Coral Reef Economics

The tragedy of the commons largely accounts for the declining condition of the world’s coral reefs, as in most areas of the world there is little to prevent over-harvesting and habitat destruction. Coral bleaching caused by global warming is also a problem. We might wonder why a large reef fish is worth more alive on the reef than served up on a plate in an expensive hotel: older fish lay disproportionately more eggs, so helping to increase reef biomass. ¹ Reef fish also perform various ecological services, helping to maintain the ecosystem of a reef by eating algae and seaweed and preventing the corals from being over-grown. Can coral reefs be managed to better health? The device of the marine park discussed in this chapter is useful; the “classic” example is Australia’s Great Barrier Reef Marine Park. Even “traditional” social organizations can be used to reduce over-harvesting: in Fiji a Chieftain exercised the right to manage reef fish stocks, withdrew commercial fishing licenses, established no-take zones and used scientific knowledge of fish breeding habits and life cycles to set closed seasons. The results were impressive – labor productivity quickly doubled with the same quantity of fish being caught in half the time. Scientific evidence suggests that biomass inside no-take zones doubles in three to five years, and that this also benefits nearby areas. ²