10 by erosion occurrence if the resources are not available. For instance,
forests prevent the floods by permeating water, while coral reef serves as coastal prop from wave. In this case, potential expense obviated can be
considered the accepted benefit. Two main procedures in valuation environmental expense and benefit
are: 1.
Determining physical impacts and their relation, 2.
Valuing the benefits and affects in term of monetary.
The first step is to determine the potential impact that may happen to natural if there is ‘accident’ environmental. This procedure is usually
done by the experts of engineering and ecology. Meanwhile, the second step is performed by using economic analysis approach which repeatedly
requires the proficiency of discounting cost and benefits for the future.
2.3. Economic valuation of natural Resources
Economic assessment is not representing independent ethics assessment, like the following statement:
“Appropriate value for natural resources given for variety conservation is possibly pushed by caring of moral or ethics. For example, it is pushed
by interest of others prosperity or other species. Caring moral and ethic are, like feeling and choice could be translated as desire to protect the
biological variety ” Perrings Et al 1996 pp 829.
In comprehending natural value and environmental function, economic experts have developed the taxonomy from what called a Total Economic
11 Value NET. NET is divided into two parts, those are the assessment to
utility and the one to the non-use value passive use.
Equation 1: Total Environmental and Economic Value
Use Value Passive or Non-use value TEV
= F DUV, IUV, OV, QOV + BV, EV TV
= GPV + TEV Non-anthropocentric
Instrumental value Where :
TV = Total Environmental Value
TEV = Total Economic Value
DUV = Direct use Value
IUV = Indirect Use Value
OV = Option Value
QOV = Quasi Option Value
BV = Bequest Value
PV = Primary Value
EV = Existence Value
sources: Perrings et. al., 1996 pp 830
12 2.4.
Modeling
In Order to support the basic strategy compilation of Indonesian economic policy position on marine and fishery areas in the frame of
system of multilateral commerce – WTO, it is required simulation and model functioned as sub-system models from economic model or
Indonesian economic development. The model approach to be developed in this study is conducted with the
pattern of model development based on computer modeling, from simple to the complex to support and be used as instrument tools in policy
analysis especially at basic strategy policy of Indonesian economic politic position of marine and fishery areas, by calculating and analyzing the
policy mainly related closely to mathematic programming. Prediction tendency and other instruments are linked to Analysis Instrument System.
Definition of the model refers to the definition that the model is a simplification of the real situation found in the real world. The real and
complex events in the real life could be defined as a tern of event. In this case, each definition in the real life is selected into procedure mechanisms
in an operation from a system where those mechanisms are parts of the model.
Model is implemented to accomplish the complex problems of the system that develop simplification and comparison from the real situation.
The pattern of modeling approach in this study is performed with the approach pattern of Dynamic System Model or “Dynamic Modeling
System “, in which this dynamic system represents the methodologies
13 responding a complex system to solve the economic, ecology and social
problems .
14
III. RESEARCH METHODOLOGY
