WRI Publications Feed: Coastal Capital: Economic Valuation of Coastal Ecosystems in the Caribbean

Influence of Coastal Economic Valuations in the Caribbean: Enabling Conditions and Lessons Learned

Sarah Parsons — Mon, 10 Dec 2012 13:55:24 -0500

Executive Summary

Across the Caribbean, national economies are heavily dependent on coastal ecosystem services. Coral reefs, mangroves, and other coastal ecosystems provide fish habitat, attract tourists, and protect shorelines from storm damage. However, coastal habitats continue to degrade due to local and global pressures. For example, more than 75 percent of the Caribbean’s coral reefs are currently threatened by human activities. These threats to coastal ecosystems stem from both a lack of awareness of the benefits these ecosystems provide and the costs of insufficient protection, and a lack of political will to protect and sustainably manage these ecosystems. Many of the activities that damage coastal ecosystems arise from shortsighted and poorly informed decisions that fail to take long-term ecosystem values and the full range of benefits from coastal ecosystem services into account.

Economic valuation can contribute to better informed and more holistic decision making about resource use and identify opportunities for effective conservation. Over the past 30 years, the economic valuation literature on the Caribbean’s coastal and ocean resources has increased substantially. More than 200 coastal economic valuation studies of the monetary value of marine ecosystem goods and services in the Caribbean currently exist. However, despite this wealth of valuation studies and estimates, it is not clear whether these efforts have had a meaningful impact on policy or decision making concerning the management and use of these valuable natural resources; to date, there has been no assessment to address this critical question. It is also not immediately clear why some valuations have been more influential than others.

To get a more complete picture of the influence of past coastal valuations in the Caribbean, and to identify the key “enabling conditions” for valuations to influence policy, management, or investment decisions, the World Resources Institute (WRI) and the Marine Ecosystem Services Partnership (MESP) conducted semi-structured interviews with more than thirty marine conservation and valuation experts. Several of these interviews took place in the five countries where WRI had conducted coastal valuations. WRI also reviewed past valuation studies in the Caribbean that informants identified as influential. The findings of this review are based on expert opinion and documented cases of influence. Given the large number of total valuations and the difficulty of tracking influence, this review is not exhaustive. This paper identifies a number of variables that likely influence policy, management, and investment outcomes; however, it does not identify the extent to which each variable contributes to influence. We encourage future research on this topic.

Overall, we found that although valuation studies have helped raise awareness about the economic importance of coastal ecosystems in the Caribbean, few have actually had a positive influence on conservation and management- oriented policy, legislation, or investment in the region. We identified only 13 valuation studies that have influenced policy. For example, valuation helped to convince the government of St. Maarten to establish the country’s first national marine park, and the government of Belize to legally ban bottom trawling. Still, these success stories highlight the potential for economic valuation to have influence. We were able to draw out key contextual, procedural, and methodological conditions that likely led to success.

The elements increasing the likelihood of policy influence included:

a clear policy question;
local demand for valuation;
strong local partnerships and stakeholder engagement;
good governance with high transparency;
opportunities for revenue-raising;
effective communications and access to decision makers and/or media; and
a clear presentation of methods, assumptions, and limitations.

This analysis suggests that getting the methodology right—a principal concern of economists—is only part of the equation. Valuation practitioners who aspire to achieve impact must also consider wider contextual and procedural factors (such as governance and stakeholder engagement) when assessing the likelihood that their valuation will be influential. Furthermore, absolute accuracy is not always essential, as many stakeholders use valuation results as a ballpark figure to guide decision making. For this reason, valuation should be done on a scale appropriate to the policy question, minimizing costs as far as possible. More precise valuation may be necessary for questions relating to fees and taxes. In all cases, clear presentation of methods, assumptions, and limitations is critical in order to address critiques and legitimize results.

In the Caribbean, interest in ecosystem valuation to inform smart choices about coastal resource conservation and management and associated land use continues to grow. However, based on the results of this analysis, it is clear that valuation practitioners need to do much more to ensure that valuation studies have greater influence. In order to achieve more meaningful impacts, greater effort is necessary to strategically choose, design, and execute valuation studies; communicate valuation results to target audiences; and share successes and failures of influence with other practitioners. We conclude with next steps for building on this analysis, including:

Conduct further consultations with experts and decision makers in the Caribbean and beyond to enlarge the catalog of valuation success stories, and explore additional opportunities for qualitative and quantitative analysis of trends and causality.
Develop standardized approaches to monitor and evaluate the influence of coastal valuations.
Research the “return on investment” of economic valuation for coastal conservation and management in relation to other conservation tools.

The results of this review will inform WRI and our partners’ efforts to produce a standardized framework for economic valuation of coastal ecosystems in the Caribbean. A standardized valuation framework would help produce comparable and credible values across the Caribbean, legitimizing their use among decision makers and increasing their uptake. Drawing from this review, the framework will also contain advice on how to make future economic valuations as influential as possible, so they can realize their potential to catalyze positive changes in policy, management, and investment—helping both to restore the productivity and increase the economic contributions of coastal resources, while safeguarding the Caribbean’s valuable coastal and marine resources for future generations.

Reefs at Risk Revisited in the Coral Triangle

Sarah Parsons — Thu, 05 Jul 2012 10:53:54 -0400

Summary: Reefs at Risk Revisited in the Coral Triangle

Download the 2011 global analysis of threats to coral reefs, Reefs at Risk Revisited

The World Resources Institute produced the report in close collaboration with the USAID-funded Coral Triangle Support Partnership (CTSP). Reefs at Risk Revisited in the Coral Triangle was adapted from WRI’s 2011 global analysis of threats to coral reefs, Reefs at Risk Revisited, and supplemented with more recent and detailed data for the Coral Triangle region.

Threats to coral reefs in the Coral Triangle are much higher than the global average. More than 85 percent of reefs within the Coral Triangle Region are currently threatened by local stressors (such as overfishing, pollution, and coastal development), which is substantially higher than the global average of 60 percent. Nearly 45 percent are at high or very high threat levels. When the influence of recent thermal stress and coral bleaching is combined with these local threats, the percent of reefs rated as threatened increases to more than 90 percent, which is substantially greater than the global average of 75 percent.

Reefs at Risk Revisited in the Coral Triangle studies current and future threats to the Coral Triangle’s reefs, evaluates social and economic vulnerability to reef degradation and loss throughout the six countries, examines reef management initiatives, and identifies solutions to help safeguard reefs.

Coastal Capital: Jamaica

Maggie Barron — Tue, 28 Jun 2011 12:01:16 -0400

This analysis includes a valuation of coral reef-associated fisheries, potential losses to tourism due to beach erosion, and examines the role of coral reefs in reducing coastal flooding during storms. In addition, we provide a literature review of 16 coral reef valuations conducted in Jamaica.

Reefs at Risk Revisited

Maggie Barron — Wed, 23 Feb 2011 00:09:04 -0500

View a Google map of Reefs at Risk

Summary: Reefs at Risk Revisited

Under the Reefs at Risk Revisited project, WRI and its partners have developed a new, detailed assessment of the status of and threats to the world’s coral reefs. This information is intended to raise awareness about the location and severity of threats to coral reefs. These results can also catalyze opportunities for changes in policy and practice that could safeguard coral reefs and the benefits they provide to people for future generations.

View French version: Récifs Coralliens en Péril (Revisité )
View Spanish version: Arrecifes en Peligro (Reexamen)

Reefs at Risk Revisited is a high-resolution update of the original global analysis, Reefs at Risk: A Map-Based Indicator of Threats to the World’s Coral Reefs. Reefs at Risk Revisited uses a global map of coral reefs at 500-m resolution, which is 64 times more detailed than the 4-km resolution map used in the 1998 analysis, and benefits from improvements in many global data sets used to evaluate threats to reefs (most threat data are at 1 km resolution, which is 16 times more detailed than those used in the 1998 analysis).

Like the original Reefs at Risk, this study evaluates threats to coral reefs from a wide range of human activities. For the first time, it also includes an assessment of climate-related threats to reefs. In addition, Reefs at Risk Revisited includes a global assessment of the vulnerability of nations and territories to coral reef degradation, based on their dependence on coral reefs and their capacity to adapt.

WRI led the Reefs at Risk Revisited analysis in collaboration with a broad partnership of more than 25 research, conservation, and educational organizations. Partners have provided data, offered guidance on the analytical approach, contributed to the report, and served as critical reviewers of the maps and findings.

Selected Media

energyNOW, Saving the Rainforest of the Ocean
American Way Magazine, Reeling Reefs
NPR, World’s Coral Reefs Facing Serious Threats
The New York Times, Deeper Peril for Coral Reefs
PBS Newshour, Scientists Forecast an Altered Ocean
The Guardian, Coral reefs report warns of mass loss threat
AFP, World’s coral reefs could be gone by 2050: study
Voice of America, Report: 75 Percent of World’s Coral Reefs Threatened

Data & Resources DVD

A DVD companion to the Reefs at Risk Revisited report is available upon request. To order a copy, please email reefsatrisk@wri.org, and include a brief description of how you plan to apply the data. The DVD contains:

A comprehensive set of GIS data (raw input data and model results);
KML files (for viewing on Google Earth);
PDF of the Reefs at Risk Revisited report;
Technical notes;
A complete set of maps in jpeg format;
Summary video; and
Links to additional resources.

GIS Data Sets

Base Data: Data (ZIP archive, 150.8 Mb) | Meta Data (Excel, 17 Kb)
Global Threats: Data (ZIP archive, 97.9 Mb) | Meta Data (Excel, 15 Kb)
Local Threats: Data (ZIP archive, 206.7 Mb) | Meta Data (Excel, 15 Kb)
Local Threats (Vector Only): Data (ZIP archive, 74.0 Mb) | Meta Data (Excel, 13 Kb)

KML Files

Use these files in Google Earth and other map applications that support KML.

Fact Sheets

Global (PDF, 994 Kb)
Atlantic (PDF, 1.1 Mb)
Australia (PDF, 1.0 Mb)
Indian Ocean (PDF, 1.1 Mb)
Middle East (PDF, 1.0 Mb)
Pacific (PDF, 1.1 Mb)
Southeast Asia (PDF, 1.1 Mb)

Video

Footage starts at 1:06.

Coastal Capital: Economic Valuation of Coral Reefs in the Dominican Republic

Maggie Barron — Wed, 28 Apr 2010 10:33:20 -0400

Executive Summary

Coastal and marine ecosystems provide many valuable services to the people and economy of the Dominican Republic. At first glance, these benefits can be difficult to see. Reefs and mangroves help to build beaches and slow erosion, draw local and international tourists to the coast, and provide habitat for valuable recreational commercial fish. Unfortunately, these services are often overlooked in key development and policy decisions. As a result, coastal ecosystems are threatened by unsustainable coastal development, pollution, overfishing, and other local and global pressures.

One of the key barriers to better decision-making is lack of information and understanding of the scope and value of benefits provided by these ecosystems. Little work has been done on this topic in the Dominican Republic, and data gaps make it difficult to assess the economic impact of ecosystem services provided by coral reefs at the national level.

The studies presented here look at a small sample of the benefits that coastal ecosystems provide to the Dominican Republic. These ecosystems (a) protect white sand beaches in vital tourism areas; (b) provide habitat for commercial fisheries; (c) provide the engine for potential tourism growth in a small marine protected area; and (d) generate local tourism dollars in the southwestern part of the country. The studies highlight the contribution of coastal ecosystems to the economy and the need for greater investment in protecting coastal and marine ecosystems, including better management of marine fisheries, protection of existing reserves, and enforcement of coastal development guidelines.

1. Coralline beaches

The first two studies in this paper look at the importance of coralline beaches in the Dominican Republic. The first study makes the case for the economic importance of beaches by assessing the losses that could ensue from continuing beach erosion. The second study argues that coral reefs play an important role in reducing wave energy and thus protecting coastal beaches from erosion. Together, these studies make the case for investing in protection of beaches in the Dominican Republic, including renewed efforts to protect coral reefs.

Potential economic impacts of beach erosion. This study assesses potential losses to the hotel industry alone if beach erosion continues at the current pace. We use a hedonic price technique to estimate the relationship between the price of a hotel room and the width of the beach (perpendicular to the shoreline) in front of the resort. Our results suggest that current rates of beach erosion would result in revenue losses to the resorts of $52–$100 million over the next 10 years.

Modeling the potential impacts of coral reef decline on beach erosion. In their natural state, beaches are in a dynamic equilibrium between the sources that supply their sand and the forces that erode it. Corals and other organisms that inhabit coral reefs supply sand to adjacent beaches and control the rates of beach erosion by reducing the energy of incoming waves. The Dominican Republic has suffered from increased rates of beach erosion in recent years. This study uses an Excel-based model to examine the role of coral reefs in reducing wave energy and to estimate the potential increase in beach erosion that could result from further degradation of the reefs. We find that 10 years after the disappearance of live corals, erosion rates could increase by more than 100 percent on eastern beaches and by more than 65 percent in the south.

Slowing the pace of beach erosion in the Dominican Republic will require protecting the ecosystems that help to protect the coastline, including coral reefs, mangroves, and sand dunes. Regulations for coastal development should be strengthened and enforced, including limiting construction in sensitive areas. The protection of coral reefs will require curbing overfishing, reducing pollution (both from the hotel industry and from agricultural runoff), and reducing deforestation.

2. Marine fisheries

Marine fisheries in the Dominican Republic support an estimated 9,000 fishermen. It is a small-scale industry, with 99 percent of landings sold domestically. In this study, we identify the major commercial species in the Dominican Republic that depend on mangroves or coral reefs at some point in their life cycle, and examine the changes in landings and associated revenues for these groups over the past few decades. Using FAO landing data for three periods (1982–86, 1992–96, and 2002–06), we find that landings for many key commercial species—including spiny lobster, king mackerel, southern red snapper, and yellowtail snapper—grew significantly between the first two periods and then dropped sharply in the third, with recent landings for most species falling well below levels during the 1980s. This pattern typically suggests that fish populations have been overexploited, and unless steps are taken to protect remaining stocks, fisheries will continue to decline. For local fishermen, gross income from reef-dependent fisheries has decreased by nearly 60 percent over the past decade.

These results demonstrate that the protection of coral reefs and mangroves is vital to the welfare of the fishing communities that depend on these resources for their livelihoods. It is essential for the Dominican Republic to improve its capacity to enforce regulations protecting mangroves and fisheries (Silva 2003). Existing regulations include Decree 303 of 1987, which bans activities that destroy mangroves, and Law 307 of 2004, which regulates fishing and aquaculture.

3. The potential for dive tourism in La Caleta National Marine Park

La Caleta National Marine Park is located 15 miles from Santo Domingo and just two miles from the airport. Due to its healthy reefs and multiple shipwrecks, the park has become a popular SCUBA diving site for people living in the city. The area around the park is also important for fishing, traditionally providing a source of food and income for people living in the town of La Caleta and its vicinity. In recent years, the park has suffered from overfishing, threatening the livelihoods of local fishermen. In response, the fishermen have begun exploring the potential for the tourism industry, and are working to establish an aquatic center to offer recreational activities in the park. This study assesses the willingness to pay (WTP) of dive tourists for a dive trip in the park. We find that the revenue maximizing fee would be $53 per two-dive trip for local visitors and $59 per two-dive trip for international visitors. Assuming a gradual increase in visitation, we estimate that fishermen could earn 90 percent of their current income over the short term through dive tourism alone.

Additional income from snorkeling, kayaking, and other business opportunities associated with the reserve should enable fishermen to earn more from tourism than from fishing over the coming years.

4. Economic benefits of the Jaragua-Bahoruco-Enriquillo Biosphere Reserve

The three national parks that make up the UNESCO Biosphere Reserve in the Dominican Republic provide habitat for many rare and threatened plant and animal species. In Parque Jaragua, the beach at Bahía de las Águilas is considered one of the most beautiful and best preserved beaches in the country. Each year, the reserve receives over 24,000 visitors, mostly Dominican citizens. Visitors travel to the reserve by land from all over the country, stopping at different locations along the way to purchase gasoline and food. These travel expenses provide important economic benefits to the small communities on the way to the reserve. Visitors spend approximately $523,000 during stopovers between their cities of origin and the reserve, and $511,000 in lodging (hotel rooms and food) each year. Visitors pay an additional $136,000 in park fees, which help cover the management activities of the reserve.

Areas in and around the reserve in the southwest, however, are currently being considered for mining and mass-tourism developments that could have significant impacts on the ecologically fragile areas in the reserve (ACRD 2004). If this area follows the established tourism-development model, which focuses on attracting foreign visitors, it is likely that its value as a center for recreation and enjoyment for Dominicans will be diminished, impacting the economic benefits for towns in the surrounding areas as well as the ecological value of the park itself. Maintaining the region’s low-intensity, ecologically friendly tourism model and discouraging large-scale, intensive tourism and mining in and around the reserve would be a benefit to the Dominican people and the nation’s biodiversity.

Conclusion

These studies provide insight into the value of some of the key ecosystem services provided by coastal ecosystems in the Dominican Republic. We examined the value of coralline beaches, reef- and mangrove-dependent fisheries, and ecotourism. This is a critical first step in a country where ecosystem services are typically given very little consideration in decision-making, both in the public and the private sector. Some of the main findings include:

Current rates of beach erosion could result in revenue losses of $52–$100 million over the next 10 years to the hotel industry alone.
If corals continue to die off, beach erosion—and thus tourism revenue loss—will be exacerbated. Ten years after the disappearance of live corals, erosion rates could increase by more than 100 percent on eastern beaches and by more than 65 percent in the south.
Countrywide, gross income from reef-dependent fisheries has decreased by nearly 60 percent over the past decade—from over $41 million to under $17 million—almost certainly as a result of overfishing.
Overfishing is also threatening fish populations in La Caleta Marine Park. However, tourists in the park are willing to pay about $60 for a two-dive trip. At this price, fishermen in the park could earn nearly as much in the short term if they become dive tourism operators, and more in the longer term as tourist activities expand—solving the overfishing problem and benefiting fishermen at the same time.
Dominican tourists spend over $1 million yearly in roadside communities while traveling to the biosphere reserve in the southwest.

Protecting coastal ecosystems will provide the longest-term, most cost-effective solution to problems of beach erosion, while also sustaining fisheries, improving biodiversity, and enhancing other ecosystem services. It is in the long-term economic interest of the Dominican Republic to:

Strengthen and enforce coastal development regulations, including those protecting mangroves.
Enforce fisheries regulations and reduce overfishing pressure.
Curb pollution—both from the hotel industry and from agricultural runoff—and deforestation.
Protect and restore sand dunes and their native vegetation.
Increase public awareness about marine and coastal ecosystems, the benefits they provide to society, and threats to their existence.

Belize's Coastal Capital: The Economic Contribution of Belize's Coral Reefs and Mangroves

Richard Waite — Tue, 11 Nov 2008 13:24:20 -0500

Coastal and marine ecosystems provide vitally important goods and services to countries in the Caribbean. This study looks at only three out of the many culturally and economically valuable services provided by these ecosystems in Belize. Even within this narrowed scope, this study finds that the country’s coastal resources are extremely valuable. Belize’s coral reefs and mangrove-lined coasts provide critical protection against erosion and wave-induced damages from tropical storms; they have supported artisanal fishing communities for generations; and they stand at the center of vibrant tourism industry, drawing snorkelers, divers and sport fishermen from all over the world.

Coral reef- and mangrove-associated tourism contributed an estimated US$150 million to $196 million to the national economy in 2007 (12 percent to 15 percent of GDP). Fishing is an important cultural tradition, as well as a safety net and livelihood for many coastal Belizeans. Annual economic benefits from reef and mangrove dependent fisheries is estimated at between US$14–16 million. Reefs and mangroves also protect coastal properties from erosion and wave-induced damage, providing an estimated US$231 to US$347 million in avoided damages per year. By comparison, Belize’s GDP in 2007 was US$1.3 billion. These estimates capture only three of the many services provided by coral reefs and mangroves, and should not be considered the “total” value of these resources. These numbers should be regarded as a lower bound estimate.

Despite their importance, these benefits are frequently overlooked or underappreciated in coastal investment and policy decisions. Unchecked coastal development, overfishing, and pressures from tourism threaten the country’s reefs, with the additional threats of warming seas, fiercer storms, and other climate-related changes looming on the horizon. Fish populations, including commercially valuable sport-fishing species and colorful reef fish, will diminish if they lose the mangrove forests they rely upon as critical nursery habitats. Coastal properties will become increasingly vulnerable to storms and erosion, and reef-related tourism will suffer as reefs and mangroves decline.

Belize’s government, NGOs, and private sector have begun to recognize the importance of coastal ecosystems to the economy. Nevertheless, the amount currently invested in protecting Belize’s coral reefs and mangroves is very small when compared to the contribution of these resources to the national economy. The World Resources Institute (WRI), in collaboration with WWF Central America, assessed the economic contribution of these services at the national level and within individual Marine Protected Areas in Belize.

Coastal Capital: Economic Valuation of Coral Reefs in Tobago and St. Lucia

Payson Schwin — Fri, 13 Jun 2008 13:49:06 -0400

Coral reefs provide many benefits, sometimes called ecosystem goods and services, which are of high value and critical importance to local and national economies in the Caribbean.

These values are frequently overlooked or underappreciated in coastal investment, development and policy decisions, resulting in short-sighted decisions that do not maximize the long-term economic potential of coastal areas.

This project focuses on development of a valuation methodology that will be broadly applicable in countries across the Caribbean, supporting wise, long-term coastal policy and management.

This report provides a comprehensive summary of the valuation methodology as well as valuation results from implementation in two pilot sites in the Eastern Caribbean (St. Lucia and Tobago). Shorter, island-specific summaries of results, along with an Excel-based Valuation Tool for implementing the methodology are available from www.wri.org/project/valuation-caribbean-reefs.

Estimating the economic benefits of coral reefs to local economies is neither easy nor straightforward, due to the range of approaches available and frequent limitations of underlying data. Many valuation methods exist, and results are rarely comparable.

A priority for this project has been the development of a simple, broadly applicable methodology to value coral reef goods and services, based predominantly on commonly available data. Use of a consistent approach should lead to more comparable estimates of value for different places and time periods. An easily replicable methodology can also be applied while varying key assumptions in order to assess the impacts of different development and management options.

This methodology does not assess Total Economic Value (TEV), but rather focuses on three key goods and services: coral reef-associated tourism, fisheries, and shoreline protection services. These goods and services were chosen because of their importance to local economies and because data are available to support estimation of these values.

The method was developed based on literature review, feedback from local partners and examination of coral reef use and data availability in two pilot locations (St. Lucia and Tobago).

The results from the economic valuation of coral reefs in St. Lucia and Tobago—sites with very different coastal management and data richness situations—are presented in this paper. Even assessing only a subset of goods and services demonstrates that the benefits provided by coral reefs are economically significant, particularly with respect to island GDP. These estimates should be viewed as lower bound (partial) estimates of the economic contribution of coral reefs to the economy of these two islands.

The economic impact of coral reef-associated tourism and recreation and fisheries is evaluated using a financial analysis method—tracking the financial flows generated by these two industries, and their wider impact on the economy. Shoreline protection services are evaluated using a modified avoided damages approach, where the value of a reduction in wave-induced erosion and property damage due to coral reefs is estimated.

The methodology, as well as the Valuation Tool, uses a tiered approach, allowing results to be calculated at different levels of detail depending upon the data available.