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Revegetation of Regent Honeyeater habitat in the Capertee Valley: a Cost-Benefit Analysis

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  • Greyling, Tertius
  • Bennett, Jeffrey W.

Abstract

This study considers the costs and benefit of the Regent Honeyeater Project in the Capertee Valley over the past 10 years. The benefits are estimated using choice modelling and the costs are based on project expenditure and forgone agricultural production. A comparison of the benefits and costs yields a benefit-cost ratio (BCR) of 4.45, which implies that the benefits outweigh the costs. However, variation in the underlying assumptions reveal significant sensitivity to the uncertainty associated with the maturation of native tree plantings and the successful establishment of a significant population of birds within the native vegetation. The Cost Benefit Analysis (CBA) is dominated by the benefit derived from protection of the native species (i.e. the Regent Honeyeater) which in turn depends on these two uncertainties. By expanding the total area of land being revegetated and reducing the fragmentation amongst individual plantings these uncertainties can be reduced. This should deliver larger benefits and further improve the BCR.

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File URL: http://purl.umn.edu/107580
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Bibliographic Info

Paper provided by Australian National University, Environmental Economics Research Hub in its series Research Reports with number 107580.

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Date of creation: Dec 2010
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Handle: RePEc:ags:eerhrr:107580

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Related research

Keywords: Cost-benefit analysis; Benefit-cost ratio; Choice modelling; Regent Honeyeater; Capertee Valley; Environmental Economics and Policy; Land Economics/Use;

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  1. Mazur, Kasia & Bennett, Jeffrey W., 2009. "A Choice Modelling Survey of Community Attitudes to Improvements in Environmental Quality in NSW Catchments," Research Reports 94813, Australian National University, Environmental Economics Research Hub.
  2. Campbell,Harry F. & Brown,Richard P. C., 2003. "Benefit-Cost Analysis," Cambridge Books, Cambridge University Press, number 9780521528986.
  3. Nick Hanley, 2001. "Cost - benefit analysis and environmental policymaking," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 19(1), pages 103-118, February.
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