Thursday, September 30, Department of Economics, Faculty of Economics and Business, Universitas Airlangga held a guest lecture with the topic "Watershed Conservation" with the title "Payment for Environment Services: Willingness to Pay for Watershed Preservation" . The guest lecture is part of the series of Guest Lecture Series in the Inbound Staff the Department of Economics, FEB UNAIR by presenting a speaker who is a professor from the Department of Economics, Ateneo de Manila University , Rosalina Palanca-Tan, PhD. The speaker presented his research online via Zoom Meeting with the title of the research "Payment for Environmental Services (PES) The Case of the Cagayan de Oro River Basin Mindanao, Philippines".

Material presentation session by Dr. Rosalina Palanca-Tan, PhD, at a Guest Lecture at the Department of Economics, FEB UNAIR

on September 30 2021. (Photo: SS Zoom).

In the presentation session, Prof. Roalina Palanca-Tan also emphasized that, "Most participants are familiar with the term Payment for Environmental Services (PES), which is a scheme to produce financial resources to fund and appreciate initiatives to restore and preserve the ecosystem".

Apart from that, the object of the research is to estimate the economic value that comes from all the benefits that can be obtained from a sustainable aquatic environment. Specifically, the research location according to these conditions is in the Cagayan de Oro River Basin.

"This research is focused on stakeholder group , a household group that lives around the Cagayan River, more precisely in Cagayan de Oro City," said Prof. Rosalina.

Further explanation regarding the importance of calculating profit estimates was also explained by Prof. Rosalina. The reason is because this estimate will be the basis for the amount of funds that can be paid in the PES scheme. In real terms, it can be seen from the lives of residents around the downstream river who get several benefits from existing natural resources such as food supply (fish), flood control, stable clean water supply, recreational activities (white water rafting and others), fresh air. due to carbon absorption by forests, as well as biodiversity.

There is a technique in this research that uses individual respondents' statements or opinions regarding their choice of a set of options. This technique is the Contingent Valuation Method (CVM) which is used to calculate estimated profits.

Prof. Rosalina explained that, "CVM is a non-market . In the economy, if we want to know the benefits derived from goods or services, then we must look at the market. Because, in the market every item has a market price. For that reason, a non-market to measure its benefits."

"By directly asking Willingness to Pay , various types of profits obtained can be classified as use values ​​and non-use values ," explained Prof. Rosalina. This can make it easier to calculate the estimated benefits obtained by residents from the surrounding ecosystem so that the amount of funds that should be provided to keep the environment beautiful can be determined.