Supply-side approaches to the economic valuation of coastal and marine habitat in the Red Sea
Kite-Powell, Hauke L.
Solow, Andrew R.
MetadataShow full item record
KeywordEcosystem service; Supply-side valuation; Traditional fishery; Red Sea; Coral reef; Bio-economics
The degradation of natural fish habitat in the ocean implies lost economic benefits. These value losses often are not measured or anticipated fully, and therefore they are mainly ignored in decisions to develop the coast for industrial or residential purposes. In such circumstances, the ocean habitat and its associated ecosystem are treated as if they are worthless. Measures of actual or potential economic values generated by fisheries in commercial markets can be used to assess a conservative (lower-bound) value of ocean habitat. With this information, one can begin to compare the values of coastal developments to the values of foregone ocean habitat in order to help understand whether development would be justified economically. In this paper, we focus on the economic value associated with the harvesting of commercial fish stocks as a relevant case for the Saudi Arabian portion of the Red Sea. We describe first the conceptual basis behind supply-side approaches to economic valuation. Next we review the literature on the use of these methods for valuing ocean habitat. We provide an example based on recent research assessing the bioeconomic status of the traditional fisheries of the Red Sea in the Kingdom of Saudi Arabia (KSA). We estimate the economic value of ecosystem services provided by the KSA Red Sea coral reefs, finding that annual per-unit values supporting the traditional fisheries only are on the order of $7000/km2. Finally, we develop some recommendations for refining future applications of these methods to the Red Sea environment and for further research.
© The Author(s), 2013. This article is distributed under the terms of the Creative Commons Attribution License. The definitive version was published in Journal of King Saud University - Science 25 (2013): 217–228, doi:10.1016/j.jksus.2013.02.006.
Suggested CitationJournal of King Saud University - Science 25 (2013): 217–228
The following license files are associated with this item:
Except where otherwise noted, this item's license is described as Attribution-NonCommercial-NoDerivs 3.0 Unported
Showing items related by title, author, creator and subject.
An economics primer for coastal zone management : basic concepts and methods from microeconomics, public finance, and environmental and resource economics Edwards, Steven F. (Woods Hole Oceanographic Institution, 1986-01)While the economic impacts of resource use pervade discussions of coastal zone management, most discourses tend to be ill-defined and incomplete, and to lack a solid basis in economic theory. This primer was written to ...
Kite-Powell, Hauke L.; Colgan, Charles S.; Wellman, Katharine F.; Pelsoci, Thomas; Wieand, Kenneth; Pendleton, Linwood; Kaiser, Mark J.; Pulsipher, Allan G.; Luger, Michael (Woods Hole Oceanographic Institution, 2005-04)We develop a methodology to estimate the potential economic benefits from new investments in regional coastal ocean observing systems in US waters, and apply this methodology to generate preliminary estimates of such ...