Valuing Marine Biodiversity in the Gulf of Mexico: Evidence from the Proposed Boundary Expansion of the Flower Garden Banks National Marine Sanctuary

Abstract

A B S T R A C TEcological diversity is especially high in the Gulf of Mexico, and multiple Gulf of Mexico resources imply complex management challenges. Yet, relatively little is known about social values of marine biodiversity in the Gulf of Mexico. This article uses results from a stated preference survey of nationally representative households to quantify economic values. The specific assessment scenario involves a current policy proposal to expand the boundaries of the Flower Garden Banks National Marine Sanctuary. Willingness to pay estimates range from $35-$107 per household. Respondent characteristics are related to willingness to pay in ways consistent with economic intuition and theory. We conclude with aggregate willingness to pay calculations, and results suggest that total social benefits of marine reserve expansion in the Gulf region are large.Key words: Marine biodiversity, Gulf of Mexico, national marine sanctuary.JEL Codes: Q22, Q28, Q51. INTRODUCTIONThe Gulf of Mexico is a hub of marine biodiversity, commercial fishing, oil and gas exploration and drilling, and outdoor recreation. Managing multiple uses in the area is costly and controversial, and scholars and policymakers regularly debate the cost effectiveness of marine conservation and biodiversity protection (Coleman, Baker, and Koenig 2004;Cruz and McLaughlin 2008). Discussions of conservation costs focus on restrictions to commercial fishing and oil/gas sectors, administrative expenditures, and economic losses to local communities. Discussions of conservation benefits, however, are comparatively vague, as both use and non-use values for preserving marine biodiversity are difficult to measure. Balanced policy choices, however, require a more complete understanding of such benefits.This study explores US residents' willingness to pay (WTP), a measure of social value, for marine protected areas in the Gulf of Mexico. We focus on marine conservation in the Gulf of Mexico for three reasons. First, ecological diversity there is especially high. A current census ofStephanie F. Stefanski is a PhD student, Nicholas School of the Environment, Duke University, 9 Circuit Dr., Durham, NC 27708 USA (email: stephanie.stefanski@duke.edu). Jay P. Shimshack, Associate Professor of Public Policy and Economics, Frank Batten School, University of Virginia, 235 McCormick Rd., Charlottesville, VA 22904 USA (email: jay.shimshack@virginia.edu).The authors thank Editor-in-Chief Martin Smith, an anonymous associate editor, three anonymous referees, Bob Leeworthy, G. P. Schmahl, the staff of the NOAA Office of Marine Sanctuaries, Quenton Dokken, the staff of the Gulf of Mexico Foundation, Timothy Beatty, Rob Mendelsohn, and Michael B. Ward for helpful discussions. The authors also thank Tulane University's Murphy Institute, Newcomb College, and Georges Lurcy program for generous support. global marine biodiversity ranked the Gulf of Mexico in the top five in both species per unit area and threats to species diversity (Costello et al. 2010). Second, Gulf Coast resourc...

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