Economic valuation of the Seto Inland Sea by using an Internet CV survey

We estimate the economic value of the natural environment damaged in the Seto Inland Sea after the introduction of the Law on Temporary Measures for the Environmental Conservation of the Seto Inland Sea (Setouchi Law) and the value of the natural environment that survived, using a Contingent Valuation (CV) survey on an Internet web site. The CV survey contains three plans. Plan 1 is to restore 4 ha of reclaimed land. By estimating the Willingness To Pay (WTP) for plan 1, we can appraise the value of the natural environment that was damaged as a result of the original reclamation. Plan 2 is to transplant Zostera (eel-grass) into an area of 10 ha offshore. Plan 3 is to preserve the shore area, a natural habitat for rare animal species, under the National Trust Program. From the WTP for plans 2 and 3, we can estimate the value of the shore area and the areas a little farther offshore. The value of the natural environment damaged in the Seto Inland Sea as a result of reclaiming projects after the introduction of the Setouchi Law and the value of the existing natural environment of the Seto Inland Sea from the WTP for the plans were estimated to about 172 trillion yen (1.46 trillion dollars) and about 424 trillion yen (3.60 trillion dollars), respectively. The results indicate that in the 25 years since the introduction of the Setouchi Law, we have degraded every year about 6.88 trillion yen (58.5 billion dollars) worth of the natural environment by reclaiming. Some seaweed farms and natural shore areas, natural habitats to rare marine life-forms like the horseshoe crab and the fiddler crab have survived, but their value amounts to about 80% of Japan’s GDP.