The National Marine Sanctuary Program

Are Existing Methods Adequate for Valuing Ocean Resources Today?

Driving Questions

What makes us go to extraordinary lengths, in the face of considerable controversy, to protect ocean areas for future generations?

Driving Questions

Given the high value we as Americans place on the oceans, why is it so difficult to “equitably value” oceans?

          

The Resource Valuation Dilemma

As a natural resource, valuing

the ocean is as much “art” as science.

• Every decision-making context is inherently different, but shares similar challenges.

• In every context the challenge is to decide whose perspective and hence whose values are to be measured.

A Question of Benefits and Costs

• Standard practice requires “economic efficiency” always be achieved in a resource use decision.

• Consequently, how “economic efficiency” is quantified determines the perception of “winners and losers”.

          • Economic efficiency requires the

gains to the winners outweigh the losses to the losers.

Challenges Confronting Standard Practice

• Are all appropriate values considered in current ocean valuation or decision contexts?

• Are we adequately considering the present values of perceptions of future ocean uses?

• How do we measure these future, and potentially unpredictable, values?

• How do we “sensibly” account for the “effects” of shifting resource baselines in ocean valuation?

Challenges Confronting Standard Practice

• Is the application of standard practice and current methods allowing us to effectively quantify ocean resource values for today’s challenges?

Methods such as…Travel Cost Method Contingent Valuation Method

Hedonic Price Method Benefits Transfer Method

• Are modified practices and methods needed today? If so, how can they be developed?

Perceptions of Opportunity Costs Will Provide Answers

For example…

• What is the range of opportunity costs of not making an ocean protection decision today?

          • What are the opportunity costs to various parts

of society.

• When and how over time are the opportunity costs acknowledged within the context of shifting ocean resource baselines?

Framework for the Way Forward

Total Economic Value

Use Values Non-Use Values

Direct Use Values

Indirect Use Values

Option Values Bequest Values Existence Values

Outputs/ Services

that can be consumed

directly

Societal/ Functional

benefits enjoyed

indirectly

Potential future

direct and indirect

uses

Value of saving for

future generations

Value from knowledge of

continued existence

Increasing difficulty of valuation

Concluding Remarks

          

Until improved methods can be applied to valuing oceans, few marine areas are likely to be effectively protected over time.