Heathens in the chapel? Economics and the conservation of native biodiversity

Abstract

Biodiversity conservation is a human endeavour and economic drivers playa key role in shaping human behaviour. This is particularly true of human behaviour in management of businesses (such as farms) and in relation to the resources that underpin businesses (such as land and water). For this reason, the theories and models of economics have a lot to offer people concemed with biodiversity conservation. The paper outlines a number of theories and insights from economics that are relevant to biodiversity, particularly from the point of view of governments wishing to make efficient and cost-effective decisions about investment priorities for biodiversity. There is a need for better definition of biodiversity objectives, and for improved information about cause and effect relationships between interventions and outcomes. The importance of paying adequate attention to the farm-level economics of proposed changes in land management is emphasized. This is an important influence on farmers' responses, particularly if large-scale changes are sought. Non-market valuation studies to place monetary values on biodiversity outcomes have a potential role to play in evaluating policy options, although a measured approach to the use of these techniques seems warranted. There is a discussion about the limited role that economics can play in determining who should pay for biodiversity interventions. The selection of policy approaches and policy instruments for biodiversity needs to be sophisticated, based on science, and sensitive to different biodiversity-related problems and opportunities.