Economic Value of Coral Reefs in Palau

Abstract

The aim of this research is to estimate how much Palauan people value coral reefs in the Rock Island Southern Lagoon (RISL) in Palau by using the Contingent Valuation Method, which is one of the methods used in Environmental Economics. According to some surveys, Palauan people are comparatively more environmentally conscious than those from other countries. However, in recent years, land development has been rapidly increased, and the number of tourists has been drastically increasing as well. Climate change is a global phenomenon that is affecting the condition of the marine environment. These trends cause serious damages to the natural environment. Since coral reefs provide some of the most important resources to the Palauan people, we conducted this study to understand the value of coral reefs to the people of Palau and as a result develop appropriate and effective conservation policy for Palau’s coral reefs. As a result of CVM survey conducted in Koror and Airai states, people’s “willingness to pay” and “willingness to work” are estimated at US $8.00 per month with a total annual value that is estimated at US $452,448. These estimated values can be used as critical information for compensation for coral damage, evaluation of economic efficiency of conservation policy, and improving awareness or education for Palauan residents.

Appendix: CVM Part of the Survey Sheet (English Version)

1.1 Description of the Hypothetical Scenario

The pictures on the previous page show the hypothetical change of coral reef condition in the RISL area with no conservation efforts for the next 30 years.

In this hypothetical scenario, non-governmental organizations (NGOs) or other organizations for the environment conduct regular monitoring of coral reef condition in the RISL, and awareness programs to Palauan residents (including tour guides) to learn the importance of coral reefs. Imagine that these monitoring and awareness programs are funded only by donations from contributors like you. Your donation to these NGOs or other environmental organizations will only be used for these activities.

Also, in order to maintain the current condition of coral reefs in the RISL, public involvement is important and dependent on voluntary efforts. In this hypothetical scenario, the activities are “beach cleanup (e.g., picking up trash and driftage, etc.)” and “assisting with conservation efforts that are led by the NGOs/other environmental organizations (e.g., water quality check, checking the condition of coral reefs, assistance in awareness seminars, etc.).” Imagine you join one or both of these volunteer activities in your leisure time, without compensation.

• Q1: Which of the following would YOU be willing to do to prevent degradation of coral reefs in the RISL? Please choose only ONE of the following options from [A] to [D], in the table below.

• Q2: For those who choose [A] or [C]

  • How much is your household willing to pay per month (for 1 year) for these management strategies? Please note that your donation comes from your household income, which means you cannot use this amount of money for any other purpose.

  • You are willing to pay … (for 1 year)

  • Please check ONE that applies.

[…] $1.00 per month	[…] $2.50 per month	[…] $5.00 per month
[…] $7.50 per month	[…] $10.00 per month	[…] $12.50 per month
[…] $15.00 per month	[…] $17.50 per month	[…] $20.00 per month
[…] $22.50 per month	[…] $25.00 per month	[…] $27.50 per month
[…] $30.00 per month	[…] $32.50 per month	[…] $35.00 per month
[…] $37.50 per month	[…] $40.00 per month	[…] $42.50 per month
[…] $45.00 per month	[…] $47.50 per month
[…] $50.00 or more per month

• Q3: for those who choose [B] or [C]

  • How many hours a month are you willing to spend for these volunteer work (without pay) aside from your regular work? Please note that you have to dedicate this time to the volunteer activities, and you cannot do anything else during this time.

  • You are willing to spend … (for 1 year)

  • Please check ONE that applies.

[…] 2 h per month	[…] 4 h per month	[…] 6 h per month
[…] 8 h per month	[…] 10 h per month	[…] 12 h per month
[…] 14 h per month	[…] 16 h per month	[…] 18 h per month
[…] 20 h per month	[…] 22 h per month	[…] 24 h per month
[…] 26 h per month	[…] 28 h per month
[…] 30 or more h per month

• Q4: For those who choose [D]

  • Why do you hesitate to do both donation and volunteer work?

  • Please check ONE that applies.

    • […] I am not interested in coral reef conservation in the RISL.

    • […] I don’t think coral reef conservation in the RISL is necessary nor important.

    • […] These hypothetical conservation plans are useful and necessary, but conservation efforts should be done by government with the current revenue.

    • […] These hypothetical conservation plans are useful and necessary, but I am not responsible.

    • […] These hypothetical conservation plans are useful and necessary, but I cannot afford the donation and the volunteer work.

    • […] Conservation efforts are necessary for coral reefs in the RISL, but I do not agree with the hypothetical scenario (future condition, conservation strategies).

    • […] The Palau National Government imposes the Green Fee on tourists, so Palauan residents do not have to do anything for the environment of Palau.

    • […] Only beneficiaries from coral reefs (tourists, tour company, fisherman, etc.) should be responsible for conservation.

    • […] Others (please specify):