IDEAS home Printed from https://ideas.repec.org/a/eee/forpol/v172y2025ics1389934125000206.html
   My bibliography  Save this article

The adoption of natural capital accounting: Lessons from the Tasmanian forest management system

Author

Listed:
  • Grover, Isobella
  • Suitor, Shaun
  • O'Reilly-Wapstra, Julianne
  • Tocock, Mark
  • Volker, Peter
  • Hatton MacDonald, Darla

Abstract

Natural capital accounting (NCA) provides a systematic framework to integrate broader economic and environmental data in a way that aligns with traditional financial accounting. This fuller set of information allows organisations to better manage their environmental risks and dependencies. However, NCA adoption remains limited and fragmented in the forestry sector. We utilise semi-structured interviews as part of an Institutional Analysis and Development (IAD) framework to examine the incentives and barriers faced by public and private forestry organisations in adopting NCA. This paper contributes to forestry management by querying the reasons for these gaps in adoption, as well as the barriers preventing adoption and utilisation of NCA at the organisational scale. We base our study in Tasmania, Australia, using its forest management system as a case study. We find that a wide range of Tasmanian organisations perceive clear incentives for adoption. Among them, recognised reporting approaches, access to financial markets and investment opportunities, additional data to inform decision-making, as well as new evidence to support social licence to operate. However, significant barriers exist, such as lack of baseline data, limited internal capacity and often ambiguous guidance on account compilation. These barriers could be addressed through greater standardisation of existing NCA frameworks, establishing accounting standards for natural capital, and increased private-public sector collaboration. Addressing these barriers could enable the adoption of NCA at scale, enhancing the management of natural resources.

Suggested Citation

  • Grover, Isobella & Suitor, Shaun & O'Reilly-Wapstra, Julianne & Tocock, Mark & Volker, Peter & Hatton MacDonald, Darla, 2025. "The adoption of natural capital accounting: Lessons from the Tasmanian forest management system," Forest Policy and Economics, Elsevier, vol. 172(C).
    • Handle: RePEc:eee:forpol:v:172:y:2025:i:c:s1389934125000206
    DOI: 10.1016/j.forpol.2025.103441
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1389934125000206
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.forpol.2025.103441?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Fleming, Aysha & O'Grady, Anthony P. & Stitzlein, Cara & Ogilvy, Sue & Mendham, Daniel & Harrison, Matthew T., 2022. "Improving acceptance of natural capital accounting in land use decision making: Barriers and opportunities," Ecological Economics, Elsevier, vol. 200(C).
    2. Sangha, Kamaljit K & Ahammad, Ronju & Russell-Smith, Jeremy & Costanza, Robert, 2024. "Payments for Ecosystem Services opportunities for emerging Nature-based Solutions: Integrating Indigenous perspectives from Australia," Ecosystem Services, Elsevier, vol. 66(C).
    3. Hooper, Tara & Börger, Tobias & Langmead, Olivia & Marcone, Oceane & Rees, Siân E & Rendon, Olivia & Beaumont, Nicola & Attrill, Martin J. & Austen, Melanie, 2019. "Applying the natural capital approach to decision making for the marine environment," Ecosystem Services, Elsevier, vol. 38(C), pages 1-1.
    4. Aysha Fleming & Sue Ogilvy & Anthony P. O’Grady & Izaac Green & Cara Stitzlein & Claire Horner, 2024. "Designing natural capital accounting for agriculture: perceptions of farm accountants," Sustainability Accounting, Management and Policy Journal, Emerald Group Publishing Limited, vol. 15(7), pages 85-105, November.
    5. Anna Normyle & Michael Vardon & Bruce Doran, 2022. "Ecosystem accounting and the need to recognise Indigenous perspectives," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-7, December.
    6. Elinor Ostrom & Vincent Ostrom, 2004. "The Quest for Meaning in Public Choice," American Journal of Economics and Sociology, Wiley Blackwell, vol. 63(1), pages 105-147, January.
    7. Grover, Isobella & O'Reilly-Wapstra, Julianne & Suitor, Shaun & Hatton MacDonald, Darla, 2023. "Not seeing the accounts for the forest: A systematic literature review of ecosystem accounting for forest resource management purposes," Ecological Economics, Elsevier, vol. 212(C).
    8. Mannetti, Lelani M. & Göttert, Thomas & Zeller, Ulrich & Esler, Karen J., 2017. "Expanding the protected area network in Namibia: An institutional analysis," Ecosystem Services, Elsevier, vol. 28(PB), pages 207-218.
    9. Carter Brandon & Katrina Brandon & Alison Fairbrass & Rachel Neugarten, 2021. "Integrating Natural Capital into National Accounts: Three Decades of Promise and Challenge," Review of Environmental Economics and Policy, University of Chicago Press, vol. 15(1), pages 134-153.
    10. Cavalletti, B. & Di Fabio, C. & Lagomarsino, E. & Ramassa, P., 2020. "Ecosystem accounting for marine protected areas: A proposed framework," Ecological Economics, Elsevier, vol. 173(C).
    11. James Salzman & Genevieve Bennett & Nathaniel Carroll & Allie Goldstein & Michael Jenkins, 2018. "The global status and trends of Payments for Ecosystem Services," Nature Sustainability, Nature, vol. 1(3), pages 136-144, March.
    12. Wilkinson, Graham R. & Schofield, Mick & Kanowski, Peter, 2014. "Regulating forestry — Experience with compliance and enforcement over the 25years of Tasmania's forest practices system," Forest Policy and Economics, Elsevier, vol. 40(C), pages 1-11.
    13. Elizabeth Shapiro‐Garza & Pamela McElwee & Gert Van Hecken & Esteve Corbera, 2020. "Beyond Market Logics: Payments for Ecosystem Services as Alternative Development Practices in the Global South," Development and Change, International Institute of Social Studies, vol. 51(1), pages 3-25, January.
    14. T. B. White & S. O. Petrovan & L. A. Bennun & T. Butterworth & A. P. Christie & H. Downey & S. B. Hunter & B. R. Jobson & S. O. S. E. zu Ermgassen & W. J. Sutherland, 2023. "Principles for using evidence to improve biodiversity impact mitigation by business," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4719-4733, November.
    15. Abdu, Nizam & Tinch, Elena & Levitt, Clinton & Volker, Peter W. & Hatton MacDonald, Darla, 2022. "Illegal firewood collection in Tasmania: Approaching the problem with the Institutional Analysis and Development (IAD) framework," Land Use Policy, Elsevier, vol. 118(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Comte, Adrien & Sylvie Campagne, C. & Lange, Sabine & Bruzón, Adrián García & Hein, Lars & Santos-Martín, Fernando & Levrel, Harold, 2022. "Ecosystem accounting: Past scientific developments and future challenges," Ecosystem Services, Elsevier, vol. 58(C).
    2. Qu, Yang & Hooper, Tara & Austen, Melanie C. & Papathanasopoulou, Eleni & Huang, Junling & Yan, Xiaoyu, 2023. "Development of a computable general equilibrium model based on integrated macroeconomic framework for ocean multi-use between offshore wind farms and fishing activities in Scotland," Applied Energy, Elsevier, vol. 332(C).
    3. Burdon, D. & Barnard, S. & Strong, J.A. & Atkins, J.P., 2024. "Linking marine habitats and economic values: A spatial scaling methodology for valuing societal benefits," Ecological Economics, Elsevier, vol. 224(C).
    4. Bauchet, Jonathan & Asquith, Nigel & Ma, Zhao & Radel, Claudia & Godoy, Ricardo & Zanotti, Laura & Steele, Diana & Gramig, Benjamin M. & Chong, Andrea Estrella, 2020. "The practice of Payments for Ecosystem Services (PES) in the Tropical Andes: Evidence from program administrators," Ecosystem Services, Elsevier, vol. 45(C).
    5. Montero-de-Oliveira, Fernando-Esteban & Blundo-Canto, Genowefa & Ezzine-de-Blas, Driss, 2023. "Under what conditions do payments for environmental services enable forest conservation in the Amazon? A realist synthesis," Ecological Economics, Elsevier, vol. 205(C).
    6. Bingham, Logan Robert, 2021. "Vittel as a model case in PES discourse: Review and critical perspective," Ecosystem Services, Elsevier, vol. 48(C).
    7. Andres M. Urcuqui-Bustamante & Theresa L. Selfa & Paul Hirsch & Catherine M. Ashcraft, 2021. "Uncovering Stakeholder Participation in Payment for Hydrological Services (PHS) Program Decision Making in Mexico and Colombia," Sustainability, MDPI, vol. 13(15), pages 1-26, July.
    8. Ming‐Chang Tsai, 2006. "Does Political Democracy Enhance Human Development in Developing Countries?," American Journal of Economics and Sociology, Wiley Blackwell, vol. 65(2), pages 233-268, April.
    9. Sangha, Kamaljit K & Evans, Jay & Edwards, Andrew & Russell-Smith, Jeremy & Fisher, Rohan & Yates, Cameron & Costanza, Robert, 2021. "Assessing the value of ecosystem services delivered by prescribed fire management in Australian tropical savannas," Ecosystem Services, Elsevier, vol. 51(C).
    10. Alamanos, Angelos & Koundouri, Phoebe, 2022. "Economics of Incorporating Ecosystem Services into Water Resource Planning and Management," MPRA Paper 122046, University Library of Munich, Germany.
    11. Hattam, Caroline & Broszeit, Stefanie & Langmead, Olivia & Praptiwi, Radisti A. & Ching Lim, Voon & Creencia, Lota A. & Duc Hau, Tran & Maharja, Carya & Wulandari, Prawesti & Mitra Setia, Tatang & Sug, 2021. "A matrix approach to tropical marine ecosystem service assessments in South east Asia," Ecosystem Services, Elsevier, vol. 51(C).
    12. Grilli, Gianluca & Fratini, Roberto & Marone, Enrico & Sacchelli, Sandro, 2020. "A spatial-based tool for the analysis of payments for forest ecosystem services related to hydrogeological protection," Forest Policy and Economics, Elsevier, vol. 111(C).
    13. Morgan, Edward A. & Buckwell, Andrew & Guidi, Caterina & Garcia, Beatriz & Rimmer, Lawrence & Cadman, Tim & Mackey, Brendan, 2022. "Capturing multiple forest ecosystem services for just benefit sharing: The Basket of Benefits Approach," Ecosystem Services, Elsevier, vol. 55(C).
    14. Mangubhai, Sangeeta & Sykes, Helen & Manley, Marita & Vukikomoala, Kiji & Beattie, Madeline, 2020. "Contributions of tourism-based Marine Conservation Agreements to natural resource management in Fiji," Ecological Economics, Elsevier, vol. 171(C).
    15. Vlad Tarko & Kyle O’Donnell, 2019. "Escape from Europe: a calculus of consent model of the origins of liberal institutions in the North American colonies," Constitutional Political Economy, Springer, vol. 30(1), pages 70-95, March.
    16. Gheorghița Dincă & Marius Sorin Dincă & Camelia Negri & Mihaela Bărbuță, 2021. "The Impact of Corruption and Rent-Seeking Behavior upon Economic Wealth in the European Union from a Public Choice Approach," Sustainability, MDPI, vol. 13(12), pages 1-23, June.
    17. Matilde Casuccio & Enrico Giovannetti, 2008. "The Cooperative Movement in Bolivia: Fair Trade in Amazzonia Nuts," Department of Economics 0592, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    18. Langhans, Kelley E. & Schmitt, Rafael J.P. & Chaplin-Kramer, Rebecca & Anderson, Christopher B. & Vargas Bolaños, Christian & Vargas Cabezas, Fermin & Dirzo, Rodolfo & Goldstein, Jesse A. & Horangic, , 2022. "Modeling multiple ecosystem services and beneficiaries of riparian reforestation in Costa Rica," Ecosystem Services, Elsevier, vol. 57(C).
    19. Gimona, Alessandro & McKeen, Margaret & Baggio, Andrea & Simonetti, Enrico & Poggio, Laura & Pakeman, Robin J., 2023. "Complementary effects of biodiversity and ecosystem services on spatial targeting for agri-environment payments," Land Use Policy, Elsevier, vol. 126(C).
    20. Balmford, Ben & Collins, Joseph & Day, Brett & Lindsay, Luke & Peacock, James, 2023. "Pricing rules for PES auctions: Evidence from a natural experiment," Journal of Environmental Economics and Management, Elsevier, vol. 122(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:forpol:v:172:y:2025:i:c:s1389934125000206. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/forpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.