PertanikaJ. Trop. Agric. Sci. 22(2): 147-160 (1999) ISSN: 1511-3701© Universiti Putra Malaysia Press

Economic Valuation of Forest Goods and Services ofAyer Hitam Forest, Puchong, Selangor

AWANG NOOR ABDUL GHANI,1 MOHD SHAHWAHID H. 0.,2 RUSLI MOHD.,1 SHUKRIMOHD.,1 1. FARIDAH HANUM,1 and MOHAMED ZAKARIA1

IFaculty of Forestry2Faculty of Economics and Management

Universiti Putra Malaysia43400 UPM Serdang, Selangor Darul Ehsan, Malaysia.

Keywords: Economic valuation, stumpage value, recreation benefits, non-market goods and services,land use options

ABSTRAK

Penukaran tanah hutan kepada kegunaan lain telah menyebabkan kehilangan kepada kepelbagaian biologi danlain-lain nilai ekonomi kepada komuniti. Bagaimanapun, potensi nilai ekonomi sumber-sumber hutan tidakdiambilkira sewajarnya oleh pembuat polisi dan perancang pengguna tanah. Satu kajian penilaian ekonomisumber hutan dijalankan di Hutan Ayer Hitam (AHFR) , Puchong Selangor untuk menentukan nilaiekonominya dan kesannya ke atas perubahan guna tanah. Kajian ini memberi tumpuan kepada penilaiansumber kayu, rekreasi, peranan ke atas komuniti dan pemuliharaan hidupan liar. Keputusan menunjukkanbahawa nilai ekonomi Hutan Simpan Ayer Hitam adalah tinggi dan jika kita tidak mengambilkira nilai tersebutdalam pembangunan guna tanah boleh menunjukkan petanda yang salah kepada pembuat polisi. Perancanganpenggunaan tanah pada masa depan hendaklah mengambilkira bukan sahaja pulangan berasaskan kepadapasaran tetapi juga lain-lain faedah alam sekitar.

ABSTRACT

The conversion of forestland to other land uses has resulted in substantial loss of biodiversity and otherpotential economic values to the community. However, the potential economic values of forest resources havebeen largely ignored by policy makers and land use planners. An economic valuation offorest resources ofAyerHitam Forest (AHFR), Puchong, Selangor was carried out to determine its economic value and its impact onland use changes. The study focused on valuation of timber resources, recreation, community roles and wildlifeconservation. The results show that the economic value ofAHFR is substantial and ignoring this value in landuse development would provide a wrong signal to policy makers. Future land use planning should consider notonly market-based economic returns but also its non-market and other environmental benefits.

INTRODUCTION

Malaysian tropical forest is well known forproviding valuable timber resources to the stategovernments and the community in terms ofdirect and indirect monetary and non-monetarybenefits. Forests also provide a source of foodand genetic resources of many agricultural crops,materials used in medicine, eco-tourism andrecreation opportunities, and help inmaintaining favourable environmental conditions

as well as 'research labs.' In the past, hOWCH.T, theforest has been viewed mainly as a source oftimber to feed the wood-based industries, whichproduce a variety of products for domestic andexport consumption. The other equally importantcomponents of the forest ecosystem such asenvironmental services, however, have not attractedmuch attention until very recently. This is indeedan unfortunate situation knowing the fact thattropical forests are very rich in flora and fauna.

AWANG NOOR, MD SHAHWAHID, RUSLI MOHD, SHUKRI MOHD, I. FARIDAH HANUM and M. ZAKARIA

The natural products that come from theforests include latex, steroids, edible oils, rattans,bamboo, spices, pesticides, and dyestuffs whilesome of the consumer goods made from forestproducts are coffee, lubricants, glue for postagestamps, golf balls, chewing gums, toothpaste,shampoo, mascara and lipstick. The market inthese industrial products is worth billions ofdollars per year.

The full potential of the biologicallydiverse tropical forests has never beencompletely quantified in economic ormonetary terms. While it is relatively simple todetermine the economic value of timberbecause of its readily available market price, itis not as simple to calculate the economicvalue of recreation, wildlife conservation,medicinal plants species or biological diversity.This could be an important factor for the pastneglect on the non-timber components of theforest ecosystem in the decision to convertforest to non-forest uses. The economicpotential of these resources has not been verymuch appreciated. Since the economic valueof these resources is difficult to determine,their real potential as income generators hasnot been fully explored. There is a strongneed for studies to be carried out to quantifyto the fullest extent the economic value of allforest goods and services. Only then we wouldhave a complete view on the costs and benefitsof comparing alternative forestland useoptions.

This paper discusses the economic value ofAyeI' Hitam Forest, Puchong, Selangor withemphasis on timber resources, recreation,benefits to community and wildlife conservation.The implications of the study on land useoptions are discussed in the final section of thepaper.

VALUATION OF FOREST GOODS ANDSERVICES: THE NEED AND APPROACH

Economists generally depend on market pricesto indicate the value of goods and services. Forgoods and services exchanged in a well-definedmarket, information on prices and quantitiesare readily available. This information can beused to estimate the value of certain goods andservices by constructing a demand curve. Unfor­tunately, not all forest goods and services havemarket prices. This is particularly true for most

of the non-timber forest products or servicessuch as water, recreation, wildlife, wild fruits andgenes. One characteristic of such goods orservices is the occurrence of 'free riders', inwhich case consumers refuse to express theirtrue willingness-to-pay (wtp) , but could obtainutility from the good or service. As such, pricesmight be distorted leading to inappropriate esti­mation of the true economic value of the re­sources. The major role of valuation is, there­fore to assign the value to goods and serviceswith distorted or non-existent market prices orto value them in terms of their opportunity cost.

Typically, the benefits derived from forestresources are to be measured in terms of marketprice or willingness-ta-pay of users or consumersfor using and experiencing the goods and serv­ices. An approximation of users' wtp for certainrecreational opportunities, for instance, can bedeveloped from a demand curve, which indi­cates the quantity of use that users in a marketwould be willing and able to purchase at eachprice. Other estimates could be in terms of theexpenditures on preventive measures taken byconsumers or users to avoid a future loss. Thus,conservation of forest resources could be seen asa form of wtp for current, as well as, futurebenefits.

Resource economists have yet to agree on ataxonomy of economic values. There are manyclassifications of values and benefits given in theliterature (Barbier 1992, Munasinghe 1993,Pearce 1993). In general, the following categoryof economic values are used:

(i) Direct use values refer to the productive orconsumptive values of ecosystem componentsor functions. Direct uses may be marketedor non-marketed, with some of the latteractivities often being important for thesubsistence needs of local communities. Anexample of a marketed direct use is timberresources, which can be harvested and soldto consumers. The use of medicinal herbscollected from the forest resources by localcommunities is an example of non-marketeddirect use. Marketed uses may be importantfor both domestic and international markets.In general, the value of marketed goodsand services is easier to measure than thevalue of non-marketed and subsistence directuses.

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ECONOMIC VALUATION OF FOREST GOODS AND SERVICES OF AVER HITAM FOREST

(ii) Indirect use values refer to the value ofenvironmental functions that support orprotect an economic activity. For instance,a tropical forest protects watersheds andstore carbon dioxide. Tropical forests alsoinclude many plant species, which in turnmay have ecological functions. The valuesof environmental functions can be derivedfrom the supporting or protectingeconomic activities that have directlymeasurable values.

(iii) Option values relate to the amount that anindividual or society would be willing to payto conserve an ecosystem for future uses.For example, preservation of biologicaldiversity can preserve wild genes for futureuses such as improvement of a fruit species.Wild fruit and fish may prove to be extremelyvaluable genetic stocks in the future, becausemany of these wild plants and fish havegenes that can help resist some kind ofdiseases.

(iv) Existence values refer to society's willingness­tcrpay to conserve biological resources fortheir own sake, regardless of their current oroptional uses. For instance, many peoplereveal their wtp for the existence of biologicalresources such as wildlife and landscapewithout participating in the direct use of thewildlife and landscape through recreation.

The method employed to determine each valuementioned above depends on the nature offorest goods and service in question. For thedirect use value, the methods available includemarket-based technique, changes in productivityapproach, relocation cost, and damage costavoided. The contingent valuation approachcan be used to value the indirect use, optionand existence values. This method requiresgood understanding of forest goods and servicesproduction system. It is not the intention of thispaper to discuss each method used in valuing agood or service. A good literature on themethods used can be found in lIED (1994) andMitchell and Carson (1989).

MATERIALS AND METHODS

Location of the Study Area

The study area is the Ayer Hitam Forest (AHFR) ,Puchong, Selangor, which is located in a strategic

place in a rapidly developing urban community.Some of the development projects that havebeen completed in the vicinity include anagriculture project, worlel class sports complex,a multi-million dollar housing project,incineration plant and waste disposal area, andan equestrian park. The forest reserve has alsobe 'n excised for the highway linking Seri Serdangand Damansara Puchong Highway The newadministration city, Putrajaya, is just a shortdrive away and so is the capital city of KualaLumpur. The forest area, therefore, couldprovide excellent recreation and eccrtourisnopportunities for urban dwellers.

The forest belongs to the LowlandDipterocarp forest type. It is classified as asecondary disturbed forest because it has beenlogged and treated several times since 1930's.Currently, the forest comprises six compartments,namely, compartments 1, 2, 12, 13, 14 and 15.These compartments make up a total area of1,248 ha. According to the Forestry Departmentrecord, the area of AHFR has decreasedsubstantially from the original forest area ofabout 4,267 ha in 1965. The extent of forestarea and the percentage of area loss as comparedto the original area are shown in Table 1.

The AHFR is the only remaining lowlandforest reserves left in the Klang Valley. It is anexcellent demonstration area for students tolearn about various aspects of forestry. Inaddition, the forest area offers researchopportunities for scientists interested in theworking of a tropical lowland forest ecosystem.It also serves as an important 'green lung' forthe urban city of Kuala Lumpur.

Considering the factors mentioned above, ageneral function of AHFR is to promote theprotection of a lowland forest ecosystem thatwould serve the needs for education, research,and recreation not only for UPM communitybut also the urban areas (Petaling Jaya, SubangJaya, Kelang, Kuala Lumpur) and dwellerssurrounding the forest reserve (Seri Serdang,Seri Kembangan, Puchong, Kajang and Bangi).Thus, the management objectives of AHFR areas follows:

• to promote systematic and coordinatedresearch into the working of a lowlandrainforest ecosystem;

• to provide training areas in forest biology,forest production, forest management,

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AWANC NOOR, MO SHAHWAHID, RUSLI MOHO, SHUKRI MOHO, I. FARIOAH HANUM and M. ZAKARIA

TABLE 1.Extent of Ayer Hitam Forest, Puchong,

Selangor and area loss (1965-1997)

environment, medicinal plants, microclimate,and other related disciplines; and

• to offer opportunities for forest recreationand eco-tourism for local as well as thesurrounding urban communities.

Year Forest area (ha) Percentage of area loss(compared to base

year 1965)

where:

sv stumpage value, (RM/ha)v volume, (m3/ha)p price, (RM/m3)

c average logging cost, (RM/m3)

pm = profit margin, (RM/m3)

ij are index for species and diameter class,respectively.

pm is calculated as follows:

Source: Annual Report, Selangor State ForestryDepartment (various years) and District ForestOffice Selangor Tengah, Cheras.

Economic Valuation Method

In this study, the economic valuation was carriedout for the following goods and services:

• timber resources• recreation• local dependence of non-wood resources• wildlife

It should be noted that the total economicvaluation of AHFR is still on-going, and theresults presented here are not comprehensive.The economic value of wildlife was based onphysical unit, not the economic value per se.The following section describes the methodsused and results of economic valuation quantifiedfor each of the goods and services of the AyerHitam Forest Reserve.

pmij = (p * PR) / (l+PR)

The subscripts i and j indicate that stumpagevalue (svij) varies due to variations in log price(Pij) at each diameter class j. Since average costis constant, it is not subscripted.

Data on timber volume were obtained fromthe records of a post-felling inventory conductedby the Faculty of Forestry, UPM. The inventorydata were used to estimate timber volume foreach species in the compartments by using theone way volume formula. Data on log priceswere obtained from previous study by AwangNoor and Mohd. Shahwahid for Negeri SembiIan(Table 2). Data on logging costs were alsoobtained from the study by Awang Noor andMohd. Shahwahid (1997). The average loggingcost used in the analysis was RM75 per cubicmeter. Data collected were analysed to determinethe total stumpage value for Compartments 1, 2,12 13, 14 and 15.

RESULTS AND DISCUSSION

Valuing Timber Resources

The taxonomic composItIOn from theenumeration of trees of 5 cm and above in a onehectare plot in a lowland forest at Ayer HitamForest, Selangor is shown in Table 3. Resultsshowed that the plot contains 177 tree speciesbelonging to 92 genera and 44 families.

The various estimates of stumpage valuewere calculated and presented in Table 4. Theresults show that the estimated stumpage valueis substantial, comparable to other estimates inthe hill forest. In fact, all the estimated stumpagevalues are relatively higher to the estimatedstumpage value for other hill dipterocarp forests.This indicates that that the AHFR is fully

where PR is profit ratio.36.08

36.08

64.90

68.66

82.72

6267.56

4006.00

4006.00

2198.00

1964.00

1082.701

1965

1980

1983

1993

1994

1997

Valuing Timber Resources

The residual value method was used to estimatestumpage value of AHFR. The value of standingtimber is calculated as the difference betweenthe selling value of the products made from itand the stump-to-market processing costs(including margin for profit and risk).Stumpage value per hectare for a compartmentwas calculated using the following formula:sv·· = v·· * (p.. - c - pm.. )

lJ lJ IJ 1J

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ECO OMIC VALUATIO OF FOREST GOODS AND SERVICES OF AYER HITAM FOREST

TABLE 2.Log price by species and species group (ex-matau), RM/m3

Species/Diameter class, j

Species group, 1

15-30 30-45 45-50 50-60 60+U=l) U=2) U=3) U=3) U=4)

Group 1Dark red meranti (1=1) 233 332 384 451 472Light red meranti (1=2) 224 313 358 423 443White meranti (i=3) 140 212 282 333 343Yellow meranti (i=4)94 142 187 229 243Meranti melantai (1=5) 157 247 331 386 394

Group 2Mersawa (1=6) 192 322 442 511 537Merawan (1=7) 108 143 162 192 200Gerutu (i=8) 108 143 162 192 200

Group 3Oily keruing (i=9) 272 344 412 466 476Non-oily keruing (1=10) 86 110 134 213 228

Kapur (i=l1) 86 110 134 213 228

Group 4Balau (i=12) 196 287 381 479 503

Cengal (i=13) 249 376 528 649 697

Giam/resak (i=14) 115 152 174 214 230Other HHW (i=15) 115 152 174 214 230

Light hard wood (1=16)(Group 5) 107 135 159 189 201Medium hard wood (i=17)(Group 6) 86 110 134 213 228Heavy hard wood (i=18)(Group 7) 115 152 174 214 230Half commercial species (i=19)(Group 8) 108 143 162 192 200

PodolAgathis (i=20)(Group 9) 108 143 162 192 200

Source: Awang Noor and Mohd. Shahwahid (1997)

regenerated in terms of economic sustainability.The stumpage values for trees above 30 cm dbhand above range between RM5,279 per hectareand RM30,318 per hectare. Another study oneconomic valuation of tree species in a onehectare plot showed that the stumpage valuewas about RM26,222. The results from this onehectare plot was higher than the estimatedvalue of the two compartments using theinventory data. This is not surprising becausethis value include trees 15 cm and above

compared to that of the 30 cm and above. Thepresent value of sustainable timber harvest wascalculated at 10 percent interest rate and 55years cutting cycle using the following formula:

PV = SV(O) + SV (t)* Ij{(1+1.10)55_1},

where SV(O) is stumpage value from currentharvest and SV(t) is stumpage value at t=55.Since forestry involves long term gestation period,the present value of sustainable harvest of AHFR

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AWANG NOOR, MO SHAHWAHIO, RUSLI MOHD, SHUKRI MOHO, I. FARIOAH HANUM and M. ZAKARlA

is not much different from the current harvest(range from RM5,307 to RM30,479 per hectare).

TABLE 3Taxonomic composition of trees at Ayer Hitam

Forest Reserve

Family Genera SpeciesAnacardiaceae 4 6Annonaceae 4 4Apocynaceae 1 1Bombacaceae 1 1Burseraceae 3 14Celastraceae 1 1Combretaceae 1 1Cornaceae 1 1Crypteroniaceae 1 1Dipterocarpaceae 1 3Ebenaceae 1 2Elaeocarpaceae 1 3Euphorbiaceae 12 18Fagaceae 1 1Flacourtiaceae 3 6Guttiferae 3 9Icacinaceae 1 1Lauraceae 5 12Leguminosae 1 1Linaceae 2 2Melastomataceae 2 2Meliaceae 3 3Moraceae 2 6

Myristicaceae 4 14Myrtaceae 2 19Myrsinaceae 1 3Ochnaceae 1 1Olacaceae 1 1Oxalidaceae 1 1Polygalaceae 1 4Proteaceae 1 1Rhizophoraceae 2 2Rubiaceae 6 6

Rutaceae 3 4Sapindaceae 2 5Sapotaceae 3 5Simaroubaceae 1 1Sonneratiaceae 1 1Sterculiaceae 2 2Theaceae 1 1Thymelaeaceae 1 2Tiliaceae 1 2Ulmaceae 1 2Verbenaceae 1 1

TOTAL 44 92 177

Source: Pius (1995)Valuing Recreation Benefits

The AHFR is also used by the local populationfor recreational activities. A study was conductedby Mohd. Shahwahid et al. (1998) to determinethe recreational value of AHFR. A Zonal TravelCost (TCM) was used in this study. The objectivewas to determine a demand function relatingthe number of visit/population of a zone withaverage zonal values of travel cost. The datawere collected using a structured questionnaire,which contained questions pertaining to socio­economic characteristics of visitors, distancetravelled and location of origin, mode oftransportation, travel expenditure to the siteand frequency of visit. A total of 80 respondentswere interviewed over a three week period inMarch 1997. The respondents from the surveywere mainly from the District of Petaling (46.3%) ,followed by the District of Gombak (20%), theDistrict of Hulu Langat and Kuala Langat(11,.2%), the District ofSepang (7.5%), and theremainder 3.8% were from the District of Klang.

The average expenditures of RM12.36 pervisitor made by the respondents in making thetrip to experience the recreational services arefor transportation, expenditure for foods andrecreational services and recreational materials(Table 5).

Demand for recreation ofAyer Hitam ForestReserve was estimated by estimating the numberof visits from each zone and the average travelcosts per visit. A demand curve is then fitted toeach zone average points. The total consumersurplus for each zone was calculated as theproduct of the average consumer surplus pervisit and the total number of visits. The netsocial benefit provided by the area being valuedis indicated by the sum of the consumer surplusesin all zones. The average consumer surplus perindividual visit across all zones was estimated atRM1.23 (Table 6). This estimate is comparableto the values estimated by Awang Noor andMohd Shahwahid (1997) for six forestrecreational areas in Negeri Sembilan withestimated values ranging from RMO.58 to RM2.26,with the average of RM1.49. Benson et al.(1996) obtained a similar result from a study on20 forest recreational areas in Peninsular Malaysiawith the values ranging from RMO.78 to RM3.74,an average of RM2.30. The lower estimatesobtained for AHFR could be due to the relativesuperiority in terms. of outdoor attributes of theother sites and lower visit per month. Theaverage monthly recreational users of the AHFR

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ECO OMIC VALUATIO OF FOREST GOODS AND SERVICES OF AYER HITAM FOREST

TABLE 4Total stumpage value of AHFR, Puchong, Selangor (RM/ha)

Year of assessment

1995199819981998199819971997

Compartment

1 ha plotClC2

C12C13C14C15

Stumpage value(trees> 30 cm)

(RM/ha)

26,2225,2799,52130,31825,26017,16914,500

Present value(RM/ha)

SV+SV*1/ {(1+0.10) 55_I}

26,3615,3079,57230,47925,39417,26014,577

Source

Pius (1995)orsahikin (1998)orsahikin (1998)

Norsahikin (1998)Norsahikin (1998)Johnny (1997)Johnny (1997)

Items Average expenditure Percentage(RM/visitor)

TABLE 5Travel cost incurred by respondents to

Ayer Hitam Forest Reserve

was estimated at 300 users. The annual value ofrecreation benefits for AHFR was thereforeRM4,428. Using a 10% discount rate andassuming a constant visitation rate in the future,the net present value ( PV) of AHFR wasestimated at RM44,280. It should be pointed outthat the estimated value is site specific and subjectto existing conditions. If new facilities andaccessibility are improved and developed, theestimated economic value of recreation benefitsfound in this study would be altered.

PetrolFoodRecreational kitBooks and magazinesOthersTotal

4.153.553.630.520.5112.36

33.628.729.44.24.1

100.00

Valuing the Benefits to Local Community

A study was carried out to determine the extentof use of AHFR by the indigenous or Orang Aslicommunity (Rusli et al. 1997). The mainobjectives of the study were to estimate thequantity of timber and non-timber forest producecollected by the Orang Asli as well as the revenue

Source: Mohd. Shahwahid et at. (1998)

that could have been generated by collectingthese produce.

Using a structured questionnaire, interviewswere held with each of the household heads oftwo Orang Asli communities residing at Sungai

TABLE 6Estimation of value with the zonal travel cost method (TCM) for Ayer Hitam Forest Reserve

Zone Population Number Average Average cost Consumer Total(number of family) of family visits number visits per visit surplus per visit consumers

per '000 (RM) (RM) surpluspopulation (RM)

1 54,653 19 0.35 3.85 0.19 3.612 633,144 120 0.19 4.10 0.83 99.603 129,696 21 0.16 5.00 0.90 18.904 542,906 37 0.11 6.07 1.65 61.055 410,491 28 0.068 8.11 3.59 100.526 406,832 6 0.015 14.00 0 0

Total 2,177,722 231 283.68

Source. Mohd. Shahwahid et at. (1998)

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AWANG , OOR, MD SHAHWAHID, RUSLI MOHD, SHUKRI MOHD, I. FARIDAH HANUM and M. ZAKARIA

Rasau Luar and Sungai Rasau Dalam duringthe months of November and December, 1996.The main aim of the interview was to gatherdata and information on the volume of forestproduce collected by the Orang Asli. Data onprice of various forest products were obtainedby surveying market outlets in the vicinity as wellas in the city of Kuala Lumpur. The householdheads were also asked about the prices of someof the produce in cases where these are notobtainable from the markets.

The results show that, in terms of speciescollected, the Orang Asli communities are moredependent on the forest reserve for food andfruits than for other purposes like housingconstruction, handicraft-making and medicine.While all the 24 animal species mentioned bythe Orang Asli were hunted for their meat, 48%(10 species) of the plant species are for fruits.Birds and small mammals comprise 75% of theanimal species collected.

The revenue that could have been generatedand/or saved by collecting the timber and non­timber produce amounted to nearlyRMII0,000.00 for the year 1996. The revenuegenerated by plant species was about seven timesmore than that of animal species. The greatestsource of revenue came from housingconstruction followed by handicraft-making andfruits. The Orang Asli commented that they areless dependent on the forest now than before.According to them, the forest now provideslesser number of useable species of plants andanimals than before. Also, the Orang Asli arenow economically better off than before andthey can depend more on markets than theforest for their daily necessities.

Valuing Wildlife Resources

So far, no studies have been done to determinethe economic value of wildlife species at AHFR.The studies, thus far, have only looked at thedistribution and composition of bird species inthe forest (Mohamed Zakaria 1997). The studiesalso reported the characteristics of themicrohabitats of the various bird species found inthe forest area. The results presented here arebased on a study conducted only in Compartment15 (southern part) of the forest reserve.

Preliminary results show that there arealtogether 153 species of birds from 38 familiesin the study area. The three largest families areTimaliidae (Babbler species), Cuculidae (Cuckoo

species) and Pycnonotidae (Bulbul species)(Table 7).

The Ayer Hitam Forest Reserve is a secondaryforest and yet it is very rich in bird species. Mostprimary forests contain, on the average about200 to 220 species of birds. The number ofspecies that has been recorded is 153 and it ispredicted that there are at least another 40species. The diversity of families recorded is alsocomparable to other primary forest areas. Almostall of the families recorded in other forest areasare also found here.

The study has only covered the southernpart of the forest reserve. This particular areahas been logged quite extensively. The area isdominated with secondary plant species such asMacaranga. This could be the reason why thereare abundant bird species associated withsecondary forest.

Implications on Land-use

The estimated economic value and other indirectbenefits ofAHFR are substantial and play importantroles for socio-economic development of the area.The point of interest is how the benefits ofconserving AHFR would be accrued to differentsocial groups, including state, national, and globalcommunity. This requires the need to calculateincremental net benefits between the costs andbenefits in the alternative land use options andthose of the baseline (forest conservation).

Future land use in the surrounding areaswill be determined based on population growthand the need of population for various servicesand other facilities such as housing, industries,recreation, and so forth. Projection made in thestructure plan of Petaling District and parts ofKlang District showed that the need of land usefor housing is the highest, followed by recreation,community facilities and industries. As such,the pressure of AHFR for alternative land uses isvery tremendous. With regards to forestland, itwas suggested in the structure plan that theforest reserve should be conserved for itsecological function and watershed protection.Only some parts of the forest should be used forpassive recreational purposes such as joggingtrack, camping ground, and research.

In order to evaluate the economics of forestconservation against other alternative land useoptions, there is a need to carry out comparativevaluation. This is basically the application ofbenefit cost analysis (BCA) , where the net

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TABLE 7List of bird species recorded for each family at Ayer Hitam Forest Reserve

No. English Name Scientific Name Malay Name

ARDEIDAE (2 species)1 Little Heron2 Cinnamon Bittern

ACCIPITRIDAE (3 species)3 Black-shouldered Kite4 Crested Serpent-Eagle5 Japanese Sparrowhawk

PHASIANIDAE (2 species)6 Crested Fireback7 Great Argus

RAILUDAE (1 species)8 White-breasted Waterhen

COLUMBIDAE (5 species)9 Little Green Pigeon

10 Pink-necked Pigeon11 Spotted Dove12 Peaceful Dove13 Green-winged Pigeon

PSITfACIDAE (2 species)14 Long-tailed Parakeet15 Blue-crowned Hanging Parrot

CUCULIDAE (12 species)16 Moustached Hawk-Cuckoo17 Hodgson's Hawk-Cuckoo18 Indian Cuckoo19 Plaintive Cuckoo20 Drongo Cucukoo21 Common Koel22 Black-bellied Malkoha

Butorides striatusIxobrychus cinnamomeus

Elanus caeruleusSpilomis cheelaAccipiter gularis

Lophura ignitaArgusianus argus

Amauromis phoenicurus

Treron olaxTreron vemansStreptopelia chinensisGeopelia striataChalcophaps indica

Psittacula longicaudaLoriculus galgulus

Cuculus vagansCuculus fugaxCuculus micropterusCacomantis merulinusSurniculus lugubrisEudynamys scolopaceaPhaenicophaeus diardii

Pucong KeladiPucong Bendang

Lang Bahu HitamLang BerjambulLang Sewah

Ayam PegarKuang Raya

Ruak-ruak

Punai DaunPunai GadingMerbok BalamMerbok ArnanPunai Tanah

Bayan NuriBayan Kecil

Sewah Tekukur KecilSewah HantuSewah IndiaSewah Mati AnakSewah SawaiSewah TahuCenok Perut Hitam

2324252627

Raffles' MalkohaRed-billed MalkohaChestnut-breasted MalkohaGreater CoucalLesser Coucal

Phaenicophaeus chlorophaeusPhaenicophaeus javanicusPhaenicophaeus curvirostrisCentropus sinensisCentropus bengalensis

Cenok KerakCenok ApiCenok BirahBut-but Carik AnakBut-but Kecil

STRIGIDAE (4 species)28 Collared Scops-Owl29 Reddish Scops-Owl30 Common Scops-Owl

Otus bakkamoneaOtus rufescensOtus scops

Hantu RebanHantu MerahHantu Kuang Kuik

31 Brown Wood-Owl Strix leptogrammica Hantu Punggor

PODARGIDAE (1 species)32 Large Frogmouth

CAPRIMULGIDAE (2 species)33 Malaysia Eared ightjar

Batrachostomus auritus

Eurostopodus temminckii

Segan Besar

Tukang Malaysia

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Table 7 (continued)

34 Large-tailed Nightjar Caprimulgus macrurus Tukang Kubur

APOPIDAE (3 species)35 Silver-rumped Swift

36 Fork-tailed Swift

37 Brown eedletailHEMIPROCNIDAE (2 species)38 Whiskered Treeswift

39 Grey-rumped Treeswift

TROGONIDAE (l species)40 Scarlet-rumped Trogon

ALCEDINIDAE (8 species)41 Common Kingfisher42 Blue-eared Kingfisher43 Black-backed Kingfisher44 Rufous-backed Kingfisher45 Stock-billed Kingfisher46 Black-capped Kingfisher47 White-throated Kingfisher

MEROPIDAE (3 species)48 Blue-tailed Bee-Eater49 Blue-throated Bee-Eater

50 Red-bearded Bee-Eater

CORACIIDAE (l species)51 Dollarbird

BUCEROTIDAE (2 species)52 White-crowned Hornbill

53Black HornbillCAPITONIDAE (6 species)

54 Gold-whiskered Barbet55Yellow-crowned Barbet56Red-throated Barbet

57 Blue-eared Barbet58 Brown Barbet

PICIDAE (9 species)59 Rufous Piculet Sasia abnormis60 Rufous Woodpecker61 Checker-throated Woodpecker62 Banded Woodpecker63 Common Goldenback

64Buff-rumped Woodpecker65 Buff-necked Woodpecker66 Grey-and-Buff Woodpecker67 Maroon Woodpecker

EURYlAIMIDAE (3 species)68 Banded Broadbill69 Black-and-Yellow Broadbill

Rhaphidura leucopygialis

Apus pacifus

Hirundapus gigantea

Hemiprocne comata

Hemiprocne longipennis

Harpactes duvaucelii

A lcedo atthisAlcedo menintingCeyx erithacusCeyx rufidoTSUSPelargopsis capensisHalcyon pileataHalcyon smyrnensis

Merops philippinusMerops viridis

Nyctyomis amictus

Eurystomus orientalis

Berenicomis comatusAnthracoceros malayanus

Megalaima chrysopogonMegalaima henriciiMegalaima mystacophanosMegalaima australisCalorhamphus fuliginosus

Belatok KecilMicroptemus brachyurusPicus mentalisPicus miniaceusDinopium javanenseMeiglyptes tristisMeiglyptes tukkiHemicircus concretusBlythipicus rubiginosus

Eurylaimus javanicusEurylaimus ochromalus

Layang-Iayang Kecil

Layang-Iayang EkorCabang

Layang-Iayang Besar

Layang-Iayang JambuKecilLayang-Iayang JambuKelabu

Kesumba Puteri

Pekaka Cit-cit KecilPekaka Bintik-bintikPekaka RimbaPekaka ApiPekaka Paroh PendekPekaka Kopiah HitamPekaka Belukar

Berek-berek Carik DadaBerek-berek Tadah

HujanBerek-berek JanggutMerah

Tiong Batu

Enggang Jambul PutihEnggang Gatal Birah

Takor Jambang EmasTakor Mahkota KuningTakor RayaTakor AkarTakor Dahan

Belatok Biji NangkaBelatok RantingBelatok MerahBelatok Pinang MudaBelatok AwanBelatok Tuki-tukiBelatok PunggohBelatok Punggor

Takau RimbaTakau Hitam Kuning

156 PERTANIKAJ. TROP. AGRIC. SCI. VOL. 22 NO.2, 1999

ECO OMIC VALVATIO OF FOREST GOODS

Table 7 (continued)

D SERVICES OF AYER HITAM FOREST

7071

Black-and-Red BroadbillGreen Broadbill

Cymbirhynehus macrorhynchusCalyptomena viridis

Takau RakitTakau Selawit

HIRUNDINIDAE (1 species)72 Pacific Swallow

CAMPHEPAGIDAE (2 species)73 Black-winged Flycatcher-Shrike74 Lesser Cuckoo-Shrike75 Pied Triller76 Fiery Minivet77 Scarlet Minivet

CHLOROPSEIDAE (4 species)78 Green lora79 Common lora80 Lesser Green Leafbird81 Greater Green Leafbird

PYCNONOTIDAE (10 species)82 Black-headed Bulbul83 Puff-backed Bulbul

84 Yellow-vented Bulbul85 Olive-winged Bulbul86 Cream-vented Bulbul

87Red-eyed Bulbul88Spectacled Bulbul

89 Finches Bulbul90 Yellow-bellied Bulbul

91HAyery-backed Bulbul

92 Buff-vented Bulbul

DICRURIDAE (4 species)93 Bronzed Drongo94 Crow-billed Drongo95 Lesser Racket-tailed Drongo96 Greater Racket-tailed Drongo

ORIOUDAE (2 species)97 Black-hooded Oriole98 Asian FAyery Bluebird

CORVIDAE (3 species)99 Crested Jay100 Black Magpie101 Large-billed Crow

SITIIDAE (a species)102 Velvet-fronted Nuthatch

TlMALIIDAE (13 species)103 Short-tailed Babbler

104Ferruginous Babbler105 Abbot's Babbler106 Sooty-capped Babbler107 Scaly-crowned Babbler

Hirundo tahitica

Hemipus hirundinaeeusCoracina fimbriataLalage nigraPericroeotus igneusPericroeotus flamrneus

Aegithina viridissimaAegithina tiphiaChloropsis eyanopogonChloropsis sonnerati

Pyenonotus atrieepsPycnonotus eutilotus

Pyenonotus goaivierPycnonotus plumosusPycnonotus simplexPycnonotus brunneusPycnonotus erythropthalmosCriniger finsehiiCriniger phaeoeephalusHypsipetes criniger

Hypsipetes eharlottae

Dicrurus aeneusDicrurus annectansDicrurus remiferDicrurus paradiseus

Oriolus xanthornusIrena puela

Platylophus galericulatusPlatysmurus leucopterusCorvus macrorhynehos

Sitta frontalis

Trichastoma malaecenseTriehastoma bieolorTriehastoma abbottiMalaeopteron affineMalaeopteron cinereum

Sualo Batu

Rembah BatuSewah KecilSewah KapasMas TulinMas Belukar

Kunyit BakauKunyit KacatDaun KecilDaun Besar

Merbah SiamMerbah CoklatBerjambulMerbah KaporMerbah BelukarMerbah Mata PutihMerbah Mata MerahMerbah KecilMerbah RempahMerbah Perut KuningMerbah Bulu PanjangTengkokMerbah Riang

Cecawi KeladiCecawi SawaiCecawi Hamba KeraCecawi Anting-anting

Dendang BelukarDendang Gajah

GagakJeritGagak KambingGagak Paroh Besar

Patok Baldu

Rimba Ekor PendekRimba SampahRimba RiangRimba Tinjau BelukarRimba Tua Kecil

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TABLE 7 (continued)

108109110111112113114115

Rufous-erowned BabblerChestnut-rumped BabblerChestnut-winged BabblerRufous-fronted BabblerStriped-tit BabblerFluffy-backed Tit-BabblerBrown FulvettaWhite-bellied Yuhina

Malacopteron magnumStachyris maculataStachyris erythropteraStachyris rufifronsMacronus gularisMacronus ptilosusAlcippe brunneicaudaYuhina zantholeuca

Rimba Tua BesarRimba Rembah BesarRimba Merbah SampahRimba ApiRimba BerjalorRimba Pong-pongRimba Murai CoklatYuhina Perut Putih

TURDIDAE (5 species)116 Siberian Blue Robin117 Magpie Robin118 White-rumped Shama119 Chestnut-naped Forktail120 White-crowned Forktail

SYLVIIDAE (4 species)121 Yellow-bellied Warbler122 Arctic Warbler123 Common Tailorbird124 Dark-necked Tailorbird

MUSClCAPIDAE (7 species)125 Grey-ehested Flycatcher126 Asian Brown Flycatcher127 Tickell's Blue Flycatcher128 Pied Fantail129 Black-naped Monarch130 Maroon-breasted Flycatcher131 Asian Paradise Flycatcher

MOTACILLIDAE (1 species)132 Richard's Pipit

lANIIDAE (1 species)133 Brown Shrike

STURNIDAE (4 species)134 Philippine Glossy Starling135 Common Myna136 Jungle Myna137 Hill Myna

NECTARINIIDAE (7 species)138 Plain Sunbird139 Purple-naped Sunbird140 Little Spiderhunter141 Long-billed Spiderhunter

142 Yellow-eared Spiderhunter

143 Spectacled Spiderhunter144 Grey-breasted Spiderhunter

DlCAEDAE (4 species)145 Yellow-breasted Flowerpecker

Erithacus cyaneCopsychus saularisCopsychus malabaricusEnicurus ruficapilusEnicurus leschenaulti

Abroscopus superciliarisPhylloscopus borealisOrthotomus sutoriusOrthotomus artogulais

Rhinomyias umbratilisMuscicapa latirostrisCyornis tickelliaeRhipidura javanicaHypothymis azureaPhilentoma velatumTerpsiphone paradisi

Anthus novaeseelandiae

Lanius cristatus

Aplonis panayensisAcridotheres tristisAcridotheres fuscusGracula religiosa

Anthreptes simplexHypogramma hypogrammicumArachnothera longirostraArachnothera robusta

Arachnothera chrysogenys

Arachnothera flavigasterArachnothera affinis

Prionochilus maculatus

Murai SiberiaMurai KampongMurai RimbaMurai CegarMurai Cegar Belukar

Cekup Paroh KuningCekup ArtikPerenjak PisangPerenjak Belukar

Sambar BatuSambar AsiaSambar Kelicap RantingSambar Murai GilaSambar Uban HitamSambar UnguSambar Ekor Panjang

Pipit Tanah

Tirjup Tanah

Perling Mata MerahTiong Gembala KerbauTiong HutanTiong Mas

Kelicap KelabuKelicap RimbaKelicap JantongKelicap Jantong ParohPanjangKelicap Jantong TelingaKuningKelicap Jantong BesarKelicap Jantong Bukit

Sepah Puteri Raja

158 PERTANlKAJ. TROP. AGRIC. SCI. VOL. 22 0.2,1999

ECO OMIC VALUATION OF FOREST GOODS AND SERVICES OF AYER HITAM FOREST

TABLE 7 (continued)

146

149150151152153

Crimson-breasted Flowerpecker1470range-bellied Flowerpecker148Plain FlowerpeckerPLOCEIDAE (5 species)Eurasian Tree-SparrowBaya WeaverWhite-bellied MuniaChestnut MuniaWhite-headed Munia

Prionochilus percussusDicaeum trigonostigmaDicaeum concolor

Passer montanusPloceus philippinusLonchura leucogastraLonchura malaccaLonchura maja

Sepah Puteri PelangiSepah Puteri BukitSepah Puteri Bongsu

Ciak UrasiaCiak TempuaPipit PadiPipit RawaPipit Uban

Source: Mohamed Zakaria (1997)

benefits of any pair of alternative land use options(for instance, forest conservation and housing)should be compared. Under the currentsituation, the net benefits of forest conservationmust exceed the forgone net benefits of housing:

where BC is net benefits of forest conservation,NBH is net benefits of housing (alternative landuse option.) In comparing these two options, itis again important to include not only the netdirect or production benefits of each option,but also their net external environmental impacts.This can be shown as:

( BDC + NBIC) _ ( BDH + NBIH) > O.

The implication of the study is that the estimatedeconomic value can be used to determine theopportunity costs of losing sustainable timberearnings, recreation, wildlife, research, localcommunity dependence on forest, research,environmental education programme, and otherenvironmental benefits (such as carbonsequestration). In this study, however, we wereunable to compute the economic loss of forestconversion to other land uses since data are stilllimited. Future efforts will be made to collectmore information not only on economic value ofAHFR but also the benefits and costs from otherland use options in the surrounding areas.

CONCLUSION

The role of economic valuation is importantbecause it provides information on the benefitsof various forest goods and services in a particularforest ecosystem. Throughout we have presentedresults of some economic values of forest goodsand services of AHFR. The values estimatedfrom this study could be used in the economic

valuation of alternative forestland use options.The future challenge is to obtain reasonablemonetary estimates of non-market benefits,especially external environmental impacts. Theestimation of these values should be given dueconsideration if one considers that forestconservation or protection is an investment forfuture generations. The economic approach todetermining investment in forest conservationrequires a comparison of the rate of return fromconservation with the rate of return from thealternative use of forestland. Conservation isjustified if the net benefits of conservation aregreater than the net benefits from alternativeland use options. Thus, from the perspective ofthe society as a whole it is very important tovalue the benefits and costs net of all economic

I

distortions' in the marketplace. Ignoring allpotential benefits and costs of forest conservationprovides a wrong signal to the policy makers.This might bias against forest conservation andconverting forest areas to other land use optionswill result in opportunity cost to the society.

ACKNOWLEDGEMENTS

The authors are grateful to IRPA 08-02-04-0089,IRPA 01-02-04-0183 and 08-02-02-0009 forfunding this project.

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