1. pets
2. aquariums

Economic Valuation of Goods
and Services Derived from Coral Reefs
Results from the
South Coast of Grenada ReefFix Exercise
Jerry J. Mitchell
Presentation Outline
•
•
•
•
•
Project Background
Overview of Economic Valuation Techniques
Site Background
Methodology
Results
– Coral Reef Valuation- Tourism & Recreation
– Coral Reef Valuation- Fisheries
– Benefits Value Transfer
• Discussion
• Conclusion & Way Forward
Project Background
• Inter-American Biodiversity Information
Network (IABIN)
– to promote sustainable development and the
conservation and sustainable use of biological
diversity in the Americas
• ReefFix is an ICZM tool that trains
participating countries in ecosystem
valuation methodologies and management
techniques to conserve marine ecosystems
and the associated watersheds through
integrated park management
Overview of Economic Valuation
Techniques
• Economic valuation assesses the
goods and services provided by an
ecosystem which contribute to the
wellbeing of human life (financial,
social, biophysical, etc)
• By attributing a dollar value to natural
resources, the benefits of
conservation and some of the
unforeseen “costs” of
mismanagement are realised
Overview of Economic Valuation
Techniques
• Thus coral reefs health
influences the main
economic activity of the
region however are not
taken into account when
major policy decisions
occur
• By assessing the
ecosystem services, the
tangible benefits
provided by coral reefs
to sustain and improve
human life can be
quantified.
Overview of Economic Valuation
Techniques
Provisioning
Services
Regulating
Services
Cultural Services
Food
Erosion Control
Spiritual Values
Medicine &
Pharmaceuticals
Shoreline
Protection
Knowledge
Systems and
Educational Values
Ornamental
Resources
Recreation &
Ecotourism
Building Material
Supporting Services
Sand Production
Primary Production
Overview of Economic Valuation
Techniques
Total Economic Value
Non-Use Value
Use Value
Indirect Use
Future Use
(shoreline protection)
(option/bequest value)
Direct Use
Existence Value
Consumptive Use
Non-Consumptive Use
(food)
(tourism & recreation)
Overview of Economic Valuation
Techniques
Total Economic Value
Non-Use
Value
Use Value
Indirect Use
Future Use
(shoreline protection) (option/bequest value)
Direct Use
Existence Value
Consumptive
Use
Non-Consumptive
Use
(food)
(tourism & recreation)
Overview of Economic Valuation
Techniques
Direct Use
Fishing
Consumptive
Use
Non-Consumptive
Use
(food)
(tourism & recreation)
Tourism
Recreation
Site Background
South/southwest coast of Grenada
•
•
•
•
Coral reef extent 8400 ha
Extensive mangrove forest
Seagrass meadows
Bounds coastline of two
parishes
– St George
– St David
• In-cooperates two marine
protected areas
– Moliniere/Beausjour Marine
Protected Area
– Clarkes Court/ Woburn
Marine Protected Area
Site Background
•Fishing (Recreational and
commercial)
•Recreational SCUBA Diving
•Recreational Beach Activities
•Yachting/yachting servicesmarina’s /haul-outs
•Maritime Transport
Site Background
Threats to resources
•
•
•
•
•
Algal overgrowth
Coastal development
Overfishing
Seasonal storms/hurricanes
Physical damage
(anthropogenic)
– Diving
– Improper fishing methods
– Improper boating practices
Methodology
WRI Coral Reef Valuation- Benefits
Value Transfer
• ArcGis shape files
• Satellite Images
• Identify, define and
measure area of
significant land cover
types
• Using values from other
study sites, apply
economic values to
current site by unit area
(hectares)
WRI Coral Reef Valuation- Benefits Value Transfer
Outline Features
Identify Features
Import & Re-Project
Features
Calculate Areas & Apply Economic
Value
Land Cover
Disturbed and Urban Beach
Beach
Beach near dwelling
Coastal & Riperian Forest
Freshwater Stream
Freshwater Herbaceous Swamp
Grassland/pasture
Near shore aquatic habitat
Coral Reef environ
Mangrove
Mangrove
Mangrove restoration
TOTAL
Ave.$/ha/
yr
Lower
Bound
Upper
Bound
88,000
117000
1826
1595
72,787
118
16,283
100,000
37500
500000
77,000
140,000
5542
1231
32000
118
4630
99,000
94000
13,000
939
96000
118
27935
200000
225
900000
216000
Area (ha)
8.71788699
0
0
0
5.362221
0
365.2
1335.694061
4.339961
0
0
Total ESV Flow (US
Dollars)
$0
$767,174
$0
$0
$0
$390,300
$0
$5,946,552
$133,569,406
$162,749
$0
$0
$140,836,180
WRI Coral Reef Valuation
• Utilize data available from:
• Fisheries Division
• Land Use Division
• Grenada Board of Tourism
• Statistics Division
• Previous Studies
• Expert Opinion
• Input values into tool –
Estimate of Total
Economic Impact is
generated
• Values reviewed and
adjusted with new data
WRI Coral Reef ValuationFisheries
Sum of revenue generated from:
• Commercial Fishing
• Fish Processing
• Local Fishing (consumption,
sale, enjoyment)
Fishing
WRI Coral Reef Valuation- Tourism
& Recreation
Sum of revenue generated from:
• Accommodation Sector
Tourism
• Snorkeling & Boating
• Diving
• Local Use
Recreation
WRI Coral Reef ValuationFisheries
WRI Coral Reef Valuation- Fisheries
Commercial Fishing
Total Estimated Landings
- cost of fishing (wages, operating costs)
Fish Processing
Total Estimated Processing Revenue
(processing, cleaning)
- cost of operations (wages, operating
costs)
Local Fishing
Fishing for (sale, enjoyment,
consumption)
TOTAL
ECONOMIC
IMPACT OF
FISHING
WRI Coral Reef Valuation- Fisheries
WRI Coral Reef Valuation- Tourism & Recreation
Accommodation
Total Estimated Revenue (occupancy rates, room
rates, # rooms, % visitors using reef)
- labour, operating costs, tax rates, service
charges, leakages
Diving
Total Estimated Diving Revenue (# divers,
certifications, equipment, all inclusive trips)
- labour, operating costs, tax, service charges
Local Use
Beach use, reef-associated use
TOTAL
ECONOMIC
IMPACT OF
TOURISM &
RECREATION
WRI Coral Reef ValuationTourism & Recreation
Value Transfer
Benefits Value Transfer
WRI Coral Reef Valuation- Fisheries
• Case study assumes that the
South/southwest coast nearshore reefs
provide supporting services to the fished
reefs
• No known multipliers
• Quality data was limited
–
–
–
–
Exact location of catches are not known
Unknown # of local fishers
Non-labour operating costs unknown
No data on fish cleaning activities
WRI Coral Reef Valuation- Commercial Fisheries Results
WRI Coral Reef Valuation- Tourism and Recreation
• Quality data was limited
– occupancy rates were rough estimates
(high room rate properties can skew data)
– Tax revenue dependant on accountability
of operators
– Recreational dive data out dated
– No snorkel data
Results Comparison
WRI Coral Reef Valuation- Strengths
• Facilities dynamic data (allows updating and
expansion)
• Detailed and allows for categorization of results
• When data is available, outputs of results &
corrections are generated instantaneously
• Sensitivity analysis as response to
errors in data
• Accounts for often overlooked value of local use
• More data improves applicability of results (not
general output)
WRI Coral Reef Valuation- Weaknesses
• Data gaps increases reliance of local expert opinion
• Requires full cooperation of relevant agencies and is
dependent on the quality of their data
• Errors are magnified with some calculations (e.g.
fisher surveys)
• Can encourage overconfidence in results if
warnings about possible error ignored.
• Results are not visual and not as easy to
communicate as the Value Transfer method
Benefits Transfer Valuation- Strengths
• Availability of data
source
• No data collection
required; not dependent
on quality of data from
various sources
• Results are visual and
can be easily
communicated
Benefits Transfer Valuation- Weaknesses
• Results are static
• Dependent on quality
of aerial/satellite data
(if absent requires
intensive groundtruthing)
• Requires knowledge of
mapping software
•
Other Case Study Sites
Montego Bay Marine Park (Brian Zane)
Benefits Transfer Valuation
Pros
• Produces both graphic and numeric results
• Low dependence on external/hard to locate
data sources
Cons
• Multipliers (values) developed for NE United
States
• Challenging to develop local values, which
are critical to the accuracy and validity of
the tool
Other Case Study Sites
Montego Bay Marine Park (Brian Zane)
WRI Coral Reef Valuation
Strengths
• Highly detailed results
• Triangulates ESV of coral reefs
• Tools – MS Excel
Weaknesses
• Data - Heavily dependent upon external data
sources
• Aspects not yet developed (Coastal Protection)
• Dependencies/Assumptions (built into formulas)
• Complexity reduces probability of widespread
adoption
Other Case Study Sites
Tobago Cays Marine Park( David Gill)
WRI Coral Reef Valuation
Strengths
• Highly detailed results
• Triangulates ESV of coral reefs
• Tools – MS Excel
Weaknesses
• Data - Heavily dependent upon external data
sources
• Aspects not yet developed (Coastal Protection)
• Dependencies/Assumptions (built into formulas)
• Complexity reduces probability of widespread
adoption
Other Case Study Sites
Conclusion
• The results from this exercise indicate the value of
Grenada’s coastal and marine resources
• The significance of the results only emphasize the
need for proper management, sustainable use of
these resources, and effective management would
ensure the longevity of these resources
Further Research Options
• In order for this tool (WRI) to be more effective, an
assessment should be carried out on the study to
find gaps in the data set.
• A short term data gathering exercise should be
carried out to collect necessary data, and implement
a data collection program.
• The development of a comprehensive habitat map
for Grenada and update existing maps.
• Expand data collection within the various
government entities.
Questions?
Test ideas in the marketplace. You learn from hearing a range of
perspectives. Consultation helps engender the support decisions need
to be successfully implemented
Donald Rumsfeld