Estimating the Value of Coral Reef Management Options

Incentives for coral reef resource use have, historically, been skewed toward extractive options that yield private returns, and against protection options that provide predominantly public good benefits. The consequence of this incentive imbalance has been an excessive rate of coral reef resource exploitation and hence an under-supply of protected coral reefs. Numerous policy options, ranging from direct government intervention that sets aside specific reef areas as reserves, through to the encouragement of reef-based industries that are predicated on reef protection (for example, ecotourism), are available to correct the situation. However, before such policies are implemented, it is useful to gain an appreciation of the extent of change that would be in the best interest of society. Put simply, it is important to know where to go before starting off on