The Economic Impact of Ocean Acidification on Coral Reefs
AbstractBecause ocean acidification has only recently been recognised as a problem caused by climate change, impact studies are still rare and estimates of the economic impact are absent. This paper estimates the economic impact of ocean acidification on coral reefs which are generally considered to be economically as well as ecologically important ecosystems. First, we conduct an impact assessment in which atmospheric concentration of CO2 is linked to ocean acidity causing coral reef area loss. Next, a meta-analysis is applied to determine the economic value of coral reefs around the world. Finally, these two analyses are combined to estimate the economic impact of ocean acidification on coral reefs for the four IPCC marker scenarios. We find that the annual economic impact rapidly escalates over time, because the scenarios have rapid economic growth in the relevant countries and coral reefs are a luxury good. Nonetheless, the annual value in 2100 in still only a fraction of total income, one order of magnitude smaller than the previously estimated impact of climate change. Although the estimated impact is uncertain, the estimated confidence interval spans one order of magnitude only. Future research should seek to extend the estimates presented here to other impacts of ocean acidification and investigate the implications of our findings for climate policy.
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Bibliographic InfoPaper provided by Economic and Social Research Institute (ESRI) in its series Papers with number WP282.
Length: 33 pages
Date of creation: Feb 2009
Date of revision:
Ocean acidification; coral reefs; economic value;
Other versions of this item:
- Luke M. Brander & Katrin Rehdanz & Richard S. J. Tol & Pieter J. H. Van Beukering, 2012. "The Economic Impact Of Ocean Acidification On Coral Reefs," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 3(01), pages 1250002-1-1.
- Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
- Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
This paper has been announced in the following NEP Reports:
- NEP-AGR-2009-02-28 (Agricultural Economics)
- NEP-ALL-2009-02-28 (All new papers)
- NEP-ENV-2009-02-28 (Environmental Economics)
- NEP-TUR-2009-02-28 (Tourism Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Frances Ruane & Xiaoheng Zhang, 2007. "Location Choices of the Pharmaceutical Industry in Europe after 1992," The Institute for International Integration Studies Discussion Paper Series iiisdp220, IIIS.
- Seán Lyons & Karen Mayor & Richard S.J. Tol, 2008. "Environmental Accounts for the Republic of Ireland: 1990-2005," Papers WP223, Economic and Social Research Institute (ESRI).
- Narita, Daiju & Rehdanz, Katrin & Tol, Richard S. J., 2011.
"Economic Costs of Ocean Acidification: A Look into the Impacts on Shellfish Production,"
WP391, Economic and Social Research Institute (ESRI).
- Daiju Narita & Katrin Rehdanz & Richard S.J. Tol, 2011. "Economic Costs of Ocean Acidification: A Look into the Impacts on Shellfish Production," Kiel Working Papers 1710, Kiel Institute for the World Economy.
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