Economics

Assessment of insurance needs and opportunities in the Caribbean fisheries sector

Tietze U, Van Anrooy R. Assessment of insurance needs and opportunities in the Caribbean fisheries sector. Rome: FAO; 2018. Available from: http://www.fao.org/documents/card/en/c/CA2199EN
Freely available?: 
Yes
Summary available?: 
No
Type: Report

Climate change related natural disasters pose serious threats and risks to livelihoods of fishermen and women as well as to food security in the Caribbean. To respond to these threats and risks, the FAO, the Department of State of the United States of America and the World Bank introduced an initiative on climate risk insurance for the Caribbean Fisheries sector as part of a global initiative on Blue Growth.

In support of this initiative a survey was conducted to identify fisheries assets that could be insured, value these assets, identify climate smart fisheries investments and practices and carry out an insurance needs and demand survey. This Circular presents survey findings from Antigua and Barbuda, Barbados, Grenada, St Lucia, St Kitts and Nevis and St Vincent and the Grenadines. Some of the key findings are that: 97 percent of the fishing vessels and fishing assets were not insured, while in each of the CARICOM countries there is at least one local insurer offering marine insurance; 83 percent of the fishers would purchase insurance coverage for their vessels if it would be more affordable; only 17 percent of the fishers had a health insurance and 20 percent had an life insurance policy. Moreover, more than one-third of the fishers would be interested to invest in safe harbor, anchorage, haul out and vessel storage facilities, including installation of bumper rails on piers and the use of fenders on boats and piers, if this would reduce insurance premiums.

Based on the findings of the insurance demand survey, an organizational arrangement for a Caribbean Fisheries Risk Insurance Facility (CFRIF) was developed, presented at various regional fora and shared with interested stakeholders.

Visitors’ willingness to pay marine conservation fees in Barbados

Schuhmann PW, Skeete R, Waite R, Lorde T, Bangwayo-Skeete P, Oxenford HA, Gill D, Moore W, Spencer F. Visitors’ willingness to pay marine conservation fees in Barbados. Tourism Management [Internet]. 2019 ;71:315 - 326. Available from: https://www.sciencedirect.com/science/article/pii/S0261517718302462
Freely available?: 
No
Summary available?: 
No
Approximate cost to purchase or rent this item from the publisher: 
US $19.95
Type: Journal Article

Human development and dense populations along coastal zones impact the health of coastal and marine ecosystems, which is detrimental to the economic sustainability of tourism. Visitors to Barbados are primarily attracted to the country's coastal and marine resources, making the protection of the marine environment paramount. In developing countries with limited resources for environmental management, who pays the cost of conservation, and the amount, has been the subject of much debate. We apply parametric and non-parametric estimations to investigate the factors driving the willingness of tourists to pay a fee for coastal and marine conservation. The mean willingness to pay ranged from US$36 to US$52 per visit to Barbados. Based on general consensus, we suggest that such a fee if implemented should be paid into a dedicated conservation fund. Furthermore, consideration should be given to charging only non-Caribbean tourists given that regional visitors displayed discontent in paying such fees.

Economic and sociocultural impacts of fisheries closures in two fishing-dependent communities following the massive 2015 U.S. West Coast harmful algal bloom

Ritzman J, Brodbeck A, Brostrom S, McGrew S, Dreyer S, Klinger T, Moore SK. Economic and sociocultural impacts of fisheries closures in two fishing-dependent communities following the massive 2015 U.S. West Coast harmful algal bloom. Harmful Algae [Internet]. 2018 ;80:35 - 45. Available from: https://www.sciencedirect.com/science/article/pii/S1568988318301379
Freely available?: 
No
Summary available?: 
No
Approximate cost to purchase or rent this item from the publisher: 
US $35.95
Type: Journal Article

In the spring of 2015, a massive harmful algal bloom (HAB) of the toxin-producing diatom Pseudo-nitzschia occurred on the U.S. West Coast, resulting in the largest recorded outbreak of the toxin domoic acid and causing fisheries closures. Closures extended into 2016 and generated an economic shock for coastal fishing communities. This study examines the economic and sociocultural impacts of the Dungeness crab and razor clamfisheries closures on two fishing-dependent communities. Semi-structured interviews were conducted with 36 community members from two communities impacted by the event – Crescent City, California and Long Beach, Washington. Interviewees included those involved in the fishing, hospitality, and retail industries, local government officials, recreational harvesters, and others. Interviews probed aspects of resilience in economic, social, institutional, and physical domains, based on the contention that community resilience will influence the communities’ ability to withstand HAB events. Dimensions of vulnerability were also explored, encompassing sensitivity of the communities to HAB events and their adaptive capacity. Common themes that emerged from the interview responses indicate that economic hardships extended beyond fishing-related operations and permeated through other sectors, particularly the hospitality industry. Significant barriers to accessing financial and employment assistance during extended fisheries closures were identified, particularly for fishers. Long-held traditions surrounding crab and shellfish harvest and consumption were disrupted, threatening the cultural identities of the affected communities. Community members expressed a desire for clearer, more thorough, and more rapid dissemination of information regarding the management of fisheries closures and the health risks associated with HAB toxins. The likelihood of intensifying HABs under climate change heightens the need for actions to increase the resilience of fishing communities to the economic and sociocultural impacts caused by HAB-related fisheries closures.

Estimating marine recreational fishing’s economic contributions in New Zealand

Southwick R, Holdsworth JC, Rea T, Bragg L, Allen T. Estimating marine recreational fishing’s economic contributions in New Zealand. Fisheries Research [Internet]. 2018 ;208:116 - 123. Available from: https://www.sciencedirect.com/science/article/pii/S0165783618301863
Freely available?: 
No
Summary available?: 
No
Approximate cost to purchase or rent this item from the publisher: 
US $35.95
Type: Journal Article

Economic information is critical for explaining why recreational fishing and marine stewardship is important to all citizens of a nation. Successfully raising public awareness of the importance of healthy and abundant marine fisheries is dependent on having reliable economic insights. These types of data can be used to inform discussions about how to institute better conservation policies, secure new partners and resources for conservation initiatives, and ultimately boost the long-term health and productivity of marine fisheries. Until now, the economic contribution of recreational marine fishing in New Zealand has not been measured, placing recreational fishing interests at a disadvantage compared to the commercial sector that has such information in various forms. This project filled that vacuum. Beginning with the $946 million spent annually by more than 600,000 resident and visiting New Zealand fishers, these dollars circulate through the national economy, supporting 8000 jobs, stimulating $1.7 billion in total economic activity, contributing $638 million in Gross Domestic Product and $342 million in salaries, wages and small business profits while adding nearly $187 million in tax revenues. This study was built using data collection and analytical approaches available for use by other nations to increase public awareness of the critical economic importance of their marine fisheries.

Recreational fisheries economics between illusion and reality: The case of Algeria

Babali N, Kacher M, Belhabib D, Louanchi F, Pauly D. Recreational fisheries economics between illusion and reality: The case of Algeria Tsikliras AC. PLOS ONE [Internet]. 2018 ;13(8):e0201602. Available from: http://journals.plos.org/plosone/article?id=10.1371/journal.pone.0201602
Freely available?: 
Yes
Summary available?: 
No
Type: Journal Article

Recreational fishing is often perceived as harmless when it comes to fisheries management, and its impact often estimated to surpass the economic outcomes of e.g. large-scale fisheries. Recreational fisheries are often an indication of political stability and sound ecosystem management. However, despite a high economic impact, the economic costs on traditional and small-scale commercial fishers is yet to be known. This paper answers the question of how unregulated recreational fisheries could rather generate a loss to an economy, and cause unfair competition with existing commercial sectors using the example of Algeria. This paper assesses catches and economic value of recreational fisheries in Algeria, and finds that over 6,000 tonnes reach commercial markets annually, competing directly with the small-scale artisanal sector, while selling recreationally caught fish is still illegal. The paper further finds that the public is thereby deprived—through lost tax, licence income and landed value of $45 million US annually.

The economic value of the deep sea: A systematic review and meta-analysis

Folkersen MVinde, Fleming CM, Hasan S. The economic value of the deep sea: A systematic review and meta-analysis. Marine Policy [Internet]. 2018 ;94:71 - 80. Available from: https://www.sciencedirect.com/science/article/pii/S0308597X18300940
Freely available?: 
No
Summary available?: 
No
Approximate cost to purchase or rent this item from the publisher: 
US $35.95
Type: Journal Article

The deep sea has become an area of increasing interest due to the potential for mining the seafloor for valuable minerals. However, a critical knowledge gap in terms of understanding the economic value that the deep sea provides to societies makes it extremely difficult to estimate the long term economic impacts of mining activities. This article conducts a systematic review and meta-analysis of previous literature on the economic value of the deep sea, with the objective of integrating the findings of previous literature and identifying areas for future research. 25 studies were included in the systematic review, of which 15 were included in the meta-analysis. Although the systematic review reveals a lack of sufficient data to accurately estimate the economic value of the deep sea, the meta-analysis indicates that the functioning of the deep sea as an ecosystem significantly influences the economic value that it provides to society. The limited number of studies identified, along with the broad variety in their methods, scope, valuation perspective and purpose, emphasizes the need for future research into economic value-aspects of the deep sea. More importantly, this study reveals an urgent need for further scientific research into the deep sea's ecosystem in order to ensure the resource is managed sustainably in the long-term.

Stranded capital: environmental stewardship is part of the economy, too

Roman J, DeLauer V, Altman I, Fisher B, Boumans R, Kaufman L. Stranded capital: environmental stewardship is part of the economy, too. Frontiers in Ecology and the Environment [Internet]. 2018 ;16(3):169 - 175. Available from: https://esajournals.onlinelibrary.wiley.com/doi/10.1002/fee.1780
Freely available?: 
Yes
Summary available?: 
Yes
Approximate cost to purchase or rent this item from the publisher: 
US $38.00
Type: Journal Article

The many values that humans place on biodiversity are widely acknowledged but difficult to measure in practice. We address this problem by quantifying the contribution of marine‐related environmental stewardship, in the form of donations and volunteer hours, to the economy of coastal Massachusetts. Our conservative evaluation suggests that marine stewardship activities contributed at least $179 million to the state economy in 2014, a figure that exceeded revenues derived in that same year from commercial finfish operations ($105 million) and whale watching ($111 million), two acknowledged cornerstones of the regional economy. Almost imperceptibly, the coastal economy has been transformed from one dependent on commercial exchange to a diverse economy that includes, to a large measure, marine stewardship. Donations and volunteer efforts are useful indicators of environmental values that can be hard to quantify, and represent one measure of human determination to protect the planet.

A new approach to assess marine opportunity costs and monetary values-in-use for spatial planning and conservation; the case study of Gulf of Naples, Mediterranean Sea, Italy

Appolloni L, Sandulli R, Vetrano G, Russo GF. A new approach to assess marine opportunity costs and monetary values-in-use for spatial planning and conservation; the case study of Gulf of Naples, Mediterranean Sea, Italy. Ocean & Coastal Management [Internet]. 2018 ;152:135 - 144. Available from: https://www.sciencedirect.com/science/article/pii/S0964569117303319
Freely available?: 
Yes
Summary available?: 
No
Approximate cost to purchase or rent this item from the publisher: 
US $35.95
Type: Journal Article

Conservation actions (as Marine Protected Areas) are key tools to maintain coastal ecosystems. However, many reserves are characterized by several problems related to inadequate zonings that preclude important areas from economic activities, determining a strong hostility by local populations. Thus, estimations of marine economic values-in-use are needed for protection of marine ecosystem in order to find the best compromise between conservation priorities and local population needs. Algorithms to estimate monetary values of the main human activities in marine territories (large scale and small scale fishings, aquaculture, beach resorts, yachting, diving and commercial shipping) are here implemented using Gulf of Naples (centre Tyrrhenian sea, Italy) as study area example. These algorithms are based on different sources data (questionnaires, monitoring activities, official local authority reports, web and scientific literature). They can also be compared with each other being their outputs all expressed in the same measure unit. During the models development process a new flexible approach, called “Systematic Costs Assessment” (SCA), to assess opportunity costs in systematic conservation planning process was developed and applied. Results show that the total turnover in the Gulf of Naples is 3,950,753,487 € per year and 747,647,887 € per year excluding small scale fishing estimation, and one hectare of marine territory is worth 40,672 € and 7696 € per year excluding small scale fishing activity. In particular, excluding small scale fishing activity, beach resort and yachting show the highest values referred to one hectare of marine territories. In conclusion, SCA is a flexible approach where no long and costly sampling campaigns are always needed, provided that two assumptions have to be taken into account, in order to estimate credible values-in-use costs: i) do not use economic activities data and ecosystem services data in the same assessment layer, since it could lead to costs overestimation and ii) SCA method are efficient when used by operators with strong knowledge of the study area, since they are able to recognize parameters affecting economic activities of local population.

Climate Change: Information on Potential Economic Effects Could Help Guide Federal Efforts to Reduce Fiscal Exposure

Anon. Climate Change: Information on Potential Economic Effects Could Help Guide Federal Efforts to Reduce Fiscal Exposure. Washington, D.C.: United States Government Accountability Office; 2017. Available from: http://www.gao.gov/products/GAO-17-720?wpisrc=nl_energy202&wpmm=1
Freely available?: 
Yes
Summary available?: 
Yes
Type: Report

Over the last decade, extreme weather and fire events have cost the federal government over $350 billion, according to the Office of Management and Budget. These costs will likely rise as the climate changes, according to the U.S. Global Change Research Program. In February 2013, GAO included Limiting the Federal Government’s Fiscal Exposure by Better Managing Climate Change Risks on its High-Risk List.

GAO was asked to review the potential economic effects of climate change and risks to the federal government. This report examines (1) methods used to estimate the potential economic effects of climate change in the United States, (2) what is known about these effects, and (3) the extent to which information about these effects could inform efforts to manage climate risks across the federal government. GAO reviewed 2 national-scale studies available and 28 other studies; interviewed 26 experts knowledgeable about the strengths and limitations of the studies; compared federal efforts to manage climate risks with leading practices for risk management and economic analysis; and obtained expert views. 

Long-term Economic Opportunities and Challenges for Pacific Island Countries

Anon. Long-term Economic Opportunities and Challenges for Pacific Island Countries. Washington, D.C.: The World Bank; 2017.
Freely available?: 
Yes
Summary available?: 
No
Type: Report

The increasing economic power of East-Asian nations, new technologies, and demographic change in the Pacific Rim countries bring new opportunities for Pacific Islands Countries (PICs). The 21st century is often referred to as the “Pacific Century,” reflecting the rising economic and political importance of East Asian nations and trans-Pacific relationships. This report argues that the PICs can truly make the Pacific Century their own, by taking advantage of new opportunities that are already on the horizon. These developments may help offset the challenges the PICs are facing to achieve sustained high growth, which include extreme remoteness, small size, geographic dispersion, and environmental fragility that limit the range of economic activities where the PICs can be competitive. Indeed, many PICs have seen only very limited increases in per capita incomes over the past 25 years.

Pacific Possible assesses whether fully exploiting new economic opportunities and dealing effectively with major threats could lead to a significant acceleration of economic growth and improved standards of living over the next 25 years. Pacific Possible examines specific opportunities and risks for the PICs in seven selected areas. These include opportunities for increased incomes (tourism, knowledge economy, fisheries, deep sea mining, and labor mobility) as well as risks (climate change and disaster risks, noncommunicable diseases - NCDs) that, if not managed well, could undermine development gains. While Pacific Possible focuses on those economic opportunities that have the greatest potential to drive faster economic growth in the future, it is important to note that other economic activities such as agriculture, coastal fisheries and so forth will remain important sources of livelihoods for much of the population of the PICs and require continued attention by policy makers.

For each of the transformational opportunities, Pacific Possible develops an “opportunity scenario” that considers external developments (such as demographic developments or technological changes) as well as policy decisions that drive the opportunity. The “opportunity scenario” typically presents an ambitious, although realistic, outlook on what is possible. For each of the opportunities, we then estimate the achievable impact on per capita incomes, employment, and government revenue. Comparing this to “business-as-usual” projections, that typically re ect historical trends, gives us the additional income, employment, and government revenue that could be achieved if opportunities are fully exploited and adequate policy decisions taken and implemented.

The report covers 11 World Bank member countries in the Pacific (PIC11-Federated States of Micronesia, Fiji, Kiribati, the Marshall Islands, Palau, Papua New Guinea, Samoa, the Solomon Islands, Tonga, Tuvalu, and Vanuatu). Opportunities and risks discussed best describe the smaller PICs but are also valid for larger countries (Fiji, Papua New Guinea), although in these countries there are many more economic opportunities (for example, Lique ed Natural Gas in Papua New Guinea or niche manufacturing in Fiji) which are beyond the scope of Pacific Possible. 

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