14Coral Reefs: Their Functions,Threats and Economic ValueHERMAN
S. J. CESARABSTRACTCoral reef ecosystems provide many functions,
services andgoods to coastal populations, especially in the
developingworld. A variety of anthropogenic practices threatens
reef healthand therefore jeopardises the benefits flowing from
theseservices and goods. These threats range from local
pollution,sedimentation, destructive fishing practices and coral
mining toglobal issues like coral bleaching. Economic valuation can
helpto shed light to the importance of the services and goods
bygetting some of the numbers on the table. Valuation tech-niques
are discussed and a summary of economic studies oncoral reefs is
presented. The concepts of Total Economic Valueand Cost Benefit
Analysis are used to illustrate the valuation ofmarine protected
areas (national parks, etc.) and of threats.1. INTRODUCTIONCoral
reefs are the flowers of the sea, surrounded by fasci-natingly
coloured fish with remarkable diversity. Reefs arealso rather
productive shallow water marine ecosystems(Odum and Odum, 1955)
that are based on rigid limeskeletons formed through successive
growth, depositionand consolidation of the remains of reef-building
coralsand coralline algae. The basic units of reef growth are
thecoral polyps and the associated symbiotic algae that
liveinthecoraltissues.Thissymbioticrelationshipisthekey factor
explaining both the productivity of reefs andthe rather strict
environmental requirement of
corals.Differentstructuraltypesofcoralreefsaredistin-guished:(i)
fringing reefs;(ii) patch reefs;(iii) barrier reefs; and(iv)
atolls.Fringingreefsarethemostcommontypeofcoralreefs.They develop
adjacent to the shore usually along rockycoasts of uplifted islands
or along the shores of exposedlimestone
islands.Patchreefsareisolatedanddiscontinuouspatchesoffringing
reefs.Barrier reefs develop sometimes rather far away
fromcoastlines in areas where coral growth has kept up withgradual
drop of the
sea-bed.Finally,atollsarecircularreefsthatarisefromdeep-sea
platforms such as submerged volcanic
seamounts.Coralreefshaveimportantecosystemfunctions,which provide
crucial goods and services to hundreds ofmillions of people. The
goods and services form an
im-portantsourceofincometothelocalpopulation(fish-ery, mariculture,
etc.), often living at subsistence levels.Also, they are a
potential tourist attraction, thereby
con-tributingtolocalincomegenerationandforeignex-change. Besides,
they form a unique natural
ecosystem,withimportantbiodiversityvalueaswellasscientific15andeducationalvalue.Andcoralreefsformanaturalprotection
against wave
erosion.Currently,however,coralreefsarebeingdepletedrapidlyinmanylocationsintheworldduetodestruc-tivefishingpractices(poisonfishing,blastfishing,muro-ami,etc.),coralmining,marinepollutionandsedimentation
among others. Besides, at the global level,coral bleaching has
recently become an additional majorthreat. Often, these threats are
the result of
externalities:peoplecausingthethreatbenefitfromunsustainableeconomicactivities,butthecostsarebornebyothersdepending
in some way or another on coral
reefs.HodgsonandDixon(1988)describeaclearexter-nalitysituationwhereloggingcausessedimentationresulting
in reef degradation (tourism) and fishery
loss-es.Fortheloggingcompany,thesetourismandfisherylossesarenotpartoftheirprofitcalculation.Intheabsence
of government policy and/or public outcry, log-ging would continue
even if the external costs to
societyweremuchhigherthanthenetprofitsoftheloggingindustry, as was
the case in the example of Hodgson andDixon.This example shows the
importance of obtaining eco-nomic values for the various reef goods
and services,
e.g.afisheryvalueandacoastalprotectionvalue.Thesegoodsandservicescandealwithconcretemarketableproducts,suchasshellfish,forwhichthevaluecanbedeterminedbasedonthedemand,supply,priceandcosts.
Other services depend on the possible future
usesofyetunknownbiodiversityonreefs.
Thevaluesofallthesegoodsandservicestogetherformsthe
TotalEco-nomicValue(TEV)(e.g.Spurgeon,1992).ThisTEVcan be
calculated for a specific area or for alternative
uses(e.g.preservationarea,tourismarea,multipleusearea,etc.).Wecanalsouseeconomicvaluationtocalculatethe
economic losses due to destruction of reef functions,as in blast
fishing (Pet-Soede et al.
1999)Inthisoverviewchapter,thefunctions,goodsandservices of coral
reefs are described first in Section 2.
Thethreatstocoralreefsandtheirimpactsonthevariousreef functions
will be discussed in Section 3. In
Section4,economicvaluationofcoralreefsisdescribedinde-tail,
followed by an enumeration of valuation techniquesin Section 5. The
paper ends with a discussion.2. FUNCTIONS, GOODS AND SERVICESOF
CORAL REEFSAND ASSOCIATED ECOSYSTEMSEcosystems provide a great many
functions, services andgoods. The terms functions, goods and
services have,in this context, slightly different meanings, though
theseterms are used interchangeably by many in the
environ-mentaleconomicsliterature.Costanzaetal.(1997,p. 253) define
functions, services and goods in the fol-lowing way: Ecosystem
functions refer variously to
thehabitat,biologicalorsystempropertiesorprocessesofecosystems.
Ecosystem goods (such as food) and
services(suchaswasteassimilation)representthebenefitshu-man
populations derive, directly or indirectly, from eco-system
services. For example, a forest provides the func-tion of storage
and retention of water, with the associat-ed service of water
supply. Table 1 (next page)
summa-risesthefunctionsandtheircorrespondinggoodsandservices that
Costanza et al. (1997) investigated for
coralreefs.ThedescriptionoftheexamplesistakenfromMoberg and Folke
(1999).InarecentpaperbyMobergandFolke(1999),themost important goods
and services of coral reef
ecosys-temsaresystematicallypresented(seeTable2onnextpage).Theauthorsdistinguishgoodsintorenewableresources
(fish, seaweed, etc.) and mining of reefs
(sand,coral,etc.).Theservicesofcoralreefsarecategorisedinto:(i)
physicalstructureservices,suchascoastalprotec-tion;(ii) biotic
services, both within ecosystems (e.g. habitatmaintenance) and
between ecosystems (e.g. biologi-cal support through mobile
links);(iii) biogeochemical services, such as nitrogen
fixation;(iv) information services (e.g. climate record); and(v)
social and cultural services, such as aesthetic values,recreation
and gaming.16Table 1. Ecosystem functions and corresponding goods
and services of coral reefsEcosystem functions Corresponding Goods
Examples for coral reefsand ServicesCapacitance, damping and
integrity of ecosystem Disturbance regulation Coastal protection
andresponse to environmental fluctuations sediment
retentionRecovery of mobile nutrients and removal or breakdown
Waste treatment Nitrogen fixation, waste ofexcess or xenic
nutrients and compounds assimilation and CO2and Ca budget
controlTrophic-dynamic regulations of populations Biological
control Feeding placesboth within ecosystemand between
ecosystemsHabitat for resident and transient populations Refugia
Nurseries and habitatsThat portion of gross primary production
extractable as food Food production Fish and other
seafoodproductsThat portion of gross primary production extractable
Raw materials Seaweed, materials foras raw materials medicine
curio, jewellery,coral blocks, sandProviding opportunities for
recreational activities Recreation Tourism,
recreation,game-fishingProviding opportunities for non-commercial
use Cultural Aestetic, cultural, religiousand spiritual
valuesSource: adapted from Costanza et al. (1997) and Moberg and
Folke (1999)Table 2. Goods and ecological services of coral reef
ecosystems identified in Moberg & Folke (1999)Goods
____________________ Ecological services
_____________________________________________________________Renewable
Mining of reefs Physical Biotic Biotic Biogeo- Information Social
andresources structure services services chemical services cultural
servicesservices (within (between servicesecosystem) ecosystems)Sea
food Coral blocks, Shoreline Maintenance Biological sup- Nitrogen
Monitoring Supportproducts rubble/sand protection of habitats port
through fixation and pollution recreationfor building mobile links
recordRaw materials Raw materials Build up Maintenance Export
organic CO2/Ca Climate Aesthetic valuesand medicines for lime and
of land of biodiversity production etc. budget control and
artisticcement and a to pelagic control inspirationproduction
genetic library food websOther Mineral oil Promoting Regulation of
Waste Sustaining theraw materials and gas growth of ecosystem
assimilation livelihood of(e.g. seaweed) mangroves and processes
and communitiesseagrass beds functionsCurio and Generation of
Biological Support of cultural,jewellery coral sand maintenance
religious andof resilience spiritual valuesLive fish andcoral
collectedfor aquariumtradeSource: adapted from Moberg and Folke
(1999)HERMAN S. J.
CESAR:171Sometimes,whatappearslikeanaturalthreatisreallytheresultofanthropogenicthreats.
Thesanderosioninareefareaisnaturalbutmaybetheresultofcoralmining,anchoring,andblastfishing.Alsovarious
coral diseases can be seen as natural even though they may
beexacerbated by human induced stress to the corals.2Some of the
descriptions of the threats come from Cesar et al. (1997).CORAL
REEFS: THEIR FUNCTIONS, THREATS AND ECONOMIC
VALUENotethatthiscategorisationisslightlydifferentthanthatofCostanzaetal.(1997).Besides,MobergandFolke
additionally identify information services, such asclimate and
pollution records.In the next two sections, the threats to reefs
and theeconomicvalueofreefswillbediscussed.Ineachofthese, the goods
and services presented above will be thebuilding blocks of the
discussion.3. THREATS TO CORAL REEFSThreats or over-uses can be
divided into human-inducedthreatsandnaturalthreats.
Thelatter,includinghurri-cane damage, will not be discussed here
further1. Thereare several categories of anthropogenic threats.
Many ofthe threats to coral reefs are extensively discussed in
theeditedvolumebySalvat(1987).IntheAppendix,aconcisesummaryoftherecentliteratureonthreatsisgiventhroughanannotatedbibliography.Threatscanbedividedintolocalandglobalthreats.Themainthreats
at the local level are:(i)
destructiveandnon-sustainablefisherypractices,such as poison
fishing, blast fishing, muro-ami fish-ing among others;(ii)
sedimentation, pollution, and waste;(iii) mining and dredging
activities; and(iv) non-sustainable tourism
practices.Currently,themainglobalthreatiscoralbleaching(Wilkinson
et al. 1999). Below, seven major threats willbe discussed2. In
subsequent chapters, a number of theseand other threats will be
presented in detail.Poison FishingWith Hong Kong restaurant prices
as high as US$
60180perkiloforcertaintypesofgroupersandNapoleonwrasse,thewild-caughtlive-fishtradehasagoldrush-like
character. Both in the restaurant retail business and inthe older
aquarium fishery, cyanide is nearly exclusivelyused as the
cost-effective way of harvesting live fish.
Large-scalepoisonfishingvesselsoperateinremoteandun-populated areas
of Indonesia and elsewhere, leaving behinda mosaic of coral
destruction. Besides, the use of cyanideand other poisons for the
aquarium fish has a long
tradi-tion,thatisstillcontinuing,notwithstandingattemptstocurbthisactivity,forinstanceinthePhilippinesthrough
the International Marinelife Alliance (IMA).In this monograph, the
chapter by Mous et al. pointsout that the habitat destruction
through poison fishing isnot as large as earlier anticipated.
However, the
overfishingaspectsofpoisonfishingandthelivereeffishtradeingeneral
are very large. In another chapter, Cesar et al. de-scribe how the
currently unsustainable and destructive livereef fish trade could
be transformed into one that is sustain-able and non-destructive,
through well-managed introduc-tion and expansion of grouper
aquaculture and of regulatedsustainable fishery of live fish (both
juveniles and adults).Blast
FishingThoughforbiddennearlyinallcountriesintheworld,and despite
the inherent dangers, home-made bombs arestill a very popular
fishing gear used to catch schools ofreef fish and small pelagics
and thereby earning
moneytheeasyway.Inthepast,theexplosivechargecamefrom World War II
bombs, though fertilisers and
illegallypurchaseddynamite,oftenfromcivilengineeringprojects,arecurrentlyused.
Theexplosionshattersthestonycoralsandkillsfishandinvertebratesinalargesurrounding
area. Over time, blast fishing damages
thewholereefandtherebydestroystheresourcebaseofmany subsistence
fishers. The chapter by Pet-Soede et al.in this edited volume
describes in detail the economicsof this destructive activity both
from the perspective ofthe blast fisher and of
society.OverfishingThoughnotnecessarilyasdestructiveastheotherthreatsdescribedabove,overfishingdoesdamagecoral18kg
of TrochusFigure 1. Yield of Trochus Shells in Noloth (Central
Maluku)in 1969-1992.Source: Cesar
(1996)localadministrativeoffices.Coralminingnotonlyde-stroys reef
flats, and thereby its coastal protection func-tion, but leads
indirectly to logging of secondary
forests,whichisusedforlimeburning.Notwithstandingthenegative
impacts of coral mining on the coastal protec-tion service of
reefs, as well as on other ecosystem servic-es, coral mining is
still extensive practised in many partsof the world. Two examples
of coral mining are workedout in the paper by hman and Cesar in
this volume.SedimentationSedimentation, both from urban areas and
from loggingactivities,smotherscoralsasitpreventsthesymbioticalgae
and the coral polyps from capturing sun light andplankton
respectively their primary sources of
energyandnutrition.Theseproblemsareparticularlyacuteclose to
estuaries of rivers and urban centres. The chap-ter by Hodgson and
Dixon in this volume describe
theeconomicimpactoflogging-inducedsedimentationontourismandfisheries.TheseestimatesshowthatgrossrevenuesassociatedwithlogginginthePhilippinesare2.8
lower than those of tourism and fisheries. For urban-induced
sedimentation, economic costs are much moredifficult to calculate.
The reason is that such dischargeshave many sources, and the
reduction of these
discharg-esoftenhasmanyothereconomicbenefits(suchaswater treatment
benefits, etc.) making the costs to coralsprobably minor.Urban
Pollution and WastePollution, both from agro-chemicals and
industrial
dis-charges,canalsokillcorals.Aneconomicanalysisofpollution in
urban areas is presented by Russell
(1992).Thispaperdescribesthecostsandbenefitsofcoastalwaste
management in urban areas. As stated above,
humanandindustrialwasteareresponsibleformuchofthesedimentation in
urban coastal areas. Russell takes
tour-ism(divingandothercoastalrecreation),fisheryandhealth
(decreased incidence of dysentery and other
water-bornediseases)asprimebenefitsofcoastalwasteman-agement.Annualcostspresentedofadditionalwastemanagement
(sewage and solid waste) for urban centresHERMAN S. J. CESAR:reefs,
mainly through a reduction in fish diversity. It alsodecreases the
value to recreational divers, who are eagerto see both large
predators and abundance of small col-ourful fish. In general, the
necessary reduction in
efforttoavoidoverfishingandachieveoptimalsustainableyieldsisinroughlyestimatedatintheorderof60percent
(McManus et al, 1992). Alternative income gen-eration, for instance
in eco-tourism, could be one
poten-tialwayofbringingaboutthisreductionineffort.Be-sides lowering
the total effort, fisheries management ef-forts should also focus
on the creation of sanctuaries andestablishment of closed seasons.
A number of papers onoverfishing are described in the annotated
bibliographyon threats in the Appendix. In figure 1, a typical case
ofoverharvestingorareefresourceisillustrated.Inthepast,mother-of-pearlshellswerecollectedinathree-year
cycle following a traditional sasi-system. Since thatsystem
collapsed, total yields over time have been signif-icantly lower
(see Cesar, 1996).Coral MiningCorals have long been used for
building material and
fortheproductionoflime,aswellasintheornamentalcoraltrade.
Thelimeisoftenusedasplasterormixedwithcementtoreducecostsforprivatedwellingsand05001000150020002500300035004000450069
71 73 75 77 79 81 83 85 87 89 91YearThree Year CycleOne Year
Cycle19inIndonesiaareUS$987million.Thebenefitsare:tourism(US$101million),fishery(US$221),andhealth(US$4.8).HencetotalannualbenefitsareUS$327
million, or one-third of the costs.Coral BleachingDuring the period
February to June 1998, a
significantriseinthesurfacewatertemperatureintheIndianOcean and
elsewhere was observed. Especially
alarmingaboutthe1998bleachingeventwasthescopeoftheevent and the
fact that many reefs previously regarded asnear pristine were
seriously affected. The bleaching
andsubsequentmortalitymayresultinserioussocio-eco-nomicimpacts,particularlyforthosenationswhoseeconomies
are heavily dependent on the revenues
gener-atedbyreef-basedtourism,andreef-basedfisheries.HardhitwerelargeareasofcoralreeffromSriLankaandtheMaldivesinSouthAsiatotheEastAfricancoastalline.ThechapterbyWestmacottetal.inthisvolume
deals extensively with these socio-economic im-pacts.Compatible
UsesMany of the goods and services that coral reefs provideto
humans can lead to incompatibilities: the concurrentuse of the all
goods and services is not possible. This
isbecausecertainecosystemfunctionsexcludetheuseofotherecosystemresourcesatthesametimeandinthesameplace,e.g.biodiversityresearchandresourceex-traction.
This becomes even more obvious once the
re-sourceusebecomesathreat.Infact,athreatcouldbeseen as the
over-use of a specific service: water
pollutioninacoastalzoneisbasicallyanover-useofthenaturalpurificationfunctionofwetlands.Andcoastalzones,whicharemoreandmoredevoidoffish,havefallenvictim
to the threat of
overfishing.ThiscompatibilityissuehasbeenworkedoutbySpurgeon (1992)
and is demonstrated in the Chapter
byCesaretal.inthisvolumeonJamaicasPortlandBightProtectedArea.ThisParkisacombinedmarineandterrestrial(coastal)parkonthesouthcoastofJamaica,just
west of the capital, Kingston. Many of the servicesare not
necessarily compatible. Especially the extractiveuses, such as
charcoal burning, tend to be
incompatiblewithotherservices,suchastourismandbiodiversitypreservation.Ontheotherhand,fisheriesandtourismcan
well go together, especially if some zoning is
applied.Thechallengeofmanagingaprotectedareaistoallowmultiple uses
while conserving nature at the same
time.Successfulareamanagementincludeszoningaswellasthreat
regulation.4. ECONOMIC VALUE OF CORAL REEFSThe economic value of an
ecosystem is often defined asthe total value of its instruments,
that is the goods andecological services that an ecosystem
provides. For
coralreefs,wethereforeneedtoknowitsmajorgoodsandservicesaswellastheirinteractionswithotherecosys-tems.
Next, these goods and services need to be quanti-fied and
monetised. For goods sold in the market place,this is
straightforward by looking at their market price,but for ecological
services, this is not the case.
Therefore,complexvaluationtechniquesareusedtoarriveataneconomicvalueoftheseservices.
Thesetechniquesarepresented in the next section. The concept of
Total
Eco-nomicValueandthevaluationofaspecificareaandthreatarediscussedhere.Foradiscussionontheeco-nomic
valuation of coral reefs, see Spurgeon (1992) andDixon
(1998).Thevalueofallthecompatiblegoodsandservicescombined gives the
Total Economic Value (TEV) for
anecosystem.Theneo-classicalfoundationsofeconomicvalueanditsrelationshipwithwillingnesstopayandconsumer
surplus are not discussed here (see Pearce andTurner, 1990 for a
general discussion and Barton,
1994andPendleton,1995foraspecificdiscussionontheeconomicvalueofcoralreefs).Eachofthegoodsandservices
of coral reefs presented in table 2 above generateeconomic value.
Fishery resources can be harvested andsold, creating value added
and likewise, the coastal
ma-rineareaenablesseatransportationthatcreatesprofits.Similarly,preservationandeco-tourismcreatevalue.The
mapping between the goods and services on the oneCORAL REEFS: THEIR
FUNCTIONS, THREATS AND ECONOMIC VALUE20Figure 2. Total Economic
Value and Attributes of Economic Values for Coral ReefsTotal
Economic Value Use Values Non-Use ValueDirect use value Indirect
use value Option value Quasi-option value Bequest value Existence
valueOutputs/services Functional benefits Future direct Expected
new Value of leaving use Value from knowledge ofthat can be enjoyed
indirectly and indirect use information from and non-use values
continued existence,consumed directly avoiding irreversible to
offspring based on e.g. morallosses of: convictionExtractive:
Biological support to: *species *species *threatened reef
habitatscapture fisheries sea birds *habitats *habitats *endangered
speciesmariculture turtles *biodiversity *way of life *charismatic
speciesaquarium trade fisheries connected to *aesthetic
reefscapespharmaceutical other ecosystems traditional
usesNon-Extractive: Physical protection to:tourism/recreation
*other coastalresearch/education ecosystemsaesthetic
*coastline*navigationGlobal life-support:carbon storeSource: Barton
(1994).HERMAN S. J.
CESAR:handandtheirvaluesontheotherhandisstraightfor-ward, as is
shown in figure
2.Asindicatedinfigure2,therearesixcategoriesofvalues:(i) direct use
value;(ii) indirect use value;(iii) option value;(iv) quasi-option
value;(v) bequest value; and(vi) existence value.Direct use values
come from both extractive uses (fisher-ies, pharmaceuticals, etc.)
and non-extractive uses. Indi-rect use values are, for example, the
biological support
intheformofnutrientsandfishhabitatandcoastlineprotection. The
concept of option value can be seen asthe value now of potential
future direct and indirect usesof the coral reef ecosystem. An
example is the potentialof deriving a cure for cancer from
biological
substancesfoundonreefs.Bio-prospectingisawayofderivingmoney from
this option value. The quasi-option value
isrelatedtotheoptionvalueandcapturesthefactthatavoiding
irreversible destruction of a potential future usegives value
today. The bequest value is related to
preserv-ingthenaturalheritageforgenerationstocomewherethevaluetodayisderivedfromknowingthatthecoralreef
ecosystem exists and can be used by future genera-tions. The large
donations that are given to environmen-tal NGOs in wills are an
example of the importance ofthe bequest concept. The existence
value reflects the ideathat there is a value of an ecosystem to
humans irrespec-tive of whether it is used or not.21 CORAL REEFS:
THEIR FUNCTIONS, THREATS AND ECONOMIC VALUE3Note that some of the
numbers presented in table 3 are outdated andmore recent data on
blast fishing and coral mining are presented in thechapters by Pet
Soede et al. and hman and Cesar in this volume.These values all are
quite abstract and theoretical. Inthe next section, valuation
methods are discussed to seehow the economic value of these uses
can be measuredin practice. Measuring these values in monetary ways
isnot straightforward, and in some cases (nearly)
impossi-ble.Yet,itisimportanttotaketheseintoaccount.AsDixon(1989)states:Whetheracoastalresourceisagoodorservice,marketedornonmarketed,isnotim-portant
in terms of its function in the coastal
ecosystem.Theextent,towhichcoastalresourcesrepresenteasilymarketedgoods,however,heavilyinfluencesresourcemanagementdecisions.Nonmarketedgoodsandenvi-ronmentalorecosystemservicesarefrequentlyover-looked
or their importance played down. This is one
ofthefactorsleadingtoresourcemanagementconflictsand poor
decisions.OnepurposeofobtainingtheTEVofcoralreefsandusingCost-BenefitAnalysis(CBA)istogetsomenumbersonthetableforpolicydiscussions.Forin-stance,
a government might consider proclaiming a spe-cific bay a Marine
Protected Area (MPA) or a
Multiple-UseCoastalArea(MUCA).TherearesignificantmanagementcostsinvolvedinthemanagementofMPAsandMUCAsandthegovernmentmaywanttoknow
in economic terms whether the management
costsareeconomicallyjustified.OragovernmentmightgetcomplaintsfromNGOsaboutcertainunsustainablecoastal
activities. These activities form a threat but
theygeneratequitesomecashatthesametime,andthegovernment needs to be
convinced that it is worthwhileto curb the threat. Both these
issues will be briefly dis-cussed.Economic Value of an
MPAEstablishing an MPA is a costly affair and a governmentneeds to
be well informed about the pros and cons of
anadditionalMPA(McClanahan,1999).ManyMPAsindeveloping countries are
basically unprotected. Such
ar-easarereferredtoaspaperparks.CyanidefishersinIndonesia allegedly
know exactly where the parks are,
astheseareashaverelativelyabundantfisheryresourceswhile enforcement
is so weak that this does not form athreat to them. Determining the
economic value for anMPA involves three important
steps.First,thecompatibleusesand/orthezoningoftheareas has to be
determined, as discussed above. See alsoBarton (1994). Secondly,
the additional contribution
ofparkprotectiontothegoodsandservicesoftheecosystem(s) need to be
determined. And thirdly, a
CBAiscarriedoutbycomparingthenetbenefitsinstep2withthecostsofmanagement.
Theactualvalueoftheparkisthendefinedasthenetincreaseinthevalueoftheecosystemduetotheestablishmentandmanage-ment
of the park minus the costs of managing the park.Pendleton (1995,
p.119) states: Past valuations of
trop-icalmarineparksinaccuratelymeasuretheireconomicvalue because
they value the resource protected and notthe protection provided.In
this monograph, three papers discuss the valuation
ofacoastalarea.Whiteetal.discussthenetbenefitsofcoral reef and
wetland management on Olango Island
inthePhilippines.Dixonetal.discussavaluationoftheBonaire Marine
Park in the Netherlands Antilles. Final-ly, Cesar et al. give an
economic valuation of an
integrat-edterrestrialandmarineprotectedareainJamaica.Ineach of
these three valuation studies, the costs of manag-ing the park
sustainably are economically justified.Economic Value of a
ThreatSince the economic benefits from reef destruction are
oftenused to justify continuation of this threat, quantifying
thecosts associated with coral reef degradation is importantto make
a balanced assessment of the ben-efits and costsof various threats.
To do this, a CBA is carried out
wherethenetbenefitsoftheharmfulactivitytothepeoplecausingthethreatarecomparedwiththenetsocietalcosts
plus the enforcement costs of actually eliminatingthe threat. To
illustrate the costs and benefits of a threat,table 3 on next page
presents a CBA where the
societalcostsarecalculatedperecosystemserviceofthereef3.22Table 3.
Total Net Benefits and Losses due to Threats of Coral Reefs in
Indonesia(present value; 10% discount rate; 25 y. time-span; in
1000 US$; per km2)Net Benefits to Individuals Net Losses to Society
_____________________________________________Function: Total Net
Benefits Fishery Coastal Tourism Others Total NetProtection Losses
(quantifiable)ThreatPoison Fishing 33 40 0 3436 n.q. 43476Blast
Fishing 15 86 9193 3482 n.q. 98761Coral Mining 121 94 2-260 3482
>67.0 176903Sedimentationfrom logging 98 81 192 n.q.
273Overfishing 39 109 n.q. n.q. 109Source: Adapted from Cesar et
al. (1997).Table 4. Net Benefits to Individuals: Amount per km2 and
per StakeholderBenefits per stakeholder in parentheses; present
value; 10% discount rate; 25 y. time-span; in 1000 US$; per km2)
Individuals: Fishermen Miners, Loggers Others (payments) Total per
km2Threat:Poison Fishing 29 4 33(468.6 per boat) (317-1585 per
person)(23.4 per diver)Blast Fishing 15 ? 15(7.3 per
fisherman)Mining 67 54 121(1.4 per mining family) (18 - 54 per
person)Sedimentation 98 ? 98due to logging (1990 per log.
family)Overfishing 39 39(0.2 per fisher)Source: adapted from Cesar
(1996) and Cesar et al. (1997).HERMAN S. J.
CESAR:Notethattheanalysisfocusesononlythreeecosystemservices,leavingoutanumberofotherservices.Totalcostsshouldthusbeinterpretedasroughestimatesofthe
lower range of true costs associated with reef
destruc-tion.However,thislowerboundaryalreadyprovesthepoint that
reef destruction is not economically justifiedfor each of the
threats.Inthisvolume,fourexamplesofeconomicanalysesofthreatsaregiven:HodgsonandDixondescribethetrade-off
between logging on the one hand and tourismand fisheries on the
other hand. Mous et al. discuss theeconomics of cyanide fishing.
Pet-Soede et al. discuss
thecostsandbenefitsassociatedwithblastfishing.Finally,hmanandCesarcomparetwocasestudiesontheeconomics
of coral mining. A recent overview of
valua-tionstudiesforcoralreefsisgiveninRuitenbeekand234ThecolumnOtherspresentsthepaymentstothirdpersons,some-times
referred to as political rents.CORAL REEFS: THEIR FUNCTIONS,
THREATS AND ECONOMIC
VALUECartier(1999),seealsothechapterbyGustavsonandHuber in this
book.Stakeholder
AnalysisThoughitisusefultoknowthesocietalcostandtheprofits
(benefits) of a threat, it is often from a
man-agementperspectiveevenmoreimportanttoknowthe economic forces
that are driving destructive
practic-es.Astakeholderanalysisisthereforecalledfor.Thistype of
analysis aims at getting insight into the followingtwo
questions:(a) whoisgainingandwhoislosingfromthecurrentsituation and
a prescribed future scenario;(b) what is the size of the stake in
actual dollar terms foreach stakeholder.To illustrate this point,
table 4 shows the private
benefitsthataccruetothevariousgroupsofstakeholdersin-volvedincausingthethreataswellastoeachofthepersons/families/boats/companiesinvolved.4
Theaggre-gated numbers (last column of table 4) correspond withthe
total benefits presented in table 3 (second
column).Interestingly,netbenefitspersquarekilometretoindi-vidualsappeartobehighestforcoralmining.Yet,pri-vatebenefitsperstakeholder(person/boat/company/etc.),
poison fishing and logging-induced sedimentationhave by far the
highest private incentives, ranging
fromUS$2millionpercompanyinthecaseofloggingtooverUS$0.4millionperboatinthecaseofpoisonfishing
(in present value terms). Side-payments are
alsoparticularlyhigh,veryroughlyestimatedatsomeUS$0.31.5millionforsomereceiversoflargepayments.On
the other extreme, coral mining is a rather
marginalactivityfortheminingfamiliesinvolved(foradiscus-sion, see
Cesar et al. 1997).Benefit TransferIt is often quite costly to
carry out studies to determinetheprecise TotalEconomic
Valueofcoralreefsineachlocation,e.g.aspecificmarinepark.However,itissometimes
possible to use a meta-analysis of studies car-ried out in other,
comparable, areas. The values
calculatedinthosestudiesmight,ifcarefullydone,sometimesbeusedforanotherarea.Ifanextensivestudyhasbeencarried
out for the fisheries and tourism potential in onemarine reserve in
the Philippines, than it is not
unlikelythatthesevaluescanformaproxyforanothermarinereserve
elsewhere in the Philippines. Put differently, be-cause of human or
financial resource constraints,
valuescansometimesbetakenoutofpreviousstudieswhichfocus on a
different region or time period. This
practiceoftransferringofmonetaryvaluesiscalledasbenefittransfer. An
example is given in the article by White etal. in this monograph.5.
VALUATION TECHNIQUESIn the environmental economics literature, a
host of
valua-tiontechniqueshavebeendevelopedoverthelastdec-ades.Standardtechniquesinmicroeconomicsandwel-fareeconomicsrelyonmarketinformationtoestimatevalue.However,theexternalitiesinherenttoenviron-mental
issues prevent these techniques from being usedmost of the time.
For an elaboration of this issue that isaccessable to
non-economists, see Dixon (1998).
Specif-icallyfortropicalcoastalecosystems,Barton(1994)givesadetailedoverviewof15differenttechniques.Spurgeon(1992)givesaninterestingsummaryofthistopic
with many actual numbers. Table 5 gives a
listingofthemostcommontechniquesusedforvaluingthegoods and services
of coral reef ecosystems. Three gener-al categories are
distinguished:(i) directly to obtain information about the value of
theaffected goods and services or of direct expenditures;(ii)
potentiallyapplicabletechniques,whichusethemarketindirectlytoobtaininformationaboutval-ues
and expenditures;(iii) survey based methods, which use hypothetical
mar-kets and situations through, for instance,
question-nairesurveyssuchasthecontingentvaluationmethod
(CVM).24Table 5. Valuation Techniques used for Valuing Goods and
Services of Coral Reef EcosystemsGenerally Applicable Techniques
Using conventional market value of goods and services directly
affectedG Change in Productivity / Effect of production (EoP);G
Stock (houses, infrastructure, land) at Risk (SaR)G Loss of
earnings / Human capital approach (HC);G Opportunity cost approach
(OC);Using the value of direct expenditures (cost based)G
Preventive expenditures (PE);G Compensation payments
(CP)Potentially Applicable Techniques Using implicit or surrogate
market values indirect approachesG Property-value and other
land-value approaches (PV);G Travel-cost approaches (YC);Using the
magnitude of potential expenditures (cost based)G Replacement costs
(RP);G Shadow-project costs (SPC)Survey-Based Methods Survey-Based
MethodsG Contingent valuation meth. (CVM) hypothetical markets and
situationsSource: Adapted and shortened from Dixon (1988), Barton
(1994).Table 6. Correspondence between the Types of Value and the
Valuation MethodsType of Value Valuation MethodDirect Use ValuesG
tourism (consumer surplus) Travel Cost (TC)G tourism (producer
surplus) Effect on Production (EoP)G fisheries Effect on Production
(EoP)Indirect Use ValuesG coastal protection Replacement costs
(RC); Damage Costs (DC)Option Values Contingent Valuation Method
(CVM)Quasi-option Values Contingent Valuation Method (CVM)Bequest
Values Contingent Valuation Method (CVM)Existence Values Contingent
Valuation Method (CVM)HERMAN S. J.
CESAR:Thesevaluationtechniquesenableustoestimateinmoney terms the
direct and indirect use value, as well
astheoption,quasi-option,bequestandexistencevalues.We will here
specifically discuss five methods, which
arealsousedinmanyofthechaptersthatfollow.Thesetechniques are:(i)
Effect on Production (EoP);(ii) Replacement Costs (RC);(iii) Damage
Costs (DC);(iv) Travel Costs (TC); and(v) the Contingent Valuation
Method (CVM).25 CORAL REEFS: THEIR FUNCTIONS, THREATS AND ECONOMIC
VALUEThesetechniquescorrespondtothevarioustypesofvalues,asshownintable6.Fordetailsonothertech-niques,
see Barton (1994). Note that both TC and CVMhave many shortcomings,
including problems of
design-ing,implementingandinterpretingquestionnaires.However,inthecaseswheretheyareused,theyaretypically
the only techniques available, as table 6 shows.Effect on
Production
(EoP)Thistechnique,alsoreferredtoasthechangeinpro-ductivitymethod,looksatthedifferenceinoutput(production)asthebasisofvaluingreefservices.Thetechniquemainlyappliesheretofisheriesandtourism(producer
surplus) to estimate the difference in value ofproductive output
before and after the impact of a threator a management
intervention. Coral bleaching may, forinstance, lead to fewer dive
tourists and therefore
lowertourismrevenues.Hence,thechangeinnetprofit(i.e.effect on
production) can be calculated, and this can beused as a proxy for
the loss in tourism value. For
fisher-ies,thetechniqueisusedtocalculatethelossinthefisheries value
from a specific threat, such as coral min-ing or the gain in the
fisheries value from a
managementintervention,suchastheintroductionofamarinere-serve.Themainchallengeisthecalculationofthechangesinproductivityinphysicaltermsbetweenthewith
and without
scenario.AnexampleoftheEoPmethodisAlcalaandRuss(1990),whoreportonadeclineofUS$54,000inthetotal
yield of reef fishes off Sumilon Island
(Philippines)afterbreakdownofprotectivemanagement.McAllister(1998)givesestimatesofreefproductivityforreefsinexcellent
condition (18 mt/km2/yr) as well as good
con-dition(13mt/km2/yr),andfaircondition(8mt/km2/yr).Basedonchangesinconditionovertimeandesti-mates
of net profits associated with these yields,
McAl-listerestimatesthefisherieslossinthePhilippinesatUS$ 80
million per year.Replacement Costs
(RC)Thereplacementcostapproachisusedtovaluetheecosystem service of
coastal protection. Data on invest-ments to control coastal erosion
are used as a proxy
forthecoastalprotectionserviceofahealthcoralreef.Hence, the cost of
replacing the coral reef with
protec-tiveconstructions,suchasrevetmentsandunderwaterwave breakers
are used.A study quoted in Spurgeon (1992) indicates that
onTarawaAtollinKiribati,coastaldefencescostingUS$90,720 had to be
built to prevent coastal erosion. Berget al. (1998) give a detailed
analysis of the replacementcosts following years of coral mining in
Sri Lanka.
TheaveragecostvariesbetweenUS$246,000andUS$836,000km-1ofprotectedcoastline.Cesar(1996)quotes
a case in Bali, Indonesia where coastal
protectionexpendituresofUS$1millionwerespentoverseveralyears for
500 m of coastline protection. Finally,
Riopelle(1995)citesinformationonahotelinWestLombokwhich has spent
US$ 880,000 over a seven year periodto restore their beach stretch
of around 250 m, allegedlydamaged by past coral mining.Damage Costs
(DC)In the absence of coastal protection, the monetary
dam-agetopropertyandinfrastructurefromsurgeandstormscanbeenormous.Hence,thedamagecostap-proach
uses the value of the expected loss of the stock atrisk as
straightforward proxy for the value of the coastalprotection
service.Berg et al. (1998) use the cost of land loss as a proxyfor
the annual cost of coastal erosion due to coral
min-inginSriLanka.Dependingonlandpriceanduse,these costs are
between US$ 160 and US$ 172,000 perkm of reef per year. Cesar
(1996) uses a combination ofthe value of agricultural land, costs
of coastal infrastruc-ture and houses to arrive at a range of US$
90 up to US$110,000 per km of reef per year.Travel Costs (TC)This
approach is often used to estimate the welfare
asso-ciatedwiththerecreationaluseofaNationalPark,wherethetraveltimeortravelcostsareusedasanindicator
of the total entry fee, and therefore, a personswillingness to pay
for visiting a Park. The further away26 HERMAN S. J. CESAR:people
live from the Park, the higher the costs are to visitthe Park.
Because of the variation in these costs
amongvisitors,thedemandfordifferentpricescanbedeter-minedandademandcurvefortheParkcanbecon-structedandtheassociatedconsumerssurpluscanbedetermined.
Thissurplusrepresentsanestimateofthevalueoftheenvironmentalgoodinquestion(e.g.theNational
Park). Both the Travel Cost method as well asthe Contingent
Valuation method below have a numberof drawbacks that will be
discussed later in this section.An example of TC is Pendleton
(1995) who uses thismethodtoestimatethevalueoftheBonaireMarinePark.
To obtain the welfare estimate, Pendleton
dividesthenumberofvisitorsfromeachstate/countrybythepopulationofthecorrespondingorigin.
Thisvisitationrateisthenregressedupontravelcosts,givingthede-mand
curve for reef-oriented vacations to Bonaire (visi-tation rate =
0.07250.0000373 * travel costs). Based onthis estimated demand
curve, the travel costs from eachregion and assuming annual visits
to the marine park tobe 20,000, the total consumer surplus of
visitors to theBonaire Marine Park is approximately US$ 19.2
millionannually.AnotherexampleisaTC-studyreportedinHundloeetal.(1987),withavalueofA$144millionper
year for tourists visiting the Great Barrier Reef.Contingent
Valuation Method
(CVM)Intheabsenceofpeoplespreferencesasrevealedinmarkets,thecontingentvaluationmethodtriestoob-taininformationonconsumerspreferencesbyposingdirect
questions about willingness to pay and/or
willing-nesstoaccept.Itbasicallyaskspeoplewhattheyarewilling to pay
for a benefit, or what they are willing
toacceptbywayofcompensationtotoleratealoss.
Thisprocessofobtaininginformationmaybecarriedouteither through a
direct questionnaire/survey or by exper-imental techniques in which
subjects respond to
differ-entstimuliinlaboratoryconditions.Soughtareper-sonalvaluationsoftherespondentforincreasesorde-creases
in the quantity of some goods, contingent upona hypothetical
market.An example of CVM is the chapter by Spash in
thismonograph.VisitorstoMontigoBay(Jamaica)andCuraao (Netherlands
Antilles) were surveyed to investi-gate the consumer surplus, or
individual utility, of coralreef improvement. The survey instrument
was designedto capture the non-use benefits of marine
biodiversity,for both local residents and for visitors. The
question
torespondentsdealtwiththeirwillingnesstopayforanincreaseincoralcoverinthePark.ExpectedWTPforcoralreefimprovementwasUS$3.24perpersoninasampleof1058respondentsforMontigoBay.ForCuraao,
the number was US$ 2.08 per person. But
thisvaluewasheavilydependentonwhetherrespondentsbelievedthatmarinesystemspossessedinherentrights,orthathumanshadinherentdutiestoprotectmarinesystems.
Such preferences would increase WTP by up toa factor of three.
Another example is Dixon et al.s paperinthismonograph.
TheyarriveatanaverageWilling-ness to Pay for a consumer surplus of
US$ 325,000 forBonaire Marine
Park.ThereareanumberofbiasesassociatedwithCVMthatareimportanttonote.ThesebiaseshavegivenCVM
in the eyes of some a bad name. The careful use ofCVM is therefore
necessary. Barton (1994) summarisesthe following biases, described
in the literature:G
hypotheticalbias:Thisreferstothepotentialerrorinherent in the
process that is not an actual
situation.Respondentsmaynottaketheinterviewseriouslyenough to give
bids reflecting their true preferences;G
strategicbias:Peoplemayanswerstrategicallyiftheyfeelthattheirreplywillinfluencerealevents,i.e.ifthey
feel that their willingness-to-pay bid may entailactual payment
when values will be lower than other-wise;G information bias: The
way in which the
hypotheticalsituationisdescribedcanhaveapowerfuleffectonthe reply,
involving several aspects. Design bias
referstohowthequestionsarestructured.Instrumentbiaswillresultiftherespondentreactseitherwaytothehypothetical
instrument or vehicle of payment that issuggested (e.g. entry fee).
Starting-point bias refers
totheobservationthatthestartingbidmayaffectthefinal outcome in a
converging bidding process.27Table 7. System of Classifying Marine
Biodiversity Valuation MethodologiesBiodiversity Production
Biodiversity Utility Biodiversity Rent CaptureValuation Method
Valuation Methods Valuation MethodsEconomic Basis Supply-Oriented
Demand Oriented Profit-OrientedDescription Values biodiversity
within an Values biodiversity within an Values biodiversity as
aeconomic production function economic utility function
distribution of profits or value-addedValuation Target Measures the
contribution of Measures the contribution Measures one or
morebiodiversity to the value of of biodiversity to the utility
components of the distributionoutput in a produced good of an
individual or society. of Use Values, focusing onor service. Can
estimate and Can estimate aggregated captured rents, profits or
valueisolate direct or indirect Use and Non-Use Values, added. Can
isolate value ofUse Values, including including consumers embedded
informationecological functions or surplusembedded
informationExamples of Methods Cobb-Douglas production Contingent
Valuation Royalty evaluationsfunction Hedonic Pricing Patent system
evaluationsLinear Transforms Value of life measures Joint venture
evaluationsNon-linear TransformsSource: adapted from Ruitenbeek and
Cartier (1999).CORAL REEFS: THEIR FUNCTIONS, THREATS AND ECONOMIC
VALUETable 5 above gave a classification of valuation tech-niques,
using three categories:(i) generally applicable techniques using
direct marketinformation on values and expenditures;(ii)
potentiallyapplicabletechniques,whichusethemarket indirectly, such
as the TC-method; and(iii) survey based methods, such as the
contingent valua-tion method
(CVM).RuitenbeekandCartier(1999)giveaninterestingnewclassification
of valuation methodologies, specifically formarine biodiversity.
This classification, shown in table 7,is also summarised in the
article by Gustavson and Hu-berinthisbook.
Thisclassificationcanbedirectlyap-plied for coral reefs.6.
DISCUSSIONWhy do economists want to value something as
invalua-bleascoralreefs?Theanswercouldwellbe:Becausecoralreefsaresobeautifulthatwewanttomakesurethat
our grandchildren can enjoy them as well. Yet,
weseemanycoastalpopulationswhoareunawareofthegoods and services
that coral reef ecosystems provide andwho areunable tosee through
thecomplexlinkagesofthe natural world. We see people using coral
reefs
unsus-tainablyandevendestructively.Andweseepoliticiansunwilling to
look beyond their short-sighted lenses, andconsequently we see a
lack of funds for coral reef
man-agement,eventhoughthelong-termcostsofinactionare typically much
higher than the funds
needed.Dixon(1998)givesabeautifulillustrationofwhatcouldhappenifwewouldalllookbeyondourshort-sighted
own interests: In Hawaii, for example, the tra-ditional land
management unit was called the ahupuaa,which was a slice of land
that went from the top of themountain down to the edge of the coral
reef. Thus, theindividual or group who owned the ahupuaa owned
anentire functioning ecosystem, a self-contained economicand
environmental unit. Any externalities were therebyinternalised, and
the land managers realised that actionstaken in the upper watershed
(such as agricultural
pro-28ductionorlogging)wouldhaveaneffectbothonthewater quality on
the taro fields in the lower watershed aswell as in the coral reef
and the coastal fish ponds.
Sinceallimpactswerecontainedwithinthesystem(withclearlydefinedintegratedpropertyrights),decisionswere
being made taking these impacts into account andthereby balancing
any tradeoffs involved. The
Hawaiianahupuaasystemistheidealworld;itveryrarelyexiststoday.
Usually externalities are present, and they lead
totheresultsthatweobserve:mismanagement,overuse,needless
destruction of precious resources.One important issue in economic
valuation studies isto whom the benefits will accrue and whether
these arereal or virtual. Travel costs for National Parks form
thekeywelfaremeasureforthetourismfunctionofcoralreefecosystems.Someofthesecostsareactuallypaidandaccruetolocalorforeignbusinessoperators.Mostcostsare,however,virtual.Theydescribeapotentialwillingness-to-payforaspecificimprovementinreefqualityinaNationalPark.InthecaseofCVM,allvaluesarevirtualinthesensethattherearenoactualcash
transactions associated. It is also important, for
theeconomicanalysisofaspecificcountry,todistinguishbetweenlocalandforeigntouristsandbetweenactualexpenditures
on travel costs and virtual figures. For theeconomic value of a
National Park for a specific
country,onlytheconsumersurplusoflocaltouristsshouldbeused. And of
the actual expenditures, only those accru-ingtothehostcountry..
WithCVM,iftheeconomicvaluation is done with respect to the value to
a specificcountry,onlythecontingentvaluationfortheinhabit-ants of
that country should be
considered.Asecondandlastimportantissueisthefactthatvaluing all the
benefits of coral reefs is often frustratingand nearly impossible.
Often, however, this is not need-ed. Assume we show that the net
benefits to blast
fishersislowerthanthesocietallossesinsustainablefishingincomeandtourismrevenuescombined(seePet-Soedeetal.inthismonograph).
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majordatacollectiononthevalueofbio-prospecting,bioticservices and
physical structure services are necessary:
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ECONOMIC VALUE32 HERMAN S. J. CESAR:Appendix. Bibliography of
Human-Induced Coral Reef Threats and Management IssuesAuthors
Threats Mgt. DescriptionIssuesAblong et al. (1998) All Yes
Description of the Coastal Resource Management Project(CRMP) to
establish a sustainable resource along 2,000 km ofthe Philippine
coast, using participatory methods.Alcala (1988) Overfishing No
Assessment of coral fish abundance and yields at four islands inthe
Philippines to compare marine reserves with non-reserveand control
sites; significant differences in catch per unit effortwere
found.Alcala & Russ (1990) Overfishing No Test of the effects
of removal of protective marine managementat Sumilon Island,
Philippines, 1984; found a 54% decline intotal yield of reef fishes
in a 2 year period that also affectedareas adjacent to the
reserve.Alder et al. (1994) Overfishing, Yes Compares management of
3 Indonesian marine reserves:coral mining, Kepulauan Seribu,
Bunaken Manado Tua and Taka Bone Rate;blasting, discusses common
issues facing the reserves and stresses thepoison, need for
education, community development programmes, andpollution,
attention to the socio-economic needs of the
residents.tourismAlvarez (1995) Poison No Short description of the
live fish trade in the Philippines and itseffects on coral reef
systems.Andersson & Ngazi (1995) Overfishing, No Examines the
socio-economic relationship between indigenousblasting, resource
users and their coastal environment; concludes thatcoral mining
participation from local resource-users can greatly benefitplanning
and management decision-making.Andrews (1998) All Yes Assesses the
process and motives for establishment of the Park,with critical
reference to the transposition of developed countryconservation and
management paradigms to a developingcountry.Thorhaug, A., (1992)
Oil Spills in the Tropics and Sub-Tropicsin Connell, D. W., &
Hawker D. W., (eds.) Pollution inTropical Aquatic Systems. CRC
Press, Boca Raton, FL, pp.101127.Wantiez, L., Thollot, P., &
Kulbicki, M., (1997) Effects ofMarine Reserves on Coral Reef Fish
Communities from FiveIslands in New Caledonia. Coral Reefs, Vol.
16, No. 4, pp.215224.White, A. T., (1979) Sumilon Island:
Philippine Marine ParkPilot Site Enjoys Early Success. ICLARM
Newsletter, Vol. 2,No. 4, pp. 1012.White, A. T., (1989) Two
Community-Based Marine Reserves:Lessons for Coastal Management in
Chua, T.-E., and Pauly,D., (eds.) Coastal Area Management in
Southeast Asia: Policies,Management Strategies and Case Studies.
ICLARM ConferenceProceedings 19, pp. 8596.White, A. T., Barker, V.,
& Tantrigama, G., (1997) UsingIntegrated Coastal Management and
Economics to ConserveCoastal Tourism Resources in Sri Lanka. AMBIO,
Vol. 26,No. 6, pp. 335344.Wilkinson, C. R., Lindn, O., Cesar, H.,
Hodgson, G., Rubens,J., & Strong, A. E., (1999) Ecological and
SocioeconomicImpacts of 1998 Coral Mortality in the Indian Ocean:
AnENSO Impact and a Warning of Future Change?. AMBIO,Vol. 28, No.
2, pp. 188196.33Authors Threats Mgt. DescriptionIssuesBakus (1982)
General Yes Provides criteria by which to select coral reef
reserves, andidentifies mechanisms through which multiple-user
conflicts canbe resolved.Bell & Galzin (1984) General No
Empirical study in French Polynesia on the effect of differencesin
percentage live cover on the number of fish species
andindividuals.Berg et al. (1998) Coral mining No Analysis of the
ecological services provided by reefs in Sri Lankain terms of their
potential long-term economic benefits; over a20 year period, reefs
were found to value US$ 140,000-7.5 m.km-2, and the costs of coral
mining were found to exceed netbenefits by US$ 6 m.Bjork et al.
(1995) Pollution No Study examining the levels of coralline algae
on coral skeletonsat four reefs in Tanzania, in order to assess the
impact ofwastewater exposure on algae distribution; calcification
ratedecreased with proximity to wastewater outlet, as well as
withincreased exposure to phosphates, but not ammonia or
nitrates.Bohnsack & Ault (1996) All Yes Evaluates management
strategies to protect marine biodiversityand promote the
sustainable use of resources; propose newmanagement tools based
upon marine reserves, with referenceto application to Florida Keys
National Marine Sanctuary.Brown (1997) Temperature No Review of
recent data related to the physical and biologicalfactors
associated with coral bleaching, including environmentaltriggers,
the biological responses of corals, and their scope
foradaptation.Brown & Dunne (1988) Coral mining No Describes
mining activities on coral reefs around North MaleAtoll (Maldives)
and environmental impacts; suggests alternatives for the
construction industry to protect the reefs.Brown et al. (1990)
Dredging No Assesses the impact on coral cover of increased
sedimentationcaused by a 9 month dredging operation in 1986-1987,
Phuket,Thailand; at Ko Phuket, a measurable decrease in coral
coverand species diversity was noted, although corals
recoveredrapidly, with complete restoration noted 22 months after
theonset of the dredging.Bunce et al. (1999) Yes The article
describes the socio-economics of reef managementthrough a case
study of the Montego Bay Marine ParkButler et al. (1993)
Overfishing Yes Describes the fishery on the Bermuda platform and
the govern-ments historical efforts to manage the fishery,
including the1990 ban on pot fishing and its results.Campos et al.
(1994) Overfishing No Estimates catch, fishing effort and yield of
the fishery at CapeBolinao specific to different types of gear
(spear, traps, corrals,gill nets); compares data with other
fisheries in the region to con-clude that current rates of
extraction should not be increased.Christie et al. (1994) Blasting,
Yes Overview of community-based Marine Conservation Project
forpoison, San Salvador Island (IMCPSS) including means of
implementa-fish collecting tion and results; shows that
community-based protection andmanagement is a feasible
solution.CORAL REEFS: THEIR FUNCTIONS, THREATS AND ECONOMIC
VALUE34Authors Threats Mgt. DescriptionIssuesDavis & Tisdell
(1995) Tourism Yes Examines the critical thresholds of marine
protected areas forrecreational scuba diving in view of the
potential impact ofdivers on the reef systems.Davis & Tisdell
(1996) Tourism Yes Uses economic instruments to assess the most
effectiveallocation of scuba divers between recreational dive
sites;suggests management strategies to allocate divers
amongstmultiple sites.Dennis & Bright (1988) Grounding No
Results of a two-year study examining re-colonisation of
coralcommunities following a ship grounding; found
significantdifferences in species composition, community structure
andbiomass.Dixon et al. (1993) Tourism Yes Discusses the trade-offs
between the economic and protectionbenefits of marine parks in the
context of the need for theintegrated management of coastal areas;
economic analysis ofthe benefits and costs of protecting Bonaire
Marine Park toisolate its maximum sustainable use level and draw
lessons forpark management.Dixon et al. (1995) Tourism Yes Examines
the feasibility of achieving joint ecological andeconomic benefits
in marine protected areas through the casestudy of Bonaire Marine
Park in the Caribbean; assessesecological sustainability and
compares tourism revenue withprotection costs; draws lessons for
park management.Dulvy et al. (1995) Coral mining Yes Results of a
study showing impact of coral mining on reefcommunities at Mafia
Island, Tanzania; live coral cover and fishabundance and diversity
were substantially lower than at theunmined site; assesses
management issues surrounding themining of coral.Fiske (1992)
General Yes Results of a study comparing the establishment of two
marinesanctuaries: La Parguera, Puerto Rico and Fagatele
Bay,American Samoa, in light of sociocultural variables
influencingthe process; identifies key sociocultural variables and
argues infavour of planned social change.Gabri et al. (1994)
Overfishing, Yes Assesses the state of the coral reefs of Bora-Bora
(Frenchtourism, Polynesia) and analyses the conflicting multiple
uses of the reefurbanisation to enable the design of a sustainable
management plan;management recommendations are provided.Galvez et
al. (1989) Blasting, poison Yes Results of ethnographic studies of
two villages in the LingayenGulf, Philippines to assess how and due
to what factors cyanideand blast fishing continue to take place
despite legal restric-tions; describes villager perceptions of the
practices andprovides recommendations for management of the reef
re-source.Gittings et al. (1988) Grounding No Results of a 27-month
study detailing the recruitment andrecovery of Molasses Reef, Key
Largo National Marine Sanctu-ary, following a freighter grounding;
results point to specificmeasures that can be taken to expedite
coral recovery.HERMAN S. J. CESAR:35Authors Threats Mgt.
DescriptionIssuesHarriott et al. (1997) Tourism No Results of a
study assessing the potential impacts of divers atfour dive sites
in Eastern Australia via. comparing diver contactswith corals with
diver training and experience levels; suggestsmanagement strategies
to limit the damage caused by diving.Hatcher et al. (1989) General
Yes Review of recent research related to anthropogenic impacts
oncoral reef systems, including management issues.Hatcher et al.
(1990) Lobster fishing Yes Combines ecological and anthropological
approaches todescribe the patterns of usage and resources at the
HoutmanAbrolhos reefs of Western Australia; aims to identify areas
ofconflict between the user groups in order to contribute to
asustainable management strategy for the area.Hawker & Connell
(1992) Pollution No Discusses pollution threats to coral reef
systems and describesstudies pointing to tolerance levels for each
type of pollution.Hawkins & Roberts (1993) Tourism No Study
examining the impact of reef trampling by scuba diversand
snorkellers near Sharm-el-Sheikh, Egypt; found that
coralcommunities were significantly altered in size, species
composi-tion, and abundance in locations of heavy diver
trampling.Hawkins & Roberts (1994) Tourism No Examines the
impact of tourism on coral reefs through a casestudy on the Red
Sea; evaluates present and planned develop-ment and potential
growth in impact; proposes sustainabledevelopment strategies.Hingco
& Rivera (1991) Poison, No Overview of the fish collecting
industry in Bolinao, Philippinesfish collecting with a focus on the
use of cyanide, including local attitudestoward its use and
mechanisms that support the practice; policyrecommendations are
made.Hughes (1994) Overfishing, No Analysis of phase-shift in
Jamaican coral reef communityhurricanes, structures due to
anthropogenic and natural causes, includingdisease implications and
future prospects.Jennings & Polunin (1995) Overfishing No Study
of six Fijian fisheries to compare catch-per-unit-effort(CPUE) and
value-of-catch-per-unit-effort (VPUE); resultssuggest that the
fisheries are sustainable since fishermenfrequently fail to
maximise their efficiency.Jennings & Polunin (1997) Overfishing
No Study of ten Fijian fisheries to measure the indirect effects
offishing on the biomass and diversity of reef fish; a
negativerelationship was found between the biomass of
piscivorousfishes and fishing intensity, but increases in the
biomass of theirpotential prey species were not noted.Johannes
& Riepen (1995) Poison, No Overview of all aspects of the live
fish trade in Asia and theoverfishing Western Pacific including
impacts on fishing communities andcoral reef systems; provides
policy recommendations.McAllister (1988) Sedimentation, No Details
the economic, social and environmental costs of coralpoison,
blasting, reef destruction in the
Philippines.overfishing,pollution,coral miningCORAL REEFS: THEIR
FUNCTIONS, THREATS AND ECONOMIC VALUE36Authors Threats Mgt.
DescriptionIssuesMcClanahan (1995) Overfishing Yes Presents a coral
reef simulation model which calculates theeffect of fishing various
species at different levels of intensity onthe coral reef ecology;
results in the design of a managementstrategy based upon the
highest and most stable yield of fishery.McClanahan &
Overfishing Yes Study analysing fish numbers and weights at two
older marineKanda-Arara (1996) protected areas in comparison with a
newly created marine park(with an adjacent marine reserve) in
Kenya; total fish landing inthe reserve decreased by 35% due (in
part) to a flawed parkdesign with low edge-to-area ratio.McClanahan
& Sedimentation No Results of a study testing the effects of
sedimentation on coralObura (1997) reef communities in the Watamu
and Malindi National MarineParks, Kenya; the biological diversity
and ecological health ofthe sediment-affected reefs remained stable
throughout thestudy.McClanahan et al. (1999) Yes Paper discusses
the proliferation of MPAs in Kenya and else-where in the world
where management is relatively poor. Thearticle argues that there
is an economic rationale to have fewer,but better managed
MPAs.McClanahan (1999) Overfishing Yes Tests a previously-designed
overfishing model at protected reefsites in Kenya and Zanzibar in
comparison with unprotectedsites; found that fishing led to a
reduction in the abundance ofcertain fish species and an increase
in the sea urchin population.McManus (1994) Military, Yes Argues in
favour of the establishment of an international marineoil drilling
park at the Spratly Islands as a strategy to resolve
conflictingclaims over the region by China, Taiwan, the
Philippines,Malaysia and Vietnam.McManus (1996) General Yes
Overview of social scientific issues and research approachesrelated
to the management of coral reef systems; discussesreefs as common
property, Malthusian overfishing, and includesmanagement
options.McManus et al. (1992) Blasting, Yes Describes four-year
programme of monitoring the ecology andpoison, harvest patterns of
a coral reef system in Bolinao, Philippines, toanchoring assess the
effects of harvest on fish diversity; includes recommendations for
management of the reef.McManus et al. (1997) Blasting, No Assess
the effects of blasting, cyanide and anchor damage on apoison,
coral reef in Bolinao, Philippines, between 1987 and
1990.anchoringNowlis et al. (1997) Sedimentation No Studies the
impact of sediment on coral reefs in St. Luciafollowing a tropical
storm; sediment resulting from intensiveland-use practices and road
construction was found to have aconsiderably damaging effect on
nearshore reefs.Nzali et al. (1998) Blasting No Results of a study
comparing coral recruitment patterns at twosites at Taa Reef,
Tanzania, one of which had been severelydamaged by blasting;
findings suggest that recolonisation isnegatively affected by a
reduction in viable seed populations, asreflected in coral cover
levels.HERMAN S. J. CESAR:37Authors Threats Mgt.
DescriptionIssueshman et al. (1993) Mining, No Study comparing
three adjacent coral reefs in Sri Lanka: Barblasting, Reef,
Talawila Reef, and Kandakuliya Reef, in terms of thepoison,
diversity and abundance of fish and coral, and
anthropogenicpollution, impacts.tourism,fish
collecting,anchoring,nylon netshman et al. (1997) Blasting, No
Assesses the distribution and abundance of reef fish within
Barpoison, Reef Marine Sanctuary, Sri Lanka in comparison with
annylon nets adjacent, unprotected reef; the organisation of fish
assemblageswas related to habitat type, indicating that habitat
destructionhas a significant impact upon reef fish
communities.Pauly & Chua (1988) Overfishing No Provides a
historical and socio-economic background to themarine fishery in
Southeast Asia; analyses current problemsincluding stagnating
catches, environmental problems, andpopulation growth.Pauly et al.
(1989) Overfishing, Yes Assesses fishery management in the Third
World in relation toblasting rural poverty in these regions;
contends that Malthusianoverfishing describes the third world
fishery, which is qualitativelydifferent from overfishing in the
developed world; suggestsmanagement strategies.Polunin &
Roberts (1993) Overfishing Yes Assesses the result of protective
fishery management through acomparison of Saba Marine Park
(Netherlands Antilles) and HolChan Marine Reserve (Belize) with
adjacent unprotectedfisheries; analysis of abundance, size and
biomass of commontarget species.Rakitin and Kramer (1996)
Overfishing Yes Examines the distribution of sedentary vs. mobile
and catchablevs. less-catchable species of fish in reserve and
nearby non-reserve areas in Barbados; the marine reserve was found
toprotect the fish community, but evidence for the emigration
offish from the reserve was insufficient and inconsistent.Richmond
(1993) Sedimentation, No Comparison of natural and anthropogenic
disturbances to coralpollution, reef communities; describes key
anthropogenic impacts.temperature,blasting,poisonRoberts (1994)
Overfishing Yes Describes the benefits of establishing marine
reserves for theprotection of fish stocks, sustenance of adjacent
fisheries,protection of biodiversity; addresses several questions
related toreserve set-up and effective management.Roberts (1995a)
Overfishing No Assesses the effects of overfishing on reef
community structureand reef processes, including a discussion of
losses in speciesdiversity, keystone species, predator species, and
functionalgroups of species.CORAL REEFS: THEIR FUNCTIONS, THREATS
AND ECONOMIC VALUE38Authors Threats Mgt. DescriptionIssuesRoberts
(1995b) Overfishing Yes Study assessing the response of fish
populations to the creationof a marine reserve in the Caribbean;
abundance, size andbiomass was greater in comparison with
neighbouring areas; itwas concluded that reserves play an important
role in theprotection of fish stocks.Roberts & Polunin (1991)
Overfishing Yes Examines available evidence to assess whether
marine reservesprotect nearby fisheries, and/or supplement these
fisheriesthrough the emigration of fish from the reserve; concludes
thatalthough fish abundance and sizes increase within
protectedreserves, little evidence supports the theory of fishery
recruit-ment and immigration.Roberts & Polunin (1993)
Overfishing Yes Argues in favour of marine reserves as a low-cost
alternative toconventional methods of fisheries management;
assesses recentstudies of reserve function in replenishing fish
stocks.Rogers (1990) Sedimentation No Examines the effect of
sedimentation (due to dredging, runoff,sewage) on coral reef
communities at the ecosystem andorganism level, including a
discussion of interactions betweenfishes and their habitat.Rogers
et al. (1988) Tourism Yes Results of a study assessing the damage
caused to coral reefsas a result of recreational activities in
Virgin Islands NationalPark and Biosphere Reserve; concludes with
recommendationsfor monitoring and management of tourist
activity.Ruitenbeek et al. (1999) General Impacts Yes The paper
discusses cost-effective mitigation options for coralreef
degradation using fuzzy logic procedures with empiricalresults from
Montego Bay, Jamaica.Russ & Alcala (1996) Overfishing Yes
Results of a study assessing the rates and patterns of increasein
density and biomass of large predatory marine fish followingthe
creation of marine reserves at Sumilon and Apo Islands,Philippines;
over time, significant, positive linear correlations werefound
between fish density with years of protection in reserves.Saila et
al. (1993) Blasting, No Modelling of reef system in Lingayen Gulf,
Philippines, assessinganchoring, fish diversity and coral re-growth
over time and under certainpoison conditions; found that a 30%
reduction in current destructivefishing practices (through halting
use of poison) would enableslow reef recovery.Savina & White
(1986) All Yes Assessment of two communities in the Philippines in
whichmarine resource management projects were implemented;describes
and discusses differences between the communitiesand presents
implications for resource management.Smith et al. (1988)
Overfishing Yes Results of a study testing whether the abundance
and mean sizeof three species of invertebrate coral organisms
increased as aresult of the creation of a marine protected area at
the ArnavonIslands, Solomon Islands.Sybesma (1988) Tourism Yes
Assesses the management of Curaao Underwater Park,Netherlands
Antilles as a model for the sustainable use ofresources in marine
systems.HERMAN S. J. CESAR:39Authors Threats Mgt.
DescriptionIssuesThorhaug (1992) Pollution No Discusses major
impacts of oil spill on tropical systems andcurrently used clean-up
methods; policy recommendations aremade.Wantiez et al. (1996)
Overfishing No Results of a study assessing the effect of marine
reserveprotection on the species richness, density, and biomass
ofcoral reef fish communities in New Caledonia;
statisticallysignificant results confirm the efficacy of marine
reserves.White (1979) All Yes Assessment of the implementation and
management of SumilonMarine Park, Philippines as a model for marine
resourcemanagement.White (1989) All Yes Results of a study
comparing two community-based marineresource management projects in
the Philippines; includesassessment of implementation, economic
benefits accrued, andlessons for the management of coastal marine
resources.White et al. (1997) General Yes Proposes an integrated
coastal management approach toresolve tourism development/coastal
protection conflicts inHikkaduwa, Sri Lanka; provides an economic
evaluation of theproposed management plan.Wilkinson et al. (1999)
Temperature No Discusses and assesses the extent and impact of
bleachingdamage caused by the warming event of 1998 to coral
reefsystems in the Indian Ocean; discusses the potential
forrecovery in various locales and includes socio-economicimpacts
on reef-dependent communities.CORAL REEFS: THEIR FUNCTIONS, THREATS
AND ECONOMIC VALUE