Value of retaining undisturbed condition vs converted

Question 1

What does the mangrove system in Thailand Tell us?

Answer 1

Balmford et al 2002
- initially, the conversion of the mangroves was economically beneficial
- However, the external costs and the overall economic viability of shrimp farming were diminished
- Conversion of mangroves led to significant loss of social benefits - timber, charcoal, storm protection etc.

Question 2

What about the Phillipnnie Reef?

Answer 2

• Economic studies on Phillippine reef exploitation revealed insights into the impacts of different techniques on private and social benefits
• Destructive techniques like blast fishing had high initial benefits but significantly lower NPV of private benefits compared to sustainable fishing
• Lead to loss of social benefits like coastal protection and tourism