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Economy-wide Material Flow Accounts (EW-MFA) of Palawan,Philippines from 2000 to 2012

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  • 2015 Palawan Council for Sustainable Development 1

    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

    Abstract

    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 thedomestic socio-economic system while 55% are exported in terms of biomass, fossil fuels and metal ores to othersocio-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 revisedindicators 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 topromote efficiency in the utilization of raw materials to lessen the adverse environmental threats due to the primary extraction, processing and utilization of natural resources.

    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

    Keywords:

    domestic extraction material flow material consumption economywide material flow analysis Palawan

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

    1Project Development Officer/ECAN Policy, Monitoring and Knowledge Management, PCSDS 2Graduate 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: [email protected]

  • 2 2015 Palawan Council for Sustainable Development

    1. INTRODUCTION

    Raw materials are continuously beingtaken 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

    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

    Exchang e w ith o ther econom ies Exchang e w ith environm ent

    Inp ut Econom y Outp ut

    M ateria ls d om estica lly extracted

    Exp ort to o ther econom ies

    M ateria l Accum u lation

    A ir em issions, water, d isp osal, etc.

    Inp u t f rom other econom ies

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

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

  • 2015 Palawan Council for Sustainable Development 3!

    (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 economy"wide 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 emergingenvironmental 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

    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 orUnderground 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

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

  • 4 2015 Palawan Council for Sustainable Development

    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 economicdevelopment. 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. METHODOLOGYSources 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 isexpressed 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 PortsAuthority in Puerto Princesa City. Estimation of Indicators of EW-MFA

    To understand and quantify theexchange of materials from the environment to socio-economic system and vice versa, the

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

    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 coal, oil, natural gas, and others

    Philippine Yearbooks

    Metal Ores andIndustrial Minerals

    Precious metals and base metals ores, industrial mineral, and others

    Philippine Statistical Yearbooks Philippine Yearbooks

    Construction Minerals Sand and gravel, and others Philippine Statistical Yearbooks Philippine Yearbooks

    Table 1. The four major mater ial categor ies and data sources of EW-MFA

  • 2015 Palawan Council for Sustainable Development 5

    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

    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 thesematerials 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)

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

    Figure 2. The Palawans terrestrial environment showing the Tamlang Catchment, Brookes Point Palawan. (PCSDS)

  • 6 2015 Palawan Council for Sustainable Development

    3. RESULTS AND DISCUSSIONDomestic 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 agricul-ture, 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

    Figure 3. Trend of domestic extraction in Palawan from 2000 to 2012

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

    year starting 2003 (2012 Annual AuditReport, 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-intensiveextraction and processing industries are now diverted to the emerging economic systems or countries that are dependent on the naturalresources as the main strategies of an outward-oriented economic structure of development (Giljum, 2004). Direct Material Input

    The direct material input (DMI) comprises all materials entering the socio-economic system that are of economic value and directly used in production andconsumption 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

  • 2015 Palawan Council for Sustainable Development 7

    (a)

    Figure 4. Direct mater ial input: (a) sources of mater ial input (b) per mater ial category

    (b)

    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).

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

    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 materialcategories 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 from 2000 to 2012

  • 8! 2015 Palawan Council for Sustainable Development

    Table 2. Trend of domestic mater ial consumption in Palawan!

    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 con-struction 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 theincreasing 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

    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! 4!Metal Ores and Industrial Minerals! 0! 0! 0.13! 4!

    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 domesticconsumption 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 socio"economic 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 industrialminerals 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

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

    Mt = Million tonnes!

  • 2015 Palawan Council for Sustainable Development 9

    Figure 6. The physical trade balance per mater ial category in Palawan from 2000 to 2012

    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. Indicators of Economy-wide Material Flow Account in Palawan

    Indicator Type Indicator Unit 2000 2012

    Extraction DE Million tonnes 1.4 7.0 DE/capita tonnes/capita 1.5 6.7

    Input DMI Million tonnes 1.6 8.0 DMI/capita tonnes/capita 1.8 7.6

    Consumption DMC Million tonnes 1.1 3.6 DMC/capita tonnes/capita 1.1 3.4

    Balancing PTB Million tonnes -0.4 -3.5

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

    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.

  • 10 2015 Palawan Council for Sustainable Development

    This research explored the application of the framework of EW-MFA in the province of Palawan, Philippines. The method of EW-MFA 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

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

    4. CONCLUSION AND POLICY IMPLICATION

    and industrial mineral resources. This research showed the shift in domestic material consump-tion 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 theseenvironmental 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 onbiodiversity. 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)

  • 2015 Palawan Council for Sustainable Development 11!

    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:!DE ! = Domestic Extraction!DMI! = Direct Material Input!DMC! = Domestic Material !Consumption!PTB! = Physical Trade Balance!

    Notes!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. !

    REFERENCES!Adriaanse, A., Bringezu, S., Hammond, A.,

    Moriguchi, Y., Rodenburg, E., Rogich, D., and Schutz, H. 1997. Resource Flows: The Material Basic of IndustrialEconomies. World Resource Institute.!

    Bringezu, S., Schutz, H., and Moll, S. 2003. Rationale for the Interpretation of Economy"wide Materials Flow Analysis and Derived Indicators. Journal of Industrial Ecology. 43 64. !

    Economic Situationer with RDP. 2012. Region IVB. Accessed at http://mimaropa.neda.gov.ph/?page_id=669 on March 2014. !

    Eurostat. 2001. Economy"wide Material Flow Accounts and Derived Indicators: A Methodological Guide. Luxembourg.R

    Eurostat. 2009. Economy"wide Material Flow Accounts and Derived Indicators: A Methodological Guide. Luxembourg.!

    Eurostat. 2012. Economy"wide Material Flow Accounts (EW"MFA), Compilation Guide. Luxembourg.!

    European Environment Agency. 2005. The European environment State andOutlook 2005. Copenhagen.!

    Gierlinger, S., and Krausmann, F. 2012. The Physical Economy of the United States of America. Journal of Industrial Ecology 16(3): 365377.!

    Giljum, S., Dittrich, M., Bringezu, S., Polzin, C., and Lutter S. 2010. Resource Use andResource Productivity in Asia. Trends Over the Past 25 Years. SERI Working Paper No 11. Sustainable EuropeResearch Institute (SERI). Vienna,Austria. !

    Giljum, S. 2004. Trade, material flows and economic development in the South: The example of Chile. Journal of Industrial Ecology 8(1"2): 241"261.R

    Hashimoto, S., Tanikawa, H., and Moriguchi, Y. 2007. Where will large amounts of materials accumulated within economy go? A material flow analysis of construction minerals for Japan. Waste Management 27: 1725"1738. !

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