The Economic Value of Seagrass Ecosystem in Trang Province, Thailand

Abstract

Thailand's sea grass ecosystem expanded over an area of 18,986 hectares in 2013, making it one of the main coastal ecosystems that provide both direct and indirect benefits. The objectives of this study was to analyze the benefits derived from sea grass ecosystems in Trang, the province recognized as being rich in diversity of sea grass species and an important habitat of the iconic marine endangered species, dugongs. Three types of economic values were estimated: (1) use values from fisheries and eco-tourism; (2) indirect use values from carbon sequestration and storage functions; and (3) non-use values of sea grass ecosystem which estimated by using Choice Experiment.

Use value from fishery and tourism was estimated to be USD 1.2 M and 5 M, respectively. The only indirect use value estimated, i.e. carbon sequestration, was valued at USD 65 M. Intangible and non-traded benefits of the sea grass ecosystems amounted to USD 275 M.

These numbers will not only be useful in understanding the economic benefits, but could also help in evaluating whether the cost of conserving sea grass ecosystem would generate a net benefit. Conservation prospects are positive. On the supply side, there is recognition of the direct link between the sustainability of the sea grass ecosystem and the flow of income from fisheries. On the demand side, apart from the tourism sector, the findings from the choice Experiment Analysis also confirmed a demand for conservation measures from the general public who have neither present nor future benefits from sea grass ecosystems.