DEFORESTATION AS AN ENVIRONMENTAL-ECONOMIC

PROBLEM IN THE PHILIPPINES

Abstract

The purpose of this paper is to outline a theoretical approach for the determination
of a socially optimal use of forested land resources in the Philippine uplands. Allocation ofland
to different land uses is not optimal because of existing institutional, informational, and market
failures. Cultivation of upland areas has caused increasing and continuous degradation of
soils, and consequent adverse effects in the lowlands. These impacts are not internalized in a
farmer's decision making, especially under uncertain land tenure. A dynamic model of social
and private optimization of land use concentrates on the issues of property rights,
heterogeneity of land in terms of accessibility, the level of adoption of soil conservation
measures, and environmental externalities.

Introduction

Deforestation in forest reserves which is mainly driven by socio-economic factors

is considered as one of the key issues of the sustainable use and management of biodiversity.
Deforestation is defined by as the cutting down and removal of all or most of the
trees in aforested area. Deforestation results from removal of trees without sufficient
reforestation thisprocess alters the hydrologic cycle, altering the amount of water in the soil
and groundwater andthe moisture in the atmosphere. Deforestation can erode soils,
contribute to desertification andthe pollution of waterways, and decrease
biodiversity through the destruction of habitat.Deforestation is considered to be a
main contributor to the greenhouse effect.

From a tropical country's point of view, deforestation has two faces: socially
desirable conversion of forest, and excess deforestation. The former concept could rather be
called development than deforestation. From a social point of view, land is not in its best use
under forest cover economically, if an alternative land use brought more benefits to the society.
Alternatively, excess deforestation yields net costs to the society as a whole. The best use is
here simply defined as one which has the highest economic net return over time. Economic
return consists of the financial return accruing to a resource user, and of the environmental
goods and services benefiting the society. Income distribution effects are neglected here. A
national rather than a global viewpoint is chosen here for two interlinked reasons. First,
conservation is on a steadier basis if it is in the country's own interest, notwithstanding
international transfers. Second, the discussion here focuses rather on secondary than primary
forests, which are of lesser international interest, and consequently often outside transfer
schemes. The purpose of this paper is to outline a theoretical approach for the determination
of a socially optimal use of forested land resources in the Philippine uplands. The paper
considers two land uses, agriculture and conservation. It is assumed that because of
institutional and market failures, the rate of conversion of forested land to agricultural use
under private management is not at a socially optimal level. The socially optimal land use is
compared to the privately optimal use of forested land. It should be noted that theoretically, it
could be socially optimal to deplete forests. Therefore, optimality should not be placed abreast
with sustain ability, which generally assumes certain ecological as well as economic conditions
to prevail over time. Subject to the theme of this volume, this paper aims at contributing to the
discussion of the economic conditions of sustainability in the use of tropical forests by giving a
theoretical presentation of the economic reasons behind deforestation.

Literature Review

The Philippine forest resources have been depleted from the initial 90 % to 20 %
of the total land area, which has caused well-documented environmental and economic losses
(Corpuz 1984, David and Collesto 1989, David and Collado 1989, Hodgson and Dixon 1988,
World Bank 1989, Kummer 1992a, Saastamoinen 1992, Uitamo 1996 - in this volume). When
man-induced deforestation takes place, it is in some agent's economic interest. There is a
growing literature on the underlying socioeconomic causes of deforestation ranging from site-
specific case-studies to holistic global models (Kummer 1992b). This article focuses on the
agents that have a direct impact on forest land use. In the 1960s and 1970s, degradation of
forest resources and conversion of forest land proceeded at a rate even higher than today. The
main agents were forest industries, forest farmers, and land speculators (Basa and Dalangin
1991, Boado 1988, Tolentino 1991, Kummer 1992b). The awakening of environmental
consciousness in the late 1970s induced the government to impose several policies to promote
the conservation of forest resources. Reforestation programs begun in the late 1970s obliged
both the citizens and industry to plant trees. The high expectations and goals have not been
met due to technical, financial, and managerial problems (Boado 1988). Despite the efforts to
protect forests from exploitation, the forest area has continued to decline. In the 1980s, a ban
on logging in many provinces, the relative inaccessibility of remaining forest land, and the
controllability of loggers through regulation reduced the degradation and deforestation of land
through logging (Cruz and Cruz 1990). Agricultural expansion is still a prominent factor in
deforestation, though land speculation and pernicious settlement policies have been
abandoned. (e.g., Baconguis 1992). Firstly, the environmental degradation resulting from
conversion of forest

Methods

What methods are used?

Slash and Burn Agriculture

Slash and burn agriculture is the main method of clearing trees for small farmers and
plantation owners in the tropics. This is because it is the only way to efficiently remove
unwanted plants, trees and organisms that rest in the desired land. The burning usually
happens in the burning season from June to October. During this period, 20% of the fires in the
world can be attributed to deforestation. The trees are cut down and then later burned in order
to release the minerals in the trees back into the soil. Their minerals are needed in the soil
because the soil in the tropics is very poor and nutrient deficient. However, the nutrients in the
soil after the first burn only last for a few years, due to the rain washing them away and their
use for agriculture. This can happen anywhere between 3 and 20 years after the tree is
removed. At this time, in order for the farmer to keep turning a profit, he will need to clear a
new section of land and start over again.
Clear Cutting

Clear-cutting a forest is removing all the trees and vegetation, regardless of species, leaving
the land completely bare. Because nothing is left on the land, scientists have no idea how long
it takes for the forest to recover. Clear-cutting is a method used both to clear the land and
harvest trees for commercial logging purposes. Clear-cutting is the most destructive of
methods because nothing is left but the soil, which is not even replenished by a burn.

Selective Logging

In selective logging, only certain trees are chosen to be cut down. Research shows that during
selective logging, only about 3% of the trees are harvested. However in the process of
harvesting that 3%, about 49% of the trees are damaged. The period of time it takes for
vegetation to grow back in selective logging is relatively short, 50 years. This is because there
are patches of tree left to disperse seeds and protect and shade sapling from the sun.

Perennial Shade Agriculture

Perennial shade agriculture, like selective logging, leaves large areas of forests intact, so the
period of regrowth is also relatively short. Only small areas of trees and vegetation are
removed in order to leave satisfactory shade for the crops. This method of deforestation is
employed by farmers of crops such as coffee and chocolate, which need the shade of large
canopy trees. Recurring shade for agriculture has one of the fastest recovery periods of a
process of destruction.

Conclusion

Thus, deforestation is an important issue to be discussed. It has adverse effects on

each living beings' life. Deforestation has become a huge concern in today's life as there has
been a rise in the decline of forests. Trees are cut down in order to manufacture paper
products as well as for livestock farming and so on.
In order to feed the ever increasing population of the Earth, trees and forests are converted to
farm lands. This has become a threat to the world and it has been seen that rates of decline in
the forests are increasing at a rapid rate. This has led the planet to warm up and leading to
high temperatures. This cycle would continue for the following years to come unless necessary
steps are taken to prevent deforestation. Deforestation has caused fewer trees to grow. It has
also gone a long way in eliminating valuable ecosystems in the planet.

If major steps towards afforestation are not taken, then even the great adaptability of human
beings may not be enough to cope up with the harsh climate of the future. Deforestation does
have solutions. It's just that the people must step forward. The safe keeping of our precious
planet lies with each and every member of its human population. We are the ones accountable
for our actions even though it is ourselves we are accountable too.

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