Coral Reef Deterioration and Livelihoods of Coastal Communities: An Economics Perspective

Abstract

This chapter focuses on how coral reef deterioration impacts the well-being of the affected coastal communities. In a macro-level perspective, the chapter discusses 1) how coral reefs socioeconomically benefit humans and 2) how coral reef deterioration impacts humans. This part of the discussion sheds light on several adverse effects of coral reef degradation ranging from reductions in food availability and income to losses of jobs and built capital. In a micro-level perspective, the socioeconomic impact of coral reef degradation on vulnerable coastal communities is illustrated through a case study of the 1998 coral bleaching in Indonesia. The households affected by this bleaching event experienced a large income shock, which translated into reduced protein consumption and impeded child development. The chapter then concludes with two broad policy recommendations drawn from both the macro- and micro-level discussions. First, reef conservation and restoration are economically viable investments due to the immense socioeconomic values of coral reefs. Second, policy interventions are required to mitigate impacts of coral reef degradation on the vulnerable groups and to facilitate the adaptation process.