Developing pro-poor markets for environmental services in the Philippines

Abstract

This study reviews the various efforts made in the Philippines to develop markets for different types of environmental service, and also discusses the institutional support mechanisms that have emerged. It identifies a number of market initiatives already in operation, mostly in the form of entrance fees to national parks, but shows that for other types of environmental service, much preparatory work for market development has been done in the form of valuation studies and proposals for payment mechanisms. Government involvement has been key to market development in the Philippines but there have also been some community-based initiatives involving non-financial benefits such as protection from encroachment and squatting in return for improved land management practices. The study tests a framework for evaluating and monitoring markets for environmental services in two cases: a protected area and a Department of Energy reforestation and environmental management fund. The conclusion drawn is that environmental investments are not likely to happen unless the basic social services of communities are met.