Estimating the cost of protecting groundcover on privately managed properties in the Australian rangelands: the case of the West 2000 Plus Enterprise-Based Conservation scheme
Jonathan Moss A C , Jack Sinden A and Richard Stayner BA School of Business, Economics and Public Policy, University of New England, Armidale, NSW 2351, Australia.
B Institute for Rural Futures, University of New England, Armidale, NSW 2351, Australia.
C Corresponding author. Email: jonathan.moss@une.edu.au
The Rangeland Journal 34(1) 75-87 https://doi.org/10.1071/RJ10069
Submitted: 29 October 2010 Accepted: 22 December 2011 Published: 29 February 2012
Abstract
A significant quantity of native vegetation and biodiversity remains on privately managed rangeland properties. Due to a lack of appropriate incentives, landholders do not always conserve these resources at a level that society desires. Regulations to conserve native vegetation can impose substantial costs on landholders. Market-Based Instruments have therefore been developed to provide market incentives aimed at achieving conservation at lower costs. We review the application of a Market-Based Instrument scheme, the West 2000 Plus Enterprise-Based Conservation program, which was designed for the Western Division of New South Wales. We estimate the private and social costs of increasing groundcover on privately managed properties, with and without the scheme. The costs are estimated under actual market and climatic conditions, and simulated under a wider range of conditions. The results indicate that costs vary widely across different conservation areas, depending on the location and previous management strategies of the property. The Enterprise-Based Conservation scheme has increased conservation in the region, and the implications from its application are reviewed to assist the further development of Market-Based Instruments.
Additional keywords: market-based instruments, private costs, social costs, trade-offs.
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