Economic valuation of the ecosystem of the high Andean hydrographic basin tributary of the Chumbao River, through multicriteria analysis

Barrial-Lujan, A. I.; Rodríguez, G.; Huamán-Carrión, M. L.; Espinoza-Montes, F.; Barrial-Acosta, D.; Delgado Laime, M. C.; Arevalo-Quijano, J. C.; Castro-Paniagua, W. G.; Barrial-Lujan, C.; Reynoso-Canicani, D. D.

doi:10.1590/1519-6984.277697

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Original Article • Braz. J. Biol. 83 • 2023 • https://doi.org/10.1590/1519-6984.277697 linkcopy

Economic valuation of the ecosystem of the high Andean hydrographic basin tributary of the Chumbao River, through multicriteria analysis

Valoração econômica do ecossistema da bacia hidrográfica do alto andino (afluente do rio Chumbao) a partir de análise multicritério

Authorship SCIMAGO INSTITUTIONS RANKINGS

Abstract

Environmental wealth is the main basis of the social, cultural and economic development of a country, but if there is an absence of the valuation of these natural resources, it can lead to a disproportionate usufruct that causes the deterioration of the ecosystem and even collateral effects of human health. This research aimed to know the total economic value of the ecosystem of the high Andean water basin tributary of the Chumbao River, located between 2000 to 4800 meters above sea level belonging to the province of Andahuaylas, Apurimac region in Perú. The valuation procedure consisted of using the analytical method of multicriteria valuation applying the concept of Total Economic Value, which involved direct and indirect uses related to environmental assets, in which a collective panel of people from different training disciplines (experts) participated, which were made up of researchers, engineers, public officials, farmers and ecologists who had extensive knowledge about the environmental asset. of the geographical area in reference; and once the paired comparison survey was done, the total economic value was quantified up to three amounts, so the respondents were formed into three statistically significant segments (SIG<0.05). The cluster (1): assigned a weighting that quantifies to an economic value of USS 4,359,179,489.46; followed by cluster (2): an intermediate value of USS 4,029,902,444.41 and cluster (3): assigned a lower value to USS 774,163,167.16. Thus, it follows that, on average, 51.78% equals value in use and 48.21% equals value in non-use, respectively. This value expressed as an interval reflects the environmental ethical positions of the groups and makes available as an indicator to government authorities and society in order to exercise actions of environmental sustainability high andean.

Keywords: environmental assets; discount rate; hierarchical analysis; paired comparison; ecosystem valuation

Number of respondents	Participating institutions
5	Sub-regional Agrarian Directorate of Andahuaylas
3	Sub Regional Production Directorate of Andahuaylas
3	Chamber of Commerce, Industry and Tourism of Andahuaylas
3	Foreign Trade and Tourism Directorate of Andahuaylas
4	Workers of the District Municipality of San Jerónimo (directorate of local district economic development)
8	Workers of the municipality of Andahuaylas (district local economic development office and environment office)
4	Workers of the District Municipality of Talavera (district office for local economic development)
4	Workers of the Local Water Authority – Andahuaylas zonal office
5	Higher Technical Productive Institute Apurímac
3	Biologist, researcher and teacher at the José María Arguedas National University
3	Microbiologist, researcher and teacher at the José María Arguedas National University with academic headquarters in Andahuaylas
3	Agroindustrial Engineer, researcher and teacher at the José María Arguedas National University with academic headquarters in Andahuaylas
2	Engineer in Food Industries and professor at the José María Arguedas National University with academic headquarters in Andahuaylas
5	Agronomist, researcher and teacher at the Technological University of the Andes with academic headquarters in Andahuaylas
5	Environmental Engineer and Natural Resources from the Technological University of the Andes with academic headquarters in Andahuaylas
5	Farmers from the community of Lliupapuquio
5	Farmers from the community town center of Chumbao
5	Farmers from the community of Chihuampata

Intensity of importance	Definition
1	Equal importance
3	Moderate importance
5	Strong importance
7	Very strong demonstrated importance
9	Extreme importance
2,4,6,8	Comparison between the above values

Abbreviations	Criteria Values	Description
DUV	Direct Use Value	It represents the benefits produced by natural assets either as materials for production processes or as goods.
IUV	Indirect Use Value	Value of goods and services that are necessary to obtain direct use value and are not detected by the market.
OV	Option/quasi-option	Value of the asset with unknown functions or that is conditioned to possible future uses
EV	Existence Value	Value of the asset by allowing the conservation of the resource, such as flora or fauna or cultural values, landscapes, etc.
BV	Bequest Value	It is the value of the environmental asset to bequeath the benefits to future generations.

N°	DUV	IUV	OV	EV	BV	CR (%)	CL	N°	DUV	IUV	OV	EV	BV	CR (%)	CL
1	0.0567	0.1556	0.0733	0.2908	0.4237	9.36^*	1	39	0.5081	0.2368	0.0629	0.0461	0.1461	7.84*	3
2	0.1574	0.2689	0.1004	0.4219	0.0514	8.11*	2	40	0.0519	0.0796	0.1599	0.2016	0.5070	8.89*	1
3	0.4578	0.2559	0.0830	0.1621	0.0413	6.30*	3	41	0.4348	0.3378	0.1251	0.0599	0.0423	8.44*	3
4	0.1613	0.0353	0.0942	0.4553	0.2539	7.32*	2	42	0.1546	0.1696	0.0607	0.1990	0.4162	1.80*	1
5	0.1922	0.6083	0.0855	0.0614	0.0527	9.87*	3	43	0.0396	0.2141	0.0740	0.4956	0.1766	8.99*	2
6	0.5273	0.2617	0.0386	0.1243	0.0480	6.62*	3	44	0.0554	0.0865	0.1850	0.1417	0.5315	9.48*	1
7	0.5364	0.0351	0.1364	0.2309	0.0613	8.67*	3	45	0.5805	0.1853	0.0469	0.1142	0.0732	9.92*	3
8	0.1053	0.0546	0.0894	0.4728	0.2779	5.95*	2	46	0.4188	0.1616	0.0701	0.1821	0.1674	11.36^**	-
9	0.4358	0.2671	0.0463	0.1601	0.0907	7.10*	3	47	0.4294	0.3487	0.1211	0.0649	0.0359	8.74*	3
10	0.1600	0.4384	0.2775	0.0696	0.0544	5.76*	3	48	0.0441	0.1557	0.1924	0.4924	0.1154	15.96**	-
11	0.1002	0.4921	0.2917	0.0662	0.0499	8.62*	3	49	0.4315	0.2327	0.1502	0.0860	0.0996	11.98**	-
12	0.4233	0.3450	0.1164	0.0672	0.0482	8.42*	3	50	0.5114	0.2576	0.1225	0.0617	0.0468	4.46*	3
13	0.3253	0.2845	0.0572	0.1159	0.2171	7.35*	3	51	0.4649	0.2770	0.1259	0.0696	0.0625	7.06*	3
14	0.0543	0.0873	0.0407	0.5877	0.2300	9.72*	2	52	0.5203	0.2319	0.0786	0.1335	0.0357	5.65*	3
15	0.3778	0.0621	0.1410	0.0959	0.3231	7.79*	3	53	0.4397	0.0898	0.2583	0.1643	0.0479	9.64*	3
16	0.1279	0.0817	0.4667	0.0544	0.2693	9.58*	1	54	0.5489	0.0338	0.0983	0.2207	0.0983	6.24*	3
17	0.0354	0.0945	0.1259	0.2850	0.4593	8.85*	1	55	0.4010	0.3041	0.0460	0.1726	0.0763	8.70*	3
18	0.0448	0.0615	0.3263	0.3254	0.2419	8.17*	1	56	0.3812	0.3198	0.1548	0.0925	0.0517	7.01*	3
19	0.1470	0.0506	0.0937	0.2417	0.4670	5.84*	1	57	0.1263	0.4187	0.2649	0.0966	0.0935	8.54*	3
20	0.4295	0.2959	0.1480	0.0409	0.0857	8.50*	3	58	0.1014	0.4172	0.3872	0.0524	0.0418	6.63*	3
21	0.3889	0.3121	0.1344	0.1105	0.0540	4.28*	3	59	0.4013	0.3054	0.0602	0.1452	0.0880	23.20**	-
22	0.2166	0.4358	0.0352	0.2201	0.0923	8.50*	3	60	0.0425	0.1329	0.4375	0.2899	0.0971	5.53*	1
23	0.2469	0.4357	0.1524	0.0642	0.1008	7.93*	3	61	0.4292	0.0469	0.2212	0.0903	0.2123	9.87*	3
24	0.0840	0.1444	0.4427	0.2839	0.0450	8.16*	1	62	0.1393	0.0919	0.4324	0.0528	0.2836	9.67*	1
25	0.0398	0.0792	0.2598	0.1361	0.4852	9.30*	1	63	0.0387	0.0795	0.1241	0.2747	0.4830	8.80*	1
26	0.3534	0.1194	0.0631	0.2796	0.1846	8.22*	3	64	0.0373	0.1227	0.3987	0.1037	0.3377	9.39*	1
27	0.4518	0.1296	0.0660	0.3031	0.0495	8.51*	3	65	0.2777	0.0452	0.0770	0.1426	0.4575	6.66*	1
28	0.0566	0.1427	0.0672	0.3983	0.3353	26.49**	-	66	0.4295	0.2160	0.1994	0.0730	0.0820	7.37*	3
29	0.4304	0.1179	0.2679	0.1185	0.0653	28.10**	-	67	0.4244	0.1458	0.1005	0.2781	0.0513	7.94*	3
30	0.0502	0.1193	0.2519	0.4912	0.0873	5.87*	2	68	0.0568	0.1409	0.2360	0.5176	0.0487	8.02*	2
31	0.0419	0.2693	0.4615	0.1549	0.0724	24.27**	-	69	0.4688	0.2199	0.1558	0.0998	0.0557	6.89*	3
32	0.0463	0.0967	0.4902	0.2078	0.1590	8.95*	1	70	0.2643	0.0890	0.1311	0.4500	0.0657	9.11*	2
33	0.0550	0.1661	0.1338	0.1874	0.4576	19.90**	-	71	0.0457	0.1480	0.2446	0.0824	0.4792	9.61*	1
34	0.0268	0.0835	0.3821	0.2923	0.2152	9.05*	1	72	0.0349	0.0394	0.1046	0.4188	0.4024	8.64*	2
35	0.4318	0.0371	0.2397	0.0734	0.2180	9.61*	3	73	0.4035	0.0619	0.1194	0.3642	0.0510	9.15*	3
36	0.4478	0.2674	0.0735	0.1496	0.0617	6.91*	3	74	0.0286	0.1337	0.2519	0.5187	0.0671	9.63*	2
37	0.4438	0.2833	0.0345	0.1717	0.0667	8.47*	3	75	0.5660	0.1923	0.1312	0.0744	0.0360	9.65*	3
38	0.3162	0.4599	0.1263	0.0546	0.0430	8.45*	3

TEV	Cluster (1)		Cluster (2)		Cluster (3)
TEV	geometric means	Normalization	geometric means	Normalization	geometric means	Normalization
DUV	0.0641	0.0754	0.0730	0.0815	0.3660	0.4243
IUV	0.0939	0.1103	0.0973	0.1086	0.2089	0.2422
OV	0.2142	0.2516	0.1180	0.1317	0.1105	0.1281
EV	0.1752	0.2058	0.4806	0.5363	0.1072	0.1243
BV	0.3039	0.3570	0.1272	0.1420	0.0700	0.0812
	0.8513	1.0000	0.8962	1.0000	0.8625	1.0000

Activity	Incomes (US$)	Operational Costs (US$)	Margin (US$)
Agriculture	107,123,650.70	98,746,961.29	8,376,689.36
Cattle Farming	9,651,477.00	5,657,835.00	3,993,642.00
Fishing	19,040.00	5,964.00	13,076.00
Total year cashflow			12,383,407.36

TEV	Components	Values (US$)
TEV	Components	Cluster (1)	Cluster (2)	Cluster (3)
UV	DUV	328,472,343.77	328,472,343.77	328,472,343.77
	IUV	480,752,777.10	437,703,836.73	187,498,077.18
	OV	1,096,613,756.07	530,593,430.82	99,157,547.35
NUV	EV	897,255,857.18	2,161,042,859.40	96,206,889.16
NUV	BV	1,556,084,755.34	572,089,973.69	62,828,309.69
Total		4,359,179,489.46	4,029,902,444.41	774,163,167.16

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[1] Note. The abbreviations described have the following meaning: DUV, direct use value; IUV, indirect use value; OV, option/quasi-option; EV, existence value; and BV, bequest value. Source: Aznar and Estruch (2015); Romero et al. (2020).