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Commercial Development and Conservation Value

Author

Listed:
  • Nir Becker

    (Department of Economics and Management Tel-Hai College Upper Galilee, 12210 Israel, nbecker@telhai.ac.il)

  • Doron Lavee

    (Department of Economics and Management Tel-Hai College Upper Galilee, 12210 Israel, doronl@telhai.ac.il)

Abstract

As pressures mount to develop intensive business operations along a coastline prized for its natural beauty, varied plant and wildlife and archeological sites, it is important to present decision makers with a full analysis of all values associated with the area. In this study, we examine whether the benefits of business development along the Rosh Haniqra Marine Reserve in northern Israel indeed outweigh the costs of potential damages to the region’s delicate natural balance. The analysis of business value was carried out on the basis of a detailed survey of facilities operating within the proposed reserve area and assessment of their expansion plans. The non-market benefits associated with conservation of the reserve were estimated according to two independent methods—Contingent Valuation (CVM) and Travel Cost (TCM). Our analysis reveals that under certain assumptions, non-market values of the coastline are higher than its commercial value. Thus, while further analysis is required to investigate the interaction between the number of visitors and the ecological performance of the site, it may already now be concluded that the preservation value is quite significant and should be taken into account in development plans for the region.

Suggested Citation

  • Nir Becker & Doron Lavee, 2009. "Commercial Development and Conservation Value," Journal of Infrastructure Development, India Development Foundation, vol. 1(2), pages 193-217, December.
    • Handle: RePEc:sae:jouinf:v:1:y:2009:i:2:p:193-217
    DOI: 10.1177/097493060900100206
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    References listed on IDEAS

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    1. Ian Langford* & Areti Kontogianni & Mihalis Skourtos & Stavros Georgiou & Ian Bateman, 1998. "Multivariate Mixed Models for Open-Ended Contingent Valuation Data: Willingness To Pay For Conservation of Monk Seals," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 12(4), pages 443-456, December.
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    6. Farrow, Scott, 1996. "Marine protected areas: emerging economics," Marine Policy, Elsevier, vol. 20(6), pages 439-446, November.
    7. Mathieu, Laurence F. & Langford, Ian H. & Kenyon, Wendy, 2003. "Valuing marine parks in a developing country: a case study of the Seychelles," Environment and Development Economics, Cambridge University Press, vol. 8(2), pages 373-390, May.
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    Cited by:

    1. Peled, Yoav & Zemah-Shamir, Shiri & Israel, Alvaro & Shechter, Mordechai & Ofir, Eyal & Gal, Gideon, 2020. "Incorporating insurance value into ecosystem services assessments: Mitigation of ecosystem users’ welfare uncertainty through biological control," Ecosystem Services, Elsevier, vol. 46(C).

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    More about this item

    Keywords

    JEL Classification: Q26; JEL Classification: Q27; JEL Classification: Q51; JEL Classification: Q57; Marine reserves; valuation; conflicts;
    All these keywords.

    JEL classification:

    • Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources
    • Q27 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Issues in International Trade
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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