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Markets in Biodiversity Offsets

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  • Nick Hanley
  • Katherine Simpson

Abstract

We outline the key features of markets for biodiversity offsets as a promising economic instrument to incentivise conservation on farmland. Following a review of the main advantages of the approach, we summarise the results of empirical investigations of four key design features of such markets: the metric, the exchange rate, the regulatory target and geographic scope.

Suggested Citation

  • Nick Hanley & Katherine Simpson, 2025. "Markets in Biodiversity Offsets," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 69(3), pages 476-478, July.
    • Handle: RePEc:bla:ajarec:v:69:y:2025:i:3:p:476-478
    DOI: 10.1111/1467-8489.70027
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    References listed on IDEAS

    as
    1. Katherine Hannah Simpson & Frans de Vries & Martin Dallimer & Paul R Armsworth & Nick Hanley, 2021. "Understanding the Performance of Biodiversity Offset Markets: Evidence from an Integrated Ecological-Economic Model," Land Economics, University of Wisconsin Press, vol. 97(4), pages 836-857.
    2. Joseph William Bull & Niels Strange, 2018. "The global extent of biodiversity offset implementation under no net loss policies," Nature Sustainability, Nature, vol. 1(12), pages 790-798, December.
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