Effects of Great Barrier Reef Degradation on Recreational Demand: A Contingent Behaviour Approach
AbstractDegradation of coral reefs may affect the number of tourists visiting the reef and, consequently, the economic sectors that rely on healthy reefs for their income generation. A Contingent Behaviour approach is used to estimate 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 reef trips 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 to the Great Barrier Reef Marine Park of about A$ 136 million per year.
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Bibliographic InfoPaper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2006.45.
Date of creation: Mar 2006
Date of revision:
Coral Reef; Recreation; Contingent Behaviour Model; Count Data Models;
Find related papers by JEL classification:
- Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
- Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources
- Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
This paper has been announced in the following NEP Reports:
- NEP-AGR-2006-04-29 (Agricultural Economics)
- NEP-ALL-2006-04-29 (All new papers)
- NEP-ENV-2006-04-29 (Environmental Economics)
- NEP-TUR-2006-04-29 (Tourism Economics)
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