Cesar2000-Economics of Coral Reefs.pdf

More documents

Recommendations

Info

Ecosystem and Approach _____________________ Valuation Results Original Study Utility Production Rent Visits to Coral Sites ■ CVM: A$ 6 million/yr consumer surplus or over A$ 8/adult within the Great visitor WTP to see coral sites in their present (1986–87) Barrier Reef condition; based on a survey of visitors to reef sites only, (Hundloe et al. 1987) thereby excluding all other attributes of the Great Barrier Reef ‘Reef Region’. Coral Reef Value ■ CVM: $ 31/person/yr WTP, for a consumer surplus of and Its Impact on $ 5 million/yr by visitors to maintain coral reef in current Tourist Volume condition; and $ 49/person/yr for a surplus of $ 8 million/yr to Negril, Jamaica restore reefs to ‘excellent’ condition; based on CVM survey (Wright1995) data and 162,000 visitors/yr. Also, TCM was used to estimate a demand curve for vacations; the coral reef consumer surplus was netted out of vacation consumer surplus to examine the resultant shift in demand and reduction in tourist volume if reef quality should decline. Dive Value, ■ ■ CVM: $ 27.40 average WTP for a consumer surplus of $ 325,000; Bonaire Marine Park based on 18,700 divers in 1992 paying a $ 10/diver/yr fee. Pro- (Dixon et al. 1993) ductivity Change: Gross tourist revenue of $ 23.2 million (1991). The study also estimated the revenues and costs of dive tourism, and the carrying capacity of dive sites (4000–6000/site/yr, for a total of 190,000–200,000). Dive Value ■ ■ Productivity Change: Net Tourism Revenue $ 7.9 to Bonaire Marine Park $ 8.8 million (1991); based on ownership & profit data. TCM: (Pendleton 1995) $ 19.2 million consumer surplus. Park NPV: $ 74.21 million local benefits; $ 179.7 million consumer surplus; based on 20 yr period, 10% discount rate. The study compares its net value estimate to the gross value estimate of Dixon et al. (1993). It argues for a ‘project appraisal approach’ to protection valuation. John Pennekamp/ ■ TCM: $ 285 to $ 426/person/day consumer surplus; based on Key Largo, Florida a survey of some 350 park users in 1990; nine models were (Leeworthy 1991) estimated; final estimate range taken from the two models, which best fit the data. The inclusion of an ‘opportunity cost of time’ variable was found to increase significantly consumer surplus estimates. Tourism Palawan ■ Productivity Change: PV gross revenue $ 6,280 with logging vs Coral Reef, $ 13,334 with logging ban; based on mean hotel capacity, Philippines occupancy, and daily rates; and an assumed 10% annual (Hodgson & decline in tourism revenue due to degradation of seawater Dixon 1988) quality from sedimentation. CBA study evaluates management options: (i) continuation of logging as usual; (ii) logging ban in Bacuit Bay drainage basin. Tourism Valuation, ■ Productivity Change: NPV of tourism loss/sq km of reef Indonesia $ 3,000–436,000 (from poison fishing); $ 3,000–482,000 (blast Coral Reefs fishing or coral mining); $ 192,000 ( sedimentation); based on (Cesar 1996) assumptions regarding the rate of reef degradation associated with each practice. CBAs for each reef-destroying activity estimate the value of tourism loss. For each activity, reef degradation causes a decrease in potential tourism revenue. All rates of change are based on assumptions. 200 KENT GUSTAVSON & RICHARD M. HUBER:
Ecosystem and Approach _____________________ Valuation Results Original Study Utility Production Rent Recreation, ■ Productivity Change: $ 45/ha/yr for the total protected area; Galapagos based on maximum carrying capacity of 40,000 visitors/yr, and National Park average expenditures per visit of $ 1300. Classified as a (de Groot 1992) productive use value within the ‘carrier function’ category of environmental functions. Vacation Value, ■ Hedonic Demand Analysis: $ 312/day/person in 1986; based Galapagos on a nonlinear regression using cost, duration, and itinerary National Park, data from travel brochures; as well as cost and duration survey Ecuador data. Value of a Galapagos vacation is regressed on duration, (Edwards 1991) accommodation, and itinerary data; model is differentiated with respect to duration to get the implicit price of a vacation day. Recreation Value ■ ■ Productivity Change: Recreation NPV US$ 315 million (1996); Montego Bay includes tourist related accommodation, food & beverage, Coral Reefs entertainment, transportation, retail and miscellaneous (Gustavson 1998) services. Cost of service provision is deducted from gross values to arrive at net values. Education & Research — Marine Areas Belize ■ $ 150,000/yr; based on annual expenditures by UK Coral Cay Coral Reefs Conservation to maintain 25 researchers on reefs in Belize. (Spurgeon 1992) Panama ■ $ 2.5 million in 1991; based on a percentage of the Smithsonian Coral Reefs Research Institute’s budget for work in Panama. One-sixth of (Spurgeon 1992) the 1991 $ 15 million budget is considered attributable to coral reefs in Panama. Galapagos ■ $ 2.73/ha/yr; based on research expenditures, and expenditures National Park on field courses, fellowships, training courses, education (de Groot 1992) facilities and materials. This is classified as a productive use value within the ‘information function’ category of environmental functions. Indirect Uses — Ecological Functions Coastal Protection, ■ Replacement Costs: US$ 22 billion; based on construction Philippine Coral Reefs costs of concrete tetrapod breakwaters to replace 22,000 sq km (McAllister 1991) of reef protection.As reported in Spurgeon (1992). Coastal Protection, ■ Productivity Change: NPV of coastal protection/sq km of reef: Indonesia $ 9,000–193,000 (blast fishing); $ 12,000–260,000 (coral mining); Coral Reefs based on replacement costs, the rate of reef destruction from (Cesar 1996) each activity, and the rate of decline in reef’s ability to protect. CBAs for each reef-destroying activity include the cost of protective function losses. For each activity, reef destruction reduces the protective capability of the reef. The reef’s loss of protective capability is linked linearly to its protective value. Organic Waste ■ Replacement Costs: $ 58/ha/yr based on the costs of artificial Treatment, purification technology; applies to marine area only. Classified Galapagos as a conservation value of the Park, in the category of National Park ‘regulation functions’. (de Groot 1992) ECOLOGICAL ECONOMIC DECISION SUPPORT MODELLING FOR THE INTEGRATED COASTAL ZONE MANAGEMENT OF CORAL REEFS 201
Page 2 and 3:
Collected Essays on the Economics o
Page 4 and 5:
Table of Contents Acknowledgements
Page 6 and 7:
Foreword Corals and coral reefs hav
Page 8 and 9:
● ● ● ● assessing the threa
Page 10 and 11:
fishing is lucrative from the indiv
Page 12 and 13:
Coral Reefs: Their Functions, Threa
Page 14 and 15:
Table 1. Ecosystem functions and co
Page 16 and 17:
Figure 1. Yield of Trochus Shells i
Page 18 and 19:
Figure 2. Total Economic Value and
Page 20 and 21:
Table 3. Total Net Benefits and Los
Page 22 and 23:
Table 5. Valuation Techniques used
Page 24 and 25:
people live from the Park, the high
Page 26 and 27:
duction or logging) would have an e
Page 28 and 29:
Hatcher, B. G., Johannes, R. E., &
Page 30 and 31:
Thorhaug, A., (1992) “Oil Spills
Page 32 and 33:
Authors Threats Mgt. Description Is
Page 34 and 35:
Page 36 and 37:
Page 38 and 39:
Assessing the Benefits of Improving
Page 40 and 41:
2.2 Coral Reef Quality Change and t
Page 42 and 43:
Five groups were given and the resp
Page 44 and 45:
The total sample mean was similar a
Page 46 and 47:
one of the five categories were nex
Page 48 and 49:
4.4 Protecting Rights and the Desir
Page 50 and 51:
able for tourists versus locals was
Page 52 and 53:
problem that where respondents are
Page 54 and 55:
turists who regularly handle soil e
Page 56 and 57:
expanding tourist industry based on
Page 58 and 59:
ism and fisheries. Logging activiti
Page 60 and 61:
Table 2. Fisheries gross revenue an
Page 62 and 63:
an ‘Environmentally Critical Area
Page 64 and 65:
25,000 20,000 15,000 10,000 5,000 0
Page 66 and 67:
sized animals — even at the most
Page 68 and 69:
greater willingness among environme
Page 70 and 71:
stroyed was 7.5 fish times 0.19 ope
Page 72 and 73:
were affected by cyanide squirts fo
Page 74 and 75:
Russ, G. R., (1991) “Coral reef f
Page 76 and 77:
eefs that are not too remote, can n
Page 78 and 79:
Table 2. Estimated net income (US$/
Page 80 and 81:
Table 4. Results of base case and t
Page 82 and 83:
ating the destruction of its coral
Page 84 and 85:
creased. Besides these direct effec
Page 86 and 87:
3. ECONOMIC ANALYSIS: SOCIETAL COST
Page 88 and 89:
3.2 Case Study 2: Sri Lanka The soc
Page 90 and 91:
A first difference between the two
Page 92 and 93:
Coral Bleaching in the Indian Ocean
Page 94 and 95:
leaching occurred in the Maldives,
Page 96 and 97:
months after the coral bleaching ev
Page 98 and 99:
Level of importance 35 30 25 20 15
Page 100 and 101:
trols. What is useful from the data
Page 102 and 103:
most disappointing: food and bevera
Page 104 and 105:
REFERENCES Anderson, R. C., Waheed,
Page 106 and 107:
also seem capable of providing many
Page 108 and 109:
Table 1. Summary of Findings of Eco
Page 110 and 111:
Table 2-A. Summary Table of Bioecon
Page 112 and 113:
lation for the spawning stock abund
Page 114 and 115:
3.2.1 DENSITY-DEPENDENT MIGRATION M
Page 116 and 117:
3.2.3 DENSITY-DEPENDENT AND UNI-DIR
Page 118 and 119:
4.2 Habitat Protection A critical a
Page 120 and 121:
REFERENCES Alcala, A. C., (1989)
Page 122 and 123:
Russ, G. R., & Alcala, A. C., (1996
Page 124 and 125:
poses of this review, the mechanism
Page 126 and 127:
Supervision and training of labour
Page 128 and 129:
Table 1. Comparison of restoration
Page 130 and 131:
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 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 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 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)
Page 240 and 241: perfect but not completed and origi
Page 242: Jeff Muller, Economist, World Bank,
show all

Cesar2000-Economics of Coral Reefs.pdf

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?