98 perceptions of their forest. Non-use value can be estimated by travel cost value, hedonic
value or contingent valuation methods McCracken and Abaza, 2000. The existence value is a value placed on the forest area or natural resource area
that is related to any actual or potential use of the good. Examples of goods include timber, wild life, and water management McCracken and Abaza, 2000. The existence
value will express the people’s preferences regarding their natural resources in the future, considering their condition at the current time.
The research of the Benuaq Dayak was conducted in the West Kutai District in East Kalimantan Province, Indonesia. Three Benuaq Dayak villages—Tepulang, Benung and
Dingin—were used as the research area because of the homogeneity of their ethnicity, their traditional customs and the richness of their natural resources. The data was
collected using questionnaires.
4.3 Research Objectives
The objective of this chapter is to estimate the indirect use value and the non-use value of the Benuaq Dayak sustainable forest management using total economic value
concepts. The results of both of the two values will be used to estimate the tribe’s total economic value and will be applied as the sustainable forest management conducted by
indigenous tribes in Indonesia. The specific objectives of this chapter are to: 1. Identify and quantify the indirect use value of Benuaq Dayak forest management.
2. Identify and analyze the Benuaq Dayak’s perceptions of the forest resource as a basis to calculate the existence value.
3. Identify, analyze and estimate their willingness to pay transportation costs and their willingness to reduce natural resource consumption as a way to calculate option values.
99 4
.
Use the indirect use value, existence values and option values as part of the component for estimating the total economic value for Benuaq Dayak natural resource
management methods.
4.4 Theoretical Framework for Indirect Use Values and Non-Use Values
Total economic value consists of direct use values and indirect use values. Non- use value includes existence value, option value, bequest value, altruistic value, and the
value of ecological services McCracken and Abaza 2000. Indirect use values and non-use values in this research were estimated using a
survey-based approach employing contingent valuation, travel cost, and replacement cost techniques. The contingent valuation model CVM is a direct valuation method, which
involves asking respondents what they would be willing to pay for a benefit, andor what they are willing to receive by way of compensation to tolerate the cost. The objective of
CVM in this setting elicits personal valuations of increases or decreases in the quantity of some environmental goods McCracken and Abaza 2000. CVM was used to reveal the
willingness of the respondents to sacrifice current forest product consumption in order to conserve the forest for their future generations. The respondents are members of the
Benuaq Dayak tribe. The data collected were used to express the Benuaq Dayak bequest values and
existence values. CVM was used to estimate the bequest value component of non-use value because it has been used successfully to evaluate the economic benefits of wetlands
for both use and non-use values Stevens, et.al. 1995. Further, Bateman and Turner 1993 reported that CVM has the potential for application to a wider range of
environmental goods than any of the other monetary valuation techniques.
100 The travel cost technique TCT is an indirect valuation method which uses
observed expenditures on the travel to recreational sites to estimate the benefit resulting from the money and time spent by people in getting to a site and to estimate their
willingness to pay for the site’s facilities or characteristics McCracken and Abaza 2000. TCT was applied to estimate the willingness to pay for transportation costs among the
Benuaq Dayak in order to conserve their forests. This data was used to estimate option values of the Benuaq Dayak.
The replacement cost technique RCT is an indirect valuation technique, which examines the cost of replacing or restoring a damaged asset to its original state, and uses
this as a measure of the benefit of restoration McCracken and Abaza 2000. The RCT was used to identify Benuaq Dayak forest management preferences relative to
agricultural plantation or timber concession land uses.
4.5 Research Hypotheses
