The concept of environmental evaluation is already taking root in countries around the world.

"Environmental economics is being used worldwide as a tool for conservation of natural resources," said Dr. Samia Sarkis of the Department of Conservation Services.

"It is hoped that this project on the coral reefs will be a stepping stone for further environmental economic valuations in Bermuda, such as for agricultural land, open spaces, etc.

"For this reason, an environmental economics module will also be developed in collaboration with Bermuda College, as an educational tool for young Bermudians."

Environmental economist Dr. Pieter van Beukering, of the Netherlands, added: "It seems Bermuda has all the potential to use it effectively as there are quite a few areas that require better informed decision-making.

"Economic evaluation is increasingly being accepted as a method in the EU and also the US. For larger projects it is becoming common to assess the potential damage to the environment, and so it is becoming accepted as a standard methodology."

Coral reefs are fragile eco-systems and research has already taken place in Egypt and various US states to determine the value of the reefs in specific regions.

In Florida, it is estimated coral reefs bring in more than $3.4 billion to the economy and support 36,000 jobs. Their value in the Florida Keys National Marine Sanctuary has been estimated at $2,833 per cubic metre.

By determining a value per square metre of reef, compensation is then paid to the authorities by those who damage it. The money is then used towards the remediation and regeneration of the reef.

For example, in Florida when the 'Golden Lady' destroyed 42 square metres of living reef in February, 1997, the owners had to pay $54,716 in compensation.

In Hawaii, a National Oceanic and Atmospheric Administration (NOAA)-funded study has estimated the coral reefs to be worth $10 billion, bringing in $360 million a year to the economy.