Economics

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?: 
No
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
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. 

Blue growth and ecosystem services

Mulazzani L, Malorgio G. Blue growth and ecosystem services. Marine Policy [Internet]. 2017 ;85:17 - 24. Available from: http://www.sciencedirect.com/science/article/pii/S0308597X17301021
Freely available?: 
No
Summary available?: 
No
Approximate cost to purchase or rent this item from the publisher: 
US $35.95
Type: Journal Article

The recent years have witnessed a rise in interest in the ocean economy. To cover a more sustainable dimension, terms such as ‘blue economy’ and ‘blue growth’ have been coined, and are increasingly used in international contexts and academic literature. However, there are no generally accepted definitions of these ‘blue’ concepts. In particular, it is not clear what connotation of sustainability and what role of natural environment is linked to these terms. The objective of this study is to retrace the meaning of the concepts of blue economy and blue growth and include them in a coherent environmental accounting framework. Starting from the System of Environmental-Economic Accounting of the United Nations, a set of assumptions is proposed to link blue economy/growth and ecosystem services, including the creation of an adjusted measure of value added, while considering the depletion and degradation of the environment and the value of non-market benefits provided by the ecosystem. Finally, an example of this approach in the case of the Mediterranean Sea is presented.

Restoring and Protecting the world's large marine ecosystems: An engine for job creation and sustainable economic development

Hudson A. Restoring and Protecting the world's large marine ecosystems: An engine for job creation and sustainable economic development. Environmental Development [Internet]. 2017 ;22:150 - 155. Available from: http://www.sciencedirect.com/science/article/pii/S2211464516302299
Freely available?: 
No
Summary available?: 
No
Approximate cost to purchase or rent this item from the publisher: 
US $31.50
Type: Journal Article

Some of the most significant threats to the sustainability of the world's 66 Large Marine Ecosystems (LME) – invasive species, coastal hypoxia, overfishing, marine debris and ocean acidification – are due to a combination of market and/or policy failures which cause these environmental externalities. A concerted global effort to remove these barriers would not only lead to dramatic improvements in ocean health and preservation of trillions of dollars in ocean-related goods and services and hundreds of millions of existing jobs, but also catalyze transformation across a range of ocean using and affecting sectors that would create millions of new, and in many cases, well paying, jobs for people across both the developed and developing world.

Natural capital accounting in marine protected areas: The case of the Islands of Ventotene and S. Stefano (Central Italy)

Franzese PPaolo, Buonocore E, Donnarumma L, Russo GF. Natural capital accounting in marine protected areas: The case of the Islands of Ventotene and S. Stefano (Central Italy). Ecological Modelling [Internet]. 2017 ;360:290 - 299. Available from: http://www.sciencedirect.com/science/article/pii/S030438001730248X
Freely available?: 
No
Summary available?: 
No
Approximate cost to purchase or rent this item from the publisher: 
US $35.95
Type: Journal Article

Marine ecosystems are exposed to significant anthropogenic pressure mainly due to the exploitation of biotic and abiotic marine resources. Marine protected areas (MPAs) are important tools to achieve local and global marine conservation targets. Marine ecosystems generate goods and services vital for human well-being. Their value can be explored not only from an economic viewpoint based on market and human preferences, but also using a biophysical perspective based on the accounting of environmental costs sustained for the generation of natural capital stocks and ecosystem services flows.

In this study, the value of natural capital in the MPA “the Islands of Ventotene and S. Stefano” (Central Italy) was assessed applying a biophysical and trophodynamic environmental accounting model based on emergy accounting. The value of natural capital was estimated for the main habitats of the investigated MPA in terms of the work done by the biosphere for its generation and maintenance. Both the autotrophic and heterotrophic natural capital of the MPA was evaluated. The highest value of emergy density of 4.26∙1011 sej m−2 was shown by the habitat “Posidonia oceanica seagrass bed” when investigating the autotrophic natural capital. The sciaphilic hard bottom habitat (coralligenous) showed the highest value of emergy density of 2.76∙1012 sej m−2when investigating the heterotrophic natural capital. The high emergy cost of coralligenous confirmed the importance of this habitat that represents one of the most important hot spot of species diversity in the Mediterranean Sea. The total emergy value of natural capital of the MPA was converted to monetary units by using the emergy-to-money ratio for Italy, resulting in 8.26 M€. Finally, a GIS tool was used to show the spatial distribution of natural capital values in relation to different habitats. The outcomes of this study highlighted the usefulness of the applied biophysical and trophodynamic environmental accounting model to explore the ecological value of natural capital in marine ecosystems while supporting local managers and policy makers for the sustainable development of MPAs.

Financing Marine Protected Areas Through Visitor Fees: Insights from Tourists Willingness to Pay in Chile

Gelcich S, Amar F, Valdebenito A, Castilla JCarlos, Fernandez M, Godoy C, Biggs D. Financing Marine Protected Areas Through Visitor Fees: Insights from Tourists Willingness to Pay in Chile. Ambio [Internet]. 2013 ;42(8):975 - 984. Available from: https://link.springer.com/article/10.1007%2Fs13280-013-0453-z
Freely available?: 
No
Summary available?: 
No
Approximate cost to purchase or rent this item from the publisher: 
US $39.95
Type: Journal Article

Tourism is a financing mechanism considered by many donor-funded marine conservation initiatives. Here we assess the potential role of visitor entry fees, in generating the necessary revenue to manage a marine protected area (MPA), established through a Global Environmental Facility Grant, in a temperate region of Chile. We assess tourists’ willingness to pay (WTP) for an entry fee associated to management and protection of the MPA. Results show 97 % of respondents were willing to pay an entrance fee. WTP predictors included the type of tourist, tourists’ sensitivity to crowding, education, and understanding of ecological benefits of the MPA. Nature-based tourists state median WTP values of US$ 4.38 and Sun-sea-sand tourists US$ 3.77. Overall, entry fees could account for 10–13 % of MPA running costs. In Chile, where funding for conservation runs among the weakest in the world, visitor entry fees are no panacea in the short term and other mechanisms, including direct state/government support, should be considered.

Financing Marine Conservation: A Menu of Options

Spergal B, Moye M. Financing Marine Conservation: A Menu of Options. Washington, D.C.: WWF Center for Conservation Finance; 2004.
Freely available?: 
Yes
Summary available?: 
No
Type: Report

his guide describes over 30 mechanisms for financing the conservation of marine biodiversity, both within and outside of MP As. Its main purpose is to familiarize conservation professionals i.e., the managers and staff of government conservation agencies, international donors, and nongovernmental organizations (NGOs)-with a menu of options for financing the conservation of marine and coastal biodiversity. A number of economic incentive mechanisms for marine conservation (as contrasted with revenue-raising mechanisms) are also presented in section 5 (on Real Estate and Development Rights) and section 6 (on Fishing Industry Revenues).

Each section provides a description of the financing mechanism and examples showing how the mechanism has been used to finance marine conservation. In some cases, even though a mechanism may have only been used to finance terrestrial conservation, it has been included in this guide because of its potential to also serve as a new source of funding for marine conservation. This guide is not intended to provide detailed instructions on how to establish and implement each of the different conservation financing mechanisms. Instead references are provided at the end of each section for sources of additional information about each of the mechanisms described. Citations to specific references are also included in the text in parentheses.

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