Using contingent behaviour analysis to estimate benefits from coral reefs in Kume Island, Japan: A Poisson-inverse Gaussian approach with on-site correction

Abstract

Coral reefs face a critical crisis worldwide because of rising ocean temperature, excessive use of resources and soil erosion. As reefs have great recreational and tourism value, the degradation of their quality may have a significant effect on tourism. This study employs a contingent behaviour approach to estimate the effect of reef extinction on the recreational demand for Kume Island, Okinawa, Japan. We propose a Poisson-inverse Gaussian (PIG) model with correction for on-site sampling issues to derive a more accurate estimate of consumer surplus (CS). The results show that the annual CS per-person trip is 5898 yen (US$ 49.15 in 2015 currency) according to the random-effects PIG model.