Cesar2000-Economics of Coral Reefs.pdf

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the type of use, are not linked to varying levels of producer surplus. None of these funds are explicitly directed to pay for the management of the Montego Bay Marine Park. No other government or management agency fees or charges are specifically linked to either tourism or fisheries related activities in the area. Corporate profit taxes, or personal income tax in the case of the fishers or of individually distributed profits from tourism-related businesses, may also capture a portion of the rent. However, taxes are paid to the general government collectorate and thus are not explicitly available for use in marine park management. The current interests of the Montego Bay Marine Park to implement user fees should be encouraged. ● ● ● Establish sui generis (novel) rights to tangible property and traditional knowledge in order to define who has the right to participate in and benefit from the negotiation of contracts involving a transfer of genetic resources or traditional knowledge; Develop prior informed consent procedures in order to give the legal owners of rights to genetic resources and traditional knowledge a means to control use of these resources; and, Create a national benefit sharing formula to convert a portion of monetary income derived from new product development into public goods to ensure a fair and equitable sharing of benefits from genetic resources utilisation. 2.7.2 CASE STUDY — INSTITUTIONS AND POLICY ADVICE FOR BIOPROSPECTING IN JAMAICA Putterman (1998) offers specific policy and institutional strengthening advice with respect to the incorporation of genetic resource utilisation into ICZM in Jamaica as a potentially powerful tool for conservation and economic development. Genetic or molecular diversity, a measure of the biological diversity within species, can be the source of new pharmaceuticals, industrial products and agricultural varieties. Many strategies for research collaboration, as a risk-reducing strategy to maximise the ability to discover promising new chemicals or genes, may be employed; as well, many benefit sharing mechanisms and options for compensation exist (see Putterman 1998). As noted by Putterman (1998), there are currently no Jamaican policies to regulate access to genetic resources. A review of Jamaican institutions and policies lead to the following key recommendations (Putterman 1998): ● In the design of a set of resources policy options, incorporate obligations under the Convention on Biological Diversity and the United Nations Convention on the Law of the Sea, as well as take account of the effect that policy-making will have on private sector activities; ● Regulate access to genetic resources up-front with permits and contracts to define rights to these resources before samples are collected or exported; Potential bioprospecting net present values are small in comparison to current local use values associated with tourism and coastal protection (Gustavson 1998; Ruitenbeek & Cartier 1999) and, as noted above, are expected to have a negligible effect on marginal coral reef values. However, Ruitenbeek & Cartier (1999) note that the impacts of the institutional costs associated with the operation of a national bioprospecting program in Jamaica, as recommended by Putterman (1998), are minimal. The implementation of a bioprospecting program may be warranted. The question becomes one of the willingness of local management and stakeholders of the Montego Bay Marine Park to enter into such a venture. 2.7.3 MODELLING RESULTS AND POLICY ADVICE FOR THE USE OF DECISION SUPPORT MODELS More generally, beyond the specific policy and institutional questions that arise when one considers the potential development of a bioprospecting program in Montego Bay, policy questions arise from the overall least cost intervention and coral reef benefit modelling results. Ruitenbeek & Cartier (1999) note that if economic efficiency is the goal, both costs and benefits must be considered in research when dealing with complex non-linear systems such as coral reefs. Cost-effectiveness analysis alone may not be adequate. Ruitenbeek 192 KENT GUSTAVSON & RICHARD M. HUBER:
& Cartier (1999) also call for a greater emphasis at the local level on the socio-economic and management dimensions of direct uses, including the promotion of practical local management regimes that consider and involve affected stakeholders. This point is also emphasised by Bunce & Gustavson (1998). 3. PROCESS AND POLICY APPLICATIONS A rational economic optimisation, considering solely the costs of management interventions in conjunction with the valuation of the total economic benefits received (e.g., figure 2), may seemingly reduce the role to be played by stakeholders and management agencies in the setting of goals and the expression of the diverse set of values likely represented by the various user groups. Indeed, it was the general approach of Rijsberman & Westmacott (1996) and Westmacott & Rijsberman (1997) in the development and implementation of the Coral-Curaçao and Coral-Maldives decision support models to focus on the ability of decision-makers to analyse, through various user-defined scenarios, the cost-effectiveness of alternative interventions and the resulting economic, social and environmental conditions as reflected by various indicators. Their initial modelling approach does not go so far as to derive a global optimum, but focuses on providing a means by which decision-makers (and those simply with an interest) can explore management alternatives. Defining an optimal solution through a decision support model does not necessarily negate local stakeholder involvement in management decisions; however, one must be cautioned against this occurring. The participation of stakeholders and management agencies must not be forgotten. The recommendations stemming from a normative model solution may not be adequate or feasible given the specific institutional and social context. Indeed, the success of any coral reef management program will be greatly affected by the social environment and the decision-making process itself. It is critical that stakeholders be involved in as many stages in the development of a management program as is practical, even if it is simply through an information sharing exercise. As has become increasingly evident in all environmental management processes, it is the process itself that often sets the stage for a successful management program. Without an open and participatory process, significant barriers to effective management can be expected to arise. Decision support modelling should be implemented within a specific policy context. This is especially true concerning the valuation components for, as noted by Ruitenbeek & Cartier (1999), the choice of any one of a number of valuation techniques should be driven by the specific policy questions at hand or the analytical issues that need to be addressed. The policy questions define the data that is needed and the analyses that are required. Decision support model design and use must be amenable. Although scenarios, resulting from the development of ecological economic decision support models as reported here, have defined specific policy recommendations regarding the types of interventions required and the level of coral reef health that should be achieved for specific study sites, it is as yet too early in the development and use of these models to recommend that the required investments be made. Further work involving the local study site stakeholders and management agencies is required to refine the recommendations and develop integrated coastal zone management programs. The design of specific interventions can be expected to require refinement based on a more in depth consideration of local social and institutional conditions through a more participatory process. In addition, although the results reported here derive from truly ‘state of the art’ models, there were notable deficiencies in the amount and quality of the economic and ecological data available and notable deficiencies in the development of the science behind the model construction. In short, the models should not be used to dictate coral reef management directions, but are for use to help support such decisions. ECOLOGICAL ECONOMIC DECISION SUPPORT MODELLING FOR THE INTEGRATED COASTAL ZONE MANAGEMENT OF CORAL REEFS 193
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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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Page 36 and 37:
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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
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Value of reef products and services
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Fitzharding, R. C., & Bailey-Brock,
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1995). Global annual retail value o
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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 182 and 183: ICZM guides jointly the activities
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 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
Page 230 and 231: 50 40 # incidents 30 20 10 0 J A J
Page 232 and 233: ● Investment security is reduced
Page 234 and 235: onmental practices, and therefore t
Page 236 and 237: 7.4 NGOs Are Not Always Accountable
Page 238 and 239: 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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