Coral reefs are a vital part of the Caribbean’s marine environment, and are integral to the economies of many of the region’s small island states. WRI’s economic valuation methodology can help decision-makers in the region better understand the enormous economic value the reef provides and use this data to make better-informed coastal policy.
Click here to view the full results.
Tourists flock to the region to see the beautiful beaches and marine life these biologically rich habitats support. Local fishermen rely on healthy reefs as a source of food and livelihood. In addition, reefs act as natural barriers to protect the islands from the worst ravages of tropical storms.
The proper management of the Caribbean’s Coastal Capital is essential for the region’s economic and environmental health.
Yet government officials, developers and the public often overlook or do not fully appreciate the harmful effects coral reef degradation, resulting in short-sighted decisions about coastal investment, development and land use. Knowledge of the economic values stemming from coral reefs supports sustainable planning which maximizes the long-term economic potential of coastal areas.
But a clear presentation of the economic value derived from coral reefs can guide the sustainable use of these resources.
The World Resources Institute, in collaboration with government and NGO partners in St. Lucia, Tobago and Belize, has developed an economic valuation methodology to quantify the value of coral reefs in the Caribbean more accurately. The methodology supports the evaluation of trade-offs, thereby highlighting the management and development paths which protect coral reefs, and maximize the economic contribution of coral reefs to the economy.
Our Excel-based Economic Valuation Tool guides users through a simple method that does not assess Total Economic Value (TEV), but instead focuses on three key goods and services: coral reef-associated tourism, fisheries, and shoreline protection services. Read more about the methodology (PDF, 4 pages, 59 Kb)
The tool evaluates the economic impact of both coral reef-associated tourism and fisheries with a financial analysis method that tracks the financial flows and wider economic impact these two industries generate.
Shoreline protection is the third aspect of the Economic Valuation Tool. WRI developed an innovative method for evaluating the role of coral reefs in protecting the shoreline. Using a modified avoided damages approach, the tool estimates the total value of reduction in wave-induced erosion and property damage due to coral reefs.
Countries across the Caribbean can use the methodology; and the hope is that its widespread use will support wise, forward-looking coastal policy throughout the region.
WRI has made lower bound (partial) estimates of the economic contribution of coral reefs to the economy of two pilot sites in the Eastern Caribbean: Tobago and St. Lucia. On these two small islands, coral reef tourism alone accounted for direct and indirect economic impact totaling US$101–130 million in Tobago and US$ 160–194 million in St. Lucia.
Ultimately, WRI hopes the project will:
- Increase local capacity to perform ecosystem valuation and use the valuation results in planning and decision-making;
- Make the economic case for better coastal and land management, as well as for increased investment in Marine Protected Areas, so that these are viewed as investments for the economic and societal benefits of the country;
- Arm NGOs and marginalized resource users with powerful information, giving them a greater voice in local decision-making.
For a quick summary of the results, click here (PDF, 6 pages, 208 Kb). For the full Coastal Capital report, click here (PDF, 76 pages, 1,001 Kb). To view maps of the shoreline protection analysis, click here. Click here to learn more about one WRI’s project partners, Buccoo Reef Trust.
Lauretta Burke, Senior Associate IIIlauretta@wri.org+1 (202) 729-7774Lauretta Burke is a Senior Associate in the People and Ecosystems Program of the World Resources Institute.
2 Comments
Anonymous (the other
Anonymous (the other Anonymous) raises an interesting point about economic valuation - but I think it is relatively easily addressed. While it is feasible in some cases to simply 'leave things alone' - the preservationist ideal - for much of the world, as population expands and standards of living increase, the physical space, ecosystems and ecosystem services that can be left untouched are rapidly shrinking.
So the question, as it has always been, is how to make decisions about what people do and where it should be done, and while economics is not the only answer, it has to be part of the equation.
For example, if Anon thinks there is an area or resource that should be off-limits to human activity because of the value Anon places on leaving it alone (whether for spiritual or aesthetic reasons or the value Anon places on the use of the space/resources by non-humans), Anon should probably be prepared to sacrifice, and convince others to sacrifice, something else. Fish in one place but not the other. Mine one mountain but not the other - or figure out how to mine both more sustainably, because of the values placed on the different possible outcomes. Economic valuation can help with these decisions.
I'd love to hear what Lauretta thinks on this question.
Not sure how you can put an
Not sure how you can put an economic value on irreplacable natural habitats without raising significant and very subjective ethical/political issues.
The purpose of ecosystems and the wildlife in them goes further than their benefits to humans.
Do reconsider the messages you are giving by making a study of this sort.