The economy has a complex relationship with the environment. The environment not only provides the raw materials and energy for the production of goods and services that support people’s lifestyles, but also sustains damage through man-made activities. Coastal ecosystems are recognized as an important natural environment,because of its valuable goods and services that are essential for human wellbeing. The coastal ecosystems are supplying both stock and flow resources that can be used as direct and indirect inputs to production and consumption activities, thereby generating productivity and growth in the overall economic system.
Valuation of ecosystem services shall support better decision-making, by ensuring that policy appraisals take into account the costs and benefits to the natural environment and the implications for human wellbeing. However, ecosystem goods and services are often either ignored or overlooked because of lack of information about their potential and value to securing economic gains. The two international programsviz, (i) The Millennium Ecosystem Assessment (MEA, 2005) and (ii) The Economics of Ecosystems and Biodiversity (TEEB, 2009) were examined the ecosystem goods and service and developed framework methodologies to value the ecosystem services. Following the above methods, accounting of ecosystem services is continuously being studied and gained more attention in decision and policy making.
Considering the stipulations and the importance of economic valuation of goods and services of the coastal ecosystems, NCSCM has been recommended to study the coastal ecosystems goods and services. Accordingly, ISE Division of NCSCM is studying the goods and services of coastal ecosystems as indicated in Coastal Regulation Zone (CRZ-2011) Notification. The objectives of the project include the following;