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Hawai'i's coral reef ecosystems provide many goods and services to coastal populations, such as fisheries and tourism. They also form a unique natural ecosystem, with an important biodiversity value as well as scientific and educational value. Also, coral reefs form a natural protection against wave erosion. Without even attempting to measure their intrinsic value, this paper shows that coral reefs, if properly managed, contribute enormously to the welfare of Hawai'i through a variety of quantifiable benefits. Net benefits are estimated at $360 million a year for Hawai'iÕs economy, and the overall asset value of the state of Hawai'iÕs 1660 km2 (410,000 acres) of potential reef area in the main Hawaiian Islands is estimated at nearly $10 billion.