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Does the economic benefit of biodiversity enhancement exceed the cost of conservation in planted forests?

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  • Yao, Richard
  • Scarpa, Riccardo
  • Harrison, Duncan
  • Burns, Rhys

Abstract

This study evaluates a proposed programme that would sustain and enhance the provision of ecosystem services in planted forests. We focused on the evaluation of the benefits and costs of the conservation of the New Zealand brown kiwi, an iconic yet threatened bird species that inhabits planted forests. Yao et al. (2014) found that a sample of 209 New Zealand (NZ) households would, on average, financially support a brown kiwi conservation programme in planted forests. We extend that study using a proof of concept that integrates economic, ecological and spatial approaches. We undertake this in five steps: 1) supplementing a previous discrete choice experiment survey by interviewing more than 900 additional georeferenced households; 2) estimating household-specific means of marginal willingness-to-pay (WTP) values; 3) using econometrics and geospatial approaches to explore WTP determinants; 4) identifying 12 ecologically and economically feasible ecosystem-service sites and calculate the costs of a conservation programme at each site; and 5) aggregating the public benefits of biodiversity at the regional and national levels and calculate the cost-benefit ratio. We found that the value of the proposed biodiversity conservation initiative at the national level can be more than 100 times higher than the overall cost of the programme.
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  • Yao, Richard & Scarpa, Riccardo & Harrison, Duncan & Burns, Rhys, 2017. "Does the economic benefit of biodiversity enhancement exceed the cost of conservation in planted forests?," 2017 Conference, October 19-20, Rotorua, New Zealand 269529, New Zealand Agricultural and Resource Economics Society.
  • Handle: RePEc:ags:nzar17:269529
    DOI: 10.22004/ag.econ.269529
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    Cited by:

    1. Hannah Kotula, 2022. "Valuing forest ecosystem services in New Zealand," Working Papers 22_11, Motu Economic and Public Policy Research.
    2. West, Thales A.P. & Monge, Juan J. & Dowling, Les J. & Wakelin, Steve J. & Gibbs, Holly K., 2020. "Promotion of afforestation in New Zealand’s marginal agricultural lands through payments for environmental services," Ecosystem Services, Elsevier, vol. 46(C).
    3. Richard Yao & David Palmer & Barbara Hock & Duncan Harrison & Tim Payn & Juan Monge, 2019. "Forest Investment Framework as a Support Tool for the Sustainable Management of Planted Forests," Sustainability, MDPI, vol. 11(12), pages 1-22, June.
    4. Domenico Pisani & Pasquale Pazienza & Enrico Vito Perrino & Diana Caporale & Caterina De Lucia, 2021. "The Economic Valuation of Ecosystem Services of Biodiversity Components in Protected Areas: A Review for a Framework of Analysis for the Gargano National Park," Sustainability, MDPI, vol. 13(21), pages 1-19, October.
    5. Morello, Thiago & Anderson, Liana & Silva, Sonaira, 2022. "Innovative fire policy in the Amazon: A statistical Hicks-Kaldor analysis," Ecological Economics, Elsevier, vol. 191(C).

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