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

17 Pages Posted: 27 Apr 2009

See all articles by Marit E. Kragt

Marit E. Kragt

University of Western Australia - School of Agricultural and Resource Economics

Peter Roebeling

Government of the Commonwealth of Australia - Sustainable Ecosystems

Arjan Ruijs

Wageningen UR - Environmental Economics and Natural Resources Group

Abstract

There is a growing concern that increased nutrient and sediment runoff from river catchments are a potential source of coral reef degradation. Degradation of reefs may affect the number of tourists visiting the reef and, consequently, the economic sectors that rely on healthy reefs for their income generation. This study uses a contingent behaviour approach to estimate the effect of reef degradation on demand for recreational dive and snorkel trips, for a case study of the Great Barrier Reef in Australia. Results from a negative binomial random effects panel model show that the consumer surplus current reef visitors derive from a diving or snorkelling trip is approximately A$185 per trip. Furthermore, results indicate that reef trips by divers and snorkellers could go down by as much as 80 per cent given a hypothetical decrease in coral and fish biodiversity. This corresponds to a decrease in tourism expenditure by divers and snorkellers on full-day reef trips in the Cairns management area of the Great Barrier Reef Marine Park of about A$103 million per year.

Suggested Citation

Kragt, Marit E. and Roebeling, Peter and Ruijs, Arjan, Effects of Great Barrier Reef Degradation on Recreational Reef-Trip Demand: A Contingent Behaviour Approach. Australian Journal of Agricultural and Resource Economics, Vol. 53, No. 2, pp. 213-229, April 2009. Available at SSRN: https://ssrn.com/abstract=1375823 or http://dx.doi.org/10.1111/j.1467-8489.2007.00444.x

Marit E. Kragt (Contact Author)

University of Western Australia - School of Agricultural and Resource Economics ( email )

M089 / 35 Stirling Highway
Crawley, WA Western Australia 6009
Australia

HOME PAGE: http://www.are.uwa.edu.au/contact/staff

Peter Roebeling

Government of the Commonwealth of Australia - Sustainable Ecosystems ( email )

Canberra, Australian Capital Territory 2601
Australia

Arjan Ruijs

Wageningen UR - Environmental Economics and Natural Resources Group ( email )

P.O. Box 8130
Wageningen, 6700 EW
Netherlands

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
1
Abstract Views
549
PlumX Metrics