Loss of economic value from coral bleaching in S.E. Asia

Abstract

In 2010, a rise in sea water temperatures off Thailand, Indonesia and Malaysia resulted in substantial coral bleaching. An ecological and economic survey was undertaken to determine the extent of this bleaching and also the economic implications, particularly for scuba divers. As part of the survey, a choice experiment was undertaken to determine the loss in non-market economic value (in terms of consumer surplus) to divers from the coral bleaching. In this paper, we present the results of this analysis, and implications for ongoing monitoring and management of the reefs. We estimate the loss in economic value due to the 2010 coral bleaching event to be on the order of $50m to $80m.