Estimating Total Economic Value of Coral Reefs of Kish Island (Persian Gulf)

This paper is concerned with the economic valuation of the coral reef within Kish Island in Persian Gulf of Iran. For calculating this value, all components of use and non-use values are estimated and then according to each of them, suitable method has applied. Many different evaluation tools such as contingent valuation method, zonal travel cost method, replacement cost, avoided cost method, value at risk method are used. The semi non parametric distribution free estimator for calculating the contingent valuation method is applied. The probability of willingness to pay the same as the probability of accepting bids is estimated by using data based on questioners approach using stated preference method. The result indicates that the total economic value of this unique ecosystem in Kish Island is at least 14.6 million dollar per year, showing the importance of conservation value of the ecosystem. Its largest component of total economic value is about 62 percent attributed to the recreational value. This is followed by conservation value which is about 23 percent of the economic value. Since coastal protection and waste assimilation functions of coral reef are 10 percent, it is also suitable factor in illustrating total economic value. The economic value for each hectare of this ecosystem in Kish Island is US$ 237,000 in 2009.