1. Valuation of Coastal and Marine Resources: Adaptation to Global Climate Change
CPACC Component 7
Leisa Perch, Technical Coordinator, CPACC
Organization of American States

2. Coastal Management in the Caribbean: Some Challenges
Major Challenge: Balancing economic imperatives and environmental reality
Development and maintenance of coastal structures
Water quality – pollution levels
Public access to the beach
Dredging
Removal of beach rock, beach rubble and sea grass – for construction or for souvenir value
Sand mining
Coral reef health
Focal Point Meeting CPACC/MACC Preparation Workshop
Nassau, Bahamas
August 12-14th, 2002
11/29/2018

3. Traditional Approaches to Coastal Management in the Caribbean
Command-and control
Laws
Regulations
Plans
Guidelines
Planning restrictions
EIAs
Market-Based Instruments (limited use thus far)
Fiscal Incentives
Tax holidays
Reduced duty on equipment
Focal Point Meeting CPACC/MACC Preparation Workshop
Nassau, Bahamas
August 12-14th, 2002
11/29/2018

4. Traditional Approaches cont’d
Traditionally not always environmentally sound or effective
Characterized by fragmentation of laws and responsibilities
Fines are often antiquated and not significant to discourage likely offenders
Limited financial mechanisms
Focal Point Meeting CPACC/MACC Preparation Workshop
Nassau, Bahamas
August 12-14th, 2002
11/29/2018

5. Shifting Focus: A new Dynamic in Coastal Management
Direct Mechanisms
Coastal setbacks
Recreation water use management planning
Mitigation
Critical areas protection
Adopt-a-Beach programmes
In-direct Mechanisms
Restrictions on property rights
Building codes
Deposit-refund mechanism
Integrated Small Island Management Approach
Focal Point Meeting CPACC/MACC Preparation Workshop
Nassau, Bahamas
August 12-14th, 2002
11/29/2018

6. Economic Valuation: Informing Policy Direction
Challenge of defining a dollar value for resources or their environmental services
To protect resources, though, we need to have some concept of these “values”
Cannot be a precise science – as values change according to access, quantity and quality
Defining costs/benefit of one action vs. another or actions vs. inaction
Focal Point Meeting CPACC/MACC Preparation Workshop
Nassau, Bahamas
August 12-14th, 2002
11/29/2018

7. Focal Point Meeting CPACC/MACC Preparation Workshop
Component 7 of CPACC Aim
Component 7 (Economic Valuation of Coastal and Marine Resources) aims to:
“assist countries in applying the tools of resource valuation, environmental accounting and environmental decision-making for use in the development of policies and economic ad regulatory approaches”.
Focal Point Meeting CPACC/MACC Preparation Workshop
Nassau, Bahamas
August 12-14th, 2002
11/29/2018

8. Focal Point Meeting CPACC/MACC Preparation Workshop
Component 7 Framework
Focal Point Meeting CPACC/MACC Preparation Workshop
Nassau, Bahamas
August 12-14th, 2002
11/29/2018

9. Focal Point Meeting CPACC/MACC Preparation Workshop
The Pilot Project
Three countries participating – St. Lucia, Dominica and Trinidad and Tobago
A geographic area or pilot site was selected based on criteria including environmental features, economic and social significance, likely to be impacted by coastal impacts and extreme events
An Implementation Strategy designed including data requirements
Focal Point Meeting CPACC/MACC Preparation Workshop
Nassau, Bahamas
August 12-14th, 2002
11/29/2018

10. Focal Point Meeting CPACC/MACC Preparation Workshop
Focus of the Pilot
Looking at estimated gains from policy action so as to highlight them with regard to climate change adaptation in the Caribbean
Informing policy and showing that the early costs can be easily met by gains later on
Focal Point Meeting CPACC/MACC Preparation Workshop
Nassau, Bahamas
August 12-14th, 2002
11/29/2018

11. Focal Point Meeting CPACC/MACC Preparation Workshop
Issues addressed
Impacts on tourism industry
Potential Impacts on coastal and marine resources
Change in productivity of fisheries
Potential impacts on industry and from industry
Vulnerability of cultural and heritage sites
Change in residential and commercial property value
Focal Point Meeting CPACC/MACC Preparation Workshop
Nassau, Bahamas
August 12-14th, 2002
11/29/2018

12. Types of Methods being used
Hedonic Model (Dominica)
Defensive Expenditures (coastal structures in St. Lucia; cultural heritage site in Trinidad)
Contingent Valuation (tourism in St. Lucia)
Change in Productivity (fisheries in St. Lucia)
Random Utility Model (tourism in Dominica)
Focal Point Meeting CPACC/MACC Preparation Workshop
Nassau, Bahamas
August 12-14th, 2002
11/29/2018

13. Aspects being considered
A number of aspects were examined in the pilot project
Because of the dependence on tourism, in St. Lucia and Dominica changes in that trade after major hurricane events
Change in tourism expenditures as a result of such change is also looked at
Implications for the use of beaches due to such events
Economic value of beach loss
Focal Point Meeting CPACC/MACC Preparation Workshop
Nassau, Bahamas
August 12-14th, 2002
11/29/2018

14. Aspects being considered cont’d
Using a time-series approach defining how fisheries production might be influenced by mangroves – change in size (CIP)
Using WTP looking at the use and non-use value of a cultural heritage site in Trinidad and Tobago (CVM)
How property values are influenced positively and negatively by proximity to the shore-line (hedonic price model)
The expenditures undertaken by government to protect property (DEM)
Focal Point Meeting CPACC/MACC Preparation Workshop
Nassau, Bahamas
August 12-14th, 2002
11/29/2018

15. Expected Outputs from C7
Assessment of data availability in each country and recommendations for collection for economic valuation
A picture of how climate change will impact on coastal and marine resources, possibly affecting their value
A picture of the value of adverse impacts of CC and their likely economic impacts on Caribbean SIDS
Enhanced capacity in country and in the region regarding economic valuation and its role in decision-making
Focal Point Meeting CPACC/MACC Preparation Workshop
Nassau, Bahamas
August 12-14th, 2002
11/29/2018

16. Expected Outputs of C7 continued
A methodological framework for economic valuation of coastal and marine resources in the Caribbean
Focal Point Meeting CPACC/MACC Preparation Workshop
Nassau, Bahamas
August 12-14th, 2002
11/29/2018

17. Some Issues to be considered
The economic costs in most cases are the expenditures on the resources used to implement policy
The existence of high unemployment in the construction industry might lower the opportunity costs of building coastal defenses
Focal Point Meeting CPACC/MACC Preparation Workshop
Nassau, Bahamas
August 12-14th, 2002
11/29/2018

18. Focal Point Meeting CPACC/MACC Preparation Workshop
Issues/Models
Residential And Commercial Properties: Hedonic Model
Fisheries: Change in Productivity Method
Visitor (Stay-over and Cruise Ship) Use of Natural Features: Contingent valuation
Residential, commercial and public properties: Defensive expenditure Method
Focal Point Meeting CPACC/MACC Preparation Workshop
Nassau, Bahamas
August 12-14th, 2002
11/29/2018

19. Some of the Data Requirements
Residential, Commercial and Public
Number of defensive structures in pilot/study area
Original costs of construction or reasonable engineering estimates
Maintenance/repair costs
Life-span of defensive expenditures
Value of properties protected
Focal Point Meeting CPACC/MACC Preparation Workshop
Nassau, Bahamas
August 12-14th, 2002
11/29/2018

20. Focal Point Meeting CPACC/MACC Preparation Workshop
Addressing Data Gaps
Through C7 some innovative ways were conceived to obtain data:
Trinidad – used a student for part of the surveys; developed surveys as a group to benefit from gov’t department experience, gov’t departments executed the surveys
Dominica – government executed the surveys; Component collected data based on discussions with consultant; when one department would not hand over we went to them and obtained estimated values
Focal Point Meeting CPACC/MACC Preparation Workshop
Nassau, Bahamas
August 12-14th, 2002
11/29/2018

21. Focal Point Meeting CPACC/MACC Preparation Workshop
Addressing Data Gaps
In St. Lucia – a combination of government executed surveys, development of surveys at team level and team members/coordinators carrying out data collection e.g. on sea level walls and other existing engineering works, cost, their lifetime and any assessments of their success
Focal Point Meeting CPACC/MACC Preparation Workshop
Nassau, Bahamas
August 12-14th, 2002
11/29/2018

22. Focal Point Meeting CPACC/MACC Preparation Workshop
Findings: Highlights
Through measuring the extent of economic loss and tying it to specific attributes such as infrastructure for tourism that have experienced damage, it becomes possible to measure the potential economic damage that may be caused by climate change, and direct efforts for mitigation toward those attributes that are deemed vulnerable.
Focal Point Meeting CPACC/MACC Preparation Workshop
Nassau, Bahamas
August 12-14th, 2002
11/29/2018

23. Focal Point Meeting CPACC/MACC Preparation Workshop
Findings: Highlights
Another possibility is to link effects on ecosystems to decreases in productivity values. In this instance, a decrease in the productivity of shrimp fisheries (using the shrimp catch as a proxy) is related to the decrease in the area of neighboring mangroves in Trinidad, a coastal ecosystem highly vulnerable to climate change.
Focal Point Meeting CPACC/MACC Preparation Workshop
Nassau, Bahamas
August 12-14th, 2002
11/29/2018

24. Focal Point Meeting CPACC/MACC Preparation Workshop
Findings cont’d
Property values were influenced after an extreme event such as a hurricane based on proximity to shoreline– whether this is permanent or temporary is yet to be determined
In some areas, clearly vulnerable, defensive measures appear at a minimum. In one case, there was approx. 2.8 km of defensive sea walls compared to 15m coastline in area – is this enough to avoid loss?
In one instance – the annual economic loss of one beach was estimated at between US$1 and US$1.25 million and this was based on resident use of the beach
Focal Point Meeting CPACC/MACC Preparation Workshop
Nassau, Bahamas
August 12-14th, 2002
11/29/2018

25. Focal Point Meeting CPACC/MACC Preparation Workshop
Findings cont’d
Diving: between 80-90% of clients were stay-over visitors and between 10% cruise-ship. About 10% or less were local residents, in some cases less than 1% - decline in tourism causes a direct affect on this business
Busiest periods November – April and worst mid year – their busy period coincides with the end tail of the hurricane season which has proven to be also when some of the harshest storms have hit the region
Costs varied from $225/5 trips (4-5 hours) to $45 per diving trip of to 1.50 hrs. If businesses were closed on average 1-2 months after Lenny then the economic loss to the sector was quite significant
Focal Point Meeting CPACC/MACC Preparation Workshop
Nassau, Bahamas
August 12-14th, 2002
11/29/2018

26. Focal Point Meeting CPACC/MACC Preparation Workshop
Findings cont’d
Vulnerability of a sector is not then a function simply of the loss at the time but also considered should be the timing of the loss in the business cycle and other factors
Focal Point Meeting CPACC/MACC Preparation Workshop
Nassau, Bahamas
August 12-14th, 2002
11/29/2018

27. Challenges and Constraints
Limited resources – financial
Limit to contact and real-time collaboration between consultants and consulting teams
Limited direct training
Demands on the time of the component coordinators and country teams
Focal Point Meeting CPACC/MACC Preparation Workshop
Nassau, Bahamas
August 12-14th, 2002
11/29/2018

28. Focal Point Meeting CPACC/MACC Preparation Workshop
Some Keys to Success
Commitment of country teams and willingness to put in the time
Ability to develop questionnaires as a group provided invaluable opportunities for capacity-building
Discussions at every stage of development
Execution of surveys by the team members, students or government departments
Opportunities to link up with Comp 8
Regular coordination meetings developed links between the countries
A broad based group makes for a more rewarding activity and output
Focal Point Meeting CPACC/MACC Preparation Workshop
Nassau, Bahamas
August 12-14th, 2002
11/29/2018

29. Project: Lessons Learnt
Already it is clear that:
Without some indication of the value of action vs. inaction or of one action vs. another, governments in the region are fated to continue to look for short-term solutions
Climate variability has impacted on the value of coastal and marine resources and climate change could change some of these permanently. This has serious implications for the use of coastal resources by locals and for tourism purposes in the region.
Focal Point Meeting CPACC/MACC Preparation Workshop
Nassau, Bahamas
August 12-14th, 2002
11/29/2018

30. Focal Point Meeting CPACC/MACC Preparation Workshop
Lessons Learnt cont’d
Economic valuation should form part of environmental and macro-economic policy development – the exercise often highlights often unclear linkages between sectors and aspects of economic development
Focal Point Meeting CPACC/MACC Preparation Workshop
Nassau, Bahamas
August 12-14th, 2002
11/29/2018

31. An Integrated Approach: the CPACC model
CPACC a model for policy development which we believe can be used to address any policy:
Based on the foundations of:
Good data
Effective monitoring
Good science
Tried and tested tools
Developing the capacity to use and improve on the above
Focal Point Meeting CPACC/MACC Preparation Workshop
Nassau, Bahamas
August 12-14th, 2002
11/29/2018