Cesar2000-Economics of Coral Reefs.pdf

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ICZM guides jointly the activities of two or more sectors or activities in the planning, development and implementation of projects. More formally, it is “… the integrated planning and management of coastal resources and environments in a manner that is based on the physical, socioeconomic, and political interconnections both within and among the dynamic coastal systems …” (Sorensen 1997). Or similarly, “ICZM is a process of governance and consists of the legal and institutional framework necessary to ensure that development and management plans for coastal zones are integrated with environmental (including social) goals and are made with the participation of those affected. The purpose of ICZM is to maximise the benefits provided by the coastal zone and to minimise the conflicts and harmful effects of activities upon each other, on resources and on the environment” (World Bank 1996, p. 2). Guidelines and procedures have begun to emerge for the development of ICZM (e.g., Chua 1993; Pernetta & Edler 1993; World Bank 1993; Bower et al. 1994; Clark 1995; Sorensen 1997; World Bank 1996). A critical element in ICZM is the integration — in particular, the horizontal integration across economic sectors and management agencies in the planning and implementation (Clark 1995; Sorensen 1997). Coastal activities must be considered jointly because of their interdependence and expected non-additive cumulative impacts. But how are multiple economic sectors or human activities to be considered together How is concern for the maintenance of the coastal ecosystems, which directly or indirectly support economic activities, to enter into the decisions What should be the decision-making framework for determining which activities should be allowed to occur within the coastal zone, how should they be developed and operated, and what level of activity should be permitted On what basis should conflicts between competing coastal resource users be decided Answering such questions necessarily involves the joint consideration of multiple system parameters, multiple criteria, and diverse value sets. Ecological economic decision support models can play a critical role. The family of ecological economic models includes those that recognise the validity of achieving an economically efficient management solution, yet concurrently and explicitly consider the limitations necessarily imposed on the scale and type of economic activities due to the characteristics and capacity of the natural environment. Ecological economic decision support models for ICZM should also allow for the accommodation of information regarding the socio-cultural context of the management environment, which has an important role to play in the development of policy. What are the characteristics of a useful decision support model First and foremost, a useful decision support model must be able to answer specific and relevant policy questions. To aid in the design and creation of such a model, one must be able to draw from an existing body of policy relevant research. As noted by Ruitenbeek et al. (1999a, 1999b), the lack of information regarding the ecology of coral reefs (i.e., the functional linkages and relationships) and the characteristics of impacting economies currently hinders the development of effective ecological economic decision support models. Much of the existing scientific information is not directly ‘policy relevant’ and, in this context, of little help to decision-makers or directly in the creation of decision support models. Second, a model must be able to be understood and used directly by the targeted client group. Inputs must be relatively easy to provide, runs easy to conduct, and results easy to interpret. Third, a distinction must be made between the use of models intended primarily for scientific inquiry and those intended primarily to inform decision-making and policy — models with highly experimental constructs should be avoided for use as decision support tools. The theory on which decision support models are based should be relatively robust. For example, concerning the use of ecological models intended for use in decision-making, Friedland (1977) notes that “The basic objective in not the discovery of previously unknown truths but the collection and integration of existing knowledge and its presentation in a form useful in the policy-making process”. This has direct ramifications for what type of 184 KENT GUSTAVSON & RICHARD M. HUBER:
model may be most appropriate. Finally, decision support models should be amenable to modification and revision of the data components, the specified relationships within the model, and the development alternatives or scenarios considered by the model. Again, it is imperative that the needs of the users be kept in mind. A model that uses data that are no longer valid for a particular locale, whose underlying ecological economic relationships are no longer accurate, or allows for no further modification or alteration of the specified development alternatives or scenarios, will prove to be of little use in the long run. 2. RESULTS OF THE MODELLING PROJECTS In 1995, work commenced under World Bank Research Committee funding on two streams of research concerning coral reefs in the developing tropics: i) cost-effectiveness modelling of management interventions (i.e., a question of the ‘supply’ of biodiversity as an economic asset); and, ii) marine system valuation (i.e., a question of the ‘demand’ for biodiversity). Essentially, the leastcost modelling sought to identify the cost curve for interventions to improve coral reef conditions, where the effects of various policy interventions and economic activities are linked to overall coral reef health and costs associated with making improvements (Huber et al. 1994; Meesters 1995; Meesters et al. 1995; Ridgley et al. 1995; Rijsberman 1995; Rijsberman et al. 1995; Westmacott et al. 1995; Brown et al. 1996; Huber et al. 1996; Meesters & Westmacott 1996; Meesters et al. 1996; Ridgley & Dollar 1996; Rijsberman & Westmacott 1996; Westmacott 1996; Westmacott & Rijsberman 1997; Huber & Jameson 1998a; Meesters et al. 1998; Ruitenbeek et al. 1999a, 1999b). The marine system valuation model sought to identify the benefits that can be realised from sustaining or improving coral reef conditions (Huber and Ruitenbeek 1997; Gustavson 1998; Putterman 1998; Spash et al. 1998; Ruitenbeek & Cartier 1999). The results of the research efforts can be found in Gustavson et al. (2000). The broad objective of the research was to assist policy-makers in the management and protection of coral reefs (Huber et al. 1994; Huber & Ruitenbeek 1997). The establishment of a cost-benefit methodology appropriate for use on coral reef systems in the developing tropics, and on marine systems in general, will assist in identifying appropriate institutional and policy interventions to help realise economically efficient uses of coral reefs while considering the impacts on and role of the supporting ecosystem. Such a cost-benefit analysis (CBA) ‘package’ is represented by the integration of the cost-effectiveness and valuation models (Ruitenbeek & Cartier 1999). Three case study sites were selected on which to test the methodologies: i) Curaçao, the Netherland Antilles; ii) the Republic of the Maldives; and, iii) Montego Bay, Jamaica. 2.1 Coral-Curaçao Rijsberman & Westmacott (1996, see also Meesters 1995; Rijsberman et al. 1995; Westmacott et al. 1995; Meesters et al. 1996) developed a cost-effectiveness analysis model for coral reef management and protection for the south coast of Curaçao. The decision support model was developed to facilitate communication among stakeholders concerning development directions and environmental management strategies; the analysis of impacts on coral reef health of planned developments through the discharge of wastewater and sediment, thereby integrating land-use, tourism and conservation planning; and, the analysis of the cost-effectiveness of management interventions designed to maintain coral reef health. The model utilises a structured computer interface. Results of three modelling scenarios (a reference status quo development scenario and two alternative growth scenarios) indicate that Curaçao is likely to experience significant declines in coral reef health and abundance over the next 10 years. However, the modelling also indicates that interventions involving environmental protection strategies can halt this trend and, in some case, lead to the recovery of reefs above the current state of health. The implementation of individual measures ECOLOGICAL ECONOMIC DECISION SUPPORT MODELLING FOR THE INTEGRATED COASTAL ZONE MANAGEMENT OF CORAL REEFS 185
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Collected Essays on the Economics o
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Table of Contents Acknowledgements
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Foreword Corals and coral reefs hav
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● ● ● ● assessing the threa
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fishing is lucrative from the indiv
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Coral Reefs: Their Functions, Threa
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Table 1. Ecosystem functions and co
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Figure 1. Yield of Trochus Shells i
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Figure 2. Total Economic Value and
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Table 3. Total Net Benefits and Los
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Table 5. Valuation Techniques used
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people live from the Park, the high
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duction or logging) would have an e
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Hatcher, B. G., Johannes, R. E., &
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Thorhaug, A., (1992) “Oil Spills
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Authors Threats Mgt. Description Is
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Assessing the Benefits of Improving
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2.2 Coral Reef Quality Change and t
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Five groups were given and the resp
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The total sample mean was similar a
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one of the five categories were nex
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4.4 Protecting Rights and the Desir
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able for tourists versus locals was
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problem that where respondents are
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turists who regularly handle soil e
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expanding tourist industry based on
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ism and fisheries. Logging activiti
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Table 2. Fisheries gross revenue an
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an ‘Environmentally Critical Area
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25,000 20,000 15,000 10,000 5,000 0
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sized animals — even at the most
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greater willingness among environme
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stroyed was 7.5 fish times 0.19 ope
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were affected by cyanide squirts fo
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Russ, G. R., (1991) “Coral reef f
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eefs that are not too remote, can n
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Table 2. Estimated net income (US$/
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Table 4. Results of base case and t
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ating the destruction of its coral
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creased. Besides these direct effec
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3. ECONOMIC ANALYSIS: SOCIETAL COST
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3.2 Case Study 2: Sri Lanka The soc
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A first difference between the two
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Coral Bleaching in the Indian Ocean
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leaching occurred in the Maldives,
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months after the coral bleaching ev
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Level of importance 35 30 25 20 15
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trols. What is useful from the data
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most disappointing: food and bevera
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REFERENCES Anderson, R. C., Waheed,
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also seem capable of providing many
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Table 1. Summary of Findings of Eco
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Table 2-A. Summary Table of Bioecon
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lation for the spawning stock abund
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3.2.1 DENSITY-DEPENDENT MIGRATION M
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3.2.3 DENSITY-DEPENDENT AND UNI-DIR
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4.2 Habitat Protection A critical a
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REFERENCES Alcala, A. C., (1989)
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Russ, G. R., & Alcala, A. C., (1996
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poses of this review, the mechanism
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Supervision and training of labour
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Table 1. Comparison of restoration
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elating to the case studies. Recrea
Page 132 and 133: Value of reef products and services
Page 134 and 135: Fitzharding, R. C., & Bailey-Brock,
Page 136 and 137: 1995). Global annual retail value o
Page 138 and 139: Table 1. Market Prices in Hong Kong
Page 140 and 141: 2.3 Recent Trends The Asian financi
Page 142 and 143: destructive, since corals are often
Page 144 and 145: (input factors are indicated by blu
Page 146 and 147: Table 2. Challenges of grouper cult
Page 148 and 149: stages when natural mortality is hi
Page 150 and 151: STRENGTHEN ENFORCEMENT AND MONITORI
Page 152 and 153: 32 Several efforts along these line
Page 154 and 155: Jones, R., (1997) “Effects of Cya
Page 156 and 157: ▲ An Economic and Ecological Anal
Page 158 and 159: The Park was re-established and rev
Page 160 and 161: associated with dive tourism and th
Page 162 and 163: Apparent stress threshold B A S 1 P
Page 164 and 165: A Comparative Study of Socio-Econom
Page 166 and 167: Table 1. Key Site Characteristics C
Page 168 and 169: Level Target Respondent Information
Page 170 and 171: Table 2. Variables Used in the Econ
Page 172 and 173: Table 3. Tied P-Values for Differen
Page 174 and 175: as, lagoons and coral reefs were pe
Page 176 and 177: Table 5. Results of the Econometric
Page 178 and 179: ties may not reveal their true perc
Page 180 and 181: Salafsky, N., Cordes, B., John Park
Page 184 and 185: such as alternative means of beach
Page 186 and 187: 2.3.2 CONTRIBUTIONS TO UTILITY —
Page 188 and 189: marginal benefit function, relating
Page 190 and 191: the type of use, are not linked to
Page 192 and 193: 4. FUTURE DIRECTIONS FOR DECISION S
Page 194 and 195: Huber, R. M., & Jameson, S. C., (19
Page 196 and 197: Appendix. Economic valuation studie
Page 198 and 199: Ecosystem and Approach ____________
Page 200 and 201: Ecosystem and Approach ____________
Page 202 and 203: Contemporary national development p
Page 204 and 205: The PBPA contains four prominent ex
Page 206 and 207: 5. INTERACTIONS BETWEEN ECOSYSTEM S
Page 208 and 209: Table 2. Categories of Ecosystems i
Page 210 and 211: MEY shows the enormous level of ove
Page 212 and 213: the ecosystem together. The total (
Page 214 and 215: ▲ tourism, coastal protection and
Page 216 and 217: has dramatically decreased from abo
Page 218 and 219: seaweed per year is generating abou
Page 220 and 221: Table 4. Current (1999) annual net
Page 222 and 223: The essential activities that can e
Page 224 and 225: their overall economic benefit to i
Page 226 and 227: Private Sector Management of Marine
Page 228 and 229: ety of important conservation and o
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● Investment security is reduced
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onmental practices, and therefore t
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7.4 NGOs Are Not Always Accountable
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Sterner, T, & Andersson, J., (1998)
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perfect but not completed and origi
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Jeff Muller, Economist, World Bank,
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