L.M. Brander

The Economic Impact Of Ocean Acidification On Coral Reefs

Because ocean acidification has only recently been recognized as a problem caused by CO2 emissions, 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-analytic value transfer 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.

Wetland Ecosystem Services

Wetlands provide important and diverse benefits to people around the world, contributing provisioning, regulating, habitat, and cultural services. Critical regulating services include water-quality improvement, flood abatement and carbon management, while key habitat services are provided by wetland biodiversity. However, about half of global wetland areas have been lost, and the condition of remaining wetlands is declining. In New Zealand more than 90% of wetland area has been removed in the last 150 years, a loss rate among the highest in the world. New Zealand Maori greatly valued wetlands for their spiritual and cultural significance and as important sources of food and other materials closely linked to their identity. The remaining wetlands in New Zealand are under pressure from drainage, nutrient enrichment, invasive plants and animals, and encroachment from urban and agricultural development. In many countries, the degradation of wetlands and associated impairment of ecosystem services can lead to significant loss of human well-being and biodiversity, and negative long-term impacts on economies, communities, and business. Protection and restoration of wetlands are essential for future sustainability of the planet, providing safety nets for emerging issues such as global climate change, food production for an increasing world population, disturbance regulation, clean water, and the overall well-being of society.