Putting a Price on the Lagoon

SINT MAARTEN (SIMPSON BAY) - Student researcher Anne Molenaar is returning to St. Maarten to present the results of a study on the economic value of the Simpson Bay Lagoon, which she completed with colleagues Sem Duijndam and Hanna Fralikhina from the Institute for Environmental Studies at Vrije University in Amsterdam.

The research was sponsored by the Towle Foundation and Environmental Protection in the Caribbean (EPIC) Foundation. During the coming week Ms. Molenaar will present the findings to the Green Initiatives consortium of organizations, the St. Maarten Hospitality and Trade Association, and government representatives.

Similar to many other Caribbean coastal wetlands, the Simpson Bay Lagoon suffers from heavy development, wastewater pollution, and overexploitation. These pressures have severely degraded the natural value of the Lagoon. Almost all mangrove forests have been removed for development and sewage inflow and illegal waste dumping have deteriorated the water quality.

This is problematic, not only for ecological reasons, but also because local livelihoods depend on the ecosystem services provided by the Lagoon. The study covered the Dutch and French sides of the island (referred to jointly as Saint Martin in the report). Each student focused on one of three subjects: Planet, People, and Profit. Central to these three studies was a survey of 219 households interviewed about how they perceive and value the Simpson Bay Lagoon.

The “Planet” study mainly focused on the water quality in the Lagoon and identified the main pollution sources. This study found that in many parts of the Lagoon, the levels of nitrate-nitrogen and bacteria were unacceptably high and often rising over time.

This further confirms the acute problem of poor water quality in the Lagoon. The main identified pollution sources were sewage discharge, destruction from development, sunken boats, domestic waste pollution, and the release of toxic chemicals.

The “People” study assessed the issue from a societal perspective. It shows that the population of Saint Martin greatly values the Simpson Bay Lagoon, given the high willingness to pay a levy for more environmental management. The poor environmental condition of the Lagoon, such as a bad smell and mats of algae, was noticed by the vast majority of the respondents.

People also strongly supported better environmental management of the Lagoon (e.g. through mangrove restoration or building a sewage treatment plant). The results also show that more educational opportunities could change residents’ environmental behaviour in a positive way. Engaging the public to come more into contact with nature, for instance by involving them in recreational activities, could lead to improved environmental behaviour as well.

The results of the “Profit” study, the economic analysis, show a clear economic rationale for improved environmental management of the Simpson Bay Lagoon. The study reveals that although the current total economic value of the Lagoon is still nearly US$20 million per year, this value would be almost completely lost if the current business-as-usual scenario continues and the environment continues to suffer.

This decline can be avoided through positive actions. For example, mangrove restoration or the installation of a sewage treatment plant would significantly raise the annual economic value to US$28 or US$31 million, respectively. A cost-benefit analysis reveals that the benefits of mangrove restoration and the construction of a sewage treatment plant far outweigh their costs, and that in all aspects these environmental management scenarios economically outperform a business-as-usual scenario.

Overall, the results of all three studies imply that better environmental management of the Lagoon is highly needed, simultaneously benefiting the environment, society, and the economy. The researchers note, “Opportunities to improve environmental management are clear, it is now the responsibility of policy makers to take action and protect this precious resource.”

Full research reports for these studies can be found on the EPIC website under Publications at www.epicislands.org.

Although mangroves are crucial nurseries for fisheries, sewage reduces their value by causing algae blooms and fish die-offs in the Simpson Bay Lagoon.