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The Economics of Conservation and Finance: A Review of the Literature

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  • Ando, Amy W.
  • Shah, Payal

Abstract

This article summarizes key insights into conservation that come from the intersections of economics and finance: public finance, conservation finance, and financial theory applied to problems of conservation. We discuss some of what has been learned from the study of conservation and finance that helps us to understand when, where, and even whether conservation activities should occur; portfolio theory has been harnessed to help guide conservation planning under uncertainty, and real options theory helps us understand whether to commit to conservation or to wait. We distill some of the extant research on how resources can be gathered to support conservation through local referenda, payment for environmental service programs, private donations, user fees, and value capture through property taxes. The article concludes with suggestions for promising future directions in this area of work.

Suggested Citation

  • Ando, Amy W. & Shah, Payal, 2016. "The Economics of Conservation and Finance: A Review of the Literature," International Review of Environmental and Resource Economics, now publishers, vol. 8(3-4), pages 321-357, June.
    • Handle: RePEc:now:jirere:101.00000072
    DOI: 10.1561/101.00000072
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    References listed on IDEAS

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    More about this item

    Keywords

    Conservation; Finance; Funding; Uncertainty; Portfolios; Real options; Ecosystem services;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • H4 - Public Economics - - Publicly Provided Goods
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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