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).
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
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
value of and also
the activity (for more intangible
example, its use for tourism and recreation) economic values including non-use values.
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.