The Economic Impact of Ocean Acidification on Coral Reefs

Luke M. Brander, Katrin Rehdanz, Richard Tol and Pieter J.H. van Beukering
Additional contact information
Luke M. Brander: (Vrije Universiteit) Amsterdam
Pieter J.H. van Beukering: (Vrije Universiteit) Amsterdam

No WP282, Papers from Economic and Social Research Institute (ESRI)

Abstract: Because 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.

Keywords: Ocean acidification; coral reefs; economic value (search for similar items in EconPapers)
JEL-codes: Q51 Q54 Q57 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2009-02
New Economics Papers: this item is included in nep-agr, nep-env and nep-tur
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Related works:
Journal Article: THE ECONOMIC IMPACT OF OCEAN ACIDIFICATION ON CORAL REEFS (2012)
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