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M. F. Martinico-Perez and H.

Tanikawa/ Our Palawan 1 (1):1-12

Our Palawan

The Scientific Journal of the Palawan Council for Sustainable Development

Research and Analysis:


Sustainable Development Research/Natural Resources
Available on-line at www.pkp.pcsd.gov.ph

Development of Indicators for Economy-Wide Material Flow Accounts


(EW-MFA) in the Province of Palawan, Philippines
Marianne Faith G. Martinico-Perez1* and Hiroki Tanikawa2

Abstract

Keywords:
domestic extraction
material flow
material consumption
economywide
material flow analysis
Palawan

This study presents the first attempt to utilize the method


of Economy-Wide Material Flow Analysis (EW-MFA) to
examine the physical dimension and trends of resource
extraction, consumption and material flow from 2000 to
2012 in an island province of Palawan, Philippines.
Disaggregate presentation of EW-MFA indicators in terms
of material categories such as fossil fuel, biomass, ore and
industrial minerals, and construction minerals attempts to
elucidate the resource utilization and management in the
province. Results show that the domestic environment of
Palawan provides 88% of the domestic material input
(DMI) but only 45% of these are consumed by the
domestic socio-economic system while 55% are exported
in terms of biomass, fossil fuels and metal ores to other
socio-economic systems in the Philippines as well as to
other countries. Also, there is a shift in domestic material
consumption (DMC) in Palawan from renewable materials
as biomass (73% in 2000) to nonrenewable materials such
as construction minerals (53% in 2012). In line with the
Commission on Sustainable Developments revised
indicators of sustainable development on the material
consumption and production patterns theme, the results of
this study are intended to assist in the evaluation of
resource management policies in the province and to
promote efficiency in the utilization of raw materials to
lessen the adverse environmental threats due to the primary
extraction, processing and utilization of natural resources.

Project Development Officer/ECAN Policy, Monitoring and Knowledge Management, PCSDS


Graduate School of Environmental Studies, Nagoya University, Japan
*Address correspondence to: PCSD Building, Sports Complex Road, Sta. Monica Heights, Puerto Princesa City,
Palawan, P.O. Box 45, PPC 5300 Palawan, Philippines. Email: m32484b@yahoo.com
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M. F. Martinico-Perez and H. Tanikawa/ Our Palawan 1 (1):1-12

1.

INTRODUCTION

Raw materials are continuously being


taken from the natural environment to support
the growing needs of the society. The uneven
distribution and the finite supply of the natural
resources are among the important limiting
factors in the natural resource extraction and
consumption.
The
rate
of
resource
consumption has been rapidly increasing, with
the industrialized and developed countries
consuming greater amount of resources than
the developing counterparts and more so if the
developing countries, in the course of
economic growth, would follow the trends of
resource consumption in these developed
regions (Giljum, 2010). Along the stages
of extraction, processing and utilization,
by-products are generated from these
materials in
various forms of wastes.
Inevitably, these processes, if not carried out
properly have consequent environmental
impacts (Kovanda and Hak, 2007).
Figure 1 shows the basic scope of the
exchange of materials from the domestic
environment to socio-economic system and
to other economies via import and export of

In p u t

materials. Accounting for the resource


consumption of the economy is a first step in
addressing resource-related environmental
issues towards sustainable development. The
Economy-wide Material Flow Accounting/
Analysis (EW-MFA) is one of the useful tool
to determine the metabolic performance of
economies (Bringezu, 2003).
There are two important types of
material flows across the system boundaries in
EW-MFA; first is the material flows between
the national economy and the natural
environment, comprised by the extraction of
primary materials from and the release of
materials to the natural environment in the
form of wastes and by-products; and the
material flows between the national economy
and rest of the world (ROW)-economy
manifested in the imports and exports
(Eurostat, 2009).
The EW-MFA has been standardized
(Eurostat, 2001; 2009; 2012; 2013) following
the pioneering studies of the material flows of
industrialized countries (Adriaanse et al.,
1997; Matthews et al., 2000).
Thus,
utilization of EW-MFA has been expanding
in recent years for both developed countries

Eco n o m y

Ou tp u t

M aterials d o m estically
extracted

A ir em issio n s, w ater,
d isp o sal, etc.

In p u t f ro m o th er
eco n o m ies

Exp o rt to o th er
eco n o m ies

M aterial
A ccu m u latio n

Exch an g e w ith en viro n m en t

Exch an g e w ith o th er eco n o m ies

Figure 1. Scope of economy-wide material flow accounts (A dapted from Eurostat 2009)

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M. F. Martinico-Perez and H. Tanikawa/ Our Palawan 1 (1):1-12

(e.g. Krausmann et al., 2011; Gierlinger and


Krausmann, 2012; Schandl and West, 2012) as
well as for economies in different stages of
development, such as Latin American countries
(Giljum, 2004; West and Schandl, 2013) and
countries of the former Soviet Union (West et
al., 2014). In Asia, much focus is directed at
China and India (Hubacek et al., 2007; Wang et
al., 2012; Giljum et al., 2010; Singh et al.,
2012) while less attention has been paid so far
to developing countries, especially in South
and South-East Asia. Schandl and West (2010)
examined the material flows in this area at the
level of regions. One of the few first attempts
to utilize the EW-MFA framework in South
and South-East Asian developing countries was
done in the comparative study of economywide material flow accounts and the economic
implications in Myanmar, Bangladesh, and the
Philippines (Maung et al., 2014). Comparing
the totals of all material inflows, it revealed
that the increasing resource extraction and
consumption trends are influenced by the
resource
management
policies
and
development patterns of these three countries.
Rapera (2005) also examined the relationship
of material flows and poverty in the
Philippines, showing a slight positive effect of
biomass flows in poverty alleviation from 1981
to 2000.

The environmental issues intrinsic to


the resource extraction and economic growth
are experienced worldwide, but most of these
issues are effectively dealt with locally. In this
view, it is important to explore a more detailed
material flow in the local economy or at the
provincial level. The province of Palawan was
chosen to be the subject of pilot studies in the
Philippines because of its emerging
environmental and economic importance as it
is bestowed with the pristine beauty of nature
and rich mineral resources. In 1994, the first
attempt to determine at sub-regional
disaggregation of the GDP was done in
Palawan, and in 1998, Palawan served as the
pilot area for the institutionalization of the
Philippine
Economic-Environmental
and
Natural Resources Accounting (PEENRA)
System at the provincial level (PCSD, 2000).
Palawan stands as the countrys largest
province with its 1.5 million hectares land area.
It is situated in the southwest part of the
Philippine islands chain. Palawan is an
archipelago within an archipelago, composed
of 1,768 islands. The main island is a narrow
strip, about 625 km in length and 40 km at its
widest. In 2005, the forest cover of Palawan
2015 Palawan Council for Sustainable Development

was estimated at 666,338 hectares or about


46% of the land area (excluding mangroves),
while 13.4% or 194,066 hectares were
agricultural lands, 0.7% or 10,080 hectares
were built-up areas and 39.5% or 572,000
hectares were devoted to other uses (PCSD,
2010).
Palawan is also a biodiversity hotspot
in the Philippines. The province was declared
as Game Refuge and Bird Sanctuary since
1967, and a Mangrove Reserve since 1981.
The UNESCO declared the whole province a
Man and Biosphere Reserve in 1990. Two (2)
out of the 7 World Heritage Sites (WHS) in the
Philippines are located in Palawan. These are
classified under the criteria of
natural
environment namely; the Tubbataha Reef
Marine Park in 1993 and the Puerto Princesa
Subterranean River National Park or
Underground River in 1999. The Underground
River also received a distinction as one of the
New Seven Wonders of Nature in 2012.
Aside from the Philippine development
policies and environmental laws covering the
entire province, there is a law enacted
exclusively for the province of Palawan. The
Republic Act No. 7611 or the Strategic
Environmental Plan (SEP) for Palawan Act
was adopted in June 1992 as the provinces
framework for sustainable development. It
aims to ensure the preservation of the
remaining forest areas, coral reefs and other
fragile ecosystems as well as to promote the
wise utilization of its natural resources. The
SEP provides the framework for sustainable
development for the province of Palawan. To
achieve a balance between development and
conservation, all programs and projects in
Palawan should be consistent with the goals
and objectives of the SEP. Complementary
policies on the natural resource protection and
management are likewise issued by the
provincial and local government units in
consonance with the SEP.

With the rich natural resources and


biodiversity, Palawan has been regarded as one
of the environment and economic assets of the
Philippines. However, Palawans poverty
incidence among families was 29.8% in 2006
and 24% in 2009. These values are higher than
the Philippines poverty incidence among
families with 21.1% in 2006 and 20.9% in
2009 (Economic Situationer Region IVB,
2012). Thus, there is an urgent need to assess
and evaluate the current resource management
strategies, socio-economic activities, policies
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M. F. Martinico-Perez and H. Tanikawa/ Our Palawan 1 (1):1-12

and environmental measures to protect the


environmental integrity while aiming for a
sustained and inclusive economic growth of the
province.
The main objective of this research is to
develop the indicators of the EW-MFA in
Palawan to provide the basis and to aid in the
policy formulation towards sustainable
resource
management
and
economic
development. Specifically, this research aims to
estimate the flow of materials and resources in
the socio-economic system of Palawan. This
is the first attempt to quantify the material flow
using the method of EW-MFA in the province
of Palawan covering the 12-year period (2000
- 2012).
This study also compliments the
previous joint national and local governments
efforts on natural resource accounting to
provide sound information that can be utilized
for the future policy formulation on sustainable
resource management that would guide and
pave the way towards the sustainable
development in the province and the country.
Furthermore, the development of indicators of
EW-MFA in Palawan is one of the pioneering
efforts in line with the United Nations
Commission on Sustainable Developments
revised indicators of sustainable development
(UN, 2007) on the material consumption and
production patterns theme.
These indicators are intended to assist
in the evaluation of resource management
policies and to provide basis to promote
efficiency in the utilization of raw materials
and future development strategies that would
conserve natural resources and lessen the

adverse
environmental effect due to the
primary extraction, processing and utilization
towards the sustainable development in
Palawan.

2. METHODOLOGY
Sources of Data
The methods for the estimation of the
EW-MFA indicators and the material
categories utilized in this study are based on
the
standardized
and
methodological
guidebook by Eurostat (2001, revised 2009,
2012, 2013). Table 1 shows the four major
resource types or categories of the materials
accounted for in this research and the
corresponding sources of data. The data for
indicators of material flow accounts are
presented in this level of disaggregation.
The quantity of all materials is
expressed in terms of their mass (weight in
tonnes) per year. In this research, the physical
material flow is determined with the focus on
the direct material flow or the economically
used resources only and covers the material
flow accounts of Palawan from 2000 to 2012.
Furthermore, the socio-economic data for the
province of Palawan were taken from the
Provincial Planning and Development Office.
The quantity of import and export materials
were taken from the Philippine Ports
Authority in Puerto Princesa City.
Estimation of Indicators of EW-MFA
To understand and quantify the
exchange of materials from the environment to
socio-economic system and vice versa, the

Table 1. The four major mater ial categor ies and data sour ces of EW-MFA
Material Category

Sub categories

Data Sources

Biomass

Products from agriculture,


forestry, and fishery

Philippine Yearbooks
Bureau of Agricultural Statistics
Bureau of Fisheries and Aquatic
Resources

Fossil Fuels

Fossil energy carriers such as Philippine Yearbooks


coal, oil, natural gas, and others

Metal Ores and


Industrial Minerals

Precious metals and base


Philippine Statistical Yearbooks
metals ores, industrial mineral, Philippine Yearbooks
and others

Construction Minerals

Sand and gravel, and others

Philippine Statistical Yearbooks


Philippine Yearbooks
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Figure 2. The Palawans terrestrial environment showing the Tamlang Catchment, Brookes Point
Palawan. (PCSDS)
indicators of EW-MFA are utilized to clearly
understand the material stocks and flows. This
study focuses on the development of the core
indicators described and calculated based on
the
standardized
and
methodological
guidebook by Eurostat (2001, revised 2009), as
follows:
1. Domestic Extraction (DE)
This refers to the raw material extracted from
the domestic environment (Figure 2) and
classified into four (4) major material
categories such as biomass, fossil fuels, metals
ores and industrial minerals, and construction
minerals. These materials enter directly the
socio-economic system and are utilized in
subsequent economic processing. DE is
estimated using the equation below:
DE = Biomass + Metal Ores & Industrial
Mineral +Construction Minerals + Fossil
Fuels (Eq. 1)
2. Direct Material Input (DMI)
It is an input indicator and defined as the
quantity of material inputs from domestic
extraction and import of materials into the
domestic economy. These materials undergo
domestic processing into
usable forms for
domestic consumption or could be transported
to other socio-economic systems. It is
estimated as equivalent to the sum of amount
of domestically extracted materials and the
imported materials per category.
DMI = DE + Physical Import

(Eq. 2)

3. Domestic Material Consumption (DMC)


This indicator is classified as consumption
indicator and refers to the total quantity of
2015 Palawan Council for Sustainable Development

materials input and directly used and remained


in the socio-economic system after the quantity
of export materials has been subtracted. The
DMC considered in this study refers to the
natural materials (excluding water and air)
extracted or harvested within the domestic
environment, processed, used and remained in
economy together with the quantity of the
imported materials after the exported materials
are deducted. DMC can also be related to the
potential waste production since these
materials will eventually be converted to
wastes. It is estimated using the following
equation:
DMC = (DMI) Physical Export (Eq. 3)
4. Physical Trade Balance (PTB)
It is classified as balancing indicator and
is
defined as the physical trade surplus or
deficit of an economy. It indicates whether the
economy is a provider of resources to other
economies, as shown by the negative value of
PTB (Import < Export) or resource dependent to
other economies as indicated by the
positive PTB (Import > Export). Depending on
the systems under focus of the study, imports
and exports refer to the international trade in
the case of the Philippines. In the case of the
province of Palawan, imports and exports
refer to the materials crossing the
geographical and administrative boundaries of
the province. It is an important indicator
concerning the trade and the environment where
resource dependent economies tend to exert
environmental pressure to the provider of
resources. It is calculated using the
following equation:
PTB = Physical ImportPhysical Export (Eq. 4)
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M. F. Martinico-Perez and H. Tanikawa/ Our Palawan 1 (1):1-12

3. RESULTS AND DISCUSSION

Domestic Extraction
Figure 3 shows the quantity of domestic
extraction (DE) in Palawan in terms of four (4)
material categories from 2000 to 2012. The DE
increased significantly from 1.4 million tonnes
(Mt) in 2000 to 7.0 Mt in 2012. In 2000, the
quantity of biomass dominated other material
categories with 0.8 Mt (57%), followed by
metal ores and industrial mineral 0.5 Mt (33%),
construction minerals (0.07 Mt) and fossil fuels
(0.06 Mt). The offshore extraction of natural
gas and condensate which started its operation
in northern Palawan in 2002, resulted to the
significant increase of fossil fuel extraction to
2.8 Mt in 2012. Similarly, there are newly
opened metal ore mining operations in the last
12 years that resulted to the increase of
mineral extraction to 1.5 Mt in 2012. Likewise,
the quantity of construction
minerals
extracted from Palawans environment grew to
1.2 Mt, and the biomass, comprising of agriculture, forest and fishery products also grew to
1.5 Mt .
The largest deposit of oil and natural
gas in the Philippines is found in Palawan,
providing 18% of the countrys total power
generating
capacity in 2009 (PDP 2011
2016). In 2012, the extraction of fossil fuels
comprised 40% of DE. The oil and natural gas
production in Palawan could have been a
significant source of tax revenues if the shares
are remitted to the
provincial government of
Palawan. To date, the province is still fighting
for the receipt of its
legitimate share in the
natural wealth amounting to Php 2 Billion a

year starting 2003 (2012 Annual Audit


Report, Province of Palawan). Thus, the huge
volume of extracted materials is not translated
to the socio-economic status of Palawan.
Despite of the dominating volume of fossil fuels
and metal ores and industrial minerals in the
domestic extraction, the agriculture and fishery
sectors are still regarded to form the economic
backbone of the province (PPDO, 2012). In
2012, 14% of the Philippines total fishery
production came from Palawan, with 637,305
metric tonnes (mt) out of the 4,858,097 mt
(NEDA, 2012).
Generally, the extraction of materials
can be regarded as an environmental pressure to
the domestic
environmental system. The
effects associated with resource-intensive
extraction and processing industries are now
diverted to the emerging economic systems or
countries that are dependent on the natural
resources as the main strategies of an outwardoriented economic structure of development
(Giljum, 2004).
Direct Material Input
The direct material input (DMI)
comprises all materials entering the socioeconomic system that are of economic value
and directly used in production and
consumption activities. It is estimated based on
the quantity of domestic extraction together
with the imported materials. Figure 4a shows
the sources of material inputs to Palawans
socio-economic system and figure 4b shows the
DMI in terms of material categories from 2000
to 2012. In 2000, the biomass (0.8 Mt) and
construction minerals (0.6 Mt) had DMI shares

Figure 3. Tr end of domestic extr action in Palawan fr om 2000 to 2012


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M. F. Martinico-Perez and H. Tanikawa/ Our Palawan 1 (1):1-12

(a)

(b)
Figure 4. Dir ect mater ial input: (a) sour ces of mater ial input (b) per mater ial categor y
of 51% and 28%, respectively. The fossil fuel
comprised 10% with 0.15 Mt and construction
minerals had 11% (0.17 Mt).
With the active resource extraction, it
resulted to the change in material composition of
DMI since 2002 where fossil fuels dominated
increasing up to 3 Mt or 38% in 2012. The
construction minerals also increased to catch up
with the requirements of the economy with 1.9
Mt in 2012, while biomass has 1.5 Mt, and
metal ores and industrial minerals had 1.5
Mt. In 2012, the 88% of the domestic material
inputs are extracted from Palawans domestic
environment, while 12% are supplied from the
import of materials (Figure 4b).

Domestic Material Consumption


The domestic material consumption
(DMC) expresses the amount of materials that
physically remained and consumed within
Palawans socio-economic system after all of
the exported materials were deducted. The
domestic environment provides 88% of
material inputs to the socio-economic system
of Palawan, but the majority of these are
exported, with only 45% of material inputs
remained for domestic material consumption.
Figure 5 shows the DMC per material
categories where the total quantity increased
from 1.4 Mt in 2000 to 3.6 Mt in 2012.

Figure 5. Domestic mater ial consumption in Palawan fr om 2000 to 2012


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Table 2. Tr end of domestic mater ial consumption in Palawan


Material Category

2000

2012

Mt

Mt

Biomass

0.73

73

1.41

39

Construction Minerals

0.17

17

1.89

53

Fossil Fuels

0.10

10

0.16

0.13

Metal Ores and Industrial


Minerals
Mt = Million tonnes

The trends in DMC show that biomass


had the highest share of 0.7 Mt (52%) in 2000.
Biomass continued to increase and dominate
the DMC until 2011. In 2012, the construction
minerals was
recorded to be the most
consumed materials in Palawans economy
with 1.9 Mt or 53% while biomass pegged at
1.4 Mt or 39%. While the DE trends show
fossil fuel as the major material extracted
from domestic environment, it is not yet
manifested in the DMC trends of Palawan.
The changing trends of material consumption
in Palawan from 2000 and 2012 is shown in
Table 2. The domestic consumption of construction minerals in Palawan (comprised
mainly by sand and gravel) started to increase
significantly from its 2000 value: by 30% in
2008 to 44% in 2009 and increased further to
53% in 2012. This could be related to the
increasing construction of the private buildings
by 39% from 68,080 sq.m in 2006 to 112,478
sq.m. in 2010. Similarly, the construction of
infrastructures such as commercial buildings
increased from 15,888 sq.m in 2006 to 48,831
sq.m in 2010 (PY 2007, 2012).
The tourist receipts in the province that
increased by 548% from 2000-2012 (PPDO,
2012), could have resulted to the development
of infrastructures such as hotels, resorts and
restaurants to cater the needs of the growing
tourism industry. Similarly, road networks
were also improved from rough roads (gravel
surface) to asphalt and concrete road surface,
thus,
required
abundant
quantity of
construction minerals such as sand and gravel
and cement.
While the development of infrastructure
is tantamount to economic growth, the
consequent
environmental
impacts
of
extracting construction minerals from the
environment should also be taken into
consideration. In Palawan, sand and gravel
quarry operations are usually undertaken along
8

or in the rivers, resulting to the deterioration of


water quality and decrease the rivers beneficial
usage to the communities that would lead to
irreversible damage of river ecosystem
(Martinico-Perez et al., 2014a). Furthermore,
the materials consumed by the socio-economic
system can be interpreted as a waste potential
of the society that entail pressure to the
environment if wastes disposal is not managed
properly (Hashimoto et al., 2007). Moreover,
although the
consumption of biomass is
considered to be less harmful to the
environment than the consumption of
nonrenewable resources (EEA, 2005), the
increase in biomass production, which can be
expected in the future, would exert larger
pressures on biodiversity.
Physical Trade Balance
The physical trade balance (PTB)
expresses whether resource imports to Palawan
exceed resource exports to other economies
and to what extent does the domestic
consumption is dependent on the domestic
resource extraction or from imports. This
indicator shows the significant role of the
province of Palawan in terms of the export of
resources. In general, Palawan serves as net
exporter of natural resources to other socioeconomic systems as the PTB increased from
0.38 Mt in 2000 to 3.45 Mt in 2012, as shown
by the negative value in Figure 6. Fossil fuels
comprise the major export materials in Palawan
that grew from 0.06 Mt in 2000 to 2.83 Mt in
2012 followed by the ores and
industrial
minerals that increased from 0.46 Mt in 2000 to
1.41 Mt in 2012.
It is important to note that the only
category with positive values of PTB, where
the amount of imports is greater than the
amount of exports is the construction minerals.
Thus, more materials under this category are
imported due to its inadequate supply or source
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M. F. Martinico-Perez and H. Tanikawa/ Our Palawan 1 (1):1-12

Figure 6. The physical tr ade balance per mater ial categor y in Palawan fr om 2000 to 2012
in the province. The quantity of import of
construction minerals increased from 0.1 Mt in
2000 to 0.7 Mt in 2012.
Although Palawan is highly dependent
on the imported fossil fuels for domestic
consumption, the quantity of extracted fossil
fuel from the natural gas and oil reserves for
export is far greater, resulting to the negative
PTB for fossil fuels. Similarly, biomass has
negative PTB as contributed mainly by the
export of fishery products. Palawan is among of
the major sources of countrys annual total
fishery production with more than 10% since
2003 (PY, 2005, 2012).
The extracted metal ores are also
exported to outside economies for further
processing to finish products. The increasing
quantity of export materials is significantly
accounted from the increase of on-shore
minerals and offshore fossil fuel extraction
has been active in the province in the last
decade.

The environmental pressure exerted by


the resource dependent economies in a resource
provider economy such as Palawan could be
attributed to the consequent environmental
disturbance in different degree and form
accompanying the process of extraction of the
natural resources.
The developed indicators of EW-MFA
for Palawan is summarized in Table 3. The
DE increased by four folds in twelve years.
There is continuous increase in the material
requirement as the economy and the population
are growing. In 2012, Palawans DMC per
capita was 3.4 kg/capita, lower than that of
Philippines at 3.8 kg/capita in 2010. However,
the growth trend of resource consumption from
2000 to 2010 was higher in Palawan than that
of the Philippines (Martinico-Perez et al.,
2014b).
The indicators of EW-MFA can be
utilized as proxy indicators to quantify the
trends and impacts of the activities in society to
the environment.

Table 3. Indicator s of Economy-wide Material Flow Account in Palawan

Indicator Type
Extraction
Input
Consumption
Balancing

Indicator

Unit

2000

2012

DE

Million tonnes

1.4

7.0

DE/capita

tonnes/capita

1.5

6.7

DMI

Million tonnes

1.6

8.0

DMI/capita

tonnes/capita

1.8

7.6

DMC

Million tonnes

1.1

3.6

DMC/capita

tonnes/capita

1.1

3.4

PTB

Million tonnes

-0.4

-3.5

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4. CONCLUSION AND POLICY IMPLICATION


This research explored the application
of the framework of EW-MFA in the province
of Palawan, Philippines. The method of EWMFA is a suitable and useful tool in
quantifying the material flows in the island
province of Palawan, given the availability of
the statistical data compiled by the local and
national agencies. Palawan serves as resource
provider in terms of biomass, fossil fuels and
metal ores to other socio-economic systems in
the Philippines as well as outside the country as
indicated by 55% of the direct material input
that goes out of the province as export
materials. The quantity of domestic extraction
increased by five folds while the domestic
material consumption increased by four fold in
a 12-year period.
The developed material flow indicators
such as DE, DMI, DMC and PTB are
quantified in order to assess changes in the
pressure exerted by the society and economy
on the environment. Since the environmental
impacts associated with the particular resource
groups
can
differ
significantly,
the
disaggregation of these indicators in terms of
four material categories provides information
as to whether the socio-economic system of
Palawan is dependent on the renewable
(biomass) or nonrenewable such as fossil fuels,
construction minerals (Figure 7), metal ores

and industrial mineral resources. This research


showed the shift in domestic material consumption in Palawan from biomass (73% in 2000) to
construction minerals (53% in 2012). The DMC
trend can be interpreted as a waste potential of
the society that entail pressure to the
environment if not managed properly.
The PTB shows the balance of these
environmental pressure shifts, where the
negative value shows that other regions at
given spatial unit exert pressure to Palawan
through the demand and trade of materials from
natural environment. The DE can be interpreted
as the environmental pressure due to the
extraction of materials. With respect to the DE
of biomass, the environmental pressures induced
by biomass production are loss of biodiversity
and CO2 emissions associated with land use
changes. The consumption of biomass is
considered to be less harmful to the
environment
than the
consumption
of
nonrenewable resources (EEA, 2005). However,
the
increase
in
the
biomass
production, which can be expected in the
future, would exert larger pressures on
biodiversity. In mining of fossil fuels, metal
ores and extraction of nonmetallic minerals, the
most visible impact in the province of Palawan
are the structural landscape changes and loss of
biodiversity.

Figure 7. The Ibat-ong River in Quezon, Palawan. Aside from water, rivers are important source
of construction minerals such as rocks, sand and gravel. (Jenevieve Hara)
10

2015 Palawan Council for Sustainable Development

M. F. Martinico-Perez and H. Tanikawa/ Our Palawan 1 (1):1-12

In the midst of the current demand on


natural resources, the efforts for conservation
of natural resources and economic growth, it
is important to put into consideration the past
and current natural resource accounts and
consumption of Palawan. The volume of
extracted natural resources should be translated
into financial profits towards inclusive
economic growth in Palawan.
Furthermore, the developed indicators
of EW-MFA in Palawan are in line with the
United Nations Commission on Sustainable
Developments
revised
indicators
of
sustainable development (UN, 2007) under the
material consumption and production patterns
theme. This study provides trends of the
physical metabolism in Palawan that will
be useful towards improving efficiency to
maximize the
productivity in the utilization
of
nonrenewable
resources.
It
also
complements the implementation of RA 7611
by providing appropriate information and
sound basis in the evaluation of resource
management policies and future development
strategies that would conserve natural resources
and lessen the adverse environmental effect due
to the primary extraction, processing and
utilization. It is a pioneering job to initiate sub
-national database of EW-MFA indicators in
the province of Palawan.
Acronyms:

Notes

DE
= Domestic Extraction
DMI = Direct Material Input
DMC = Domestic Material
Consumption
PTB = Physical Trade Balance
One tonne (t) = 103 kilogram (kg, SI)
1.102 short tons

ACKNOWLEDGMENT

This research was financially supported by


the Environment Research and Technology
Development Fund (S-6-4, 1-1402, 2-1404) of
the Ministry of Environment, Japan. Gratitude
is also extended to the PCSDS, PPDO of
Province of Palawan and PPA Puerto Princesa
City for sharing the important data to complete
this research.

2015 Palawan Council for Sustainable Development

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