X hits on this document

116 views

0 shares

0 downloads

0 comments

6 / 43

2

itself (McCrone, 2001). In contrast, a survey in 2005 showed that over 90% of visitors to the CROP Marine Reserve knew they were in a marine reserve and 72% of visitors went in the water to snorkel or swim (DOC, 2005).

1.3

Study Scope

Economists have a number of different methods by which to measure or estimate economic value.

The most comprehensive method involves cost-benefit analysis. The economic worth or benefit of some activity is compared with the cost of that activity. If the net benefits are positive, this indicates that the activity has economic merit and is more worthwhile the larger the net

economic

benefit.

Estimating

benefits

is

challenging

and

usually

involves inclusion of historic interest rates used to cover the

costs and opportunity

benefits costs of

with appropriate the investment in

the activity over time. For associated with the loss or

marine reserves this might include any costs displacement of fishing and other extractive

opportunities.

Full

social

cost-benefit

analysis

would

include

the

direct

value of and also

the activity (for more intangible

example, its use for tourism and recreation) economic values including non-use values.

Examples

include

intrinsic

value,

aesthetic

value

and

bequest

value.

Another way in which economists measure economic value is by measuring the activity’s economic impact on variables such as the level of employment, expenditure and incomes. This is called economic impact analysis. Economic impact analysis is more limited in its scope than is social cost-benefit analysis which estimates total economic value. One reason for this is that economic impact analysis only takes account of the market (or commercial) economic components associated with a resource or environmental initiative whereas social cost-benefit analysis would take account of non-market components (such as existence value) as well.

In practice, economic impact analysis usually has more policy clout than social cost-benefit analysis. The former is something which people can more easily relate to, particularly measures of jobs and income, while the latter is normally much more costly to complete because of the type of survey techniques involved and the results may

be less objective and more controversial than those for impact analysis (Tisdell, 2007). While net benefit is measure for decisions on public and private investment,

economic a relevant economic

impact analysis is of an activity to a

useful for a clearer understanding of the significance regional economy2. The purpose of this research is

For example, it is quite conceivable that economic impacts associated with a project may be a significant part of a regional economy, but have only a very small net benefit. Also, measures of net benefit are not generally available for any other sector, so it is not possible to make meaningful comparisons of the project with other sectors.

5

Document info
Document views116
Page views116
Page last viewedSat Dec 10 19:34:23 UTC 2016
Pages43
Paragraphs2860
Words12577

Comments