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Effects of Great Barrier Reef Degradation on Recreational Demand: A Contingent Behaviour Approach

Author

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  • Kragt, Marit Ellen
  • Roebeling, Peter C.
  • Ruijs, Arjan

Abstract

Agricultural run-off from the Great Barrier Reef catchment area may cause degradation of coral reefs, affecting the tourism sector that relies on healthy reefs for its income generation. A Contingent Behaviour approach is used to determine the effect of reef degradation on demand for recreational dive and snorkel trips, for a case study of the Great Barrier Reef (GBR) in Australia. We assessed how reef degradation affects GBR tourism and to what extent reef-trip demand depends on the visitors' socio-economic characteristics. A count data model is developed, and results indicate that an average visitor would undertake about 60% less trips to the GBR per year, given a combined 80%, 30% and 70% decrease in coral cover, coral diversity and fish diversity, respectively. This corresponds to a decrease in tourism expenditure for reef trips in the Great Barrier Reef Marine Park area of about A$ 136 million per year.

Suggested Citation

  • Kragt, Marit Ellen & Roebeling, Peter C. & Ruijs, Arjan, 2006. "Effects of Great Barrier Reef Degradation on Recreational Demand: A Contingent Behaviour Approach," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25753, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae06:25753
    DOI: 10.22004/ag.econ.25753
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    Cited by:

    1. Rogers, Abbie A., 2011. "Is Choice Modelling Really Necessary? Public versus expert values for marine reserves in Western Australia," 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia 100704, Australian Agricultural and Resource Economics Society.
    2. Ghermandi, Andrea & Nunes, Paulo A.L.D., 2013. "A global map of coastal recreation values: Results from a spatially explicit meta-analysis," Ecological Economics, Elsevier, vol. 86(C), pages 1-15.
    3. Hu, Wuyang, 2008. "Modeling Yeah- and Nay-Saying to Alternatives in Conjoint Experiments," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6346, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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    Keywords

    Resource /Energy Economics and Policy;

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