Coral Reefs: Their Functions, Threats and Economic Value

Coral Reefs: Their Functions, Threats and Economic Value

Primary Country: multiple
Ecosystem: coral reef
Sample Value Estimates:
(a) US$54,000 loss in total yield of reef fishes off Sumilon Island in Phillipines after breakdown of protective management, EoP study, Alcala & Russ, 1990 (b) US$90,720 replacement cost for coastal defences in Tarawa Atoll in Kiribati, RC Study, Spurgeon, 1992 (c) US$160 to $172,000 per km of reef per year as annual cost of coastal erosion due to the coral mining in Sri Lanka, DC study, Berg et al., 1998 (d) US$19.2 million as total consumer surplus of visitors to the Bonaire Marine Park, TC study, Pendleton, 1995 (e) US$325,000 consumer surplus from average Willingness to Pay, CVM Study, Dixon, 1995. These are just some of the values provided as examples of the various valuation techiniques.
Methodology: (a) Effect on Production or EoP (b) Replacement Costs or RC (c) Damage Costs or DC (d) Travel Costs or TC (e) Contingent Valuation Method or CVM
Region: multiple

Publication information

Cesar, H.; “Coral Reefs: Their Functions, Threats and Economic Value” In: H.S.J. Cesar (ed). Collected Essays on the Economics of Coral Reefs. CORDIO, Kalmar University, Sweden. p. 14-39., 2000

Addtional Notes

Author uses valuations from other studies to illustrate five types of valuation techniques

a) Effect on Production, or 'change in productivity' method, looks at difference in output as the basis of valuing reef services

b) Replacement Costs, used to value the ecosystem service of coastal protection using data on investments to control coastal erosion as coastal protection service of a healthy coral reef

c) Damage cost approach uses the value of the expected loss of the 'stock at risk' as straightforward proxy for the value of the coastal protection service

d) Travel Cost approach uses travel time or travel costs as indicator of total 'entry fee', and therefore, as person's willingness to pay for visiting a Park. Because of the variation in the costs among visitors, the demand for different prices can be determined and a 'demand curve' for the Park can be constructed and the associated consumers' surplus can be determined

e) Contingent Valuation Method seeks personal valuations of the respondent for increases or decreases in the quantity of some goods, contingent upon a hypothetical market, e.g. increase in coral cover.

Information provided when available, for more information please visit the original database or PDF.