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Cesar2000-Economics of Coral Reefs.pdf

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such as alternative means <strong>of</strong> beach maintenance and the<br />

reduction <strong>of</strong> waste from manufacturing and shipping<br />

were found not to have a significant effective on the<br />

health status <strong>of</strong> the reef averaged for the south coast as a<br />

whole (Rijsberman and Westmacott 1996). However,<br />

Rijsberman and Westmacott (1996) also note that the<br />

modelling results may be specific to the spatial scale<br />

examined and that these interventions may indeed be<br />

cost-effective and appropriate within a smaller, local<br />

context. Combining individual interventions into strategies<br />

(combinations <strong>of</strong> measures) creates more costeffective<br />

options. Cost-effective strategies under explored<br />

growth scenarios include combinations <strong>of</strong> wastewater<br />

and sewage treatment, appropriate waste disposal,<br />

and reductions <strong>of</strong> refinery and ship pollution.<br />

Rijsberman & Westmacott (1996) stress that the utility<br />

<strong>of</strong> the modelling tool can only be demonstrated<br />

through an application that intimately involves stakeholders<br />

in the scenario building and decision-making<br />

process. <strong>Coral</strong>-Curaçao allows one to rank the measures<br />

and explore the formulation <strong>of</strong> various combinations <strong>of</strong><br />

measures to achieve a specific coral reef cover and diversity<br />

target. For example, to achieve a target average coral<br />

cover <strong>of</strong> 14% and diversity <strong>of</strong> 50% (as indexed by the<br />

model), an initial investment <strong>of</strong> 310 million NAF, with<br />

a yearly operation and maintenance cost <strong>of</strong> 6 million<br />

NAF, would be required (Rijsberman and Westmacott<br />

1996).<br />

2.2 <strong>Coral</strong>-Maldives<br />

Westmacott & Rijsberman (1997, see also Rijsberman<br />

1995; Brown et al. 1996; Meesters & Westmacott 1996;<br />

Rijsberman & Westmacott 1996; Westmacott 1996;<br />

Westmacott & Rijsberman 1997) developed a costeffectiveness<br />

analysis model for coral reef management<br />

and protection for North and South Male in the Republic<br />

<strong>of</strong> the Maldives. As a model developed parallel with<br />

<strong>Coral</strong>-Curaçao, the objective was to investigate whether<br />

a model adapted for the Maldives (<strong>Coral</strong>-Maldives)<br />

would provide a useful decision support tool. Westmacott<br />

& Rijsberman (1997) describe the model and the<br />

results <strong>of</strong> initial analyses.<br />

As with <strong>Coral</strong>-Curaçao, the <strong>Coral</strong>-Maldives model<br />

was designed to allow decision-makers determine the<br />

relative cost-effectiveness <strong>of</strong> various environmental management<br />

interventions for economic development options<br />

in terms <strong>of</strong> the improvements in coral reef health<br />

that are achieved (i.e., using indices <strong>of</strong> coral reef cover<br />

and rugosity as proxy measures). In addition, the impacts<br />

<strong>of</strong> the scenarios can be seen in terms <strong>of</strong> economic,<br />

social and environmental indicators that are selected at<br />

the outset <strong>of</strong> the analysis by the model user. Policy<br />

priorities and feasible management alternatives were<br />

identified through discussions with government agencies.<br />

Given the nature <strong>of</strong> the impacts on the coral reefs in<br />

the Republic <strong>of</strong> the Maldives, management interventions<br />

focus on minimising physical damage, including<br />

control through land use regulations, reduction in sediment<br />

reaching the reef, and regulations focusing on the<br />

tourist resorts (Westmacott & Rijsberman 1997). Westmacott<br />

& Rijsberman (1997) illustrate the use <strong>of</strong> the<br />

model through the presentation <strong>of</strong> example cases.<br />

Westmacott & Rijsberman (1997) note that there are<br />

an array <strong>of</strong> indicators that may be used to describe the<br />

potential for success or failure <strong>of</strong> a coastal zone management<br />

strategy — although the model is somewhat flexible,<br />

the set <strong>of</strong> coastal zone management indicators that<br />

can be selected and examined by the user is necessarily<br />

limited. Moreover, the use <strong>of</strong> intervention cost-effectiveness<br />

measures as they relate to changes in coral reef<br />

health alone may ignore other strategies critical to the<br />

success <strong>of</strong> a particular ICZM program (e.g., public<br />

health issues). It is suggested that the results <strong>of</strong> modelling<br />

scenarios for decision support, in the formulation <strong>of</strong><br />

development or management plans, be placed within<br />

the context <strong>of</strong> social goals and requirements. As with<br />

<strong>Coral</strong>-Curaçao, the model may not adequately reflect<br />

localised conditions at a spatial scale below that incorporated<br />

within the model’s components.<br />

2.3 The Valuation <strong>of</strong> <strong>Coral</strong> Reef Benefits<br />

In the process <strong>of</strong> arriving at a measure <strong>of</strong> total economic<br />

value (TEV), economic valuation studies <strong>of</strong> natural systems<br />

most <strong>of</strong>ten distinguish use from non-use values,<br />

186<br />

KENT GUSTAVSON & RICHARD M. HUBER:

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