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Return on investment for mangrove and reef flood protection

Author

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  • Beck, Michael W.
  • Heck, Nadine
  • Narayan, Siddharth
  • Menéndez, Pelayo
  • Reguero, Borja G.
  • Bitterwolf, Stephan
  • Torres-Ortega, Saul
  • Lange, Glenn-Marie
  • Pfliegner, Kerstin
  • Pietsch McNulty, Valerie
  • Losada, Iñigo J.

Abstract

There is a growing need for coastal and marine restoration, but it is not clear how to pay for it given that environmental funding is low, and national budgets are stretched in response to natural hazards. We use risk-industry methods and find that coral reef and mangrove restoration could yield strong Return on Investment (ROI) for flood risk reduction on shorelines across more than 20 Caribbean countries. These results are robust to changes in discount rates and the timing of restoration benefits. Data on restoration costs are sparse, but the Present Value (PV) of restored natural infrastructure shows that ROI would be positive in many locations even if restoration costs are in the hundreds of thousand per hectare for mangroves and millions per km for reefs. Based on these benefits, we identify significant sources of funding for restoring these natural defenses.

Suggested Citation

  • Beck, Michael W. & Heck, Nadine & Narayan, Siddharth & Menéndez, Pelayo & Reguero, Borja G. & Bitterwolf, Stephan & Torres-Ortega, Saul & Lange, Glenn-Marie & Pfliegner, Kerstin & Pietsch McNulty, Val, 2022. "Return on investment for mangrove and reef flood protection," Ecosystem Services, Elsevier, vol. 56(C).
    • Handle: RePEc:eee:ecoser:v:56:y:2022:i:c:s2212041622000365
    DOI: 10.1016/j.ecoser.2022.101440
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    1. Siddharth Narayan & Michael W Beck & Borja G Reguero & Iñigo J Losada & Bregje van Wesenbeeck & Nigel Pontee & James N Sanchirico & Jane Carter Ingram & Glenn-Marie Lange & Kelly A Burks-Copes, 2016. "The Effectiveness, Costs and Coastal Protection Benefits of Natural and Nature-Based Defences," PLOS ONE, Public Library of Science, vol. 11(5), pages 1-17, May.
    2. Menéndez, Pelayo & Losada, Iñigo J. & Beck, Michael W. & Torres-Ortega, Saul & Espejo, Antonio & Narayan, Siddharth & Díaz-Simal, Pedro & Lange, Glenn-Marie, 2018. "Valuing the protection services of mangroves at national scale: The Philippines," Ecosystem Services, Elsevier, vol. 34(PA), pages 24-36.
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    6. Reguero, Borja G. & Beck, Michael W. & Schmid, David & Stadtmüller, Daniel & Raepple, Justus & Schüssele, Stefan & Pfliegner, Kerstin, 2020. "Financing coastal resilience by combining nature-based risk reduction with insurance," Ecological Economics, Elsevier, vol. 169(C).
    7. Michael W. Beck & Iñigo J. Losada & Pelayo Menéndez & Borja G. Reguero & Pedro Díaz-Simal & Felipe Fernández, 2018. "The global flood protection savings provided by coral reefs," Nature Communications, Nature, vol. 9(1), pages 1-9, December.
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    1. Alexandra Toimil & Iñigo J. Losada & Moisés Álvarez-Cuesta & Gonéri Cozannet, 2023. "Demonstrating the value of beaches for adaptation to future coastal flood risk," Nature Communications, Nature, vol. 14(1), pages 1-11, December.
    2. Michalis I. Vousdoukas & Panagiotis Athanasiou & Alessio Giardino & Lorenzo Mentaschi & Alessandro Stocchino & Robert E. Kopp & Pelayo Menéndez & Michael W. Beck & Roshanka Ranasinghe & Luc Feyen, 2023. "Small Island Developing States under threat by rising seas even in a 1.5 °C warming world," Nature Sustainability, Nature, vol. 6(12), pages 1552-1564, December.

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