8 Socio economic effects of artificial reefs

The primary reason for artificial reef deployment is to serve human uses, such as commercial and recreational fishing and scuba diving.

Even though the need of evaluating the socio? economic effects associated to the deployment of artificial reefs has been highlighted since the beginning of the 1980s (Bohnsack and Sutherland, 1985), there is still a general lack of studies dealing with this issue, and most of them focus on areas with the greatest concentration of artificial reefs, such as Japan and the United States (Milon, 1988; Rhodes et al., 1994; Ditton et al., 1995; Simard, 1997; Bell et al., 1998; Milon et al., 2000). Independently of its purpose, the performance and efficacy of an artificial reef is usually judged on the basis of public satisfaction. The collection and evaluation of socio?economic data is useful to quantify the usage and public benefits of an artificial reef, thus helping justify construction and maintenance costs, and providing information for the successful management of the reef (Milon et al., 2000).

 

8.1. Socio?economic assessment

Socio?economic assessment of artificial reefs should be conducted by experts in social and economic sciences, either prior to the artificial reef construction or once the artificial reef already exists. This exercise involves the following phases (Milon et al., 2000):
a) objective identification;
b) development of survey instruments;
c) collection and analysis of data.
Socio?economic objectives are very broad and include a number of more specific goals, such as those connected to ecological and environmental issues.
The typology and quantity of data to be collected depend on the objectives of the artificial reef and on the kind of questions to be answered. The data collection phase includes three steps (Table 3):
1. Monitoring of utilization patterns: this step consists in evaluating the broad goals of the artificial reef project (e.g. increase of the number of sites suitable for divers and/or recreational fishing, increase of near shore grounds for local fisheries, replacement or restoration of damaged natural habitats). The techniques to be used for data collection and evaluation are: i) direct observation of activities in the area; ii) on?site interviews; iii) mail or phone surveys. These techniques can be applied either individually or in combination. Data collection should not be conducted on a one?time basis or over short time periods as the perception of stakeholders may be easily influenced by events and could change in a few days.
2. Impact assessment: this assessment includes social and economic assessment and aims to understand the social and economic importance of an artificial reef for the local communities by assessing the changes induced by the project and evaluating whether these changes fit with the specific objectives of the reef. For example, if the goal of an artificial reef project was to support the local economy by improving recreational fishing and attracting non?resident fishers, the achievement of this goal could be evaluated through an economic analysis that compares the non?resident recreational activity before and after the reef deployment. In order to assess the social and economic changes produced by the deployment of an artificial reef, it is necessary to know the previous conditions, taking into account different dimensions: historical, cultural, demographic, social, economic and ecological.
3. Efficiency analysis: this step aims to evaluate the economic performance or net benefits of the artificial reef. Efficiency analysis can be classified as either cost?effectiveness or cost?benefit evaluation. The former is aiming at determine whether a project can produce, or has produced, the expected benefits at the least cost, while the latter evaluates whether the benefits of the project exceed the costs. Both analyses provide information on whether the reef project is economically sustainable. They can also be used to compare the efficiency of different artificial reef projects or the economic performance of the reef project with respect to other types of initiatives.

Table 3. Types of socio?economic assessment (from Milon et al., 2000).
Step 1 – Monitoring
Questions to ask:
• Who uses the artificial reef and its resources?
• When does the use occur?
• Where does the use occur?
• Why does the use occur?
Techniques to be used:
• Data collection and analysis from site observations, interviews, mail and/or phone surveys
Step 2 – Impact assessment
Questions to ask:
• Which changes, if any, are measurable in social or economic activities due to the reef deployment and use?
• Where do changes occur?
• Why do changes occur?
Techniques to be used:
• Economic analysis, input/output analysis, social impact analysis
Step 3 – Efficiency analysis
Questions to ask:
• Are the objectives of the projects being met at the least possible cost? • Does the monetized value of the project’s benefits exceed the project’s costs?
Techniques to be used:
• Cost?effectiveness analysis
• Cost?benefit analysis

 

8.2. Stakeholder analysis

The deployment of an artificial reef can affect many human activities, hence a variety of stakeholders. Possible stakeholder groups are: recreational fishers, recreational divers, professional fishers, professional divers, resource managers, scientists, environmental groups (Milon et al., 2000). It is important to note that the term “stakeholder” does not only refer to the groups which can obtain benefits from artificial reef deployment, but also to those which are opposed to the reef project (e.g. environmental groups).
In several countries, the majority of artificial reefs are public resources developed and managed by public authorities, and several users can benefit from them. However, in such situation, it is often difficult to manage the use of artificial reefs, and congestion may likely occur with negative impacts on the reefs effects (see Chapter 9).
Stakeholder analysis can be useful to either identify the most relevant stakeholder groups or understand their position towards the reef project. It also helps identify incompatible uses of the reefs and potential sources of conflicts. Such information may support managers to evaluate the importance of each group in the development of an artificial reef project and, once the reef has been constructed, plan adequate management measures to avoid or reduce conflicts and assure that non?target stakeholders are not negatively affected by the reef deployment.