Economic Valuation of Coral Reefs in the Caribbean

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Supporting the sustainable management of coral reefs and mangroves by quantifying their economic value.

Video Overview

WRI’s Lauretta Burke on Coral Reefs
Watch on Youtube

Coral reefs and mangroves are critical components of the marine environment. These biologically rich habitats provide important ecosystem services to local and regional economies, including tourism, shoreline protection, and fisheries. Coral reefs supply much of the sand for the region’s beautiful beaches, and draw divers and snorkelers to explore the diversity of marine life that they support. Stretching along great lengths of Caribbean coastline, reef and mangrove ecosystems also provide a natural barrier that protects the land from the worst ravages of tropical storms. As reefs and mangroves degrade and disappear, these services are diminished, resulting in economic losses to coastal communities.

Despite their importance, nearly two-thirds of the Caribbean’s coral reefs are threatened by human activities. Agricultural runoff, overfishing, dredging, sewage discharge, and the growing pace of coastal development have already degraded important reef systems, resulting not only in a tremendous loss of biodiversity but also lost revenue from declining tourism and fishing, and increased coastal erosion. Ensuring proper management of coastal resources is vital for the economic and environmental health of the region.

Results

Technical Report and Policy Summaries

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

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

Results for Tobago

Results for St. Lucia

Valuation Method and Tools for Implementation

Tourism and Recreation Valuation Tool

Fisheries Valuation Tool

Marine Protected Area (MPA) Economic Impact Tool

This tool is designed to help Marine Protected Area (MPA) managers assess the economic impact of tourism and fisheries activities associated with their reserve.

Shoreline Protection

WRI and the Institute of Marine Affairs (IMA) in Trinidad and Tobago developed a framework for evaluating the role of coral reefs in protecting the shoreline and mitigating wave induced erosion and storm damage. This framework is used to place an economic value on the “damages avoided” due to the presence of coral reefs along the coast. The maps displaying the results of this shoreline protection analysis are also useful policy tools in their own right.

Shoreline protection maps

Strategy

WRI seeks to improve the management of coastal ecosystems by developing reliable information on the value of ecosystem services derived from coral reefs. Working with partners in three Caribbean countries, WRI has developed an economic valuation methodology (PDF, 4 pages, 59 Kb) to provide detailed estimates of the value of coral reef related fisheries, tourism, and shoreline protection. WRI is also developing estimates of value for both healthy and degraded coral reefs and is working closely with governments and non-governmental organizations (NGOs) within the project countries to ensure that the study results support improved coastal policy and management planning. The project is designed to:

  • 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.

Accomplishments

  • WRI has completed economic valuations in three locations – St. Lucia, Tobago and Belize – and is currently conducting economic valuation in Jamaica and the Dominican Republic.
  • In collaboration with government and NGO partners in St. Lucia, Tobago and Belize, WRI’s economic valuation project has worked to compile extensive socioeconomic and physical information to refine the valuation approach, improve estimates and identify decisions that could benefit from the project’s information.
  • WRI developed a simple, Excel-based Economic Valuation Tool that guides users through a stepwise process of gathering data, verifying assumptions and deriving results.

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Related Projects

Financial support

  • Buccoo Reef Trust
  • The Keith Campbell Foundation for the Environment
  • The Chino Cienega Foundation
  • The Henry Foundation
  • International Coral Reef Action Network
  • The John D. and Catherine T. MacArthur Foundation
  • The Curtis and Edith Munson Foundation
  • Netherlands Ministry of Foreign Affairs
  • The Oak Foundation
  • The Ocean Foundation
  • SwedBio
  • United Nations Foundation (UNF)
  • United Nations Environment Programme, Caribbean Environment Programme
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