The Economics of Selabat Mudflats Nature Reserve Sarawak

EXECUTIVE SUMMARY

As world population increases while natural resources are limited, economic valuation of market value and non-use value of environmental resources is important for economic development and conservation. This book presents the findings on the economic valuation of the 199-ha Selabat Mudflats Nature Reserve (SMNR) in Sarawak, Malaysia. In 2016, the study interviewed a total of 42 households in Kg Pasir Putih and Kg Selabat, located near to this nature reserve.

Overall, the SMNR mangrove planting area plays an important role for local communities living near it. Of the total 94 working members in 42 households interviewed, 16 (17%) were mangrove or coastal fishermen. The conservation of SMNR brought positive impacts to the local community. Of the 42 households surveyed, the number of households generating income from SMNR increased from 9 (21%) in 2009 to 16 (38%) in 2016. In addition, the average cash income generated from SMNR also increased from RM446 in 2009 to RM472 in the year 2016. With income from SMNR, the incidence of poverty in Kg Pasir Putih and Kg Selabat was 5% in 2016. Without cash income from the SMNR mangroves, the poverty incidence increased to 10%. The direct use value (fishery) from SMNR was estimated to be RM250,320 per month or RM3,003,840 per year for 2016. On per ha basis, of the total 199 ha of SMNR, each ha of mangrove generated RM15,095 a year in 2016.

The study also interviewed 401 households in Kuching to determine people’s willingness to pay to conserve SMNR. In 2016, the estimated annual conservation value of SMNR was calculated to be RM39 million. If there is a proposal to charge (e.g. in the form of tax) for a SMNR conservation fund, the maximum amount was RM84.68 per household a year.