Conservation Planning: A Review of Return on Investment Analysis

Land and natural resource conservation programs are increasingly being evaluated on the basis of their return on investment (ROI). Conservation ROI analysis quantitatively measures the costs, benefits, and risks of investments, which allows conservation organizations to rank or prioritize them. This article surveys the literature in this area. We organize our discussion around the way studies treat the core elements of ROI, which include the definition and measurement of the conservation objective, identification of relevant baselines, the types of conservation investments considered, and investment costs. We discuss the state of the art of ROI analysis, highlight some unresolved issues, and make suggestions for improvements. We also describe options for extending ROI analysis beyond biodiversity conservation, which is the typical objective. The literature indicates that conservation planning that uses ROI analysis can considerably alter the location and targets of conservation, lead to more protection and higher quality conservation outcomes, and result in significant savings. The measurement and prediction of baseline ecological conditions and threats remains a central challenge for conservation ROI analysis, as does accounting for landowner and developer responses to conservation investments. Another key priority for future research is the identification of ways to more comprehensively incorporate ecosystem services and multiple environmental objectives into the assessment framework. (JEL: Q20, Q30, Q51, Q57)