107 75 and 100 of what they were taking currently. The value of their willingness to
reduce consumption was then calculated by using household data of how much is currently taken from the Bengkar forest multiplied by the percentage that they are
willing to give up. The data were then converted to the village averages and then to an overall average for the three villages.
4.6.8 Existence Value
Existence value was estimated by questioning respondents about their preference of how their forest would be managed and used as either a plantation area, a forest
concession, or for coal mining. The definition of each land use was explained. For example, the plantation area was defined as completely converting their forest areas into
one or two kinds of agricultural plants such as oil palm trees, cocoa trees andor rubber trees. The timber concession area was defined as the area from which the company
would harvest the logs with reforestations. The mining area was defined as completely converting the forest areas into gold or coal mining that would involve digging large
holes in the ground. The following additional information was added: the people from the three villages can work in the company; the profit of every land use was briefly
explained; and the environmental consequences were explained as well. Benefit transfer data was used for these three choices as the values per hectare
unit close to the research locations have already been established. The value of each land use includes investment costs, operation costs, and first-year profit. Benefit transfer
estimates and functions from these nearby locations were used for the research sites. The choice that the respondent selected was used to calculate the average village existence
value. These averages were used to arrive at an average for the three villages.
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4.6.9 Benefit Transfer Data for Non-Use Value
Benefit transfer data used for existence value estimation were taken from two different sources. First, data of total economic value for concession companies were
taken from Bogor Agriculture University 1999 data collected in the Central Kalimantan Province. The reported total economic value for forest concession area is 119,716,504
rupiahs per hectare per year U.S. 13,301 per hectare per year. The second set of data is total economic value for a plantation company from
Mangunsong 2000. Mangunsong 2000 data came from a palm oil plantation and included financial, environmental, and social costs. Using a 28-year period and a 15
percent interest rate, the total economic value for financial costs is U.S. 5,191.5 per hectare per year. Environmental cost and social cost gave a negative total economic
value of U.S. 5,795 per hectare per year
4.7 Indirect Use Value and Non-Use Value Results
