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Nobu Fuwa, IRRI and Chiba University Asa Sajise, University of the Philippines, Los Baños

Exploring Environmental Service Incentive Policy Options in the Rice Sector: a Philippine Case Study. Nobu Fuwa, IRRI and Chiba University Asa Sajise, University of the Philippines, Los Baños. Background: Externalities from rice production in rich and poor countries.

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Nobu Fuwa, IRRI and Chiba University Asa Sajise, University of the Philippines, Los Baños

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  1. Exploring Environmental Service Incentive Policy Options in the Rice Sector: a Philippine Case Study Nobu Fuwa, IRRI and Chiba University Asa Sajise, University of the Philippines, Los Baños

  2. Background: Externalities from rice production in rich and poor countries • Environmental agenda in the Philippines deforestation, coastal/marine ecosystems, etc. (but not rice sector) • Discussion of Rice sector externalities: a dichotomy • Japan, Korea, etc: mainly positive environmental services (flood control, landscape, etc.), declining population in rural areas • Developing countries: negative externalities (chemical use, water use, upland cultivation, etc.); population pressure, increasing sense of water scarcity

  3. Externalities of rice production • Positive: • flood control • soil erosion control, soil purification • biodiversity conservation by paddy field • air purification • water recharge • landscape • Negative: • unsustainable land use on marginal land • pesticides and fertilizer use • methane gas emission. • ground water depletion

  4. Components of the Proposed study • Comprehensive valuation of net externalities from rice production needed  benefit transfer approach (based on existing studies) • Exploring possible/alternative policy instruments for environmental service incentives (policy simulation?)

  5. Components of the Proposed study (cont’d) • Exploring potential linkages between environmental service incentive vs. poverty reduction goals: trade-off or ‘win-win’? maybe trade-off?? • Rural poor = landless & tenants • irrigated lowland = most wealthy areas • relationship among: Land productivity vs. ES provision vs. wealth distribution?? • IRRI’s socioeconomic data

  6. challenges? • Valuation (synthesis of existing studies) • Location specificity of the nature and the magnitude of environmental services vs. lack of local-level data • Policy discussions: • Existing policy interventions: input subsidy, commodity price policies, etc. • Uncertainty for policy makers? • Water scarcity, etc.?

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