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Political Economy of Protecting Unique Recreational Resources: Hanauma Bay, Hawaii

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  • James E.T. Moncur

    () (Department of Economics, University of Hawaii at Manoa)

  • James Mak

    () (Department of Economics, University of Hawaii at Manoa)

Abstract

The impact of tourism growth on the environment has become an increasingly important public issue in travel destinations. We review Honolulu's recent experience in designing management strategies to protect one of its most popular, unique, and endangered natural recreational resources, Hanauma Bay Nature Park. We explain why Honolulu City Council members first adopted non-price rationing techniques to reduce visits at the park and later added an admission fee only to replace it with a lower and less efficiency-enhancing fee structure. Lawmakers desire (a) a quality environment, (b) to collect economic rents (i.e., achieve economic efficiency) for the benefit of the general public, and yet must (c) achieve a political equilibrium. As Honolulu's experience demonstrates, goals (a) and (b) often conflict with (c), yielding typically a second-best outcome. Efficiency can be attained only if it is also consistent with attaining political equilibrium.

Suggested Citation

  • James E.T. Moncur & James Mak, 1997. "Political Economy of Protecting Unique Recreational Resources: Hanauma Bay, Hawaii," Working Papers 199708, University of Hawaii at Manoa, Department of Economics.
  • Handle: RePEc:hai:wpaper:199708
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    Cited by:

    1. Brown, Katrina & Adger, W. Neil & Tompkins, Emma & Bacon, Peter & Shim, David & Young, Kathy, 2001. "Trade-off analysis for marine protected area management," Ecological Economics, Elsevier, vol. 37(3), pages 417-434, June.
    2. Brander, Luke M. & Van Beukering, Pieter & Cesar, Herman S.J., 2007. "The recreational value of coral reefs: A meta-analysis," Ecological Economics, Elsevier, vol. 63(1), pages 209-218, June.
    3. Penn, Jerrod & Hu, Wuyang & Cox, Linda J. & Kozloff, Lara, 2012. "Beach Quality and Recreational Values: A Pictorialized Stated Preference Analysis of Residents and Tourists," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119813, Southern Agricultural Economics Association.
    4. Jerrod Penn & Wuyang Hu & Linda Cox & Lara Kozloff, 2016. "Values for Recreational Beach Quality in Oahu, Hawaii," Marine Resource Economics, University of Chicago Press, vol. 31(1), pages 47-62.

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