EconomicValuation
Economic Valuation of Reefs
Coral Reefs Economic value is consistently underestimated because of its public and open-access nature. Although these reefs cannot sell a ticket or a pass to visit them, it should not be assumed that these natural structures do not contribute to tourist attraction. When we look at the specific economic value of coral reefs we can look at both the costs and implications involved with reef degradation as well as the actual value of the reef itself. Even further analyzing the benefits of reefs the recreational value as well as the environmental value associated with the species that live there.
Recreational Value
- Over 39% of the world’s population lives within 100 km of the coast; many of these people depend on reefs.
- Tourism is estimated to provide $9.6 billion around the world in annual net benefits (with even more if including tourism spending).
- Value depends on a number of different variables including if its a scuba spot, the ability to snorkel, and the travel costs.
- Average value of coral reef recreation is $184 per visit, though the individual values vary greatly between individual locations.
Costs and Implications of Reef Degradation:
- The amount that people use coral reefs is consistently underestimated. These reefs are not only affected by pollution and non-sustainable fishing practices, but these reefs can even be affected by non-sustainable tourism practices.
- Bleaching isn’t the only problem as bad fishing practices, un-sustainable tourist activities, and water temperature changes all affect these corals.
Actual Economic Value of Reef
- Specifically in the Caribbean, recent study estimates that the changing climate will cause losses of US$ 109.9 million.
- Due to increased sea-surface temperatures, sea-level rise and loss of species, among other factors.
- This is equal to 13.8% of the total GDP in the region.
- Loss from ‘severe’ coral bleaching scenarios with mass coral mortality around the world are estimated around US$ 83 billion.
Resources
1. Cesar, H, and Burke, L. and Pet-Soede, L (2003) The Economics of Worldwide Coral Reef Degradation. Technical Report.
2. Brander, Luke M., Pieter Van Beukering, and Herman S.J. Cesar. "The Recreational Value of Coral Reefs: A Meta-Analysis." Ecological Economics 63.1 (2007): 209-18.
3. Coral Reefs; Their functions, threats and economic value. Cesar H.S.J
4. Philippine Coral Reefs Under Threat: The economic loss caused by reef degradation.
Links
1.http://eprints.eriub.org/48/
3.http://oceandocs.net/handle/1834/557
4.http://www.sciencedirect.com/science/article/pii/S0025326X00000229