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The Cost-Effectiveness of Conservation Payments
Open accessAbstract
International donors invest billions of dollars to conserve ecosystems in low-income nations. The most common investments aim to encourage commercial activities, such as ecotourism, that indirectly generate ecosystem protection as a joint product. We demonstrate that paying for ecosystem protection directly can be far more cost-effective. Although direct-payment initiatives have imposing institutional requirements, we argue that all conservation initiatives face similar challenges. Thus conservation practitioners would be well advised to implement the first-best direct-payment approach, rather than a second-best policy option. An empirical example illustrates the spectacular cost savings that can be realized by direct-payment initiatives. (JEL H21, Q28)
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Citations
Cited by
Designing payments for environmental services in theory and practice: An overview of the issues
Engel, S., Pagiola, S., & Wunder, S. (2008) · Ecological Economics · doi:10.1016/j.ecolecon.2008.03.011 · Cited by 2,466
Is community-based ecotourism a good use of biodiversity conservation funds?
Kiss, A. (2004) · Trends in Ecology & Evolution · doi:10.1016/j.tree.2004.03.010 · Cited by 788
Exploring the forest--poverty link: key concepts, issues and research implications
A., A., & S., W. (2003) · doi:10.17528/cifor/001211 · Cited by 554
Paying for Ecosystem Services—Promise and Peril
Kinzig, A. P., Perrings, C., Chapin, F. S., Polasky, S., Smith, V. K., Tilman, D., & Turner, B. L. (2011) · Science · doi:10.1126/science.1210297 · Cited by 373
Metadata
- Authors
- Ferraro, P. J., & Simpson, R. D.
- Venue
- Land Economics
- Publisher
- University of Wisconsin Press
- Published
- 2002-08
- Volume
- 78
- Issue
- 3
- Pages
- 339-353
- ISSN
- 0023-7639 (ISSN-L)
- 1543-8325
- OpenAlex
- W2154462733
- Cited by
- 394
- References
- 0
- FWCI
- 9.20
- Type
- journal article
- Language
- en
- Open access
- bronze
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