Economic Valuation of the Coral Reefs of Hawai'i

Hawai'i's coral reef ecosystems provide many goods and services to coastal populations, such as fisheries and tourism. They also form a unique natural ecosystem, with an important biodiversity value as well as scientific and educational value. Also, coral reefs form a natural protection against wave erosion. Without even attempting to measure their intrinsic value, this paper shows that coral reefs, if properly managed, contribute enormously to the welfare of Hawai'i through a variety of quantifiable benefits. Net benefits are estimated at $360 million a year for Hawai'i's economy, and the overall asset value of the state of Hawai'i's 1660 km 2 (410,000 acres) of potential reef area in the main Hawaiian Islands is estimated at nearly $10 billion.