boats and barges) operate along Due to favorable environmental conditions, Region
the entire coastline of the Gulf of Arauco (Table 5). VIII is basically a forestal region with over 41 % of its
 39
Table 4. Characteristics of the artisanal capture fishery by type of species and utilization of capital and technology.

Fishing
Species Fishing vessel Engine Equipment Fishing gear distance
Type Useful HP Useful Type Useful Type Useful (miles)
Length life life life life
(meters) (years) (years) (years) (years)

1. Anchoveta, Barge with 12-18 20 2120 15 Echosounder, 5 Encircling 5 5-6

sardine inboard winch net
engine:
wooden hull

2. Deepsea cod Barge with 12-18 20 140-200 15 Echosounder 5 "Espinel" 5 25-30

inboard
engine:
wooden hull

3. Swordfish Barge with 12-18 20 200-250 15 Echosounder, 5 Albacore 5 40-70

inboard sonar net
engine:
wooden hull

4. Merluza Barge with 7-12 15-30 50-80 10 Little "Espinel" 5 2-7

inboard equipment
engine

5. Shellfish Sailboat -
<7 8-10 25-40 5

6. Algae Boats with ~7 10-15 25-40 5 Compressor,. 1015

outboard diving
motors equipment

Table 5. Vessels used by the artisanal fishing fleet, per locality, 1990.

Locality Barges Boats

1 Inboard Outboard Sail Total
I motor motor

San Vicente
Lenga
Boca Sur
Maule
Lo Rojas
Pueblo H.
El Morro
La Conchilla
El Blanco
Lota
Colcura
Laraquete
Arauco
Tubu12
Llico
Punta Lavapie
-
'Twenty-one vessels land in Lo Rojas; the remaining vessels, in
Coronel.
?Also includes Las Pefias.
 Table 6. Characteristics of the industrial capture fishery, by target species.

Resources Fishing vessel Gear type Operation Product type

Hold Useful
capacity Length life Engine
(mi) (m) (years) (hp) Days Hours.day-I

I. Mackerel, with <350

- 30-40 30 <1,200
- Purse seine 2-5 16 Fishmeal;
hake, Spanish sardines. canned;
anchoveta, common frozen
sardine
600 41-60 30 -
<1,800 Purse seine 2-5 16 Fresh

<I ,200
- 61-70 30 -
<2,800 Purse seine 2-5 16

2. Hake, with 150 20-30 30 375 Trawler 2-4 12 Frozen

black and gold
conger, breams,
elephant fishes
350 30-40 30 1,200 Trawler 2-5 16 Fresh

3. Shrimp 100 20-30 30 375 Trawler 2-3 Frozen

area comprising native (400,000 ha) and plantation

Table 7. Number and location of fish processing plants in Region VIII,
forests (600,000 ha). Table 9 shows the contribution
Concepcion, Chile, per product line. of primary and plantation forests to total forest area
and the areal coverage of Region VIII. A listing of
Location Fishmeal Frozen Canned Driedlsalted Smoked
native forest species in Chile and that of Region VIII
Tom6 I 1 I is provided in Annex 2.
The expansion of forest plantations have been
Talcahuano 8 14 16 3 1
tremendous between 1965 and 1986 (Figs. 7 and 8)
San Vicente 6 2 2 I with the increase in area along the coastline. The
Coronel 5 3 2
forestry sector posted a robust economic growth in the
last decade with contribution to GDP averaging 3%
Total 20 20 II 4 1 and to exports, 9.4%.
Forest resources are used for two purposes: 1) the
export of logs and 2) the use of these primary materials
as inputs for further processing.
Wood processing, on the other
Table 8. Important characteristics of industrial fish processing
hand, is classified into two ways:
Product Production Reduction Equipment Market (%) 1) processes which do not alter the
rate (t.hourl) rate (%) basic structure of the raw material,
I . Fishmeal 50 20 Boilers, press, Domestic (20)
i.e., logs, chips, lumber, boards;
and oil 4.5 mill drier Export (80) and 2) those that undergo chemical
(Type A) processes, i.e., cellulose and its
2. Fishmeal (B and C) 100 23 Boilers, press, Domestic (20) derivatives.
Oil (Type B) 6 mill drier Export (80) The forestry sector employs
3. Fishmeal (C) 100 23 Boilers, press Domestic (10)
approximately 83,000 workers,
Oil (C) 6 Export (90) 50% of which come from Region
VIII. Of the total regional
4. Canned (jars) 6,000 30 Boiler Domestic (25)
Pressure cooker Export (75)
employment, 48% is involved in
silviculture and harvesting
5. Frozen 5 30 Freezing chamber Export (100) activities, 43% in industrial
Notes: Types of fishmeal and oil vary according to quality with Type A having the lowest quality, forestry and the rest in related
etc. forestry services.
 41
Table 9. Forestry resources of Chile and Region VIII, area covered and production. volume are those of the genus
Resource National Region VIII Regional
Nothofagus, i.e., Nothofagus obliqua, N.
Area Volume Area Volume contribution dombeyi and N. alpinu. Characteristics
(ha) (rn3,106) (ha) (m3 lo6) to total (%) of important forest species are provided
Primary forest 7,616,500 915.1 401,700 24.1 5.3 in Table 10.
Plantation 1,386,444 177.6 592,355 42.7
P. radiata 1,192,287 144.1 560,448 78.1 47.0
Eucalyptus 81,773 3 1,840 38.9 PRODUCTION DYNAMICS
Others 112,384 33.5 67 0.1
Total 10,389,388 1,270.3 1,586,410 102.2
Forestry activities include all work
relating to the use of forest resources.
Two phases are considered in this paper: 1) the initial
phase including subactivities such as nursery,
plantations (forestation and reforestation), silviculture,
and harvesting; and 2) the processing phase or what is
referred to here as industrial forestry.
Forest nurseries or forest reserves are land areas
alloted to the growing of plant seedlings, which, once
adequate growth has been attained, are transported to
designated places of planting. There were 120 nurseries
identified in 1989 contributing 50.6% to national
seedling production with shares of pine and eucalyptus
reaching 47.9% and 60%, respectively.
Two main processes are of interest in the harvesting
stage: felling and hauling. Felling involves the processes
of rotating, cutting, chopping, thinning and trimming.
The most common tools are the motor-saw, arch-saw,
bent-saw and ax. Hauling is the process of transporting
felled trees to a storage area such as a lake or to a
Fig. 7. Forest plantation in Bio-Bio region, Chile, 1965.

FOREST RESOURCES: NATIVE AND PLANTATION SPECIES

Two types of plantation species are cultivated in

the region: the pine Pinus radiata (pino radiata) and
eucalyptus Eucalyptus globulus, E. camaldulensis and
E. viminalis. The pine is of major importance in terms
of area planted and volume exploited. It represents
85% of total forest plantation in Chile and 90% in
Region VIII.
All eucalyptus plantations in Chile use the species
E. globulus while the other two species are used in
marginal areas as windbreakers. Regional coverage of
eucalyptus is about 64,000 ha, 4.5% of the plantation
area in Chile.
Among the native forest species in Region VIII,
the more significant ones in terms of area planted and g. 8. Forest plantation in Bio-Bio region, Chile, 1986.
42
Table 10. Characteristics of important forest species in Region VIII, Chile.
--

English Scientific Spanish Maximum Occurrence

common name name common name heightlwidth Origin in Chile

Plantation species
Pine Pino California All regions
Eucalyptus Eucalypto Australia Coastal areas and
central plains

Native species
Rauli beech Ruuli Endemic Regions VII to X
Coigue Coihue Endemic Regions VI to XI;
very common; found
around lakes and
rivers

processing line. The simplest form of hauling is done operations, technology, products and yield. Sawmills
using oxen while the mechanized forms include forest can be classified as either mechanized, nonmechanized,
tractors and logging turrets. and/or temporary. Mechanized sawmills attain an
The regional contribution of the industrial forestry average production of 50,000 m3.year3 and utilize
sector is the most important in the country with sophisticated technology. Temporary sawmills use old
cellulose and paper production contributing 77% to machineries which are manually operated; average
national production; lumber, 55%; and fiberboard, 100%. annual production is 10,000 m3. In the intermediate
Industrial forestry can be divided into two are the traditional nonmechanized sawmills with
categories: I ) that which manufactures wood without average production ranging from 10,000 to 50,000
altering its structure (chips, pulpwood, logs, sawable m3.year-I.
wood, serrated wood, etc.); and 2) that which applies The yield of sawmills depend on a host of factors
chemical processes in the wood for the extraction of such as: the state of mechanization, i.e., (type of saws,
cellulose and its derivatives. Regional production for chipping machines, etc.); the system of felling; and the
both categories is shown in Table 11 and general state of raw material. Sawdust is a by-product of sawed
descriptions follow. timber and commands the lowest price in the market;
Sawmilling. The pine Pinus radiata is the main thus, the efficiency of sawmilling is gauged by the
species used in sawmilling. The sawmilling industry production of sawdust which should be kept at a
in Chile is highly heterogenous in terms of scale of minimum.
Boards and plywood industry. The particleboard
industry is formed by four factories, two of which are
located in Region VIII. Both belong to the Wood and
Table I I. Production of forest~ysector in Region VIII. Synthethic Enterprises S.A. (MASISA). These are:
Product 1989 (m'. LO3)
Wood and Panel Plant S.A. (MAPAL), in Concepcion,
and the MASISA plant in Chiguayante. MAPAL is
Category I known to be a very efficient producer, even on the
Wood pulp
Logs national level, with an average input of 2.45 m3/board
Wood chips ton. MASISA Chiguayante ranks next with average
Lumber input of 3.03 m3/board ton.
Sawdust
Others Only one fiberboard factory exists in the whole
country: Pressed Woods CHOLGUAN S.A., which is
Category 2
Cellulose
located in the Yungay commune. The products of
Newsprint CHOLGUAN factory fall under the distinctly hard
Others fiberboard classification, with a density of 1 t.m-3.
 43
Table 12. Names and important characteristics of wood chip centers in Region VIII, Bio-Bio. Chile. The veneer and nonveneer
Annual
industry is composed of six enter-
production prises, of which one is found in
Establishment Technology (m3) Species Market Region VIII, the Agricultural and
Asseradero San Lorenzo Drum Pine Export
Forestal Society COLCURA in
Lota. The veneer industry utilizes,
Asetmdero Copihue Disc Pine Export except for the eucalyptus species
Astillas Exportaciones Disc Pine, eucalyptus Eucalyptus globulus, only
native species Export indigenous species. The installed
Native species
capacity of the COLCURA plant
Astillas J.C.E. Ltda. Blade
is 450,000 m3.year-' of veneer.
Bosques Arauco S.A. Disc Pine Domestic Wood chips. Nine firms
Cia. Astillas Concepcion Disc Eucalyptus and
produce wood chips in the region.
native species Export All factories use stationary
equipment but different technolo-
Cia. Chilena Astillas Disc Eucalyptus and
native species Export gies, level of production, species
used and market (Table 12).
Forestal Coronel S.A. Disc Native species Export
Cellulose and paper. The
Gonzalez Huepe Maria E. Blade Eucalyptus and industry consists of six enterprises
native species Export which operate seven plants in the
region. Table 13 lists these
enterprises, their annual production,
species used and final product.

Tourist Resources

Table 13. Paper and cellulose plants in Region VIII, Bio-Bio, Chile and selected characteristics. Region VIII offers a diverse
Annual
range of tourist attractions: urban
Species production Market Final centers, rivers, snow-capped
Firm used (t) orientation product mountains, hot springs, industrial
Celulosa Arauco y parks, beaches and ports, and sites
Constitucidn of historical and cultural impor-
Planta Arauco I Pino radiata 150,000-200,000 Export Kraft cellulose tance. The benefits produced by
Planta Arauco I1 Pino radiata > 300,000 Export Kraft cellulose
the tourism sector include foreign
Celulosa del PaciAco exchange generation, savings (via
Planta Mininco Pino radiata > 300,000 Export Kraft cellulose
"invisible export" of native
Compania Manufacturer products) and employment
de Papeles y Cartones generation, all of which contribute
Planta Laja Pino radiata > 300,000 Export Kraft cellulose,
Eucalipto printing paper, significantly t o regional and
packing paper national development. The tourism
Forestal e Industrial industry, however, contributes
Sta. Fe S.A.
Planta Nacimiento Eucalipto 200,000-250,000 Domestic and Kraft cellulose, minimally to regional income and
export white paper employment, the latter averaging
lndustrias Forestales
no more than 0.5%.This potential
Planta Nacimiento Pino radiata 100,000- 150,000 Export Mechanical pulp, is threatened by pollution from
newsprint industry, mainly from fishmeal
Papeles Bio-Bio S.A
Planta San Pedro Pino radiata 100,000-150,000 Domestic and plants and cellulose and paper
export factories.
44
The tourist attractions can be classified metropolis which is considered a historical, cultural,
geographically as: folkloric and gastronomic center and boasts of major
infrastructure including hotels and transportation
1) Andean zone facilities.

The principal resources include hot springs, 3) Araucanian route

volcanoes, snow slopes and fishing but there is no large-
scale development except those with foreign tourist The most important tourist attraction in the region
appeal. The main tourist attractions are the ski center based on the number of visitors are its beaches, notably
and hot springs of Chillh. The ski center is complete the Playa Blanca, and the beaches at Chivilingo and
with skiing equipment, a hotel, as well as five open-air Laraquete. Tourism services such as hotels, inns and
and naturally heated pools. Of secondary importance camping sites, are most prevalent in Concepcion and
is the Antuco tourist complex which is situated at the ~ u b l eTourism
. activities peak during spring (January
foot of the Antuco volcano which is inside the Laja and February) and winter (July and August). Domestic
Lake National Park. Site facilities include cablecars, tourists come mainly from the Santiago area whereas
restaurants, bars and ski equipment. foreign tourists come from the United States, Germany
and several Asian countries.
2) Coastal range
Externalities
The most prominent attractions are the beaches to
the north of Penco and to the south of the Bay of San The environmental problems of the region are
Vicente. Among the beaches identified, less than half reflective of the diverse economic activities and natural
can be reached by public transport while most beaches resource use in the area (Tables 15 and 16). The Bay
do not have facilities such as hotels and restaurants of San Vicente is the site of petrochemical plants,
(Table 14). Also of major importance is the Concepcion fishmeal plants, cement plants, iron and steel mills,

Table 14. Location and characteristics of beaches in the coastal zone of Region VIII.
-

Beach Town Transport Facilities Activities

Lenga Talcahuano Private None Recreationlswimming

Ramuntcho and Recoto Talcahuano Private None Recreationlfishing

Desembocadura Talcahuano Private None Recreationlfishing

Las Escaleras Talcahuano Private None Recreationlfishing

Escuadron Coronel Private None Recreationlfishing

Playa Blanca Coronel Public Restaurants Recreationlswimming

Colcura Lota Public None Recreationlswimrning

Chivilingo Lota Public None Recreationlswimminglfishing

Laraquete Arauco Public Hotels and restaurants Recreation/swimming/fishing

Arauco Arauco Public Hotels Recreationlswimminglfishing

Llico Arauco Private None Recreation/swimming/fishing

Tubul Arauco Private None Recreation/swimming/fishing

Punta Lavsyie Arauco Private None Recreationlfishing

Table 15. Principal contaminantsoriginating from liquid effluents in Conception Bay.

Pollutant Production Treatment Principal

source system Product contaminants

Tom6 Slaughterhouse Cut meat None Water with blood, grease, excrements
Textile industry Spun cotton None Solids (fibers), maltose, glucose,
solvents, caustic soda, colorings,
auxiliary chemical substances.
Fishing indushy Flour, oil and Glue water Organic matter (Glue water,
frozen fish concentration oils, blood water)
Panco Porcelain factory Porcelain, sanitary - Clays, colorings, anilines
wares
El Morro Fishing industry Flour, frozen oil and Glue and blood Organic matter
canned fish and water concentration
shellfish.
Isla Rocuant Fishing industry Flour, canned None Organic matter
fish in oil
Lirquen Glass industry Glasses and crystals - Fine sand, china clay
Talcahuano Dockyards Heat, Calcium hydroxide,
Sodium hydroxide, Sodium carbonate,
Sulphuric acid, Hydrocarbons.
Mercantile ships, Spilled petroleum, oils, food residues.
petroleum retailers
fishers and launches
San Pedro Paper factory Organic matter (fibers, bark), talc,
china clay, aluminum sulfate, fungicides.
Laja Paper factory Cellulose fibers (organic matter),
Sodium lignite, chlorine lignine, Mercury.
Chiguallante Textile factory Sodium sulfide, hypochlorite sulfite,
sulfuric acid, formic acid, starch,
glucose, wax, pectins, alcohols, fixatives,
acetic acid, detergents, soaps, organic tints.
Brewery Beer Liquid presser and aquarelle tint,
yeast, starch, alcohol, chromium salts.

Table 16. Principal contaminants originating from liquid effluents dumped into the Bay of San Vicente.

Pollutant Production Treatment Principal

source system Product contaminants

Talcahuano Iron and steel Iron ingots, Sedimentation Iron sheet, ammonia, phenols.
mill laminated steel and neutralization ferrous salts, cyanid oils;
lubricants.
Petrochemical Polychloride Sedimentation Hydrochloric acid, chloride,
vinyl (Pvc), Neutralization salts, oils, lubricants,
chloride vinyl hydrocarbon chlorates
Dychlorotene
hydrochloric acid
polyethylene
Petrochemical Chlorine, caustic Sedimentation Chlorine compounds, mercury
soda and other Neutralization
by-products
San Vicente Fishing industry Flour, canned Glue water Organic matter
fish in oil concentration
Wood chips Chips Chips
Wire factory Wire Small iron sheets, sulphuric
acid, hydrochloric acid, soap
Cement factory Cement Heat, sediments
Mercantile ships Spilled petroleum, oils,
Petroleum retailers food residues
and launches
San Vicente Sewage and waste Detergents, soaps,
and Talcahuano disposal coliforms, excrements, grease
oils, food residues, urea
46
merchant vessels and oil tankers;
it also serves as a repository of Pumpingwater
the public waste system in the

+-
towns of Talcahuano and San
Vkente. In the Bay of Concepcion, Recovery Separation of Recovery of
pumping station blood water
are abattoirs and textile mills in I I
Tomi, fishmeal plants in Tom@,
El Morro and Isla Rocuant,
sawmills in Talcahuano, and a
paper factory in Laja.
The environmental problems
L--% Coagulation

of the region are attributable to

Coagulated
two important economic sectors, blood water
namely: fishery and forestry.
Industrial effluents from Recoveryof
4
reduction plants constitute the insolublesolids
I

main source of contamination in

the region in the form of liquid [ Oil trap I
Emission of
discharges, specifically in the odor and material
Bays of San Vicente and to the atmosphere & P
Concepcion, gaseous emissions
and particulate matters. Fig. 9
shows the processing structure of
c=-
Milling
7 Purification

a typical reduction plant and the

resulting effluents per stage in the
production cycle.
The environmentalimpacts of
addition
Ifi Storage

Deodorized water 4f

the artisanal fishery emanate from roduct

inadequate solid and waste disposal
I
U
Dry Wash water of equipment
systems. This has proven harmful flour and ~lants
to the marine environment and has Storage
caused attendant health risks in all
of the coastal fishing communities I
(Table 17). Another environmental Fig. 9. Typical operation of a fish reduction plant and resulting effluents.
concern is the collection of firewood for cooking which Another environmental irritant associated with
causes not just the deterioration of mangrove and upland forestal exploitation and the sawmilling industry is the
forests but also erosion and seawater seepage. discharge of sawdust or chips into waterways or directly
The industrial forestry sector, mainly through to the sea resulting in the suffocation of marine flora
cellulose and paper plants, is the source of liquid and fauna. This is prevalent in Dichato and in the Ports
effluents and gaseous emissions. These are dumped in of San Vicente and Lirquen where sawmills abound.
high concentrations in the Bio-Bio River or directly Erosion is another serious problem due to bad
into the Arauco Gulf from the seven plants operating management and inappropriate use of the soil.
in the region. The principal contaminants are lignin,
chlorine, mercury and different kinds of salts derived Model Formulation and Implementation
from the whitening of cellulose (COREMA 1992). The
most noxious is mercury which causes harmful effects The varied and conflicting uses of coastal resources
on the nervous system and even death when absorbed and resulting environmental externalities set the
in high dosage. framework for the development of the linear model.
 Table 17. Environmental impact of the artisanal fishery in communities located in the coastal zone of the Bio-Bio region,
Chile.

Boca Sur
Maule
Lo Rojas
Pueblo Hundido
El Morro
La Conchilla
El Blanco
Lota
Colcura
Laraquete
Arauco
Las Peiias X
Tubul X
Llico X
Punta Lavapie

deficiency of domestic waste disposal systems and sources of potable water.

contamination of ground aquifers.
visual and foul odor.
contamination of marine environment.
health risks.
deficiency of solid waste collection systems.
contamination by nonbiodegradable waste matter.
use o f f cewood for cooking.
deterioration of flora and fauna.
erosion.
seawater seepage.
presence of domestic animals.
animal excreta.
use of mechanized fishing crafts.
water contamination from hydrocarbons.
algae cultivation.
contamination caused by use of nonbiodegradable elements.

The basic structure consists of three elements: the We first elaborate the nomenclature to provide
objective function, the constraints, and the coefficients clarity in the design and to aid us in the identification
of the matrix. of the variables used.
The objective function is the maximization of net
benefits accruing from forestry and fishery. The tourism
sector was not considered in model formulation because Nomenclature
of its insignificant contribution to total revenues. The
constraints may theoretically include biological limits Objective function variables can either be cost or
such as biomass for fishery and maximum allowable revenue variables with the respective specifications:
cut for forestry or technological limits as in plant Cost: Xestgra
processing capacity. However, our model does not deal Revenue: Xemp
with real resource constraints but rather with balance Cost variables are further characterized as either a
and convexity equations which makes the interpretation financial cost, Xestgraf,
or as an environmental cost. The
of matrix coefficients quite different. This is discussed cost variable ranges are as follows:
in greater detail in the relevant section. A = activities or stages of production required
Lastly, the matrix coefficients are input-output to reach the final product stage (Fig. 10 and
ratios, i.e., the amount of resource i that is needed by section below);
process x. The valuation of environmental externalities R = resources;
and its incorporation in model-building is discussed G = gear or method used, which may be specific
separately. to the type of resource being exploited;
 THE OBJECTIVE FUNCTION
Fishery Forestry

The objective function consists of elements that

1- either add (revenue) or diminish (cost) the benefits
derived from various economic sectors of the coastal

+
zone. Environmental externalities are also
considered as cost items in the objective function.
Processing The general form of the objective function is:

where

Ri = total revenue associated with economic

LIkl Sales

Fig. 10. Activity stages for fishery and forestry. Note that capture fishery
activities ranging from i to E; and
Ci = costs associated with economic
activities previously defined.
is equivalent to harvesting in the forestry sector; otherwise all other
activities are the same. The computational form is given as:

T = technology, here defined as being capital E S T G R A

intensive or labor intensive; C, = ZCZZCX[fC ,,,,,,' * Q ,,,,,, ')

S = scale of operation, here defined as large ...2)

- (C eslgre * Q estgra )
scale or small scale; and
E = economic sectors, here defined as fishery
and forestry. where
The revenue variable ranges are:
P = final product; Cestg,af = associated financial cost per acti-
M = markets, including 1) domestic, major vity ;
- quantity of the productlgood for a
-
markets; 2) domestic, minor markets; 3) Qestgraf

international markets; and given activity level;

E = economic sectors as previously defined. Cestgrax = value placed on environmental
externalities; and
QesteraX = quantity assigned to a particular
Elaboration of Variables environmental externality.

The activities in the fishery and forestry sector PME

resemble those of a manufacturing concern, i.e., initial Rl = Z~Z,,,' * Qemp i
stage is actual production while final stage is marketing.
In fisheries, the initial stage is capture or harvesting.
This is likewise the case for forestry but only for the where
native species which are not planted. In the case of
plantation species considered here, i.e., the pine Pinus Pemp' = price of product P at market M utilizing
radiata and eucalyptus, the initial stages begin with resource E; and
planting and silviculture. Henceforth, the resources take Qempl= quantity of product P produced, destined
on a similar path. An elaboration of these stages for market M, utilizing resource E.
according to scale of operation, gear or method used,
resources, and final products is presented in Tables The computational form shows that while all
1 8,19 and 20. levels of costs are considered per activity, only the final
 49
Table 18. Assumed sequence of production activities in the fishery sector, characterization and resources used.

Activity Scale Technology Gear Resources

Capture Small Labor Handline Crabs

intensive Common hake
Mackerel
"Espinel" Common hake
Capital Encircling Mackerel
intensive net Spanish sardine
~nchoveta
"Espinel" Cod
Albacore Albacore
net
Large Capital Encircling Anchoveta
intensive net Common sardine
Mackerel
Spanish sardine
"Merluza de cola"
Trawler "Merluza comun"
Black crab
Shrimp
Processing Small Labor Slaughter Anchoveta
intensive Salting Mackerel
Common hake
Smoking Mackerel
Common hake
Table and knife Mackerel
Common hake
Black crab
Capital Canning lines Mackerel
intensive Spanish sardine
Sardine
Freezing lines Cod
Albacore
Common hake
Black crab
Fishmeal Mackerel
plants Spanish sardine
Sardine
Anchoveta
Large Ca~ital Canning lines Mackerel
intensive Spanish sardine
Sardine
Freezing lines Cod
Albacore
Common hake
Black crab
Shrimp
Fishmeal "Merluza de cola"
plants Mackerel
Spanish sardine
Sardine
Anchoveta
Storage Small Labor Bulk Shellfish
intensive Sackslcrates Crab
Common hake
Capital Fish tank Shellfish
intensive Cold storage Cod
Albacore
Common hake
Black crab
Large Capital Cold storage Cod
intensive Albacore
Common hake
Black crab
Shrimp
continued
50
Tablela. continued
-

Activity Scale Technology Gear Resources

Warehouse Mackerel
Sardine
Spanish sardine
Container "Merluza de cola"
Warehouse Mackerel
Sardine
Spanish sardine
Anchoveta
Fishmeal "Merluza de cola"
Sackstwarehouse Mackerel
Sardine
Spanish sardine
~nchoveta
Bottles Fish oil
Transport Small Labor Human hauling Black crab
intensive Mackerel
Common hake
Animals Black crab
Mackerel
Common hake
Capital TrucWvan Mackerel
intensive Anchoveta
Sardine
Barges Black crab
Mackerel
Common hake
Albacore
Large Capital Refrigerated Black crab
intensive trucks Mackerel
Common hake
Albacore
Shrimp
Trucks Mackerel
Shellfish
Anchoveta
Sardine
Tankers Bulk 011
Ship Fishmeal sacks
Bulk meal
Cans
Frozen items
Table 19. Assumed sequence of production activities in the forestry sector, characterization,resources used and fmal products.

Technology Final products

Activity Scale level Gear (Resource used)
Planting Small Labor Seeding by
intensive hand
Capital Plough
intensive Animal cart
Law Capital
. . Tractor
lntenslve
Silviculture Small Labor Axhatchet
intensive Hacksaw
Capital n.a.
intensive
Large Capital Mechanical saw
intensive
Harvesting Small Labor Lumber jacks
intensive Animal carts
Capital Lumber jacks
intensive Tractors
Mechanical saw
Capital Lumber jackslmechanical
intensive saws
Tractors
Processing Small Labor Oven Charcoal/(PR, EG)
intensive Hatchet Firewood/(PR, EG)
Capital n.a. n.a.
intensive
-
Large Labor Makeshift sawmills Lumber/(PR, EG, EN)
intensive Wood products/(PR, EG, EN)
Capital Chipmakers Chipsl(PR, EG)
intensive Pulp and paper industry Chemical pulp/(PR, EG)
Mechanical pulpl(PR, EG)
Paper and cartonl(PR, EG)
Woodboard industry Particleboardl(PR)
Fiberboard/(PR)
Plywood/(PR, EG, EN)
PaneVveneerl(EN)
Mechanized sawmills Lumber/(PR, EG, EN)
Wood ~roductsl(PR,EG, EN)
Storage Small Labor Sacks Charcoal
intensive Bulk storage
Capital Warehouse Lumber
intensive Timberyard Wood products
Large Capital Shed, storehouse Paper and carton
intensive Particleboards
Fiberboard
Plywood
Stacking yard Chips
Tanks Chemical pulp
Mechanical pulp
Transport Small Labor Animal and human Charcoal and firewood
intensive Haulage
Capital Light trucks Lumber and wood products
intensive
Capital Tanks Chemical pulp
intensive Mechanical pulp
Trucks Lumber
Wood products
Chips
Train Logs for export
Lumber
Wood products
PR : Pinus radiata. Ships Chips
EG : Eucalyptus globulus. Chemical pulp
Mechanical pulp
Lumber
Wood products
 commanding the
Table 20. Upper limits of catch levels (t.10'). based on Schaefer yield functions segmented into 6 groups, Y,(i = 1.2....6).
highest prices.
Hake and jack
Eels mackerel, which
Hake are more abun-
Jack mackerel
Molluscs
dant, command
Spanish sardine lower prices.
Anchovy Average cost
Patagonian toothfish
Swordfish
of planting pine
Patagonian grenadier varies propor-
Shrimp tionally w it h
Algae
Common sardine stocking density
(Table 26). The
ranges given for
silviculture and
product stage, i.e., that which reaches final and harvesting correspond to different pruning and
intermediate consumer, is incorporated as revenue. harvesting rates. Processing, storage and transport costs
for pine as well as domestic and market prices are
COEFFICIENTS OF THE OBJECTIVE FUNCTION shown in Table 27. Note the high margins between
export and domestic price for all but one product, wood
chips.
The coefficients of the objective function are prices
No plantation activities were assumed for
of inputs and outputs. Table 21 shows the yield levels
eucalyptus. However, pruning and harvesting costs
associated with each of the six segments of the Schaefer
were also shown to vary with level of exploitation, i.e.,
curve; harvesting costs are presented in Table 22. The
US$33.33-156.ha-1.Other costs as well as prices are
increasing cost function can be explained by Fig. 11
provided in Table 28. Logs, pulp and wood chips are
which depicts linearly decreasing yield per effort as
marketed entirely in foreign markets while plywood,
effort increases. Cost per unit of effort was assumed
veneer and firewood are sold entirely in the local
constant and thus becomes an increasing function of
markets.
output (Aguero 1987).
Table 23 shows the processing costs per product
line and the species that undergo such processing. Costs THE CONSTRAINTS
were assumed to be constant over a range of different
species. Processing of fresh and dried fish products The type of constraints used in this exercise in
incur the least cost while canning incurs the greatest addition to the nonnegativity constraints are:
cost. Among the species, jack mackerel and the sardine
species are subjected to most types of processing; algae 1) Convexity
is only processed into its dried form and bacalao,
albacore, and eels as fresh and frozen.
Storage, transport and marketing costs are
presented in Table 24. Transport of fresh and frozen
fish is more expensive due to its high perishability. where
Storage costs for fresh and frozen and well as dried
fish are relatively cheaper due to the simpler technology b' = resource biomass in section i; and
required, i.e., crates and ice chests. n = number of sections considered (six, in this
Average weighted price of processed fish products application).
and market destination varies according to species used
(Table 25). The price of fishmeal and oil is not 2) Balance
dependent on the fish species; contrarily, frozen fish is
highly sensitive with shrimps, bacalao and albacore
 Table 21. Assumed harvesting costs (in US$.t-') for various fish species and yield levels.

Harvesting costs
Resources y, y 2 y3 y 4 y5 Y6

Eels 413 603 762 857 921 953

Hake 150 275 374 424 449 462
Jack mackerel 4,014 7,299 10,437 12,554 13,503 13,868
Molluscs 334 41 8 534 601 65 1 668
Spanish sardine 148 185 237 267 289 297
Anchovy 604 906 1,148 1,305 1,390 1,414
Patagonian toothfish 23 1 375 549 396 780 837
Swordfish 61 98 126 148 162 168
Patagonian grenadier 536 626 700 745 775 790
Shrimp 55 90 132 166 180 187
Algae 1,086 1,754 2,338 2,672 2,839 2,923
Common sardine 1,593 2,206 2,697 3,064 3,310 3,432

Note: Harvesting costs correspond to each yield segment (Table 20).

Table 22. Assumed processing costs (in US$.t-') by product.

Product Processing Jack Spanish Common

cost Eels Hake mackerel Mollusc sardine sardine Anchovy Toothfish Swordfish Grenadier Shrimp Algae

Fresh
Frozen
Meal A
Meal B
Dried
Canned

Table 23. Assumed storage, transport and marketing costs (in US$.t-') per Yield (Y)
type of processed fish product.
Sustained
~ i e i
A
p f3 y
I B
Costs

Product Storage Transport Marketing

I C/Y- Effort
Fresh (f
Frozen I
Fishmeal A I I I
I
Fishmeal B
D~ied 81 Bz 83
Canned Biomass
I

Fig. 11. Fundamental relationships between biological characteristics

of fish resources and technology of capture and various cost factors.
A) Relationships between yield and the underlying fish biomass
(note that B, > B2> BJ. B) Relationships between yield, effort and
Effort Cost per unit d yield
the quotients cost per unit of yield and yield per unit of effort. C)
Relationships between yield per effort, effort and cost per unit of
yield.
54
Table 24. Average weighted price (export and domestic) (in US$.rl) of processed fish products.

Price
Species
Fresh Frozen Meal A Meal B Oil A Oil B Dried Canned

Eel
Hake
Jack mackerel
Mollusc
Spanish sardine
Anchovy
Toothfish
Swordfish
Grenadier
Shrimp
Algae
Common sardine 59 1 400 450 138 150 1,000
Market distribution
Domestic 0 5 45 62
Export 100% 95 55 38

Table 25. Plantation, culture and harvesting cost (in US$.ha-l) of pine at various stocking densities.

Stocking Stocking Stocking Stocking

density 1 density 2 density 3 density 4
Pine 769 s.ha-' 1,845 s.ha-l 2,190 s.ha-I 3,280 s.ha-l

Plantation 440 460 462 480

Silviculture 6.7-21.8 6.2-21.9 6.2-17.5 5.5-17.5
Harvest 36.6-115.8 34.4-109 31.3-99.5 31.2-97.8

Table 26. Processing, transport and storage costs (in US$.m3) for wood products derived from pine and
corresponding market prices.

Price
Product type Processing Transport (pine) Storage International Domestic

Logs 6.0 1.1 3.0 40 25

Lumber 5.7 1.2 2.5 51 28
Wood products 5.5 2.0 2.5 125 63
Chips 3.1 1.7 2.0 166 183
 Table 27. Processing, transport and storage costs (in US$m3) for wood products derived from eucalyptus and
corresponding market prices.

Price
Product type Processing Transport (pine) Storage International Domestic

Logs 5.1 3 1.1 48 n.a.

pulp 4.5 2.7 1.7 418 n.a.
Chips 3.1 2.5 1.5 60 n.a.
Plywood 4 3.2 1.2 n.a. 265
Veneer 5.5 2.5 2 n.a. 296
Firewood 1 1.5 0 n.a. 0

Table 28. Estimates of net benefit per sector from LP 5) Land availability
exercise.

Net benefit
Ap + Aa <= Total Area
Economic sector (US$.103.year-I)
The only real resource constraint used in the model
Fishery 171,358
is the availability of land for forest plantation. The area
Mackerel 120,177
Common hake 21,551 planted to pine and eucalyptus must be less than or
Others 29,630 equal to total plantation area.
Forestry 1,186,410
Pine
THE MATRIX COEFFICIENTS
Eucalyptus

Total 1,357,768 Coefficients pertain to the yield per segment, as in

forestry, or catchability, as in the fishery. In most cases,
Environment (20,000)
coefficients are exogenously determined percentages
Total 1,137,768 such as the disaggregation of harvests by scale of
operation, type of gear, product type and market
The equation indicates the conversion rate (pr) destination. In like manner, coefficients represent
representative of a particular production process, say disaggregation of finished wood and fish products into
frozen fish or fishmeal in the case of fish processing, its different forms.
at which the biomass is converted into a finished The matrix coefficients, constants of the objective
product (Qrp). function and constraint elements are incorporated into a
final LP tableau that is a 782 x 530 matrix (Appendix 1).
3) Balance
Environmental Externalities
Rrp * Qrp - Qra = 0 ...6)
Among the numerous environmental effects
The output of activity Aa becomes the input for resulting from activities in the fishery and forestry
the next activity A,,,, i.e., no wastage is involved. sector, only water contamination as a consequence of
the fish processing activities was quantified here. An
4) Convexity of demand index of water pollution is the decrease of oxygen levels

or
( l/Qrai) * Qra <= 1 ' as measured by dissolved oxygen (DO) levels. Oxygen
is removed from the water as the organic matter in it
decays. According to IFOP (19881, liquid effluents of
coef (Qrai) * Qra <= 1 -8) fishmeal plants reach BDO7 levels equal to 0.57 kg.t-I
of fish processed. In order to maintain an acceptable
This equation indicates that each activity can be standard (BD07 10 mg.1-',as in Spain), it is necessary
taken as a segment of the total demand curve, thus, the to dilute the affected area by 57,000 1 for every tonne
restriction <= 1. of fish processed.
56
To implement this, a constant in the objective practices. Logs constitute a major use of pines and the
function was added, i.e., imputing the cost of freshwater, optimum level of export was estimated at 1,384 m3
here assumed to be US$l.t-l. The constraint row merely (Table 31). In addition to wood products and wood
summed up total fish processed and is similar in form to chips, eucalyptus is also used for veneer and firewood.
the balance equations enumerated above. Wood chips constitute the major export and is valued
at an average price of US$60.t-'. No pulpwood is
Results and Discussion extracted from both species.
The optimum net benefits are diminished by a total
of US$20 million considering the environmental
Results externalities attributed to pollutants from fishmeal
plants. This represents the cost of pumping in
The solution to the linear programming problem freshwater to improve the DO levels. The estimate of
is the estimate of total net benefit generated by fishery optimum net benefits should be lower due to a larger
and forestry. In the process, the solution identifies the number of externalities which could not be quantified.
optimum values of the variables which vary from one While real resource constraints were missing and
sector to another. In the fishery, the variable is the that many variables were exogenously determined, the
amount of fish "handled" at each activity level while emphasis of this application is the linkage between
in the forestry sector, the quantity of wood and/or wood different activities within each sector to arrive at an
products. The algorithm used in linear programming optimum quantity. Thus, the optimum quantity
essentially estimates dual values as well as right-hand harvested is not based on biomass constraints or effort
side and objective function coefficient ranges, but due constraints alone but also by demand conditions for
to the absence of real resource constraints the dual the final product.
values as well as the right-hand side ranges are not The relevance of coastal zone management and
analyzed. the "systems approach" espoused in Agiiero et al.
Total net benefit amounts to US$1.36 billion.year-', (this vol.) is highlighted by the interconnectedness
87% of which is accounted for by forestry; the fishery of economic activities in the fishery and forestry:
contributes US$17 1 million (Table 29). The Chilean A succinct example is the determination of optimal
jack mackerel, which is sold at international and catch levels in the capture fishery which was shown
national markets as frozen, fishmeal and oil, contributed to be an indirect function of final market demand
70% of sectoral revenue while hake, marketed only as and constrained by prevailing capacities in the
frozen, ranked second (Table 30). The optimum annual transport, storage and processing sectors. Without
harvesting levels for jack mackerel and hake are 1.9 such framework, optimal catch levels would be
million t and 37,000 t, respectively. These levels are based, for example, on either MSY or MEY, which
contingent on several factors including final market are purely biological parameters. Even the latter,
demand, transport, processing and storage capacity, as which at best considers appropriate measures of
well as current levels of effort in the industrial capture opportunity costs of the factors of production,
fishery. thereby incorporating macroeconomic factors, is
The large-scale sector contributes a major portion relatively myopic and still quite limited to the
of catch for hake, jack mackerel, Spanish sardine, capture fishery sector.
anchoveta and Patagonian grenadier whereas the small- This framework has the potential of estimating the
scale sector dominates the capture of eels, molluscs, impact of factors outside the capture fishery sector on
bacalao, albacore and algae. itself, e.g.,changes in storage fees or in increased demand
In the forestry sector, the optimum areas planted for substitute products. Unfortunately, this particular
to pine and eucalyptus are 50,000 and 30,000 ha, application, though not of linear programming in general,
respectively. All areas planted to pine are based on a did not deal with real resource constraints. A useful
stocking density of 3,280 seedlings.ha-I. No planting sensitivity analysis would have emerged if hypothetical
is involved in the case of eucalyptus. cases of increased or decreased resource endowments
Total quantity of timber is based on the amount could be measured against potential economic benefits
harvested and/or thinned, as part of silvicultural and on the values of the variables.
Table 29. Optimum levels of production (in t. 103year') resulting from LP exercise, by product type, activity and major species.
-
Jack Spanish
Actlvitv Crabs Hake mackerel Molluscs sardine Anchovy Toothfish Swordfish Grenadier Shrimp Algae

Caprure 3.00 37.00 1,898.96 4.00 40.00 115.04 2.90 0.60 103.98 0.14 16.00
Large scale 0.90 35.52 1,898.96 39.60 78.20 0.00 102.94 0.14 0.00
Small scale 2.10 1.48 4.00 0.40 36.90 2.90 0.60 1.04 16.00
Processing
Fresh
Before processing 0.01 0.40 0.03 0.01 0.04
After processing 0.01 0.36 0.02 0.01 0.04
Frozen
Before processing 2.99 37.00 13.48 1.10 2.12 2.89 0.56 0.42 0.14
After processing 1.59 17.76 5.53 0.22 1.42 1.53 0.36 0.13 0.14
Fishmeal and oil
Before processing 1,773.43 37.85 114.62 103.56
Fishmeal A 620.70 13.25 40.12 36.25
Fishmeal B 1,152.12 24.60 74.51 67.32
After processing
Fishrneal A 136.55 3.05 8.83 7.25
Fish Oil A 27.93 0.60 1.81 1.63
Fishmeal B 253.60 5.66 16.39 13.46
Fish Oil B 69.16 1.48 4.47 4.04
Dried
Before processing 16.00
After processing 15.20
Canned
Before processing 108.62 2.89 0.03
After processing 42.36 0.58 0.01
Storage
Fiesh 0.01 0.36 0.02 0.04
Frozen 1.59 17.76 5.53 0.22 1.42 0.36 0.13 0.03
Fishmeal A 136.55 3.05 8.83 7.25
Fishmeal B 253.60 5.66 16.39 13.46
Dried 15.20
Canned fish 42.36 0.58 .- 0.01
Transport
Fresh 0.01 0.02 0.04
Frozen 1.59 17.76 5.53 1.42 0.36 0.13 0.03
Fishmeal A 136.55 3.05 8.83 7.25
Fishmeal B 253.60 5.66 16.39 13.46
Dried 15.20
Canned fish 42.36 0.01
Marketing
Fresh 0.01 0.36 0.02 0.04
Frozen 1.59 17.76 5.53 1.42 0.36 0.13 0.03
Fishrneal A 136.55 3.05 8.83 7.25
Fishmeal B 253.60 5.66 16.39 13.46
Dried 15.20 VI
Canned fish 42.36 0.01 4

continued
Table 29. continued
Jack Spanish
Activ~ty Crabs Hake mackerel Molluscs sardine Anchovy Toothfish Swordfish Grenadier Shrimp Algae

Sales
Fresh
International
Domestic
Frozen
International
Domestic
Fishmeal A
International
Domestic
Fishmeal B
International
Domestic
Fish oil A
International
Domestic
Fish oil B
International
Domestic
Dried
International
Domestic
Canned
International
Domestic
- - - -
-

Net benefit (US$.103) 1,600.8 21,550.81 120,176.84 5,065.87 2,286.37 5,207.66 7,459.51 2,299.04 4,658.38 21.39 1,030.73
Table 30. Optimum estimates (in m'.103) of LP exercise for forestry sector, by product type, activity and species.

Activity levels Pine Eucalyptus Activity levels Pine Eucalyptus

Pluntution und Transport

silviculture Logs
Quantity thinned Lumber
Quantity of timber extracted Wood products
Harvesting Wood chips
Quantity harvested Veneer
Quantity of timber extracted Firewood
Total quantity of timber Sales
Processing Logs
Raw material inputs International
Logs Domestic
Lumber Lumber
Wood products International
Wood chips Domestic
Veneer Wood products
Firewood International
Output Domestic
Logs Wood chips
Lumber International
Wood products Domestic
Wood chips Veneer
Veneer International
Firewood Domestic
Storage Firewood
Logs International
Lumber Domestic
Wood products
Wood chips
Veneer
Firewood Net revenue (US$)

References Chile. Economica para America Latina y el Caribe, Santiago,

Chile.
COREMA. 1992. Aspectos generales sobre recursos y contamination en
'Agiiero. M. 1987. A bioeconomic model of the Peruvian pelagic la VIII Region. Cornision Regional d e Medio Arnbiente,
fishery, p. 307-324. In D. Pauly and 1. Tsukayama (eds.) The Concepcion, Chile.
Peruvian anchoveta and its upwelling ecosystem: three decades IFOP. 1988. Analisis de la actividad pesquera extractiva nacional.
of change. ICLARM Stud. Rev. 15, 351 p. Caracterizacion Flota Pesquera Industrial. Flota Cerquera. IFOP,
CEPAL. 1990. Una estimacion de la magnitud de la pobreza en Santiago, Chile.
Annex 1 . Hydrobiological resources of Chile exploited at the national and regional (Bio-Bio) level (*).

Local name Scientific name Presence of species

in Bio-Bio, Chile

Fish
Acha Kyhosus analogus
Agujilla Scomberesox saurus
Albacora Xiphias gladius
Anchoveta Engraulis ringens
Anguila Ophictus spp.
Apaiiado Hernilutjanus macrophthalmos
Atin uleta umurilla Thunnus albacares
Atun aleta largu Thunnus alalunga
Atlin de ojo grande Thunnus obesus
Ayunque Cynoscion analis
Azulejo Prionace glauca
Bacalao de profitndidad Dissostichus eleginoides
Baculuo o mero Polyprion spp.
Blanquillo Prolatilus jugularis
Bonito Sarda chiliensis
Brecu Acantholatris payi
Brcitula Salilota australis
Caballu Scomber japonicus
Cubinzu lsacia conceptionis
Cabrilla Sebastes oculatus
Cabrilla c o m h Paralabrax humeralis
Cuch~wretu Katsuwonus pelamis
Cuzcin Galeorhinus ziopterus
Chanchurro Helicolenus lengerichi
Cojinobu del norte Seriolella violaceu
Cojinobu moteada Seriolella porosa
Cojinobu clel Sur Seriolella cuerulea
Congr-io colorado Genypterus chilensis
Congrio dorado Genypterus blacodes
Congrio nepro Genypterus mculatus
Corvina Cilus montti
Doradu Coryphaena hippurus
Jurel Trachurus murphyi
Lenplrudo de ojos chicos Puralichthys microps
Lenpuudo de ojos prandes Hippoghsina macrops
Lisa Mugil spp.
Muchuelo Ethmidium muculatum
Morrujo Isurus gluucus
Merluza del sur Merluccius uustralis
Merluza de cola Macruronus mugellanic~~s
Merluzu de tres uletus Micromesistius austrulis
Merluza comun Merluccius p y i
Mulatu Graus nigra
Nunue Girellops nebulosus
Palometa Paronu signutu
Puntpunito Stromateus stellatus
Pejegallo Callorhinchus cullorhinchus
Pejeperro Pimelometopon maculatus
Pejerrutu Coelorhynchus spp.
Pejerrey de nzur Odonteshes spp.
Peje.rapo Sicyuses sanguineus
Pejeiorro Alopius vulpinus
Peto Acunthocybiurn solundri
Ruy Raja spp.
Reinetu Lepidotus austrulis
R(jbulo E/eginol~sn~uc/ovinus
Rolli7o Mu&ides chilensis
Ronurcho Sciaenu spp.
Sulnzdn del Puc@co Oncorhyncluis spp.
Salnzcin clel Atldntico Salmo salur
'"Indicates presence of species. continued ...
Annex I. continued

Local name Scientific name Presence of species

in Bio-Bio, Chile

6 1. Sardinu Sardinops s a g a
62. Surdina comlin Clupea bentincki
63. Sargo Anisotremus scapularis
64. Sierru Thyrsites atun
65. Tdlo Mustelus mentu
66. Tomoyo Labrisomus philipii
67. Trucha urco iris Salmo gairdneri
68. Trucku cuf'i Salmo trutta
69. Truclzu de armyo Sulvelinus fontinalis
70. VidriokI Seriola mazatlanu

Molluscs
I. Almeju (tucu) Venus antiqua
2. Almeju Protothuca thuca
3. Culamur Loligo gahi
4. C ~ r u c o locate
l Thais chocoluta
5. Carcrcol trumul(.o Chorus giganteus
6. Carucol r e p l a Tegula utra
7. Clrochu Calyptraea rroch1forme.s
8. Cholgu Aulacomya ater
9. Chorito Mytilus chilensis
10. ChOrO ZU/>Uf(J ChOrO~Zytil~S chorus
I I. Culerzg~~e Gari solidu
12. Jibia Dosidicus tunicatu
13. Ltrpus Fissurella spp.
14. Loco Concholepas concholelm
15. Mnchm Mesodesmu donacium
16. Nuvuju de )tzar Solen gaudichaudi
17. Navuju de mar Ensis machu
18. N m ~ ~ j ~ ~ e l u Tugelus dombeii
19. O.rtio'ndel riorte Chlumys purpuratu
20. Ostirin clel sur Chlamys patagonica
21. Ostru Ostreu chilensis
22. Ostru del Puc~fico Cmssostrea gigas
23. Piyuihue Odontocymbiola magellanica
24. Pulpo Octopus vulgaris

Crustaceans
I . Camtr,dn de roca Rhynchocinetes typus
2. Cumurrin nuilon Heterocarpus reedi
3. Centolla Lithodes antarticus
4. CerztollBn Paralomis granulosa
5. Gamhu Haliporoides diomedeae
6. .Itriba Cancer edwurdsii
7. Juibo limtin Cuncer porteri
8. .Itriba mom Homaluspis plana
9. Juibu peludu Cancer setosus
10. Juiba reirza Cuncer coronatus
11. Krill Euphuusia superba
12. Lungo.stc~de Juun Ferndndez Jasus .fiwntalis
13. Ltuzgostcl de Isla cle Puscua Panulirus pascuensis
14. Lungo~finoumctrillo Cervimunida johni
15. Langostino colorado PkurOncOdeS monodon
16. Langostirzo de lox cunules Munida subrugosu
17. Picoroco Megabalanus psittacus

Algae
I. Gelidium rex
2. Gymnogongrus furcellatus
3. Lessonia nigrescens

continued.
Annex 1. continued

Local name Scientific name Presence of species

in Bio-Bio, Chile

4. Chicorea de mar Mastocarpus papillatus

5. Cochayuyo Durvrlaea antarctica
6. Huiro Macrocystis pyrlfera
7. Lechuha de mar Ulva lactuca
8. Liquen gomoso Chondrus canahculatus
9. Luche Phorphyra columbina
10. Luga-luga Iridaea crlrata
11. Pelillo Glacrlarra spp
12. Anhfeltia Anhfeltia plicata

Echinoderms
Erizo Loxechinus albus

Hemichordate
Piure Pyura chilensis *

Annex 2. Principal native forest species of Chile and Region VIII (*)

Local name Scientific name Presence of species

in Bio-Bio, Chile

Araucaria Araucaria araucana

Ciprts de Cordillera Austrocedrus chrlensrs
Alerce Frtzroya cupressorder
Ciprts de Guaitecas Prlgerodendron uriferurn
Manio de Hojas Lurgas Podocarpus ralrgnus
Manio de Hojas Punzantes Podocarpur nublgemur
Lleuque Podocarpus andinus
Manio de Hojas Cortas Saxegothaea conrpicua
Espino Acacra caven
Palma Chilena Jubaea chilensrr
Algarrobo Prosopr r chilensis
Tamarugo Prosopir tamarugo
Pimiento Schrnur molle
Pelu Sophora mrcrophylla
Tineo Weinmannra trrchosperma
Avellano Gevurna avellana
Trevo Dasyphyllum diacanthoider
Naranjillo Villarezia mucronata
Olivillo Aextoxicom punctatum
Lingue Perrea lingue
Litre Lrthraea caustrca
Canelo Drimy r wrnteri
Notro Embothrrum coccrneum
Quillay Qudlaja raponaria
Maite'n Maytenus boaria
Sauce Chileno Salrx chrlensir

continued.
*indicate presence of species.
Annex 2. continued

Local name Scientific name Presence of species

in Bio-Bio, Chile

Co~guede Chiloe' Nothofagus nitida

Co~gue Nothofagus dombeyi
Co~guede Magallanes Nothofagus betuloides
Roble Nothofagus obliqua
hre Nothofagus antarctica
Raull Nothofagus alpina
Rud Nothofagus alessandri
Bollan Kageneckia oblonga
Molle Schinus latifolius
Radal Lomatia hirsuta
Lenga Nothofagus pumilio
Hudo Nothofagus glauca
Bold0 Peumus boldus
Peumo Cryptocarya alba
Belloto del Sur Beilschmiedia berteorana
Belloto del Norte Beilschmiedia miersii
Qeule Gamortega keule
Arrayrin Luma apiculata
Prtra Myrceugenia exsucca
Luma Amomyrtus luma
Me11 Amomyrtus meli
Patagua Crinodendron pafagua
Laurel Laurelia sempervirens
Tepa Laurelia philippiana
T~aca Caldcluvia paniculata
Ulmo Eucryphia cordifolia 4
Options for Land Use Management research components which independently determined
in Lingayen Gulf, Philippines* suitable areas for human settlements (Cargamento and
Rillon 1994), tourism (Cargamento et al. 1994),
mangrove reforestation (Alojado et al. 1994) and
ANNABELLE CRUZ-TRINIDAD A N D ZORAIDA ALOJADO, brackishwater development (Paw et al. 1994).
International Center for Living Aquatic Resources Paw et al. (1994) determined suitability for
Management, MCPO Box 2631, 0718 Makati City, brackishwater pond siting using several physical criteria
Philippines including soil type, elevation, physiography, access to
road networks, and access to water and land use. This
AGNESGRACE G. CARGAMENTO, National Economic and study prioritized marginal lands (grasslands, swamps),
Development Authority (NEDA) Region I, Sun Fernando, coconut plantations, and unproductive agricultural
Ln Union, Philippines lands as well as degraded mangroves as having the
greatest potential for conversion.
CRUZ-TRINIDAD, A., Z. ALOJADO and A.G.C. CARGAMENTO. 1996. As a complement to the study by Paw et al. (1994),
Options for land use management in Lingayen Gulf, Philippines, p. this study focuses on net economic returns of particular
64-77. In A. Cruz-Trinidad (ed.) Valuation of tropical coastal
resources: theory and application of linear programming. ICLARM
land use options to determine the feasibility of
Stud. Rev. 25, 108 p. converting to aquaculture (both shrimp and milkfish)
or to retain the use of land. Four land types are
Abstract considered: 1) productive ricelands, 2) salinized
ricelands, 3) grasslands, and 4) mangroves. The
In view of the fast-changing pace of land use in the Lingayen Gulf
framework used is a constrained maximization
area. Philippines, this study estimates optimal land use combinations, approach where optimal land use results in the greatest
particularly with respect to aquaculture. A direct cost and revenue approach level of net revenue for society. Net revenues are valued
would result in total net revenues of P7.4 billion or US$0.29 billion and
total conversion of remaining mangrove areas to milkfish ponds. However, using a direct cost and revenues approach, future value
the Total Economic Value (TEV) approach resulted in a net revenue of P35 approach and foregone earnings approach. The last two
billion with the following land use scenarios: i) no mangrove conversion; were used to account for indirect and nonuse values in
ii) conversion of salinized ricelands to milkfish ponds; and iii) conversion
of grasslands to shrimp ponds. The results emphasize the importance of accordance with the Total Economic Value (TEV)
valuation as this greatly influences the results of linear programming concept.
solutions.

Lingayen Gulf Profile

Introduction Resource-based Activities and Issues:

Fisheries, Aquaculture and Tourism
Lingayen Gulf was the Philippine pilot site of the
ASEAN-USAID Coastal Resources Management Lingayen Gulf, located in northwestern Luzon,
Project which was executed by the International Center Philippines, has a surface area of 2,100 km2 and is
for Living Aquatic Resources Management (ICLARM) bounded by the provinces of La Union and Pangasinan.
from 1986 to 1992. The study produced several Seventeen municipalities border the Gulf; ten are from
technical reports including the Lingayen Gulf Profile Pangasinan, namely: Alaminos, Anda, Bani, Bolinao,
(McManus and Chua 1990) and the Lingayen Gulf Sual, Labrador, Lingayen, Binmaley, San Fabian and
Coastal Area Management Plan (NEDA Region I Dagupan, while seven are from La Union, namely:
1992). The area was subsequently studied using an Agoo, Aringay, Bauang, Caba, Rosario, San Fernando
approach based on Geographic Information Systems and Sto. Tomas (Fig. I).
(GIs) with the major objective of a zonation scheme Previous studies have delineated the Gulf into three
for both land use and water space utilization (Paw et sectors (Mines 1986). Sector I includes the munici-
al. 1994). This latter project was comprised of several palities of Sual towards the northernmost tip of Bolinao,
characterized by hard-bottom coralline substrates. Most
'kICLARM Contribution No. 1220 brackishwater ponds and trawling activities are
 65
localized in Sector 11, characterized by soft and muddy related activities account for 83% of total employment
substrates and in Sector 111, with sandy substrates. in Sector 111 but only 46% in Sector I where farming is
The population of Pangasinan and La Union a more important occupation.
provinces was estimated at 1.15 million in 1989by the
FISHERIES
Philippine National Census and Statistics Office with
an average of 40% living near the coast. Density is The fisheries of Lingayen Gulf consists of the
highest in Sector I1 at the municipal and village levels. commercial and municipal sector. The commercial
Estimated population growth rate is 3.2% at the sector is represented by at least thirty-eight trawlers
municipal level but is estimated to reach 12% in the which increased twofold by the 1990s owing to the
coastal villages (McManus and Rivera 1990). trawling ban in Manila Bay. The increase in numbers
Ferrer et al. (1988) note that the Gulf provides more may well include danish seines (hulbot hulbot) which
than half of the employment in the area either through are actually refitted trawlers. Average catch of the
direct fishing or its ancillary activities. Fishing and commercial sector amounted to 38,000 t.year-' from

L ingoy en G u l f

Hundred
Islands
) Rosario

7,.
Fabian

I I
120 5
Longitude (OW)

Fig. 1 . Lingayen Gulf coastal area

 Photos by A. Cruz-Trinidad

Mangrove area in Lingayen Gulf dominated by

Nipa species (Nipafruticnns).

Aqua-s~lv~culturepractice: fishpond areas

where paddies are planted w ~ t hmangrove
bpecies.
68
1989 to 1993 whereas the municipal sector landed an Table 1. Production of milkfish and shrimp from brackishwater ponds in
the Ilocos Region: volume and value of production, 1990-93.
average of 21,000 t-year1during the same period. The
municipal sector has 28 different types of gears
(Silvestre and Palma 1990), the most important of
Volume (t)
which are gill nets and explosives. The sectoral Milkfish 17,804 23,561 17,017 11,195
contributions to gross revenues are P63 1 million* and Shrimp 4,189 4,556 875 1,619
PI 30 million for the municipal and commercial sectors,
Value (in thousand pesos)'
respectively. Milkfish 363,208 662,076 719,820 593,990
Several studies point to the overexploitation of the Shrimp 518,442 534,186 119,611 199,600
Lingayen Gulf fisheries. Fox (1986) used fisher density, 'US$l = P25.4, July 1992-June 1993

Silvestre (1 986) analyzed biologically optimum mesh

sizes and species composition, while Signey (1987) and Table 2. Number and total area of privately-owned brackishwater fishponds
Cruz and Silvestre (1988) compared profitability in the coastal municipalities of Pangasinan Province, 1984.
parameters of various types of fishing gears. Further- No. of Total area
more, intense competition between municipal and Municipality fishponds (ha)
commercial fishers is prevalent due to the intrusion of San Fabian
trawlers into municipal inshore waters. The situation Mangaldan
is aggravated by the increase in number of municipal Dagupan
Binmaley
fishers who feel forced to deploy destructive fishing Lingayen
techniques such as blast fishing (Pauly 1990). Labrador
Sual
Alaminos
AQUACULTURE Bani
Anda
Bolinao
The importance of aquaculture, especially the
brackishwater culture of milkfish Chanos chanos, and Total

much later, shrimp, cannot be overemphasized. The

in the Dagupan-Binmaley area. Hanging culture or bitin
region is the country's third largest producer of milkfish
is the most common method. Cage culture of groupers,
and tiger shrimps (in volume and value terms) next to
snappers and siganids is a nascent but highly promising
Western Visayas and Central Luzon. From 1990 to
industry. Groupers, in particular, fetch attractive prices
1993, an annual average of L7,000 t of milkfish was
in the domestic markets, more so in the export market,
produced yielding P585 million-year-'. Shrimp
especially when sold live (Agiiero and Cruz 1991).
production, while yielding an average of 2,100 t during
Water pollution from domestic and industrial waste
the same period, resulted in annual average receipts of
affects growth and survival of cultured species. Serious
P343 million (Table 1).
contamination of the Dagupan-Binmaley River with
There are 16,000 hectares of fishponds in
domestic wastes resulting in high coliform counts affect
Pangasinan and La Union provinces, 13,000 ha of
the oyster farms in the area. Industrial pollution from
which are privately owned (Table 2). Fishpond density
the Bayawas River and mine tailings from the Benguet
is highest in the municipalities of Dagupan, Binmaley
uplands is detrimental to the fishponds. Another issue
and Lingayen with an average pond size of 1.9 ha. faced by the industry is the low productivity of milkfish
Fishponds are managed extensively with an average
ponds which has vast implications on land use
production not exceeding 1,000 kg.ha-'year-'(Paw et
alternatives.
al. 1994). Monoculture of milkfish predominates, but
some farmers especially in the Binmaley area have
experimented with polyculture of milkfish-siganid, TOURISM
shrimp-milkfish, and shrimp-siganid-milkfish. Oyster
farms with an average area of 100 m2are concentrated The Lingayen Gulf area is endowed with long
stretches of sandy beaches running from Bauang to
Agoo in La Union, natural scenic areas such as the
+US$I = P25.4 (July 1992 to June 1993). Hundred Islands in Alaminos, and a rich culture and
 69
history. A complete list of tourist sites, together with Existing land use of the 17 coastal municipalities
resorts and facilities, is provided by Cargamento et al. is shown in Table 3. Ricelands and grasslands occupy
(1994). a significant area in the region. Mangroves, though
Tourism development is highly dependent on presently occupying only 227 ha, have been dominant
environmental quality, so the issues that confront in the Gulf area and are prime areas for fishpond sites,
fisheries and aquaculture also affect this sector, albeit especially in the eastern and central portions. Irrigated
not directly. Water pollution and siltation are problems ricelands occupy 46% of the total land area and are
that directly affect tourism. Siting of ponds and cages mostly situated in Alaminos and Bani. The area of
are also potential deterrents to tourism activities. salinized ricelands was estimated based on a distance
Overfishing and its attendant evils, e.g. coral mining of 1.5 km from the shore or 15,612 ha. Grasslands
and blastfishing, indirectly affect tourism because it dominate the landscapes of Sual, Bani and Labrador
renders the resource aesthetically unappealing, not to while the remaining mangroves are localized in Bolinao
mention the dangers posed by illegal fishing methods. and Lingayen.
Land use conversion patterns are derived from 1986
and 1990 maps produced by the Bureau of Soils and
Changing Land Use Patterns Water Management (BSWM) (Tables 4 and 5). Of the
1,163 ha of mangroves, 739% have been retained as such
The Medium Term Regional Development Plan of while 243 ha have been converted to ricefields. While
Region I emphasizes the significance of the provinces the BSWM maps showed no mangrove conversion to
of Pangasinan and La Union as primary growth hubs fishponds during the period, the abovementioned GIs
(Cargamento and Rillon 1994). Under the Northwestern study noted the conversion of at least 21 ha in Bolinao
Luzon Growth Quadrangle Program, this area will be (Alojado et al. 1994; Paw et al. 1994).
the site for three of the industrial centers to be developed Irrigated ricefields have been converted into
in addition to its traditional activities in fishing, grasslands, fishponds, mangroves and built-up areas.
aquaculture and tourism. These development trends are Conversion of irrigated ricelands to aquaculture is
expected to exert further pressure on coastal resources significant in the municipalities of Bani and Lingayen
mainly due to an increase in population and in- (Table 5). Out of the total fishpond hectarage, only 58%
migration. The following section describes the fast pace have been maintained as such, with 30% of the area being
of land use change and maps out development trends. converted to ricelands and a smaller percentage to coconut

Table 3. Change in land use from 1986 to present (area in hectares).

-

Municipalities Grassland Mangrove1 Ricefield, Fishponds Beach Riverwash Freshwater Salt Total
nipa irrigated sand swamp beds

Alaminos
Anda
Bani
Bolinno
Sun1
Labmdor
Lingayen
Binmaley
San Fabian
Dagupan
Agoo
Aringay
Bauang
Caba
Rosario
San Fernando
Sto. Tomas

Total

'pTotalmangrovelnipa area as updated by areal photo is 227 ha.

 Table 4. Change in land use in Lingayen Gulf from 1986 to 1990. from existing to potential land use.
I I
Legends Primary Secondary Grassland Mangrovel Paddyrice Shrubs Coconut Built-up Coffee Cassava Sugarcane Corn Fishpond
forest forest nipa irrigated

Forest 2,445 33,372 9.297 302 1,337

Grassland 559 15,010 140,644 21.620 16,059 437 1.159 287 1.219 57 293
Mangrove1
nipa 848 249 54 12 1,552
Paddyrice
irrigated 465 18,444 1,698 183,043 9,244 3,082 14,660 166 1,113 384 946 3.073
Shrubs 10,521 17,117 48 8,149 57,252 944 747 15 152 131 453
Coconut 233 78 5,118 2,404 6,311 863 527 205
Built-up 1,021 111 17,379 460 808 12,509 16 75 93 713
Fruits 33 24 45
Cassava 753 61 503
Sugarcane 1,289 533 899 1,834 15
Corn 32 277 182 94
Fishpond 266 40 3,842 149 566 883 73 7,923
Saltbed 9 124 64 7 134
Beachsand 18 1,398 85 369 423 338
Ipil-ipil 45
Riverwash 1,586 2,352 5,378 708 149 1,368 I 9 569 509 94
Grapes 22 91
Mango 18 43 30 10
Maguey 15 87 36
Swamp 103 10 84 1 21 70 445 46 1,217
Total 3,004 60,954 190,307 2,833 249,183 88,251 13,237 33,711 228 2,447 6,392 1,736 14,458

I Legends Bamboo Upland

rice
Salt-
bed
Beach-
sand
Ipil-ipil River
wash
Rice
terrace
Grapes Mango Maguey Swamps Kaingin Vegetable
low terrace
Airpon Total

Forest 118 33 46,904

Grassland 155 246 13 65 1 100 152 10 100 198,771
Mangrove1
nipa 1,163
Paddyrice
irrigated 13 296 236 48 3,328 324 19 194 3 1,370 79 243,396
Shrubs 49 246 61 31 75 245 151 93 338 22 266 10 97,348
Coconut 34 43 33 24 15,498
Built-up 10 18 233 34 10 43 15 34,075
Fruits 102
Cassava 1,317
Sugarcane 75 4,654
Corn 48 676
Fishpond 10 13 13,765
Saltbed 230 568
Beachsand 77 1 105 3,507
Ipil-ipil 45
Riverwash 33 7,949 42 523 21,270
Grapes 39 152
Mango 49 150
Maguey 138
Swamp 61 2,814
Total 82 721 773 948 131 12,599 608 92 509 351 1,523 46 1,164 25 686,313
Table 5. Change in land use in Lingayen GuJf area from 1986 to 1990, by municipality.

Change Alaminos Anda Bani Bolinao Sual Labrador Lingayen Binmaley San Dagupan Agoo Aringay Bauang San Sto. Total
Fabian Fernando Tomas

1 13 1.50 372.00 213.70 717.20

2 891.80 20.90 20.90
3 377.90 383.90 98.60 68.70 10.50 210.60 611.00 470.60 7.50 331.60 7.50 86.60 52.30 127.00 3,637.50
4 101.60 256.90 135.90 50.80 643.80
5 85.10 28.40 38.80 9.00 115.00 23.90 271.80
6 68.70 1.50 1,807.50 23.90 92.60 64.20 7.50 207.60 88.10 582.50
7 434.70 131.50 130.00 1.50 70.20 1,384.80 2,216.80 23.90 2,207.90 14.90 431.70 113.50 216.60 9,055.50
8 130.00
9 68.70 230.00 16.40 135.90 4.50 52.30 31.40 539.20
10 89.60 4.50 94.10
11 248.00 448.10 696.10
12 9.00 9.00
13 7.50 7.50
14 3.00 3.00
15 13.40 13.40

Total 1,114.40 1,239.90 2,956.30 279.20 224.20 304.70 2,414.10 3,429.70 65.80 2,998.00 26.90 607.90 131.50 253.90 375.00 16,421.50
 72
and built-up areas. Grasslands have been converted to i.e., milkfish ponds, shrimp ponds and maintenance of
rice paddies, especially in the municipalities of Anda and existing use. "Maintenance" use includes both
Sual, and into shrublands and secondary forests. Table 5 productive and nonproductive use of land.
also indicates that suitable areas for aquaculture Productive and salinized ricelands can be converted
conversion are minimal: some 7.5 ha of riceland, 3 ha of to ponds at a development cost of Pl00,OOO.ha-I.
grassland in San Fabian and 13.4 ha of shrubland in Conversion costs of grasslands is P200,OOO ha-', twice
Bolinao. the cost of ricelands due to the absence of paddy
Substantial mangrove and nipa swamps including structures. Mangrove conversion cost is estimated at
ricelands were converted to aquaculture farms with P500,OOO.ha-' (A. Cargamento, pers. comm.) and
mangrove conversion having begun during the 1950s includes the construction of dikes and the clearing of
(Dannhaeuser 1986; Paw and Palma 1991). Present forests. Operating costs for all types of ponds
aggregate area of brackishwater ponds is 14,589 ha with irrespective of initial land type is held constant at
about 1,566 ha located in La Union, the rest being P1OO,OOO.ha-' (Primavera 1993).
distributed among the municipalities of Binmaley, Average milkfish production is assumed to be
Dagupan, Bani, and Lingayen in Pangasinan. Paw et higher than the current average to reflect the thrust
al. (1 994) showed the conversion rate of different land towards semi-intensive pond operation. Minimum
use types to brackishwater ponds from 1986 to 1990 to production level for milkfish is 5,000 kgsha-'.year-' for
total 6,534 ha or an average of 1,300 ha.year-I. productive ricelands and grasslands but is assumed to
be higher, i.e., 7,500 kg.ha-'.year-'for salinized ricelands
Costs and Benefits of Altering Land Use as an effect of saltwater intrusion. The production level
for shrimp is based on estimates used by Primavera
(1993) for semi-intensive farms. As in the case of
Monetary milkfish, production levels for shrimps from salinized
farms are increased to 5,000 kg.ha-'.year1.Production
Table 6 lists four types of land use types and levels for both shrimps and milkfish are considerably
corresponding parameters reflecting alternative uses, increased in the case of conversion from mangroves
Table 6 Cost and revenue parameters of different land use types in Lingayen
due to its favorable physical and ecological
Gulf area. attributes.
Ricelands yield net revenues if maintained as
Alternative use
Existing land use Milkfish Shrimp No
such. Production for a two cropping period is
and parameters ponds ponds conversion 9,200 kg.year-' (C.R. de la Cruz, pers. comm.) and
operating cost is P1O,OOO.year-l. Operating cost
Productive licelands
Conversion cost (P.ha-I) includes cost of seeds, fertilizers, and labor and is
Operating cost (P,ha-'.year1) assumed similar for salinized ricelands. Average
Production (kg.year-')
Average net revenue'
production for the latter, however, was assumed to
Salinized ricelands be 7,000 kg.year-I due to the effect of saltwater
Conversion cost (P.ha~') intrusion.
Operating cost (P.ha-'.year1)
Production (kg.yearl)
Grasslands would yield no revenue if maintained
Average net revenue in their existing form because no directly
Grasslands marketable goods and services arise from their use.
Conversion cost (P.ha-I)
Operating cost (P.ha-'.year-') Society would, in fact, incur a cost equivalent to
Production (kg.yewl) their current assessed value.
Average net revenue The value of mangroves was based on PIDS
Mangroves
Conversion cost (P.ha-') (1994), which did valuation work for two mangrove
Operating cost (P.ha~'.year1) ecosystems, i.e., Pagbilao Bay in Quezon Province
Production (kg.year-')
Average net revenue
and Ulugan Bay in Palawan. The value used for
Lingayen Gulf was based on the former because of
'Based on farmgate price of P120.kg~'for shrimps, P75,kg-' for milkfish and similar areas, i.e., 350 ha for Pagbilao and 227 ha
P6.kg ' for rice.
'Based on assessed value and represents foregone earnings. for Lingayen as opposed to 1,800 ha for Ulugan
'Based on mangrove valuation in Pagbilao, Quezon. Bay, as well as status of exploitation. The value
 73
was based on summation of direct (fish, invertebrates ricelands and grasslands also have a role in flood
and juveniles) and indirect goods (litterfall). prevention.
The conversion option results in average net Mangrove is a very critical resource found in the
revenue based on a 10-year cash flow where conversion coastal area. Aside from the directly marketable goods
costs are reflected only for the first year. Thus, net and services such as forest resources (charcoal,
revenue resulting from mangrove conversion are the firewood, tannin), wildlife, fisheries, forage and water
highest among all alternatives despite high conversion supply, mangroves have important ecological functions.
costs. Net revenue resulting from the conversion of Zamora (1989) points out that once a mangrove area is
grasslands is the lowest. The status quo results in net converted into a fishpond, it no longer functions as a
revenue for productive and salinized ricelands, albeit natural system and ceases to contribute to the
lower fur the latter. Net revenue accruing to mangroves productivity of the nearby nearshore ecosystem.
is minimal but positive because no costs are incurred, Furthermore, mangrove conversion results in the loss
while grasslands result in a net loss because no of all standing biomass as well as the total disruption
marketable goods and services result from its nonuse. of soil, preventing natural regeneration.
A straightforward comparison of the net revenue Adverse effects of mangrove conversion include
resulting from three land use options shows that, based decreases in catches of mature and juvenile fish and
on economic efficiency objectives and in the absence shrimp (Martosubroto and Naamin 1977; Camacho and
of fixed (e.g., land availability) as well as exogenous Bagarinao 1986). The loss of nursery grounds and
limits (conversion limits), all mangroves would be eventual scarcity of shrimp fry also affect aquaculture
converted to ponds and none of the existing land types operations as documented in Bell and Cruz-Trinidad
would be retained. The LP exercise allows us to (this vol.).
determine the optimal land use mix without compromising
these limits. Linear Programming Application

Objective Function
Environmental
The objective function is the maximization of net
Use of the TEV approach necessitates the identifi- revenue arising from the use of four types of land for
cation of use and nonuse values of land types as three possible options. Net revenue per option is
presented in Table 7. Ricelands and grasslands found dependent on two components: I ) area of land devoted
in the Lingayen Gulf area have two direct uses: for a particular purpose; and 2) net revenue resulting
agriculture and human settlements. Moreover, ricelands from the production of marketable products including
and grasslands play an important role of providing rice, shrimps, ponds. Component 2 is computed based
vegetative cover thus preventing soil erosion and on prices and estimated production levels.
decreasing the amount of sediments reaching the Gulf. The solution to the objective function includes
Granting that the Lingayen Gulf area is flood prone, optimal land use mix and the resulting level of total

Table 7. Use and nonuse values of land types in coastal areas of Lingayen Gulf, Philippines.

Land type Direct use Indirect use Nonuse

Ricelands Agiiculture Nutrient retention

Human settlements

Grasslands Agriculture Sediment retention

Human settlements Wildlife habitat

Mangroves Forest resources Groundwater rechargeldischarge External support

Wildlife Flood and flow control Recreationltouris~n
Fisheries Shorelinehank stabilization Water transport
Forage Sediment retention Uniqueness to culture/heritage
Agriculture Nutrient retention
Water supply Biological diversity
74
profits. The representation of the objective function is 2) Conversion constraints
as follows:
Max ¶ H, <= 10,000
where is profit and is equal to Hi, <= 10,000

An additional constraint imposed on the system is

the maximum conversion rate to pond aquaculture. The
Nr,, = the net revenue resulting from land type i limit imposed is 10,000ha each for milkfish and shrimp
and option j; and ponds and is binding for a period of 10 years. This
Hi, - the area devoted to land type i and translates to an annual conversion rate of 1,000 ha
potential and use j. which was observed to be the average conversion rate
The subscripts i and j refer to existing land type for the region (Paw et al. 1994).
and potential land use, respectively:
i = 1,...4 3) Nonnegativity constraints
1 = productive ricefield;
2 = salinized riceland;
3 = grasslands; and
4 = mangroves.
j = 1,...3 Results
1 = no change;
2 = milkfish ponds; and
Optimal Land Conversion Rates
3 = shrimp ponds.

Nr..'I = TR,, - CC..'1 - OC, Using a direct cost and revenues approach, the areal
where distribution for different land types across three land
Tr.. = Total revenue, product of price, P, and use options is summarized in Table 8. Productive
1'
quantity of production, Q,; ricelands are maintained but all salinized ricelands are
Cc, = Conversion cost of land type i into option converted to ponds. Milkfish ponds account for 63%
of the total area of salinized ricelands while the
j;
= Operating cost of land type i used for remaining amount is devoted to shrimp ponds. Due to
05, the limits imposed on area of shrimp and milkfish
option j;
where ponds, only 4,161 ha of grasslands resulted from
k = 1,...3 optimal conversion rates, while the remaining area
1 = rice; would be retained despite the low returns. This scenario
2 = milkfish; and supports the total conversion of the remaining 227 ha
3 = shrimp of mangroves to milkfish ponds. Potential benefits
resulting from this land use mix amount to P7.4
Constraints billion.yearl which is about 50% of the estimated Gross
Value Added in agriculture and forestry of PI 5.3 billion
1) Land use constraints in current prices (NSCB 1995).
The optimal distribution changes when the TEV
...3) approach is used. This approach involves the estimation
of Future Value (FV)* and the incorporation of
...4)
...5 ) foregone benefits. The latter is estimated by subtracting
...6) from potential net revenues the corresponding amount
foregone by maintaining the land in its existing form.
The above constraints are the existing area of the
four types of land which is the *An analog of the Present Value (PV) criterion, the use of FV ernphas~us
maximum allowable level of conversion. the importance of future rather than present benefits.
 75
Table 8. Optimal land use allocation (ha) using adirect costs and revenues based on a 10-year planning scenario and a discount
approach (Case 1) and a Total Economic Value (TEV) approach (Case 2).
rate of 3%. The optimal land use mix resulting from
Case I Alternatives said approach is as follows: 1) productive ricelands are
maintained as such while more than 60% of salinized
Milkfish Shrimp Existing
ponds ponds use ricelands are better off being converted to milkfish
ponds; 2) of the total grasslands area, 10,000 ha are
Productive ricelands 0 0 36,428
Salinized ricelands 9,773 5,839 0
proposed for conversion to shrimp ponds; and 3) no
Grasslands 0 4,161 42,061 mangroves are to be converted to ponds. This optimal
Mangroves 227 0 0 land use mix results in a net benefit of P35 billion.
Net benefits 7.4.1Oy

Case 2 Sensitivity Analysis

Productive ricelands 0 0 36,428
Salinized ricelands 10,000 0 5,612
Grasslands 0 10,000
This exercise determines the effect of changing the
36,222
Mangroves 0 0 constraints and that of the coefficients in the objective
227
Net benefits 35.10' function on the estimate of net revenue and optimal
land use distribution,assuming a direct cost and revenue
For example, the conversion of productive ricelands approach (Case 1). Changes in the constraints assumed
to milkfish ponds would necessarily eliminate a downscaling of the limits to pond conversion, i.e., from
possibilities of using said land for rice production. 10,000ha.year1to 5,000ha.year1for a period of 10years.
Potential net revenue is then minimized by the amount The result is a corresponding decrease in total revenue
of revenue foregone by maintaining land in its existing by more than half and a shift in the allocation of land.
form (Table 9). This procedure is based on the The 5,000 ha conversion limit for milkfish ponds was
assumption that land conversion results in adverse and allocated among salinized ricelands, 4,773 ha and
oftentimes irreversible environmental impacts. On the mangroves, 227 ha. Shrimp ponds were wholly
other hand, land that is maintained in its existing form allocated to salinized ricelands. Productive ricelands
has implicit potentials for conversion. The resulting and grasslands were maintained in their existing form,
net revenue is thus estimated as the existing revenue the former because of revenue resulting from rice
plus average potential revenue arising from conversion. production. Grasslands were retained because of the
This procedure has an inherent conservationist bias relatively low returns after conversion (Table 10).
since it has a minimization effect on the conversion Changes in objective function coefficients would
option and an enhancement effect on the nonconversion be brought about by changes in one or more of the
option. components, e.g., production levels, price, or costs.
Future Values (FV) were estimated for mangroves Assumed increases in production levels of milkfish
because of indirect as well as nonuse values which would result in an increase in total revenues to P9.8
were not adequately assessed. Furthermore, it is billion. Milkfish pond conversion was totally allocated
assumed that the value of critical ecosystems increase to grasslands with the remaining area being retained.
exponentially in relation to the remaining area mainly The allocation for shrimp ponds was distributed among
because of their bequest value. Future value of salinized ricelands, 9,773 ha and mangroves, 227 ha.
mangroves was estimated to reach P6.1 million+yearl Productive ricelands are retained.

Conclusion
Table 9. Estimation of net revenue based on aTotal Economic Value (TEV)
approach, in pesos.
- -- -
The LP was used to determine optimal land use
Land type Milkfish Shrimp Existing use based on two conflicting scenarios. The first uses a
Productive ricelands 219,800 324,800 317,500 direct cost and revenue approach and results in an
Salinized ricelands 422,500 460,000 47 1,250 optimal mix which maximizes net revenue but has an
Grasslands 255,000 360,000 307,500
Mangroves 600,000 570,000 6,120,394
inherent bias towards short-term gains. Thus, Case 1
results in a total conversion of mangroves. The second
76
Table 10. Sensitivity analysis of optimal land allocation applied to two
cases and resulting benefits: Case I , pond conversion cut by half; Case 2,
References
incrcasr: in milkfish production' (land use in ha, total benefit in pesos).
Agiiero, M. and A.V. Cruz. 1991. The economic impact of alternative
Local distribution investment and marketing decisions under varying conditions: a case
Land typc Milkfish Shrimp Existing use of fish culture in the Philippines, p. 26-276. In L.M. Chou, T.-E.
Chua, H.W. Khoo, P.E. Lim, J.N. Paw, G.T. Silvestre, M.J. Valencia,
Case I A.T. White and P.K. Wong (eds.) Towards an integrated management
Productive riceland 0 0 36,428 of tropical coastal resources. ICLARM Conf. Proc. 22, 455 p.
Salinized riceland 4,773 5.000 5,839
Alojado, Z.N., J.N. Paw and K.Q. Casuga. 1994. Identification for
Grassland 0 0 46,222
reforestation in Lingayen Gulf area, Philippines. GISCAMP Tech.
Mangroves 227 0 0
Rep. Part 11.
Total benefit 3.1.10'
BSWM (Bureau of Soils and Water Management). 1986. Physical land
resources of the province of La Union. Land Resources Evaluation
Casc 2
Productive riceland 0 0 36,428 Project. Bureau of Soils and Water Management, Department of
Salin~rcdriceland 0 9,773 5,839 Agriculture, Manila, Philippines.
G~~asslantl 10,000 0 36,222 Camacho, A S . and T. Bagarinao. 1986. Impact of fishpond development
Mangrove 0 227 0 on the mangrove ecosystem in the Philippines, p. 383-405. In
Total benefit 9.8.10" Mangroves of Asia and the Pacific: status and management. Tech.
Rep. UNDPIUNESCO Research and Training Pilot Programme on
lProductive riceland, salinized riceland and grassland to 10,000 kg.ha-'; Mangrove Ecosystems in Asia and the Pacific. Natural Resources
mangroves to 15.000 kg.ha '. Management Center, Philippines.
US$ I zP25.40 (July 1992 to June 1993) Cargamento, A.G. and N. Rillon. 1994. Impact of human settlement
development and expansion in the coastal area. GISCAMP Tech.
Rep. Part 11.
case is an adaptation of the TEV approach and
Cargamento, A.G., E. Cacanindin and K.Q. Casuga. 1994. Identification
~ncorporatesall possible sources of value. Case 2 and assessment of coastal tourism areas in Lingayen Gulf. GISCAMP
emphasizes the future earnings of a particular land use Tech. Rep. P a t 11.
and accounts for all foregone earnings as well. The Cruz, A.V. and G. Silvestre. 1988. Economic analysis of medium trawlers
in the Lingayen Gulf. Fish. Res. J. Phil. 13(1&2):1-14.
distribution of land use based on Case 2 shows a bias Dannhaeuser, N. 1986. Aquaculture and land reform: incongruous
towards maintaining land in its present state, especially conditions in the Philippines. Hum. Organ. 45(3):254-260.
for land with large foregone earnlngs as in the case of 'Ferrer, E.M., C. Aiionuevo, G. Castillo, R. Catelo, H. Chan, R. Rivera and
S. Rodriguez. 1988. Marketing studies of selected communities in
productive ricelands, or as in the case of mangroves, Lingayen Gulf. Terminal report submitted to the International Center
large ~ndirectand nonuse values. The resulting net for Living Aquatic Resources Management for the ASEANIUS
revenue is hlgher in Case 2 despite the fact that large Coastal Resources Management Project.
Fox, P. 1986. A manual of rapid appraisal techniques for Philippine coastal
earnings from shrimp and milkfish culture are foregone fisheries. Bureau of Fisheries and Aquatic Resources Research
in the short-run. Division, Manila.
The exercise results in recommendations that are only Martosubroto, P. and N. Naamin. 1977. Relationship between tidal forests
(mangroves) and commercial shrimp production in Indonesia. Mar.
as good as the values used. The value assigned to a j Res. Indones. 18231.86.
particular resource is dependent first on the knowledge McManus, L.T. and T.E. Chua, Editors. 1990. The coastal environmental
and appreciation of its natural function and next on the profile of Lingayen Gulf, Philippines. ICLARM Tech. Rep. 22,69 p.
'McMmus, L.T. and R A . Rivera. 1990 Population and socioeconomics.
valuation procedure used. The critical role of valuation is p. 38-43. In L.T. McManus and T.E. Chua (eds.) The coastal
emphasized in Aguero et al. (this vol.) as being the environmental profile of Lingayen Gulf, Philippines. ICLARM Tech.
essential inputs of the Linear Program (LP). More Rep. 22,69 p.
Mines, A.N. 1986. Assessment of the fisheries of Lingayen Gulf. Final
theoretical and applied work in natural resources valuation Report. Philippine Council for Agriculture and Resources Research
is obviously required in order to establish guidelines for and Development, and College of Fisheries, University of the
applicability, especially pertaining to issues of double- Philippines, Quezon City, Philippines. 55 p.
NSCB (National Statistical Coordination Board). 1995. 1995 Philippine
counting and appropriate use of discount rates. statistical yearbook. National Statistical Coordination Board, Manila,
Furthermore, a more effective interface between the 1 Philippines.
biological sciences and resource economics should be NEDA, Region I (National Economic Development Authority, Region 1,
Philippines). 1992. The Lingayen Gulf coastal area management plan.
fostered to determine the linkages of ecological functions
ICLARM Tech. Rep. 32.87 p.
to marketable goods and services. j
Pauly, D. 1990. On Malthusian overfishing. Naga, ICLARM Q 13(1):3-4.
The procedure used, however, has proven to be J ~ a w ,J . and A. Palma, Editors. 1991. Action plan for aquaculture
management. ASEAN/US Coastal Resources Management Project,
useful in policy setting in this fast-growth region where
Manila, Philippines.
excessive pressures on coastal land use may compro- Paw, J.N., F. Domingo, Z.N. Alojadoand J.C. Guiang. 1994. Land resource
mise sustalnability objectives. assessment for brackishwater aquaculture development in Lingayen
 77
Gulf area, Philippines. GlSCAMP Tech. Rep. Part 11. Food and Agriculture Organization of the United Nations,
PIDS (Philippine Institute for Development Studies). 1994. Philippine Bangkok.
mangrove resource valuation project. Accomplishment Report, Silvestre, G.T. 1986. Assessment of the multispecies demersal stock of the
September 1994. PIDS, Makati City, Philippines. Samar Sea, Philippines. Dept. Mar. Fish. Tech. Rep. 7,65 p. University
Primavera, J.H.1993. A critical review of shrimp pond culture in the of the Philippines in the Visayas, Iloilo, Philippines.
Philippines. Rev. Fish. Sci. l(2): 15 1-201. &vestre, G.T. and A.L. Palma. 1990. Economic sector, p. 15-31. In L.T.
Signey, L.O. 1987. Consequences of excessive fishing effort in McManus and T.E. Chua (eds.) The coastal environmental profile of
Lingayen Gulf. Philippines, p. 208-217. In IPFC Symposium on Lingayen Gulf, Philippines. ICLARM Tech. Rep. 22.69 p.
the Exploitation and Management of Marine Fishery Resources Zamora, P.M. 1989. Philippine mangroves: their depletion, conversion and
in Southeast Asia, 16-19 February 1987, Darwin, Australia. decreasing productivity. Wallaceana 58: 1-5
RAPA Rep.: 1987/10. Regional Office for Asia and the Pacific,
Optimal Fleet Configuration in San Miguel followed (e.g., Warfel and Manacop 1950; Legasto et
Bay, Philippines: A Simple Linear al. 1975; Simpson 1978) which were wholly or partly
Programming Approach* on the Bay's fisheries. Detailed assessment conducted
by the Institute of Fisheries Development and Research
(IFDR) of the University of the Philippines, College
ANNABELLE CRUZ-TRINIDAD A N D LEN R. GARCES,
of Fisheries and the International Center for Living
International Center for Living Aquatic Resources
Management (ICLARM), MCPO Box 2631, 0718 Makati Aquatic Resources Management (ICLARM) in the area
City, Philippines in 1979-81 summarized these works (Bailey l982a,
1982b; Pauly and Mines 1982; Smith and Mines 1982;
CRUZ-TRINIDAD, A . and L.R. GARCES. 1996. Optimal fleet Smith et al. 1983), presented a diagnosis of the status
configuration in San Miguel Bay, Philippines: a simple linear of the fisheries, which were characterized by
programming approach, p. 78-86. In A. Cruz-Trinidad (ed.)
Valuation of tropical coastal resources: theory and application of
overexploitation and distributional inequity, and
linear programming. ICLARM Stud. Rev. 25, 108 p. provided appropriate management options. The area
was revisited by ICLARM in 1992-93 via a Resource
Abstract and Ecological Assessment (REA) study under the
auspices of the Philippine Department of Agriculture's
(DA) Fisheries Sector Program (FSP). Data were
Three alternative scenarios were used to estimate fishery net
revenues in San Miguel Bay, Philippines, using a constrained collected in the San Miguel Bay area during July 1992
maximization approach. The constraints included total allowable catch, - June 1993 based on three data generation activities:
catch distribution and crew wages. The scenario which closely
approximated the existing effort levels in the fishery resulted in net
1) inventory of fishing gears, from January to June
revenues amounting to P6.3. IOh.yearlor US$248.103.year~'. A scenario 1993; 2) monitoring of commercial and municipal
which accommodated an increased number of fish corrals but diminished fisheries, from July 1992 to June 1993; and 3)
"baby" trawlers by almost 3070, resulted in a net revenue increase to
P19.4. 10"year~'.The latter scenario's bias towards small-scale gears monitoring of fishing operations from July 1992 to June
resulted in the highest level of net revenues, thus maintaining a 1993 (Silvestre et al. 1995).
congruence between efficiency and equity objectives. Wages, which were Thus far, the REA study is the most comprehensive,
observed to be greater than prevailing opportunity costs, were deemed
unsustainable if catch constraints were to be met dealing with physical and biological oceanography,
fisheries stock assessment and threatened ecosystems.
The socioeconomic components included cost and
Introduction returns of different types of gears, fishing dynamics,

San Miguel Bay (Fig. I), located in

the Bicol region in the Pacific coast of
the Philippines, is a shallow, estuarine
body of water with an area of about 1,115
km2.The bay is bounded by seven coastal
municipalities, Mercedes and Basud, in
Camarines Norte, and Sipocot, Cabusao,
Calabanga, Tinambac and Siruma, in
Camarines Sur province. The National
Statistics Office (NSO 1990a, NSO
1990b) estimates population in the 74
coastal villages to have reached 93,000
in 1990. Agriculture, fishery and forestry
are the major sources of income.
Since the first investigation of the
San Miguel Bay fisheries in the late
1930s (Umali 1937), a series of works
' ICLARM Contr~but~on
No 1161 Fig. 1. San Miguel Bay, Philippines.
78
 79
market performance, livelihood options and as trawlers, gill nets, push nets and stationary gears
institutional arrangements. including fish corrals, lift nets, and filter nets.
This paper estimates fishery net revenues from data
collected by the DA-FSP San Miguel Bay project, using Gears Operating in Sun Miguel Bay
a constrained maximization approach. Fishery net
revenue is the aggregate revenue earned by individual TRAWLERS
fishing units and is thus affected by fleet structure.
Several strategies can be adapted to maximize net
revenues: for example, concentrate on a choice group San Miguel Bay is one of the most important
of highly efficient vessels; or fully exploit the trawling grounds in the Philippines. It is relatively
resource to increase catch levels. The first proposal is shallow, with 89% less than 7 fathoms, and 95% of its
invalidated by equity considerations while the latter is bottom is composed of sand, mud and sandy-muddy
not sustainable. A possibility examined here is the substrate. The fishing fleet is dominated by trawlers
maximization of net revenues that incorporates and their "derivatives" the latter including mini and
constraints such as allowable catches, equity baby trawlers, both classified, by tonnage less than 3
implications and minimum wages. gross tons (GT), as municipal gears.
Small or 'baby' trawlers use boats that are 1.6-3.0
GT with 68-160 hp diesel engines. Crew size is five to
six fishers. Each trip lasts 2-3 days. Mini trawlers (itik-
The San Miguel Bay Fishery itik or kuto-kuto) use bancas with outriggers and are
powered by 10-16 hp gasoline engines. Crew size is
San Miguel Bay is characterized by a multigear two to three fishers and fishing lasts from 5:00 a.m. to
and multispecies fishery. About 5,300 fishers reside 3:00 p.m. Mini trawls are used in shallow waters of 4-
in the seven coastal municipalities bordering the bay 10 m depth and target sergestid shrimps.
(Sunderlin 1995a, 1995b) and employ over 50 distinct There were 35 large trawlers and 38 medium
types of fishing methodsfgear and over 4,700 units of trawlers registered in the area but only one large trawler
various types of fishing gear. The major gears was observed to operate intermittently during the
considered in this paper contributed roughly 75% of sampling period. There are 260 mini trawlers and 50
the total catch in 1993 and are listed together with the baby trawlers presently operating; these were all
number of boats per class in Table 1. They are classified included in the sample.

Table 1. Comparison of fishing effort and catch per gear type in San Miguel Bay from 1980-81 to 1992-93

Gear type 1980-81 1992-93

No. of Trips per No. of Trips per

units year Catch (t) (%) units year Catch (t) (%)

Trawlers
Large 30 103~ 2,389 12.5" 35 125" 25 0.14
Medium 17 38 308 1.7
Small 72 9,29lC 48.6' 50 3,905 22
Mini 188 191 260 202 1,901 10.7

Other gears
Gill nets 1,345 156 4,854 25 2,670 171 7,550 42
Lift net 171 53 624 3 60 115 1,021 6
Filter net 60 225 295 1.5 260 240 967 5
Scissor net 834 150 476 2.5 245 168 823 5
"Allothers
"Large and medium
Small or (baby) and mini
80
GILL NETS later; the process is repeated for harvest the following-
morning. Target species include sergestid and penaeid
The study identified 24 types of gill nets totalling shrimps and anchovies.
to 2,670 units. Gill nets are named according to mode
of operation ( e g , drift gill net, bottom set gill net) or Catch and Species Composition
target species (e.g., shrimp gill net, lait; crab gill net,
pangasag) but the most common is the ordinary gill Total landings were estimated to be about 17,750 t
net, panke. Characteristics of gill nets in Table I from July 1992 to June 1993 (Silvestre et al. 1995).
actually refer to an index based on panke units. About 35% were landed by trawls, 42% by gill nets
and the remaining 23% by the other gears.
PUSH NETS A total of 175 species distributed among 1 I 0 genera
and 70 families were observed to occur in the catch
Silvestre et al. (1995) described push nets or scissor (Cinco et al. 1995). Croakers (Sciaenidae), slipmouths
nets (hud-hud) as consisting of collapsible, triangularly- (Leiognathidae), penaeid shrimps (Penaeidae),
framed netting material mounted over two criss-crossed sergestid shrimps (Sergestidae), crabs (Portunidae) and
bamboo poles. Operations usually involve a single anchovies (Engraulidae) dominate the landings,
fisher pushing the gear along the bottom within wading collectively accounting for 58.5% of the total landings
depth but they have been recently observed to be during the period. A detailed breakdown of species
mounted in front of bancas powered by 10-16 hp composition per gear type is provided in Silvestre et
gasoline engines. al. (1995).

STATIONARYGEARS Status of Exploitation

Stationary gears include fish corrals, lift nets and A comparison of key physical indicators by major
filter nets. The descriptions provided below are based gear types between the 1980-81 and 1992-93 studies is
on Silvestre et al. (1995). presented in Table 1. Except for the smallhaby trawlers,
Fish corrals, sagkad, are semi-permanent gears all gears increased in numbers. Moreover, there is also
used for guiding and trapping fish. The gear consists a marked increase in the frequency of trips per gear
of a guiding barrier, two to three playground areas, and tYPe.
a bunt or catching area. The bunt is usually set in the In addition to increased fishing effort are other
evening; harvesting using scoop nets occurs the parameters that point to a worsening of the status of
following morning. Operations involve two to three exploitation in the Bay including: excessive fishing
fishers who are transported by a nonmotorized banca. pressure, changes in species composition, and changing
Target species are pelagics but usually include small economic performance.
demersals and shrimps. EXCESSIVE FISHING PRESSURE
Lift nets, bukatot, are square-shaped nets attached
by pull ropes to four bases made of bamboo or coconut Excessive (fishing pressure continues to be an
trunks planted on the seabed. Lift nets are operated in overriding issue confronting the fisheries of San Miguel
waters of about 10-20 m depth usually near the mouth Bay despite the reallocation of effort (Silvestre et al.
of the Bay and were observed in the towns of Mercedes, 1995). A comparison of relative indices of total catch,
Siruma and Basud. They are only used during the dark aggregate trawl horsepower, number of fishers and
phases of the moon and have kerosene lamps to attract trawlable biomass shows that trawlable biomass has
fishes. Operations involve about four to five fishers declined by about 80% from its 1940 levels (Fig. 2).
who raise the net via the pullropes. Target fishes are The decline in catch rates is most abrupt for trawlers,
slipmouths and clupeids. i.e., 11,700 t in 1980 to about 6,100 t in 1992-93, in
Filter nets, biakus, are conical bags of netting set view of the strict enforcement of the 7 km, 7 fathom
against the tidal currents near the mouth of rivers. The ban, the decline in number of small trawl units, and
net is usually lowered at dusk and retrieved 4 hours reduced catch rates of mini trawls.
 81

Trawable biomass
Number of municipal fisheries
Aggregate hp of trawlers
Total catch
- CHANGE IN ECONOMIC PERFORMANCE

The impacts of these variables on economic

parameters are shown in Table 3a. Monthly catch
value for all but one gear, push nets, has declined
severely. Baby trawls were the largest casualties with
monthly catch value depreciating by almost 90%
from 1980-81 levels.
Declines in the rate of return on investment
(ROI) were experienced by fish corrals and mini and
baby trawlers although remaining positive. In
contrast, filter nets, push nets and gill nets
experienced robust growth. Changes in ROIs can be
/'
partially attributed to changes in capital requirements
I I I I
1950 1960 1970 1980 1990 (Padilla et al. 1995). The 1980-81 study showed that
Year it was more expensive to engage in gill net fishing
than other artisanal fishing methods such as fish
Fig. 2. Relative indices of trawlable biomass, total catch, number of corrals and lift nets (Supanga 1982; Supanga and
fishers and aggregate horsepower of trawlers in San Miguel Bay from Smith 1982; Tulay and Smith 1982; Yater 1982). At
the 1940s to the early 1990s.
that time, investment cost for mini trawlers was only
half of that required by gill nets. By 1993, capital
Cinco et al. (1995) also noted that mean
exploitation ratio for the more abundant species Table 2. Changes in relative abundance of various families/groups in the catch
is 0.65. These observations are indicators of during surveys in San Miguel Bay in the late 1940s, early 1980s and early 1990s
overfishing and are supported by conventional (Cinco et al. 1995).
fisheries theory and likewise reflects that a stock Observed change in
is overfished when biomass is reduced below 30 Farnilylgroup relative abundance Probable cause
to 50% of virgin stock levels or if the exploitation Recruitment overfishing
Sharks and rays Massive decrease
ratio is way above the "optimum" values ranging
from 0.3 to 0.5 (Silvestre et al. 1995). Cephalopods Relative increase Reduced predation

Penaeid shrimps Relative increase Reduced predation

CHANGE IN SPECIES COMPOSITION
Pristidae Disappearance Recruitment overfishing

Table 2 gives a summary of trends in species "Trash" fish

a) low-value species Relative increase Species replacement
composition changes reflective of growth, (e.g., Gobiidae) reduced predation
recruitment and ecosystem overfishing (Cinco et b) juveniles of high-value Relative increase Growth overfishing
species
al. 1995).This trend is also manifested in species
composition changes by gear type. In 1980-81, Leiognathidae Massive decrease No straightforward
croakers (abo and pagotpot) constituted 82% of explanation

the catch of gillnets; this figure was down to 20% Tetraodontidae Relative increase Species replacement
in 1992-93 with other species such as shrimp, Apogonidae
manta rays, and hairtails occurring. Liftnets still Recruitment overfishing
Sphyraenidae Relative decrease
catch anchovies (dilis) but none of the minor Drepanidae
catches such as herrings, crevalles and squids are Synodontidae
known to presently occur in the catch; instead, Engraulidae Relative increase Technological
there has been replacement by other species Trichiuridae improvement (higher
including croakers, slipmouths and sergestid trawl opening and
Carangidae speed)
shrimps. Scombridae
 Table 3a. Comparison of key economic indicators between 1980-gland 1992-93 San Miguel Bay studies.

Monthly
catch value Derived wage rates* Pure profit for all units
(Peso) ROIs Peso.day-' (thousand P)

Gear type 1981 1993 1981 1993 1981 1993

Fixed gears
Fish corral 10,622 190.8 8,257 101.1 36.1 80.7 1,295 5,700
Filter net 2,669 35.2 2,301 190.2 53.0 60.7 308 1,793
Lift net 15,947 (1.8) 7,391 (1.7) 23.3 31.0 (3,074) (648)

Trawlers
Mini 15,236 83.6 8,357 78.4 92.0 93.4 6,115 4,397
Smallhaby 25,908 63.6 8,781 12.9 114.7 54.7 8,635 (30)
Large 0.2 66.2

Other gears
Gill nets 12,524 25.6 5,974 46.6 47.7 61.8 899 1,934
Push nets 148 14.8 247 145.8 (108) 764

"Unskilled crew.
Source: Padilla et al. (1995).

cost requirements had tilted in favor of gill nets with Pure profit, the economic benefit from fishing, net
initial outlay amounting to 5 1%, 60% and 70% that of of the opportunity costs of the factors of production,
lift nets, fish corrals and mini trawls, respectively. was taken to represent economic rent. Fish corrals,
Wage rates were derived by Padilla et al. (1995) filter nets and gill nets experienced a large
based on total payments to labor (cash and in-kind). improvement in pure profits while mini trawlers
Only master fishers of trawlers and the unskilled crew suffered a 28% decline. Baby trawlers, which had
of fish corrals and mini trawlers were observed to earn the largest level of pure profits in 1980-81 reflected
wages that are higher than the agricultural (nonplantation) losses in 1993.
rate. However, all fishers earned wages that were above Despite indications of overexploitation, total
the region's opportunity wage rate of P35.day-I pure profit for the San Miguel Bay fishery for 1992-
( US$l=P25.4 July 1992-June 1993). Table 3b shows 93 was positive and greater than 1980-81 levels. This
that wage rates increased between 1980-8 1 and 1992- can be explained by the evolution of the fleet into
93 for fixed gears and gillnets but declined by almost its present configuration thereby minimizing losses.
50% for baby trawls. Another hypothesis is the worsening quality of life

Table 3b. Comparison of key economic indicators between 1980-81and 1992-93 San Miguel Bay studies

Catch rate Catch value Costs per Labor Labor

per year' per year2 year' Wtd price requirements per year
Gear type (0 (Peso) (Peso) (Peso.kg I)' per trip2 (person-trip)

Fish corral 1.8 34,180 9,774 20.6 1.6 170

Filter net 3.7 28,920 9,635 9.6 1.2 288
Lift net 17.02 40,864 31,555 11.6 4.6 529

Mini trawl 7.3 74,670 53,539 14.6 1.5 303

Baby trawl 78.1 88,940 77,122 3 1.2 1.8 239
Large trawl 24.7 171,368 110,143 14.9 9 72

Gill net 2.8 50,322 39,334 31.2 2 328

Push net 3.4 9,914 2,598 39.6 1.4 235

'Silvestre et al. (1995).

'Padilla et al. (1995).
US$l=P25.4 (July 1992-June 1993)
 83
in the region which drives down the alternative uses Xi = number of boats per gear class; and
and returns to labor and capital.
Wi = wage rate.
Linear Programming Application
The coefficients of the objective function are catch
value per year and operating costs. Catch value is
Linear programming was used to estimate
estimated by multiplying catch rate per year (Silvestre et
potential benefits accruing to the San Miguel Bay al. 1995) by average weighted prices per gear type (Padilla
fishery under varying constraints. The elements of
et al. 1995). All cost items were derived from the work of
the linear program are as follows: 1) an objective
Padilla et al. (1995). The eight types of gears considered
function, the maximization of net revenues; 2) include three fixed gears, i.e., fish corral, filter net and
constraints, including total allowable catch, lift net; three types of trawlers, i.e., mini, baby (small)
minimum and/or maximum number of units per gear
and large; and gill nets and push nets.
type; and 3) the input-output coefficients, including
catch rates per gear type. The variables optimized
Constraints
by the linear program in the primal formulation, i.e.,
the primal solution, are the number of units per gear a) Total allowable catch
type. The dual solution, being the converse of the
primal, has as its variables the constraints used in
the primal solution. The dual solution provides a
measure of the opportunity cost of the particular where CV, = volume of catch per gear type.
resource (Agiiero et al., this vol.) and as such
indicates changes in net revenue if a certain
constraint is relaxed. Given the level of overexploitation, total annual
catch for all gear types must be less than or equal to
Objective Function 1993 levels.

Maximize profit, n,such that: b) Distribution of catch

n= TR-TC

8
n = cr c ( ~ , -o c , ) * x i }- {LC,* wI}l
i= 1

where the coefficients include: The present distribution of total catch should be
maintained with gill nets, stationary gears and trawlers
TR = total revenue; contributing 42%, 35% and 23%, respectively. This is
to ensure that in the search of maximum revenues,
TC = total costs; equity objectives are not compromised.

R, = catch value of fish per gear type; C) Effort limits

OC, = material and fixed expenses per gear

type; and
In consonance with effort reduction in the trawl
LC, = labor costs per gear type fleet, the number of units for all types of trawlers should
be less than or equal to existing levels; the other types
and the variables are: of gears were allowed to expand.
84
d) Minimum wage rates which were, in most cases, higher than the opportunity
costs of P35.day-'.
Scenario A yielded net revenues of P6.3 million
with lift nets, gill nets and push nets, sustaining losses.
Wage rates must be at least equal to the prevailing Optimal number of units matches existing levels except
opportunity cost of labor in the region. for baby trawls which were reduced by 24%. Dual
values show that fishery net revenues would diminish
e) Non-negativity constraints by P9,206, P492 and P909, for every lift net, gill net
and push net added to the existing fleet, respectively.
In the same manner, fishery revenues would increase
if the number of profitable gears were expanded, for
example, each large trawl has the potential of increasing
net revenue by P57,613.
The constraints introduced by Scenarios B and C
via limitations on "perceived destructive gears such
Input-Output Coefficients as trawlers and on catch distribution resulted in higher
levels of net revenue (Table 4). The number of baby
Volume of catch per gear type, CV,, is provided in trawls diminished by 24% for Scenario B and 88% for
constraint (a), the summation of which should be less Scenario C whereas optimal number of fish corrals
than or equal to total allowable catch. The same increased by 82% and 520%, respectively. The optimal
coefficient is used to satisfy constraint (b), the number of other stationary gears however remained
distribution of catch. Otherwise, the other coefficients unchanged. Scenario C resulted in the highest level of
would take on a value of 1 or 0 depending on whether benefits, P19.4 million, despite having the lowest
they are affected by particular constraints. number of baby trawlers (88% less than existing levels)
and the highest number of fish corrals. Lift nets had
Results the highest opportunity costs despite having a minimal
fleet size, i.e., 60 units. This is because of its huge labor
requirement per year and the relatively large costs
The primal values correspond to the optimal
incurred relative to catch value (Table 3b). Scenario D
number of gears and wage levels (Table 4). The dual
resulted in a net loss of P14 million and the total
value of wages represents the opportunity cost of labor;
eradication of mini and baby trawlers; otherwise, the
that of gears represent the increase (decrease) in the
number of all other gear types are maintained at its
value of the objective function if constraints on the
present levels.
number of units were relaxed, i.e., specific gears were
The primal value of wages is P35.day-I for all
increased by one unit.
scenarios. Because wage is a cost factor in the
Scenario A is a current representation of the San
estimation of net revenue, the dual values are negative.
Miguel Bay fishery with the following constraints: total
with the magnitude depending on the labor
allowable catch of 14,000 t.year-', a catch distribution
requirements per gear type and the wage rate. For
ratio as specified in constraint b), and minimum wage
example, increasing wages by one peso would result
rates of P35.day-'. Scenario B examines the effect of a
in a P74 reduction in net revenue for large trawlers; on
different fleet configuration on net revenues, i.e, current
the other hand, gill nets would suffer a greater decline
level of effort for the trawler fleet is maintained while
amounting to P5O9,7 12.
gill nets and other stationary gears are allowed to
expand. Scenario B likewise considers constraints (a)
and (b). Scenario C is similar to Scenario B except Conclusion
that catch distribution ratio is modified as follows: 50%,
gill nets, 30%, stationary gears, and 20%, trawlers. The L P simulation proved to be a useful
Scenario D is a situation wherein wage rates were management tool in its predictive and analytic capacity.
pegged at the levels derived by Padilla et al. (1995) This exercise helped predict changes in fishery net
 85
Table 4 Optimal number of units per gear type and optimal wage levels (primal) compared with opportunity costs (dual) of linear programming
variables used to model San Miguel Bay fisheries.

Scenario A Scenario B Scenario C Scenario D

Current Optimal Oppor- Optimal Oppor- Optimal Oppor- Optimal Oppor-
levels number tunity costs number tunity costs number tunity costs number of tunity costs
of units of units of units units per
per gear per gear per gear gear type/
type/ type/ type/ optimal
optimal optimal optimal wage
wage wage wage rates
Gear rates rates rates

Number of units
Fish corral 123
Filter nets 260
Lift nets 60
Minl trawls 260
Baby trawls 50
Large trawls 1
Gill nets 1,554
Push nets 245

Wage rates (Peso)

Fish corral 80.7
Filter nets 60.7
Lift nets 31.0
Mini trawls 93.4
Baby trawls 54.7
Large trawls 66.2
Gill nets 61.8
Push nets

Net revenues (Peso) P6.3 million P8.4 million P19.4 million (PI4 million)

US$I = P25.4, July 1992-June 1993

revenues given alternative fleet configuration and wage configurations would increase net revenues
structures. Scenario A is the closest approximation to substantially but would provide reason to eradicate the
the existing situation in San Miguel Bay minus the small-scale, mostly unprofitable, gears.
constraints. The exercise shows that had these This situation was resolved by incorporating catch
constraints been in force, the fishery would gain P6.3 distribution ratios as constraints. In this exercise, there
million per year or 6% of operating and labor costs. It seems to be a congruence between economic efficiency
seems rational to assume that existing net revenues are and equity objectives given that Scenario C, which has
larger given that no catch limits are in force; this is an inherent bias towards small gears resulted in a fishery
corroborated by the work of Padilla et al. (1995) who revenue that was also the highest. This observation
estimated positive pure profits amounting to P13 seems to augur well for future management initiatives
million. especially in effort reduction because this will tend to
Linear programming is another economic technique minimize potential conflicts.
that uses economic efficiency as its sole numeraire, Simulating alternative wage levels indicates the
i.e., equity considerations are not considered. In fact, increasing volatility of the labor market in the region.
in situations where catch distribution limits were not Current wage payments coupled with catch constraints
applied, the resulting fleet structure consisted solely resulted in a nonfeasible solution as in Scenario D, i.e.,
of large trawlers. Likewise, the institution of catch net revenues were negative. Clearly, wages cannot be
distribution limits as well as limits on the number of maintained by specific gear types if catch or effort limits
trawlers caused the phenomenal increase in the number were simultaneously enforced. Thus, resource
of fish corrals simply because it had, relative to the overexploitation can be viewed as an indirect result of
other stationary gears, the largest average profit. Both maintaining current wage rates because if labor were
 86
paid rates higher than prevailing opportunity costs, then JPadilla, J.E., M.L. Ddusung and 0.8. Calica. 1995. Economics of capture
fisheries in San Miguel Bay. I n G. Silvestre, C. Luna, and J. Padilla
due to open access, more fugitive labor is attracted to (eds.) Multidisciplinary assessment of the fisheries in San Miguel
the fishery. The fishery resource would be subsidizing Bay, Philippines (1992-1993). ICLARM Tech. Rep. 47. CD-ROM.
labor that is being used inefficiently. Thus, it is often ICLARM, Manila.
' ~ a u l ~ ,D. and A.N. Mines, Editors. 1982. Small-scale fisheries of San
the case that in overexploited fisheries, e.g., Lingayen Miguel Bay, Philippines: biology and stock assessment. ICLARM
Gulf (Cruz and Silvestre 1988) and Philippine small Tech. Rep. 7, 124 p.
pelagics fishery (Trinidad et al. 1993), labor earns pure '~ilvestre, G., E. Cinco, R. Gatchalian and J. Diaz. 1995. Catch and effort
in the San Miguel Bay fisheries. I n G. Silvestre, C. Luna and J. Padilla
profit even if entrepreneurs sustain economic losses. (eds.) Multidisciplinary assessment of the fisheries in San Miguel
On the other hand, if access were limited by any of the Bay, Philippines (1992-93). ICLARM Tech. Rep. 47. CD-ROM.
ICLARM, Manila.
constraints incorporated in the linear program, current Simpson, A. 1978. Report of the BFARISCS workshop on the fishery
wage rates could not possibly be maintained. resources of the Pacific coast of the Philippines. South China Sea
This theoretical exercise provides a useful tool for Development and Coordination Programme, Manila. SCSlGENl78,
J . 48 P.
policy setting and while the estimates may never attain Smrth, I.R. and A.N. Mines, Editors. 1982. Small-scale fisheries of San
point accuracy, the method certainly contributes Miguel Bay, Philippines: economics of production and marketing.
appropriate benchmarks for decisionmaking. ICLARM Tech. Rep. 8, 143 p.
JSmith, I.R., D. Pauly and A.N. Mines. 1983. Small-scale fisheries of San
Miguel Bay, Philippines: options for management and research.
ICLARM Tech. Rep. 11,80 p.
Acknowledgements Aunderlin, W.D. 1 9 9 5 . Livelihood options for fishing families in San
Miguel Bay. I n G . Silvestre, C. Luna, and J. Padilla (eds.)
Multidisciplinary assessment of the fisheries in San Miguel Bay,
Many thanks to Ms. Madz Dalusung, Mr. Gerry T. Philippines (1992.1993). ICLARM Tech. Rep. 47. CD-ROM.
Silvestre, Dr. John McManus, Dr. Hal McArthur and ICLARM, Manila.
Dr. Madan Dey, who shared with us some of their views JSunderlin, W.D. 199%. Socioeconomic characteristics of communities and
fishing households bordering San Miguel Bay. In G. Silvestre, C.
and materials for this paper. Luna and J. Padilla (eds.) Multidisciplinary assessment of the fisheries
in San Miguel Bay, Philippines (1992-93). ICLARM Tech. Rep. 47.
CD-ROM. ICLARM, Manila.
References JSupanga, N.C. 1982. Costs and earnings of Cabusao pushnets, p. 61-63.
I n I.R. Smith and A.N. Mines (eds.) Small-scale fisheries of San
Miguel Bay, Philippines: economics of production and marketing.
J13ailey. C.. Editor, 1982a. Small-scale fisheries of S m Miguel Bay, ICLARM Tech. Rep. 8, I43 p.
Philippines: social aspects of production and marketing. ICLARM Supanga, N.C. and I.R. Smith. 1982. Costs and returns of Cabusao
Tech. Rep. 9, 57 p. stationary gears, p. 45-60. I n I.R. Smith and A.N. Mines (eds.) Small-
'Bailey, C.. Editor. 1982b Small-scale fisheries of S m Miguel Bay, scale fisheries of San Miguel Bay, Philippines: economics of
Philippines: occupational and geographic mobility. ICLARM Tech. production and marketing. ICLARM Tech. Rep. 8, 143 p.

' Rep. 10, 57 p.

Cinco. E.A.. J.C. Diaz, Q.P. Sia 111 and G.T. Silvestre. 1995. A checklist of
fishes caught in San Miguel Bay. h G. Silvestre, C. Luna and J.
Trinidad, A.C., R.S. Pomeroy. P.V. Corpuz and M.Agiiero. 1993.
Bioeconomics of the Philippine small pelagics fishery. ICLARM Tech.
Rep. 38, 73 p.
Padilla (eds.) Multidisciplinary assessment of the fisheries in San ITulay, E. and I.R. Smith 1982. Costs and earning of mini trawlers, p. 64-
Miguel Bay, Philippines (1992-93). ICLARM Tech. Rep. 47. CD- 77. In I.R. Smith and A.N. Mines (eds.) Small-scale fisheries of San
ROM. ICLARM, Manila. Miguel Bay, Philippines: economics of production and marketing.
Cruz, A.V. and G.T. Silvestre. 1988. Economic analysis of medium trawlers ICLARM Tech. Rep. 8. 143 p.
in the Lingayen Gulf. Fish. Res. J. Philipp. 13(1-2):l-14. Umali, A.F. 1937. The fishery industries of San Miguel Bay. Philipp. J.
Legaqto, R.M., C.M. del Mundo and K.E. Carpenter. 1975. On the hydro- Sci. 63(2): 227-258.
biological and socioeconomic surveys of San Miguel Bay for the Warfel, H.E. and P.R. Manacop. i 950. Otter trawl explorations in Philippine
proposed fish nurserieslreservations. Philipp. J. Fish. 13(2):205-246. 4 waters. US. Fish and Wildlife Serv. Dept. Int. Res. Rep. 25. 49 p.
NSO. 1990a. 1990 Census of population and housing. Report No. 2-228 Yater, E 1982. Gill-netters: costs, returns, and sharing systems. p. 27-44.
Camarines Norte, National Statistics Office. Manila, Philippines. In I.R. Smith and A.N. Mines (eds.) Small scale fisheries of San
NSO. 1990b. 1990 Census of population and housing. Report No. 2-23E. Miguel Bay, Philippines: economics of production and
Camarines Norte. National Statistics Office. Manila, Philippines. marketing.(lCLARM Tech. Rep. 8. 143 p.)
 87
OPUS: Interactive Software for Solving OPUS' menus serve as a guide to the different
Linear Programming Models Using the procedures and functions of the program. These
Simplex Algorithm* facilities, as an example, allow you to:
manage and maintain the data files efficiently;
select data entry (tableau in a matrix format);
MAXAGUERO'
and STAFF
OF THE ICLARMIECLAC'
select the working language (English or
Project on Socioeconomic Valuation of Coastal Resources
Spanish; English is the default); and
of Soutlzwestern Lntin America
sort the data base3 on geographic areas.
The program was developed using the "Revised
Simplex" algorithm, for solving large models.
AGUERO, M. and staff of the ICLARMIECLAC Project on Socioeconomic
Valuation of Coastal Resources of Southwestern Latin America. 1996.
OPUS: an interactive software for solving linear programming model
using the simplex algorithm, p. 87-99. In A. Cruz-Trinidad (ed.)
Valuation of tropical coastal resources: theory and application of linear OPUS Structure
programming. ICLARM Stud. Rev. 25, 108 p.

Abstract OPUS has two main modules, Data Manager and

Solution Algorithm. Data Manager enables
This document introduces the OPUS software conceptualized and management of the data and controls the execution of
developed under the ICLARMIECLAC Project on Socioeconomic Valuation the model. It also generates the interface between the
of Coastal Resources of Southwestern Latin America from 1990 to 1992.
users and the Solution Algorithm.
The software is designed and developed for use with IBM PC or its
compatibles. The routines in the software are structured to assist scientists T h e second module, Solution Algorithm,
working on coastal resources valuation through linear programming models. solves the model using the "Revised Simplex"
algorithm.
Introduction

This section gives a general description of the Symbols and Conventions

program and defines the symbols and conventions
followed or used in the OPUS software and this manual.
The following symbols and conventions are used
or followed throughout this manual:
What Is OPUS?

OPUS is an interactive and user-friendly linear

programming software. Its design philosophy is This box emphasizes important messages of
intended for users with little experience in micro- command or set of instructions.
computers. Depending on the need of the user, OPUS
BOLD WORDS
offers a set of facilities for file management and for
This is used to highlight terms in this manual.
configuring the program's working environment. The
other contributions in this volume should be consulted
for the theory behind this approach and examples of
practical applications. Software Installation

'klCLARM Contribution No. 1221. This section lists the hardware and software
'International Center for Sustainable Ecological Development required to install OPUS. It describes the contents of
(ICSED), Casilla 27004. Santiago. Chile.
'United Nations Economic Commission for Latin America and the the diskettes including configuration parameters and
Caribbean (ECLAC). Casilla 179-D, Santiago, Chile. installation procedure.
88
System Requirements

OPUS was designed to run on the IBM PC (DOS

ver. 3.0 or later) and its compatibles. The following is
the minimum system configuration:
640 K-bytes of RAM memory;
I Floppy Disk drive (only for installation); Finally, you must reboot the system to record the
1 Hard Disk drive; new commands.
Color or Monochromatic monitor; and
1 Printer.
Installation Test
Once you have completed the installation, the
following steps can be used to test that installation
was successfully completed.

Installation Procedure 1st. Run OPUS from DOS prompt

An installation routine is included in the

distribution disk to install properly the software to a
hard disk. Installation involves a set of procedures OPUS will display its identification screen
described below. (Fig. 1).
Insert the Disk in a floppy drive and enter the Press any key to exit from this logotype screen
following command: and get into the Main Menu.
- - -- -I 2nd. Once you are inside the OPUS Main Menu,
INSTALL <destination drive:> select the test file MANGLAR.
- -- -- - -- 3rd. From the Parameters screen, press <F4>
to activate the data entryledit procedure (tableau).
To complete the installation, the AUTOEXEC.BAT 4th. Once you are in the data tableau, run the
file will have to be edited to include the following program with <F3> and then see the outputs.
command lines:

Fig. I . OPUS introductory screen.

 89
5th. Press <F10> several times to go to the Using the Software
preceding level screens, to complete a run of all
of the routines in OPUS.
File Organization
If the system does not respond correctly,
proceed as follows: In order to facilitate file management, it is advisable
1) Make sure that the AUTOEXEC.BAT to create the directories to store data at DOS level
file has the correct path given in the (please refer to the DOS manual for details on how to
installation. create subdirectories). Moreover, it is recommended
2) Make sure that you have enough memory that you update the information contained in the
(64OK). working directories used by OPUS as often as possible.
3) Reduce the parameter definitions in the It is important to delete all files that are not used and
PATH and SET c o m m a n d s in t h e backup all the standing files. If you want to delete files,
CONFIG.SYS file. you may do it automatically from the program's Main
4) M a k e s u r e t h a t in t h e i n s t a l l a t i o n Menu but if you want to make backup files, use the
directory of OPUS, all the following DOS COPY or BACKUP commands.
files exist:
Screens and Messages
(System manager)
One of the main characteristics of OPUS is the
(SIMPLEX algorithm) common screen format used throughout for the user
(Swap routine) interface so as not to distract and to avoid confusion in
(Sort procedure) using the program.
(English messages) OPUS has two kinds of messages, help messages
(Spanish messages) and error messages. The former is activated by
(Help in English) pressing <Fl> and provides information and guidance
(Help in Spanish) on the use of the different commands and functions of
(Data files to test instal- the program (Fig. 2). The Help feature can be invoked
1at:on) while using the following routines: file management,

5 . 2. Sample help window.

90
parametrization, data entry and editing. The error format conditions of the file names managed
messages are automatically activated every time an by the MS-DOS Operating System.
invalid operation is encountered or invalid data are Base file (copy from): To create a copy of an
entered. existing file, enter the name of this file then
Both kinds of messages are shown in the same press <F2>.
screen where it was activated or where the error 0 Comments: To make your file identification
appeared. The help messages are displayed in a window easier, provide some kind of comments
while the error messages appear on the 2Ydline of the referring to the modellapplication you want
screen (on top of the Options Menu). To deactivate a to make with the data.
message, press <ESC>.
Once you have entered everything, press <F2> to
proceed and record the data or press < E s o to Cancel.
Main Menu
These comments are displayed in the lower part of the
window.
The Main menu contains a set of file
management functions and utilities to configure the To select any existing data file, look for its
program's working environment. In the upper name in the list of Existing Files, set the cursor
portion of the window, the names of the existing on top of it using the arrow keys, and then
data files in the selected directory are shown, while press <Enter> to complete the selection and
file creationlidentification is done in the lower the screen for SO3 - parameters is displayed
window (see Fig. 3). (see section PARAMETERS for further
File management includes creation, copying and information).
deleting. The program configuation allows the user to To delete a data file (Erase), set the cursor on
select the working language (English or Spanish) and top of the name using the arrow keys and then
define data directories. press <F3>. Once you have done this, OPUS
will ask you to confirm the operation.
To create a new data file (NewFile). Press If you want to access your files from a
<F4>, and the following datahnformation particular directory (Dir), press <F5> and then
requirements appear: enter the pathname of the directory (refer to
New file (name): Use a combination of up to DOS manual for more information about
eight alphanumeric characters based on the directories and pathnames).

Fig. 3. File selection screen.

 Fig. 4. Language selection screen

OPUS can operate in two languages, English To select the number of variables of the model,
or Spanish. To select the language interface, less the slack and artificial variables, press <Enter> to
press <Fa> and then choose the language using replace new inputs or move with the arrow keys.
the arrow keys (see Fig. 4). Press <Enter>
once you have selected or < E s o if you want Data Entry/Edit
to keep the language selected before.
To terminate OPUS and exit to DOS, press The data entryledit routine allows the configuration
<F10>. To temporarily exit to the DOS of the tableau in a matrix form. The screen format used
environment, press <F9>. On a temporary exit for this purpose is shown in Fig. 6 and the main
to DOS, once you have finished working in components are as follows:
DOS, enter 'EXIT' from the DOS prompt to
1. Heading: On the first two lines of the screen,
return to the OPUS environment.
OPUS shows the file identification and the objective,
Parameter Setting i.e., minimize or maximize. The data that may be
enteredledited here are:
This routine allows you to: Data filename
select the kind of optimization that will be carried Kind of process (maximize or minimize)
out with the data; Number of constraints in the tableau
fix the control points to run the program; and Number of variables (without considering slack
define data ranges for calibration. and artificial variables)
The required data for this screen are as follows Active edition sector in the tableau (objective
(see Fig. 5): function, constraints coefficients and the right-hand side
To begin the maximization process, type MAX, of the constraints)
otherwise type MIN. Press <Enter> to go to the next Cursor position in the tableau
field, or move with the arrow keys. 2.Data tableau: OPUS uses its own coordinate
To select the number of restrictive equations system. It utilizes the columns identified through a
(rows) that your model will have, press <Enter> to go sequence of alphabetic characters that are located
to the next field and replace with new inputs or move immediately under the screen heading. The constraints
with the arrow keys. are enumerated at the left side of the tableau.
 Fig. 5. Variable number entry screen.

Fig. 6. Data entry screen.

OPUS gives default names for the objective The edit feature in the tableau is done by sector.
function variables (XI, X2, X3 ...etc.), however, these The first sector consists of the coefficients of
labels can be altered. To edit the names of these the objective function, which are edited on the first
variables, press <F5> (see Fig. 7). A window is row of the tableau, and is denominated as row "Fx".
displayed and you can enter the new names. If you have The second sector consists of the constraints
more than eighteen variables, you can use the <PgUp>, coefficients and are edited in the matrix located
<PgDn> keys to go forwards or backwards in the immediately under the objective function.
window. To exit this window, press <Ex>. The third sector consists of the right-hand side
OPUS gives default names for constraints (Y 1,
Y2, ... etc), which can be edited and changed by (RHS) values of each constraint, together with the
pressing <F6>. The screen used for this purpose has relation that conditions them (Rel), which are edited
the same format as the one shown in Fig. 7. in the columns located at the right side of the screen.
 Fig. 7. Variable name entry screen.

To move within the tableau, use the <Tab> key To see the results of a previous execution (View),
and arrow keys. press <F4>. This operation displays the outputs of a
3. Functions menu: The functions menu provides process, if any.
alternatives and facilities to execute the process. 4. Multiplying data: To change the values of the
To save your data in the data directory, press objective function and/or the constraint's coefficients,
<F2>. While the data are being saved, a message and/or the right-hand side in a proportional way, i.e.,
appears at the right corner of the screen which indicates multiplying each group by a constant, press
this. <Alb+<M> and a window will be displayed for you
To execute the process, press <F3>. Processing to enter the options (see Fig. 9). If you enter an option,
time depends on the size of data and speed of computer. the program prompts for the ranges and for the
Hence, it is advisable to first save the data (see below) multiplicative factor. Press <F2> to proceed or < E s o
before pressing <F3> (see Fig. 8). to Exit.

Fig. 8. Process status window

94
5. Exiting: To exit the data tableau and go to the Reports
previous screen, press <F10>. Before you enter the tableau and run the process,
you can select the listings with the results. To do
Printing
that, press <F7> and a window with a different set
Data of options is displayed.
To print the information contained in a data tableau The screen that displays the final results has the
(Print), press <Alt>+<P>. This function will activate following options:

Fig. 9. Multiply data menu.

the menu that will allow you to use one of print options Selecting the options : To select the results of the
(see Fig. 10): process, the following may be followed:
1.Print the variables and coefficients of the objective 1st. Set the cursor on top of the kind of result you
function. For that, you have to enter the range you want want to obtain.
to print, or use the range given by default if you want 2nd. Mark this result pressing <Space>
to print the objective function completely. 3rd. Repeat steps one and two to select the results
2. Print the constraint coefficients and, optionally, of interest.
print the objective function coefficients and the right To complete the selection procedure, press cF2>.
side of the tableau. Exit results menu: To exit the results selection
screen, press <Ex>.
To print part of the coefficients matrix, enter the
coordinates of the upper left corner and the lower right outputs
corner.
3. Print only the values of the right-hand side of OFUS can generate a set of reports from the final
the tableau and its relational operators. In case the results of the process. As an option, OPUS generates
printer is not enabled, an error message is displayed. a report with the partial results in each iteration that
Press <F2> to proceed or < E s o to Exit you specify.
 95
Final results OPUS allows you to print results selectively. To
The report with the final results that you selected is do that, a special menu is displayed that is activated by
shown in a special screen which provides a set of options pressing the <F7> key. This function allows you to select
that, among other things, allows you to print selected from a menu (see Fig. 13), the kinds of results you want
results (Fig. 1I). and the variable range to print. menu.

Fig. 10. Data printing menu.

To move from one place to another in the To activate the results printing process, press
results report (Fig. 12), use the <PgUp>, <PgDn>, <FS>.
To exit this screen and go back to the previous
and arrow keys. one, press <F10>, otherwise press <Ex>.

Fig. 11. Output menu.

 Fig. 12. Solution output screen.

Fig. 13. Output status menu.

Acknowledgements Reference
J
Pauly, D. 1993. Data-rich books. HioSc~encc43(3): 167-I68
Tlic assistance of ICLARM programmers, Eli
Garnace and Felimon C. Gayanilo, Jr. as well as the
supervision from Daniel Pauly are acknowledged
gratefully.
 97
Appendix 1. Documentation of LP tableaus. the pooling of information, to formal arrangement
within cartel organizations where sanctions are
In the tradition of data-rich books (Pauly 1993), imposed on defectors.
this appendix is written for users who may want to constrained maximization approach - the
test, verify and update the data used in the linear maximization of an objective function where the choice
programming tableaus (Araneda et al., this vol.; Bell variables are subject to some constraints.
and Cruz-Trinidad, this vol.; Cruz-Trinidad et al., this constraints - restrictions to which the objective
vol.; and Cruz-Trinidad and Garces, this vol.). function is subjected; usually a mathematical
The files used in these application papers are relationship between the choice variables of an
available in spreadsheet format. Files Bio.wbl and optimization problem, in which some function of the
Fabio.wb1, having been validated using LP88, are variable (e.g., a linear function) is not equal to a
available in L P format. Files Linga.wb1 and constant. An example is a budget constraint on the
Sanmig.wb1 have been validated using the LP routine maximization of utility.
of a commercial spreadsheet package. contingent valuation - a nonmarket valuation
All files can be accessed and processed in OPUS technique which tries to obtain information on
software or any other LP program that is available. consumers' preferences by posing direct questions
about willingness to pay. What is sought are personal
File Name File Size (KB) valuations of the respondent for increases or decreases
1. Fabio.wb1 31,200 in the quantity of some good, contingent upon a
2. Bio.wb1 115,652 hypothetical market.
3. Linga.wb1 6,736 datafiles - set of stored data, containing the inputs
4. Sanmigwbl 34,264 given by the users, grouped together under a unique
file name.
defensive expenditure - one approach in eliciting
Appendix 2. Glossary of technical terms. willingness to pay based on direct effects valued on
artificial market - a market that could be conventional markets. Individuals, firms, and
constructed for experimental purposes, to determine governments undertake a variety of "defensive
consumer willingness to pay for a good or service. For expenditures7' in order to avoid or reduce unwanted
example, a home water purifier kit might be marketed environmental effects. Environmental damages are
at various price levels or access to a game reserve might often difficult to assess, but information on defensive
be offered on the basis of different admission fees, expenditures may be available or can be obtained at
thereby facilitating the estimation of the value placed lesser cost than direct valuations of the environmental
by individuals on water purity or on the use of good in question. Such actual expenditures can then
recreational facility, respectively. be interpreted as a minimum valuation of benefits.
backup - security copy for effective recovery in dual - the minimization associated with each linear
the event of loss of service from some other resource. programming problem in standard form, i.e.,
balance equations - constraint equations used in mathematically,
the stepwise linearization process. given LP1: Max ctx
basic solution - augmented corner-point such that Ax I b
(infeasible) solution. x 20
bequest value - value that people derive from then the LP given by
knowing that others (perhaps their own offspring) will LP2: Min b'y
be able to benefit from the resource in the future (also such that Aty 2 c
heritage or preservation value). y > -0
coefficient - constant value for variables in the is called the dual of LPI and LP1 is called the
various equations and/or objective function. primal.
collusion - agreement between firms to cooperate elasticity - a measure of the percentage change in
to avoid mutually damaging rivalry which may involve one variable with respect to a percentage change in
informal or tacit agreement. arising.
u " . for instance., from
-- another variable. Measures of elasticity tend to be
98
carried out for very small changes in the variable enjoyment by anyone else.
causing the response (e.g., a percentage change in monopoly - in the strictest sense of the term, a
quantity due to a very small change in price). firm is a monopoly if it is the only supplier of a
existence value - the perceived value of an homogeneous product for which there are no
environmental asset unrelated either to current or substitutes and many buyers.
optional use; that is, simply because the resource exists. multiperiod linear programming - activities are
externality - externalities are variously known as repeated in a number of periods and constraints are
external effects, external economies and diseconomies, progressively modified over time so that the optimal
spillovers and neighborhood effects. Externalities exist solution within periods varies.
when the production or consumption of a good or nonlinear programming - in contrast to linear
service by one economic unit has a direct effort on the programming, this involves an optimization framework
welfare of producers or consumers from another unit. that can handle nonlinear objective functions as well
fziture value - the value in the future of an amount as nonlinear inequality constraints.
to be received or paid in the current period. This is nonuse value - value attributed to a resource for
determined by multiplying the present value of income its use by future generations (bequest value), its future
by the discount factor 1 t (1 + i)". direct and indirect use by present generations (option
game theory models - models using a theory of and quasi-option value), and its present utility because
individual rational decisions under conditions of less
of the knowledge of its existence (existence value).
than full information concerning the outcomes of those
objective function - a function relating the
decisions. The theory examines the interaction of
objective (the variable to be optimized) to the choice
individual decisions given certain assumptions
variable in an optimization problem.
concerning decisions made under risk, the general
option value - the value of a resource based on
environment, and the cooperative or uncooperative
how much individuals are willing to pay today for the
behavior of other individuals.
option of preserving the asset for future (personal)
indirect use value - value of an ecosystem in the
direct and indirect use.
provision of a number of biological life support
functions that are generally public goods (e.g., coral
perfect competition - a market structure is perfectly
reefs provide biological support in the form of nutrients competitive if the following conditions hold: 1) a large
and habitat for coral fisheries, and coastline protection number of buyers and sellers; 2) homogenous products;
functions). 3) availability of perfect information; and 4) free entry.
input-output models - models utilizing a method pivot element - coefficient located in the intersection
of analysis in which the economy is represented by a of the entering basic variable and the leaving basic
set of linear production functions, describing the variable.
interrelationships between all sectors. primal - (see dual).
linear programming - a technique for the property value - also referred to as a "hedonic
formalization and analysis of constrained optimization price" technique, the property value method is based
problems in which the objective function is a linear on the general land value approach. The objective is
function, and is to be maximized or minimized subject to determine the implicit prices of certain
to a number of linear inequality constraints. characteristics of properties. In the environmental area,
market failure - the inability of a system of private for instance, the aim of the method is to place a value
markets to provide certain goods at the most desirable or on the benefits of environmental quality improvements,
'optimal' levels. In general, market failures arise because or to estimate the costs of a deterioration (for example,
of 1) nonexcludability; andlor 2) nonrival consumption the effects of air pollution in certain areas).
of a good. Nonexcludability means that individuals who pure profit - a residual sum left over when we have
have not paid for a good cannot be prevented from subtracted from the revenue generated by some activity
enjoying its benefits. A good is nonrival if its all of the opportunity costs of production, the normal
consumption by one person does not preclude its profit required to keep the producer in business.
 99
reduced cost/return - feasible range given to the another, till the optimal one is reached.
costlreturn variables in the optimization process. slack variables - variables that are introduced to
replacement cost - under this approach, the costs convert the functional inequality constraints into
that would have to be incurred in order to replace a equivalent equality constraints.
damaged asset are estimated. The estimate is not a swap - computational techniques that involve
measure of benefit of avoiding the damage in the first transferring data to another storage media while it is
place, since the damage costs may be higher or lower not being used to maximize RAM memory.
than the replacement cost. However, it is an appropriate tableau - a tabular form to record the essential
technique if there is some compelling reason as to why information in a linear programming problem, namely,
the damage should be restored, or certainty that this the coefficients of the variables, the constants on the
will occur. right-hand side of the equations, and the basic variables
right-hand side (RHS) - constant value located for each equation.
at the right-hand side of the equation (constraint). Total Economic Value (TEV) - sum of total use
sensitivity analysis - involves changing the value and nonuse values of the environment when
parameters of a decision problem and studying how viewed as an asset.
this affects the outcome. It is particularly associated travel cost - the travel cost method measures the
with cost-benefit analysis, where the most common benefits produced by recreation sites (parks, lakes,
form is the use of alternative discount rates. The forests, wilderness). A related method can also be used
purpose of the analysis is to identify the important to value "travel time" in projects dealing with fuelwood
assumptions upon which the analysis is based - those and water collection.
to which the outcome is sensitive. use value - associated with both direct extractive
shadow price - an imputed valuation of a uses (e.g., of fish, coral) and nonextractive direct uses
commodity or service which has no market price. (e.g., recreation) of the environment as an asset.
Shadow prices are used in cost-benefit analysis and in virtual disk - a store management system in which
the application of mathematical programming to a a user is able to use the storage resources of a computer
planned economy. They represent the opportunity cost without regard to constraints imposed by a limited main
of producing or consuming a commodity which is store, and the requirements of other applications which
generally not traded in the economy. Even in a market may be using the system.
economy certain outputs such as health, education, and wage difference - this method is based on the
environmental quality do not attract a market price. A theory that in a competitive market the demand for
set of shadow prices representing consumers' marginal labor equals the value of the marginal product and that
rates of substitution or producers' marginal rates of the supply of labor varies with working and living
transformation between such commodities may be conditions in an area. A higher wage is therefore
calculated reflecting the marginal costs of production necessary to attract workers to locate in polluted areas
or the marginal value of their use as inputs. To the or to undertake more risky occupations. Again, as in
extent that market prices do not reflect opportunity the case of property value, the wage differential can
costs, cost-benefit analysis may substitute shadow only be used if the labor market is very competitive.
prices. willingness to pay ( W T P ) - a measure of
shadow price vector - represents the (maximum) consumer's surplus, it is the amount a consumer is
change in value that the objective function can take if willing to pay over and above current consumption of
an additional unit of a constraining factor is available. a particular good or service.
simplex algorithm - a simplex is a sort of working directory - directory configured by the user
n-dimensional analog of a triangle, with corners that to save swap files, communication files between the data
represent extreme points, and the simplex method manager module and the solution algorithm module, and
provides a systematic procedure whereby we can move output files. The default working directory, if the user
from one extreme point of the feasible region to does not configure one, is the data directory.
 Authormame Index

Agiiero, M. vi, viii, 1,4, 6-7, 9, 20, 31, 52, 56, 59, 68, 76, 83, Domingo, F. 64,68-69,72,74,76
86-87 Dourojeanni, A. v
Ahmed, M. viii, 4, 7 Dow, J.P., Jr. 4, 8
Alojado, Z. 1-2,64, 68-69,72,74,76,97 Doyle, J.K. 14, 16
Alterman, R. 5, 8 Edwards, W. 14.16
Aiionuevo, C. 65,76 Espinoza, F. 22, 31
Aquacop 2 1 , 31 Fabunan, A. viii
Araneda, E. viii, 1-2, 13, 32, 97 Fallon, L.A. 12, 16
Arellano, A. viii, 1-2, 13, 32, 97 Fallon-Scura, L. vi, 9, 16
ASEANIUS CRMP 7 Farber, S.C. 13, 16
Aylward, B. 10- 11, 16 FEDECAM 27,31
Bagarinao, T. 73, 76 Ferrer, E.M. 65, 76
Bailey, C. 78, 86 Fischhoff, B. 14, 16
Balsiger, J.W. 4, 8 Flores, X. 7.9
Barbier, E.B. 10-11, 14, 16 Folke, C. 13, 15
Barton, D.N. 14, 16 Fox, P. 68,76
Bell, F.W. vi, viii, 1-2, 6, 16-17, 56, 83.97 FPVM 27,31
Binudin, C. viii Furby, L. 14, 16
Bishop, R.C. 14, 16 Garces, L. 1, 3-4,78,97
Bower, B.T. 4. 8 Garcia, S.M. 9, 16
Boyle, K.J. 14, 16 Garnace, E. viii, 96
Brekke, K. 4. 8 Garrod, D.J. 4, 8
BSWM 69,76 Gatchalian, R. 78, 80-83, 86
Buhyoff, G. 14, 16 Gayanilo, F.C., Jr. viii, 96
Bunpapong, S. 7-8 Glass, R.J. 14, 16
Cacanindin, E. 64, 69, 76 Gonzalez, E. vi, viii, 1.6, 20, 31, 56, 76, 83
Calica, G.B. 83-86 Gregory, R. 11, 14, 16
Carnacho, AS. 73.76 Guiang, J.C. 64, 68-69, 72,74, 76
Cargarnento, A.G.C. 1-2, 64, 69, 72.76, 97 Haywood, K. 2
Carpenter, K.E. 78, 86 Hazel], B.R. 3, 8
Carpenter, R.A. 12, 16 Hilborn, B. 14, 16
Castillo, G. 65, 76 Hill, M. 5, 8
Casuga, K.Q. 64.69, 76 Hodgson, G. 13, 16
Catalan. A. viii Holling, C. 7-8,3 1
Catelo, R. 65. 76 Horna, R. 19-21.3 1
CEPAL 59 Hufschrnidt, M. 4, 8, 14, 16
Chan. H. 65-76 Hundloe, T. 11, 13, 16
Chou, L.M. 6-7, 3 1, 76 Hupert, D.D. 4, 8
Chua, T.-E. 1,6-9, 16, 18, 31, 64, 76-77 Hyrnan, E.I. 5, 8, 11, 13-14, 16
Cinco, E. 78, 80-83, 86 IFOP 36,59
Cintrh, G. 17, 31 Ignizio, J.P. 3, 8
CLIRSEN 17.3 1 Ingles, J. 30-31
COREMA 46.59 James, D.E. 4, 8
Corpuz. P.V. 86 Johnson, M. 14, 16
Costanza, R. 13, I6 Karberger, T. 13, 16
Cruz. A.V. 68. 76. 86 Keeney, R. 5,8, 14, 16
Cruz-Trinidad. A.V. vi. vii, viii, 1-4, 6, 9, 13, 17, 19, 3 1-32, 56, Kennedy, J.O.S. 4.8
64. 73. 76, 78, 83, 87, 97 Khoo, H.W. 31.76
Cun.M. 19.31 Klemas, V. 17, 21, 3 1
Dalusung. M.L. 8 1-86 Krutilla, J.V. 10, 16
Dannhaeuser. N. 72. 76 Laszlo, E. 2, 8
de la Cruz. C.R. 72 Lazo, J.K. 14, 16
del Mundo. C.M. 78, 86 Legasto, R.M. 78.86
Dey. M. 86 Lenz-Volland, B. 20. 3 1
Diaz. J.C. 78. 80-83, 86 Leontief, W.W. 4.8
Dixon, J.A. 2.4.7-8, 12-13, 16 Lim, P.E. 31.76
 LiPuma, E. 21-22, 30-31 Sawyer, D.A. 13, 16
Luna, C. 86 Schaefer, Y. 17, 3 1
Lutz, E. 12, 16 Schulze, W.D. 14, 16
Manacop, P.R. 78, 86 Schuman, H. 14-15
Manopimoke, S. 12, 16 Scott, A. 14, 16
Marin, C. 19, 3 1 Scura, L.F. 1, 8 see ulso Fallon-Scura, L.
Markandya, D. 14, 16 Segovia, A. 17, 21, 3 1
Marsh, J.B. 16 Shepherd, J.G. 4, 8
Martosuboro, P. 7-8, 73, 76 Sherman, P.B. 12, 16
Matessich, R. 2, 8 Sia, Q.P. 111 80-8 1, 86
Maxwell, J. 13, 16 Siegel, R.A. 4, 8
McAlthur, H. 86 Signey, L.O. 68,77
McCnrl, B.A. 4, 8 Silvestre, G.T. 31, 68, 76-78, 80-83, 86
McClelland, G.H. 14, 16 Simpson, A. 78, 86
McManus, J. 86 Smith, I.R. 78, 81, 86
McManus, L.T. 7-8, 64-65, 76-77 Snedaker, S.C. 21, 3 1
McPadden. C.A. 22, 30-31 Snyder, W. 14, 16
Medina, M , viii Solorzano, C. 20, 3 1
Meister, A.D. 4, 8 Sorenson, J. 5, 8
Meltzoff, S.K. 21-22, 30-31 Spindler, J. 14, 16
Mines, A.N. 64, 76, 78, 86 Spreen, T.H. 4, 8
Morales, F. 1-2, 13, 32, 97 Spurgeon, J.P.G. 11, 16
Moran, D. 9, 16 Squires, D. 4, 8
Muellel., J.J. 4, 8 Stiftel, B. 5, 8, 11, 13, 16
Munasinghe, M. 12, 16 Sunderlin, W. viii, 79, 86
Muth, R.M. 14, 16 Supanga, N.C. 81, 86
Naamin. N. 73. 76 Terchunian, A. 17, 21, 3 1
NEDA 64.76 Torres. F.S.B., Jr. viii
Newton, C. 9, 16 Trinidad, A.C. 86 see ulso Cruz-Trinidad, A.
NOI-ton.R.D. 3, 8 Tsukayama, 1. 7, 59
NSCR 74. 76 Tulay, E. 8 1, 86
NSO 78. 86 Twilley, R. 18, 3 1
Pndilln, J.E. 4, 8, 81, 83-86 Ulvila, J. 14. 16
Palma, A. 68. 72, 76-77 Umali, A.F. 78. 86
Panayotou. T 9. I6 United States Fish and Wildlife Service 5, 8
Pauly, 11. vii, viii, 7. 30-31, 59. 68, 77-78, 86, 96-97 Valencia, M.J. 3 1, 76
Paw. J.N. 1 . 7-8, 18. 31, 64, 68-69, 72. 74. 76 Velasco. A. 18. 3 1
Per~rcc.i1.W. 9, 14, 16 Volland, M. 20, 3 1
I ' I ~ o . M.11 I , X Walker. K B. 14, 16
P!DS 72, 77 Wallace. S.W. 4. 8
I'omeroy. It, wii. 86 Warfel, H.E. 78. 86
PI-imnvera. J.H. 72, 77 Watkins, J.W. 4, 8
Raffia. 1-1. 5. 8. 14. 16 Weisbrod, B.A. 10, 16
I<c~ndnll,A. 5 , 8. 13, 16 Wellman, J. 14, 16
liettig. B. 14. 16 Welsh, M.P. 14, I6
Rillon. N. 64-65, 69. 76 White, A.T. 7-8, 86
Rivera. R.A. 65. 76 Whitehead, J.C. 14. 16
Robillinrd, G. 5. 8 Williams, M.J. viii. v
Rodr~gucz,S. 65, 76 Winterfeldt, D. von 14, 16
I<ollet, R . 19, 3 1 Wong, PK. 31.76
Rothschild. B.J. 4, 8 Yafiez-Arancibia. 4 . 3 1
Ruitenbcek. H.J. 13. 16 Yater. F. 8 1 . 86
Satlorra. M.S.M 6-8 Zamora, P.M. 73. 77
 Geographic Index

Africa, subSaharan vi Concepcion 32-34, 37-38, 42, 44

Agoo 64.68-69. 7 1 Bay 45-46
Alaminos 64. 68-69, 7 1 Coquimbo 36
America Latina 3 1, 59 Coronel 38-40, 44
America. Latin v. 1, 3 1 Dagupan 64, 66, 68-69, 71-72
South vi, vii, viii Desembocadura 44
Anda 64, 68-69. 7 1-72 Dichato 46
Andean mountain range 32-34 Diguillfn 33
Antuco 32. 44 Duqueco 33
Asauco 32, 39. 44, 47 Ecuador vi, vii, viii, 1, 9, 14-15, 17-22, 24-25, 27-31, 36
-Cafiete 32 El Blanco 39,47
Gulf 32, 33, 36-38, 46 El Morro 39, 45-47
Aringay 64, 69, 7 1 El Oro Province 21
Asia vi. 76 England, New 4
Southeast vii, 7, 31, 77 Escuadron 44
Australia 42 Esmeraldas 2 1
Ban Don Bay 7-8 Europe I1
Bangladesh vi, 4, 7 Florida 13
Bani 64, 68-69, 7 1-72 Galapagos Islands 36
Barents Sea 4 Germany 44
Basucl 78, 80 Great Barrier Reef 1 1, 13
Bauang 64, 68-69, 7 1 Guayaquil 21, 31
Bayawas River 68 Golfo de 3 1
Benguet 68 Gulf of viii, I, 9, 14-15, 17-19
Bicol region 78 Guayas 17-19, 22, 24-25, 27-29
Binmaley 64. 68-69, 71-72 Province 17,21
Bintuni Bay I6 River 17
i3io-Bio viii, 1. 32-34, 4 1. 46-47, 60-63 Guimaras Strait 4
Boca Sur 39.47 Indonesia 7-8, 16,76
Bolinao 64, 68-69, 7 1-72 Irian Jaya 16
Bristol Bay 4 Isla Mocha 36-38
Brunei Darussalam 6-7 Isla Rocuant 45-46
Bulnes 34 Israel 8
Bureo 33 Itata 33
Caba 64,69 Johore, South 6-7
Cabrero 34 La Conchilla 39, 47
Cabusao 78. 86 La Union 64-65, 68-69, 72, 76
Calabanga 78 Labrador 64, 68-69, 71
California 42 Laja 33, 45-46
Callaqui 32 Lake National Park 44
Cnmarines Norte 78, 86 Laraquete 35, 38-39, 44, 47
Camarines Sur 78 Larqui 33
Caribbean I Las Escaleras 44
Carolina. North 14 Las PeRas 39,47
Carretern Panamericana 34 Lebu 37
Cato 33 Lenga 35, 39,44,47
Chainiavida 34 Lingayen 68-69
Chignallante 45 Gulf vii, 1, 7-8, 64-65, 67-68. 70-73, 76-77, 86
Chiguayante 42 Lirquen 45-46
Chile vi, vii. viii. I, 11, 32-33, 34-36, 38, 40-43, 47. 59-63 Llico 35, 39, 44, 47
Chillin. Mt. 32-34, 44 Lo Rojas 38-39, 47
Chiloe 36 Los Angeles 34
Chivilinso 35. 44 Lota 38-39, 44, 47
Cholguan 33 Luzon 64
Colcura 35, 39, 44, 47 Central 68
Coliunio 37 Northwestern 69
Magallanes, Straits of 36 Rahue 33
Malaysia 6-7 Ramuntcho 35,44
Malleco 33 Ranquil 33
Manabi 20-21 Recoto 35,44
Mangaldan 68 Rosano 64,69
Manila vi. 86 Samar Sea 77
Bay 65 San Antonio 38
Maule 39, 47 San Fablan 64, 68-69, 71-72
Mercedes 78, 80 San Fernando 64,69,71
Michigan. Lake 14 San Mlguel Bay VII,1, 3-4, 78-86
Mocha 32 San Pedro 45
Montevideo 3 1 San V~cente38-40,46
MulchCn 33 San Vlcente, Bay of 32-33, 35, 37-38,44-46
Nahuelbuta Range 32 Sania Marla Island 32, 37
Ruble 32-33, 44 Santlago vl, 59
Oregon 16 Segara Anakan-C~lacap7-8
Pacific 76 Slpocot 78
coast 4, 78, 86 Slrurna 78, 80
Pngbilao Bay 72 South Java 8
Palawan 13, 72 Span 55
Palpal 33 Sto Tornas 64, 69, 7 1
Pangasinan 64-66, 68-69: 72 Sual 64, 68-69, 71-72
Penco 44-45 Talcahuano 32, 38, 40, 44-46
Peru vi Thalland 7-8
Phangnga Bay 7-8 T~narnbac78
Philippines v, vi, vii, 1, 4, 7-8, 13, 64-65, 73, 76-79, 86 Tlrha 34
Playa Blanca 35, 44 Tome 38,40,45-46
Pueblo Hundido 39, 47 Tornpk 46
Puerto Coronel 35 Tubul 35, 38-39, 44, 47
Puerto de San Vicente 34 Turnbe? peninsula 32
Punta Lavapie 35, 39, 44, 47 Ulugan Bay 72
Qucco 33 Unlted States 11. 22, 44
Quczon Province 72 Uruguay 31
Quirihue 34 Velgara 33
Quiriquina 32 Vlsaya~.Weste~n 4. 68
 Species Index

t h o 8 1 see croaker(s); pagot1~ot Bonito 38, 60

Acuciu cuven 62 bream(s) 38, 40
Acunthocybium solandri 60 Breca 60
Amntholutris guy1 60 Bro'tula 60
Acha 60 Caballa 60
Acstosicom l~uncturum 62 caballero 19
Ag~ljillu 60 Cabinzu 60
Albucoru 60 Cabrilla 60
albacore 38, 49-50, 52, 56 comu'n 60
Alerce 62 Cachurreta 60
algae 35, 37-39, 52-54, 56-58, 61 Calamar 6 1
AlgumDo 62 Caldcluvia paniculata 63
AImeju ( t w u ) 6 1 Callinectes tosores 19 see molluscs
A/ol~itrsvu1pinu.s 60 Cullorhinchus callorhinchus 60
Arnomyrtus lumu 63 Calyptraea trochlfirrnes 6 1
Antornytus meli 63 Camarbn de roca 61
Anarluru grrmrlis 19 see mollusc(s) Cumarrin nailon 36, 61 see also Heterocarpws reed;; shrimp,
/2nudrrru similis 19 see mollusc(s) Chilean nylon
A n u h r u tc~De~~(:uIo.sa 19-20 see mollusc(s) Cancer comnatus 6 1
anchoveta 35-37, 39-40, 49-50, 56, 60 see also Engraulis Cancer edwardsii 61
rin~~ens; anchovy, Peruvian Cancer porter; 6 1
Peruvian 7, 59 Cancer setosus 6 1
anchovies 80-8 1 see also d l i s Canelo 62
anchovy 38. 52 Caracol locate 6 1
Peruvian 36-37, 53-54, 57-58 see also Engruulis ringens, Caracol tegula 6 1
cmchovetu Curucol trumulco 6 1
An,~uiIu 60 Carangidae 8 1
Anlztrltia 62 carp 4
Anlzteltitr plicutu 62 catfish 4
A~li.wtremu.rscu/~uluris 6 1 Cuzcin 60
Apuririclo 60 Cenrollu 61
Apogonidae 8 1 Cenrollrin 6 1
Arcrucrrriu 62 cephalopod(s) 8 1
c!rrructrrrtr 62 Cervimunida johni 36, 61 see lobster, yellow; lungostino urnarillo
Awc~ytin 63 Chanchurro 60
At~intrletu trrrictrilltr 60 Chanos chunos 68 see milkfish
Ar~iritrletu Iuqy 60 Chuscu 61
Atli~itle o;o ,qrtmde 60 gniesu 6 1
Ar~luc~om~r otrr 6 1 Chuscrin 6 1
Au.st~.oc~edr.t~.~(,hilensis 62 Clzicoreu rle nzur 62
A1:rllrmo 62 Chione scibrugosu 19
A~Vr.rnnia 18. 24, 27-29 Chlamys putagonica 6 1
111 tidu I 9 see also mangrove
Cklunzys purpurutu 6 1
spp. 17 .sw d.so mangrove. black Chochu 61
Ayrnyur 60 Cholgu 6 1
Aatlejo 60 ChonrIrus ca1zalicc11utct~62
Btrc~crltro 52. 56 Chorito 6 1
de p/~lnf~tndi~/ud 36, 60 see Dissostichcr eleginoides; Chow zaputo 6 1
toothfish, Patagonian Choromytil~isc1zor~i.s 6 1
Brii.~c./r~rrrrr/ioho.reorcmu 63 Chorus giganteus 6 1
Bri/sc~lrm~c.ditr ni~r~..sr~
63 Ci1u.s montti 60
Keiloto (kc,/ Norrt, 63 Cipre's de Cordillera 62
Ueilolo drl Sur 63 Cipris de Guuitecus 62
Oltrnq~~~llo 60 clam(s) 27, 37
Boldo 63 Clupea bentincki 36, 61 see herring, Araucanian
Bolltin 63 clupeid(s) 80
 ('or.lruyr~~o62 eucalyptus 32, 41, 43, 48, 55-56, 59
cockle(s) 18. 37 Eucalyptus camaldulensis 4 1
cod 38-39. 49 Eucalyptus globuhs 4 1-43, 5 1
('oclr~rh~nc~lrr~s spp. 60 ~ u c a l ~ p ivimi.nu1i.s
u.~ 41
Cr~r:c~rc~ 42. 63 Eucryphiu cordifolia 63
tie Chi104 63 Euphausiu superba 6 1
tlr Mtrgallurie.~ 63 Fissurella spp. 6 1
Coihe 42 Fitzroya cupressoides 62
(;~jini~htr tiel norre 60 Galeorhinus ziopterus 60
('r!/rriohtrtlel Sltr 60 Gambu 61
(?!/iriohtr rrrorerrda 60 Gamortega keule 63
c011cl1 37 Gari solidu 36, 6 1 see cnlen,ye
('orrc~1rolc~itr.r c~oncho1epa.s 6 1 Gelidium rex 6 1
condol. I I Genypterus blucodes 60
C O I I ~ C I hlack and gold 40 Genypterus chilensis 60
('orr::rro t.o/orr~do60 Geny1~teru.smaculutus 36, 60 see eel, black cusk-; congrio negro
('irii,!:rro r101.trdo 60 Gevuina uvellunu 62
('inrgr.rorrcgro 36. 60 see eel, black cusk-; Geny11tern.smuculatus Girellops nebu1om.s 60
('i~nr~ctrr~~irr.s erectus I9 see mangrove Gluciluria spp. 62
~.or-~Vrrir60 Gobiidae 81
('ory~litr~ritr Iril~p~rrus60 Grttus nigru 60
crab(.;) 19-20. 24, 26-27, 29-30, 37-38, 49, 57-58, 80 see also grenadier 54, 57-58
,/tribn; Ca1linecte.s toxotes: Po~tunidae;Ucides spp. Patagonian 37, 52-53. 56
hlack 49-50 groundfish 4
Ci-ci.srostretrgrfim 6 1 grouper(s) 38, 68
crevallcs 8 1 grunt 38
~ l ~ ~ ~ ~63O ~ l
~ i ~ ; ~ l O t / eIIUILWLlN Gymnogongrus fu~:ellatu.s 6 1
croaku(s) 80-8 1 see also ubo; pagotpot ,, nu' .ta~l(s) 8 1
'

crustacean(s) 2. 15. 19, 35-37 see also crah(s) hake 32, 35-38, 40, 52-54, 56-58 see ulso Merl;.~cru.sguyi; merluzc~
Cr~/~roc.trry rrlbri 63 comurz
Crrlrrr::~rc~36, 6 1 see also Gari sohdu common 49-50, 55
C~wosc~iori trritriis 60 Hr~iiporo~cle,~ iliornerleae 6 1
cyprinid 14 .see also Notropis c.hry~oceplzulc~s Helicolenus lenjierichi 60
Dir.syihyllrrni drcrc~ar1thoic1e.s62 Hemichordate 62
tlcmersals 80 Hen~ilutjanusnzucrop1zthalmo.s 60
rlr1i.r 8 1 .setJanchovies herring 81
~i.r.\wcrrc.Ir~r.s eleg~nordes 36 see buculao rle profundidad; Araucanian 36-37 see also Clupen bentincki; surdirzu t,onlu'rz
toothfish, Patagonian Heterocnrl~usreed 36, 61 see Camarcin nailon; shrimp, Chilean
Dr.s.ro.stic~1i1r.seleginoides 60 nylon
t)or.irt/o 60 hilsa 4
13r1srclic~~r.s tirnic~uru 61 Hippogloxsina mucrops 60
Drepanidae.8 1 Homalaspis planu 6 1
~ ! ~ . S62
~ I - I I ~~l.inreri Hualo 63
L)~rri.rliretrtrrrtrrrctica 62 huepo 36 see also Ensis macha
eagle. bald I I Huiro 62
Echinodems 35, 62 Iridaea ciliuta 62
ecl(s) 38. 53-54. 56 Isaciu conceptionis 60
hlnck cusk- 36. 38 .see also Genyptems muculatus 1.surcrs g1uuccr.s 60
Clc,girio/~.s11itrc1ovinu.s60 Jaibu 19, 6 1 see crab
clephnnt fishes.40 limcin 6 1
1lml~othr.i~rni coccineum 62 moru 61
E~lgraulidae 80-81 see anchovies peluda 61
Ilriwr111r.sriri,qerr.s 35, 60 see anchovy, Peruvian; anchoveta reina 61
lIrr\r.s mtrc,hu 36. 61 see huepo Jasus fkontu1i.s 6 1
Errx 62 Jeli prieto 19
E r p w 62 Jibia 6 1
Eth~nrdr~~rri r~icrculat~nn60 Jubuea chilensis 62
Ell( Ulrptfl 43 jurel 35,60 see mackerel, jack
Or~.trlypto 42 Kugeneckia oblongu 63
Kutsuwonus pelamis 60 embra 19
Krill 6 1 guaner 19
Kyhosus unulogus 60 a c k ~19
Lubrisomus philipii 61 ojo 19
hgunculuria 18-19 see mangrove salado 19
rucemosa 20 mangrove 20
spp. 17 black 17,24
h n g o s t u de Isla de Pascua 6 1 red 17, 20, 24, 27 see also Rhizophora spp.
Lungostu cle Juun Fernandez 6 1 white 20, 24
lungostino amurillo 36, 6 1 see also Cervimunida johni; lobster, Manio de Hojas Cortas 62
yellow Manio de Hojus Largas 62
Lungoxtino colomdo 36, 61 lobster, red squat; Pleuroncodes Manio de Hojas Punzantes 62
Marrujo 60
Mastocarpus papillatus 62
Lupus 6 1 Maytenus boaria 62
LuureI 63 Megabalanus psittucus 61
Laurehu l~hilippiuna 63 Meli 63
Merluccius australis 60
Merluccius guyi 32, 36,60 see hake
Leiognathidae 80-8 1 see slipmouths Merluza 39
Lengu 63 comlin 36, 49, 60 see hake; Merluccius gayi
Lenguaclo de q o s chicos 60 de cola 49-50, 60
Lenguado de ojos grundes 60 de tres aletas 60
del sur 60
Lessonia nigrescens 6 1 Mesodesma donacium 6 1
Lingue 62 Micromesistius australis 60
Liyuen prnoso 62 milkfish 3, 64, 68, 72, 74-76 see also Chanos chanos
Lisa 19, 60 see mullet Molle 63
Lithodes antarticus 6 1 mollusc(s) 15, 19, 24, 26, 29, 36-37.52-54, 56-58, 61, see al.~o
Lithrma crrc~stica 62 Anadara grandis; Anadara similis; Anadara
Litre 62 tuberculosa; Callinectes toxotes; Mytella guayanensis:
Lleciyue 62 Ostrea cohmbiensis
lobster(s) 20, 35-36 Mugil spp. 60
red squat 36 Pleuroncodes mOnOdOn; k~ngostinocohrado curema 19 see mullet
yellow 36 see also Cervimunida johni Mugiloides chilensis 60
Loco 6 1 Mulata 60
Loligo gahi 6 1 mullet 19 see also liza; Mugil curema
Lomafin hirsuta 63 Munida subrugosu 6 1
Loxec/nnu.~d/~ll.Y 62 mussel(s) 18, 37-38
Luche 62 Mustelus mentu 6 1
Myrceugeniu exsucca' 63
Mytella guayanensis 19 see molluscs
apiculatcr 63 Mytilus chilensis 61
Mucha 6 1 Nanue 60
Muc/zue/r~60 Naranjillo 62
mackerel 40, 55, 49-50 Navaja de mar 6 1
Chilean jack 35, 37-38 see also Trachurus murphyi Navajuela 36, 6 1 see Tagelus dombeii
chub 38 nipa 67, 69,72 see also Nipa,fiuticans
jack 32, 35-37, 52-54, 56-58 see also Trachurus murphyi Nipa,fruticans 67
Mncrocystis pyr~fera 62 Nothofa gus 4 1
alessundri 63
alpina 41-42, 63
antarctica 63
betuloides 63
dombeyi 41-42, 63
glauca 63
nitida 63
obliqua 41, 63
pumilio 63
 Notro 62 Piquihue 61
Notropis chrysocephalus 14 see also cyprinid Pitra 63
Rirre 63 Piure 62
Octopus vulgaris 61 Pleuroncodes monodon 36, 61 see lobster, red squat; langostino
Odonteshes spp. 60 colorado
Odontocymbiola mugellanica 61 Podocarpus andinus 62
Olivillo 62 Podocarpus nubigemus 62
Oncorhynchus spp. 60 Podocarpus salignus 62
Ophictus spp. 60 Polyprion spp. 60
Ostirin del norte 6 1 Portunidae 80 see crab(s)
Ostirin del sur 6 1 prawn(s) 4, 37
Ostra 61 Prionace glauca 60
del Pactfico 6 1 Pristidae 81
Ostrea chilensis 61 Prolatilus jugularis 60
Ostreu columbiensis 19 see molluscs Prosopis chilensis 62
otter 4 Prosopis tamarugo 62
oyster(s) 18, 68 Protothaca thaca 61
l~agotpot 8 1 see croaker(s); aho Pulpo 61
Pulma Chilena 62 Pyura chilensis 62
Palometa 60 Qeule 63
Pampanito 60 Quillaja saponaria 62
Panulirus pascuensis 61 Quillay 62
Paralabrax humeralis 60 Radal 63
Puralichthys microps 60 Raja spp. 60
Paralomis grunulosa 61 Rauli 63
Puronu signata 60 Rauli beech 42
Putagua 63 ray, manta 81
Pejegallo 60 Raya 60
Pejeperro 60 redfish 38
Pejerrata 60 Reineta 60
Pejerrey de mar 60 Rhizophora spp. 17-18, 28-29 see also mangrove, red
Pejesapo 60 harrisonii 19 see also mangrove
Pejezorro 60 mangle 19-20 see also mangrove
pelagic(s) 80 racemosa 19 see also mangrove
Pelillo 62 Rhynchocinetes typus 6 1
Pelu 62 Rbbalo 60
penaeid 31 Roble 63
shrimp 17 Rollizo 60
Penaeidae 80 see shrimp(s), penaeid Roncacho 60
Penaeus 19 see shrimp Ruil 63
Penaeu.~ca1ifi)rniensis 19 Salilnta australis 60
Prnueus monodon 3 1 Salix chilensis 62
Pe~zueusoccidentalis 19 Salmo guirdneri 6 1
Pertueu.~sQlirostris 19, 21, 31 Salmo salar 60
Penaeus vannamei 19, 2 1, 3 1 Salmo truttu 61
Petseu l i n ~ u e62 Salmcin del Atlantico 60
Peto 60 Salmo'n del Pacifico 60
Pei~nio 63 salmon, ccho 14, 16
Peumus boldus 63 salmonid stocks 5
Pholphyr~columbinu 62 Salvelinus ,fontinah 6 1
Picoroco 6 1 Sarda chiliensis 60
pilchard, South American 35-37 see also Surdinops sagax Sardinu 6 1
Pilgerotlendron ur(f2rurn 62 comlin 36, 61 see also Clupeu bentincki; herring,
Pirnelonzetopon muculutus 60 Araucanian
Pimiento 62 espafiola 35 see pilchard, South American; Surdinops
pine 32, 41-43, 48, 52, 54-56, 59 sagax
P f ~ l 042 sardine(s) 36-38, 39, 49-50
rudiatu 41, 43 common 38, 40, 49, 52-54
Pinus rudiuta 32, 41-42, 48 Spanish 36, 38, 40, 49-50, 52-54, 56-58
10s
.%rrdmo]~rrt~$yrx 35, 61 cee p~lchard,South Amencan, rardina squid(s) 38, 81
erpufiolu Stromateus stellatus 60
.'%I,go 6 1 swordfish 39, 52-54, 57-58
Suut a Cluleno 62 Synodontidae 8 1
Suxejiotlzueu on g7icuu 62 Tugelus dombeii 36, 6 1 see nuvujuela
St hrnur krt~folrur 63 Tumarugo 62
St hlnur tnolle 62 Tegula atru 6 1
St iaenu spp 60 Tepu 63
Scraenldae 80 Tetraodontidae 8 1
St om he^ juponrt ur 60 T h i s chocohtu 6 1
St ornbererox \uw~ur 60 Thunnus ululungu 60
Scomb~~dae 81 Thunnus ulbacures 60
Seburter oc ulutur 60 Thunnus obesus 60
Sergrt~dae80 ree shrrmp(s), sergest~d Thyrsites atun 6 1
Serlolt~mtr7t1thnu 6 1 Tiacu 63
Ser rolellu t uer uleu 60 Tineo 62
S ~rolcllu
I ~ ~ o r o r60
u Tollo 6 1
Ser rolella violuteu 60 firnoyo 61
\hark($) 81 toothfish 54, 57-58
shellfish 39. 49-50 Patagonian 36, 38, 52-53 see also Dissostichus eleginoides
shl~mp(r)v, 2-3, 9, 11-12, 17-18, 19-24, 26-31, 36-37, 40, 49-50, Truchurus murphyi(i) 32, 35, 60 see mackerel, jack;
52-54, 57-58, 64, 68, 72-76, 80-81 ree ulro Penueur mackerel, Chilean jack
tulrforrzienur, Penueur occidentahr, Penueur
Trevo 62
rrylrrortr ir, Penueur vunnamei
Trichiuridae 8 1
Ch~leannylon 36 w e ulso Cumarcin nudon, Heterocarpur
Truchu arco iris 6 1
reed
Trucha caf4 6 1
whlte 21
Truchu de urroyo 6 1
penae~d 20, 80-8 1
tuna, bluefin 8
{ergestld 79-81 ree ulro Penaeidae
tuna, southern bluefin 4
tiger 68
Uca spp. 19 see crab(s)
Srt vurer rnnjiulneur 60
Ucides spp. 19 see crab(s)
Srerru 61
Ulmo 63
s~ganld 68
Ulva lactuca 62
srlvers~de(s)38
rhpmouth(s) 80-81 Tee ulro Lelognath~dae Venus antiqua 61
\nn~l(\)37-38 Vidriolu 6 1
\napper(<) 68 Villurezia mucronatu 62
Solen yuud~huudi 6 I Weinmanniu trichosperm 62
Sopkor u nncr ophvllu 62 whale(s), bowhead 4, 8
Sphy~aen~dae 81 Xiphius gludius 60
 1

Valuf,Jtion of tropi~al co~stal resources:. theory and

appU,at.ionof Un~ar ~rQgralJlming. A: .~ruz-Trin,idad,Editor.
1996:ICLARMStud., Rev.25, 108 p.,

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