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Sustainable funding policies for environmental protection: the case of Maldivian atolls

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  • Mahadev Bhat
  • Ramachandra Bhatta
  • Mohamed Shumais

Abstract

This paper investigates several user-based funding mechanisms for protecting the marine resources in the Republic of the Maldives, by conducting an economic valuation of its recreational uses. We developed an individual travel demand model, corrected for truncation and endogenous stratification, to estimate the benefits of atoll-based marine tourism. The study found a large disparity between the amount of economic value generated from this opportunity for nature-based tourism and the amount going into atoll environmental conservation. More than half the environmental protection expenditure currently comes from unstable international sources, which makes it imperative that more stable financing sources be found. The results of the study show that even a small percent of tax added to tourist expenditure on the islands, or a direct conservation check-off as user fee collected from the tourists, would help defray the costs of atoll conservation. The paper concludes on a discussion of the policy implications of sustainable user-based financing mechanisms. Copyright Springer Japan 2014

Suggested Citation

  • Mahadev Bhat & Ramachandra Bhatta & Mohamed Shumais, 2014. "Sustainable funding policies for environmental protection: the case of Maldivian atolls," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 16(1), pages 45-67, January.
    • Handle: RePEc:spr:envpol:v:16:y:2014:i:1:p:45-67
    DOI: 10.1007/s10018-013-0070-x
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    Cited by:

    1. Mohamed Shumais & Ibrahim Mohamed, 2020. "What makes an environmental trust fund successful? A case study of the Maldives," Climatic Change, Springer, vol. 161(2), pages 327-344, July.

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    More about this item

    Keywords

    User-based finance; Atolls; Marine tourism; Travel cost; Endogenous stratification; Truncation; The Maldives; Q26;
    All these keywords.

    JEL classification:

    • Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources

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