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EXTENDED COST BENEFIT ANALYSIS of PRESENT and FUTURE USE of INDONESIAN CORAL REEFS an Empirical Approach to Sustainable Management of Tropical Marine Resources

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EXTENDED COST BENEFIT ANALYSIS of PRESENT and FUTURE USE of INDONESIAN CORAL REEFS an Empirical Approach to Sustainable Management of Tropical Marine Resources Aus dem Institut für Agrarökonomie der Christian-Albrechts-Universität zu Kiel EXTENDED COST BENEFIT ANALYSIS OF PRESENT AND FUTURE USE OF INDONESIAN CORAL REEFS An Empirical Approach to Sustainable Management of Tropical Marine Resources Dissertation zur Erlangung des Doktorgrades der Agrar-und Ernährungswissenschaftlichen Fakultät der Christian-Albrechts-Universität zu Kiel vorgelegt von Magister of Science Achmad Fahrudin aus Jakarta (Indonesien) Kiel, November 2003 Dekan : Prof. Dr. Friedhelm Taube Erster Berichterstatter : Prof. Dr. Christian Noell Zweiter Berichterstatter : Prof. Dr. Franciscus Colijn Tag der mündlichen Prüfung: 06.11.2003 i Gedruckt mit Genehmigung der Agrar- und Ernährungswissenschaftlichen Fakultät der Christian-Albrechts-Universität zu Kiel ii Zusammenfassung Korallen stellen einen wichtigen Faktor der indonesischen Wirtschaft dar. Im Vergleich zu anderen Ländern weisen die Korallenriffe Indonesiens die höchsten Schädigungen auf. Das zerstörende Fischen ist ein Hauptgrund für die Degradation der Korallenriffe in Indonesien, so dass das Gesamtsystem dieser Fangpraxis analysiert werden muss. Dazu wurden im Rahmen dieser Studie die Standortbedingungen der Korallen erfasst, die Hauptnutzungen mit ihren jeweiligen Auswirkungen und typischen Merkmale der Nutzungen bestimmt sowie die politische Haltung der gegenwärtigen Regierung gegenüber diesem Problemfeld untersucht. Die Feldarbeit wurde in der Zeit von März 2001 bis März 2002 an den Korallenstandorten Seribu Islands (Jakarta), Menjangan Island (Bali) und Gili Islands (Lombok) durchgeführt. Dort wurden zwecks Datengewinnung 225 Zyanidfischer, 90 Korallensammler, 19 Tourveranstalter und 100 Touristen interviewt. Die Auswirkungen der Hauptnutzungen auf die Korallen sowie deren bio-physikalische Indikatoren wurden direkt gemessen. Die hohe Bevölkerungsdichte und das Fehlen alternativer Einkommensquellen führten zu einer verstärkten Nutzung der Korallenriffe durch die Küstenbewohner. Das Zyanidfischen und das Korallensammeln sind in ganz Indonesien verbreitet, obwohl das Zyanidfischen verboten ist. Messungen an verschiedenen Standorten ergaben, dass sich diese Nutzungsformen stark destruktiv auf die Korallenriffe auswirkten. Beispielsweise betrugen die durch diese Aktivitäten verursachten Umweltkosten in Seribu Islands das Zehnfache des Nutzens in diesem Gebiet. Der Gesamtnutzen aus dem Zyanidfischen und dem Sammeln belief sich dort auf $ 235.160,31 und $ 163.430,00, wohingegen die Umweltkosten $ 2.506.495,03 und $ 1.382.552,88 betrugen. Im Gegensatz dazu verursachte der Tourismus geringere Umweltkosten. Hier standen dem Nutzen in Höhe von $ 1.265.257,30 Umweltkosten von lediglich $ 39.542,23 (nur 3,12 % des Gesamtnutzens) gegenüber. Eine um Umweltkosten erweiterte Kosten-Nutzen-Analyse wurde durchgeführt, um den Kapitalwert (NPV) der aktuellen Korallennutzung zu ermitteln. Die Analyseergebnisse zeigen, dass in Gebieten, wo das Zyanidfischen und Korallensammeln die höchste und der Tourismus die niedrigste Intensität aufweisen, der Kapitalwert negativ (-$ 14,68 Mio.) ist. Demgegenüber wird in Gebieten mit intensivster touristischer Nutzung und moderatem Zyanidfischen und Korallensammeln der ermittelte Kapitalwert positiv ($ 17,25 Mio.). In Gebieten, in denen das Fischen und Sammeln die niedrigste Intensität aufweist und die touristische Nutzung moderat ist, ist der Kapitalwert gleichfalls positiv ($ 2,26 Mio.). Würde das Zyanidfischen gestoppt, ergäbe sich ein negativer Kapitalwert (-$ 12,39 Mio.), während aus alleiniger touristischer Nutzung der höchste positive Kapitalwert resultierte ($ 41,14 Mio.). Die Ausdehnung des Zyanidfischens und Korallensammelns seit der letzten Wirtschaftskrise in Indonesien hat zu einer zunehmenden Schädigung der Korallenriffe geführt. Würde die destruktive Fangmethode in den nächsten 25 Jahren fortgesetzt, so wäre von einem negativen Kapitalwert auszugehen (-$ 4,29 Mrd.). Unterstellt man technischen Fortschritt bei der Korallenriffnutzung, so bliebe der Kapitalwert dennoch negativ, da in 45,83 % der indonesischen Korallengebieten intensiv gefischt wird. Würde man eine geringe touristische Nutzung einführen und die Intensität des Netzfischfangs von hoch auf moderat reduzieren, so würde dies den Kapitalwert steigern. Verbesserungen in der Korallenriffnutzung sowie die Regulierung der Fangintensität einschließlich der dazu notwendigen Umsetzungskosten, würden einen positiven Kapitalwert ergeben ($ 6,12 Mrd. ). iii Summary Coral reefs have supported significant role to Indonesian economic. Unfortunately, Indonesian coral reefs have received highest anthropogenic threats among other countries. Destructive fishing is a major cause of coral reef degradation in Indonesia. Therefore, it was important to understand the whole system of destructive fishing practices. For that reasons, this study have measured coral condition and the effects of major actual coral reefs uses, and observed the characteristics of coral reefs uses and the related government policies. Field surveys were carried out over one year period, from March 2001 until March 2002 in three Indonesian corral reefs areas, such as Seribu Islands (Jakarta), Menjangan Island (Bali) and Gili Islands (Lombok). About 225 cyanide fishermen, 90 coral collectors, 19 tourism operators, and 100 tourists in those areas were interviewed to gain the data. The impacts from major actual coral reefs uses in study areas were directly measured together with bio-physic measurements. The high density of inhabitants and the lack of alternative for income generating have pushed coastal communities to the activities related to the coral reefs. Cyanide fishing and coral collecting were the commonly used methods all over Indonesia, although cyanide fishing was illegal according to the government regulation. Both methods generated highly destructive effects to the coral reefs. The environmental costs caused by both activities were almost ten times their benefits. Annual benefit of cyanide fishing and coral collecting were $235,160.31 and $163,430.00 respectively, but annual environmental costs were $2,506,495.03 and $1,382,552.88 respectively. In contrast, tourism generated less environmental cost. Annual benefit of tourism was $1,265,257.30, and only generated environmental cost as much as $39,542.33 (3.12% of total benefit). Extended cost benefit analysis, which internalised environmental costs to the economic analysis were used to calculate the expected net present value of actual coral reefs uses. The result of this analysis showed that on the area where cyanide fishing and coral collecting had the highest intensity and tourism had the lowest intensity, the expected NPV was negative (-$14.68 million). In contrast, on the area where tourism had the highest intensity and cyanide fishing and coral collecting had the moderate intensity, the expected NPV was positive ($17.25 million). Meanwhile, on the area where cyanide fishing and coral collecting had the lowest intensity and tourism had the moderate intensity, expected NPV was positive ($2.26 million). If cyanide fishing was banned, expected NPV was still negative (-$12.39 million). The expected NPV will be positive if tourism was the only activity allowed ($41.14 million). The extension of cyanide fishing and coral collecting practices since the last economic crisis in Indonesia has led to the increasing damaging impact to coral reefs. The result of economic analysis showed that if these destructive fishing methods were continued for the next 25 years, the expected NPV would be negative (-4.29 billion $). Technical improvement of coral reefs uses still generated negative expected NPVs because of intensive fishing in 45.83% of Indonesian coral reefs areas. Introducing low tourism and reducing high intensity of barrier net fishing to moderate barrier net fishing would increase the expected NPVs. Coral reefs uses improvement and intensity regulation, which include implementation costs, would generate positive expected NPV (6.12 billion $). iv Acknowledgements This study would not be possible without the scholarship from the German Academic Exchange Service (DAAD) granted to me from October 2000 to November 2003, for which I am very grateful. Special thanks to Dr. Joachim Schneider, Mr. Achim Apweiler, Dr. Ursula Toyka-Fuong, and Mrs. Barbara Schwarz-Bergmann for their kind and professional cooperation. I would like to express my cordial gratitude to my supervisor, Prof. Dr. Christian Noell for supporting, guidance, critical reading of the thesis and for inviting me to conduct my study and research at the Department of Agricultural Economics in Kiel, Germany. My special gratitude also goes to Prof. Dr. Franciscus Colijn for reviewing this thesis and for discussion of biological parts of this thesis. I wish my gratitude to Department of Agricultural Economics, Faculty of Agricultural and Nutritional Science, University of Kiel that gave facilities to do my work. Special gratitude goes to Prof. Dr. Claus-Hennig Hanf for his hospitality at his department. I wish to thank Alex Dubgaard who gave me comments and opportunity to present my research to his students in Department of Economics and Natural Resources, Royal Veterinary and Agricultural University (KVL), Copenhagen, Denmark. I would like to express my gratitude to Prof. Dr. Tridoyo Kusumastanto and Prof. Dr. Rokhmin Dahuri (Faculty of Fisheries and Marine Science, IPB) for their support of my field study in Indonesia. I deeply appreciate to Dr. Thomas Fels, who gave valuable comments and corrections
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