Economics of coral reefs: values, vulnerability and threat
About 60% of coral reef areas are located in the developing countries’ where nearly 6 million people heavily rely on reef ecosystem services. An attempt to understand the effects of global warming to coral reef and subsequent human engagement ex-ante and ex-post is demonstrated in a EU funded project. The 'Risks of global warming: The case of coral reef ecosystems in developing countries' (BIOCORE) project examined the socio-economic effects of a vital marine habitat under the threat of climate change. Specifically, the project developed a coral reef database, formulated a vulnerability index and estimated user's ability to pay (including perception, values and intentions) towards coral reef restoration and/or marine protected areas (MPAs) programmes in developing countries under climate change threat. Researchers compiled a global database of coral reef valuation studies related to recreational values where key socio-economic factors affecting economic benefits were identified. Additionally, a vulnerability index assessed the effect of temperature increase for both coral endowed areas in developed and developing countries. The approach accounted adaptive capacity and sensitivity factors as along with exposure; and identified Australia as a low vulnerable country compared to Indonesia, Thailand and China. Project partners conducted a survey to assess recreational users' values, perceptions and intentions supporting coral reef management programme when under climate change threats. Results showed there is social and economic support for coral reef restoration and MPA creation. Economic values for coral reef restoration programme following bleaching events was estimated at US$ 40/ha for high coral coverage and US$ 95/ha for low coral coverage areas. Users were willing to pay US$ 13 per dive above entrance fee of US$10 for MPAs in developing countries after bleaching events. Greater mitigation and/or adaptation efforts are required at local, regional and global levels particularly for high threatened areas with low coral coverage in developing countries. Policy of in-action in such areas will result higher cost for communities in future if social, economic and ecological factors are unaccounted in reef management programmes. BIOCORE results provided key policy insights that developing countries are better off in prioritising coral reef programmes at this time. BIOCORE outcomes will assist decision-makers, managers and scientists examining the social, economic and ecology interactions needed for reef recovery and/or resilience following climate change events.
Keywords
Coral reefs, ecosystems, developing countries, global warming, coral bleaching, Marine Protected Areas, coral reef restoration
