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9 - Instruments for Biodiversity Conservation

from Part III - Economic Modelling

Published online by Cambridge University Press:  29 February 2020

Martin Drechsler
Affiliation:
Helmholtz Centre for Environmental Research, UFZ, Leipzig
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Summary

This is the first of five chapters about economic modelling. The first section recaps basic environmental economics which typically starts with the identification of biodiversity loss and biodiversity conservation as a social dilemma. In the context of policy, such a dilemma leads to market failure, implying an underprovision of biodiversity. Standard policy instruments that can help fix market failure are introduced subsequently, including regulation (land-use planning), conservation payments (also known as agri-environmental schemes or payments for environmental services) and tradable permits or conservation offsets (analogous, e.g., to emission trading schemes). Conservation payments and conservation offsets belong to the class of market-based instruments, providing financial incentives for the conservation of biodiversity. Pros and cons of the different instruments are discussed.

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Publisher: Cambridge University Press
Print publication year: 2020

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