Investigating Economic Consequences of Climate Change on Marine Ecosystems

Introduction

In this short commentary, I aim to observe how the degradation of marine environments from anthropogenic climate change will impact the economy.

Marine ecosystems worldwide are grappling with the profound impacts of anthropogenic climate change, leading to significant alterations in their structure and functioning. These effects are exacerbated by human activities, both directly and indirectly. Direct impacts stem from activities like commercial fishing, offshore drilling, shipping, wind farms, recreational uses, and aquaculture; meanwhile, indirect impacts arise from greenhouse gas emissions and land-use changes (Priya et al., 2023). Additionally, marine ecosystems face numerous unwarranted effects due to the human footprint, including frequent oil spills, pollution, harmful algal blooms, and the introduction of invasive species (Häder et al., 2020). These stressors collectively undermine the resiliency and resistance of marine ecosystems. Consequently, rising ocean temperatures, elevated water levels, and increased ocean acidification pose existential threats, potentially leading to the degradation of vital marine habitats and jeopardizing the sustainability of global fisheries (Priya et al., 2023).

Valuation of Marine Ecosystem Services

The ocean and coastal regions within 100 km of shore contribute a staggering 61% to the world’s GDP and supply 15% of the annual protein consumption for 4.2 billion people (Nunes & Gharmandi, 2013). This economic powerhouse sustains densely populated coastal communities, driving poverty reduction, economic growth, food security, and biodiversity preservation while also buffering against the impacts of climate change (Nunes & Gharmandi, 2013).

Despite their invaluable contributions, the true value of marine ecosystems extends beyond monetary metrics, encompassing vital services essential for human well-being. While the economic benefits of industries like fishing and tourism are easily quantified, the ecological services provided by marine environments, such as carbon sequestration, are often undervalued and difficult to measure (Remoundou et al., 2009).

Coral reefs exemplify this dichotomy, serving as lucrative tourism hubs while facing catastrophic losses due to ocean acidification-induced bleaching (Cornwall, 2021). The decline of coral reefs not only jeopardizes tourism revenue but also disrupts the delicate balance of marine ecosystems, impacting fisheries and biodiversity. These threats are a result of externalities, and their costs will likely be inflicted on those who depend on reefs in some way or another (Cornwall, 2021). When nature contributes to human well-being, it becomes a significant driver of the real economy (Costanza et al., 2014).

Recognizing ecosystem services as common goods underscores the importance of assigning them appropriate value for effective management. Costanza et al. (2014) outline the monetary valuation of marine and ocean biomes annually from 1997 to 2011, as shown in Table 1.

Table 1: Valuation of Biomes Between 1997 & 2011

Note. Data from Costanza et al. (2014).

Among these ecosystems, coral reefs exhibited the most significant decrease in area and concurrent increase in value. This trend highlights the multitude of ecosystem services they offer, as detailed in Table 2. The diminishing coral reef area annually poses a substantial threat to the economy, as evidenced by the marine systems experiencing a loss of 10.9 trillion dollars per year (Costanza et al., 2014). Additionally, the proliferation of dead zones — a direct result of nutrient runoff and fossil fuel emissions — poses a severe threat to fisheries, further exacerbating economic challenges in regions reliant on marine resources (Diaz & Rosenburg, 2008).

Table 2: Valuation of Coral Reef Ecosystem Services Between 1997 & 2011 (2007$/ha/yr)

Note. Data from Costanza et al. (2014).

Conclusion

Addressing these challenges requires a concerted effort to manage marine ecosystems sustainably. While transitioning to eco-friendly practices may incur short-term economic costs, the long-term benefits of preserving marine resources far outweigh the alternatives. However, effective management of marine ecosystems is hindered by jurisdictional complexities and international cooperation challenges (Nunes & Ghermandi, 2013). Yet investing in marine reserves and assigning economic value to ecosystem services offers a promising path forward, ensuring the resilience and prosperity of marine ecosystems for generations to come.

Media Attribution

Figure 1: “Corals glow in neon shades during a 2010 bleaching episode at Palawan, Philippines” by Ryan Goehrung, via The Conversation (article by Wiedenmann and D’Angelo, 2020), is used with permission.

References

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