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Cost-Benefit Analysis of the Protection of Malleefowl in the Lachlan Catchment

Listed author(s):
  • Tertius Greyling


    (Crawford School of Public Policy, The Australian National University)

  • Jeff Bennett


    (Crawford School of Public Policy, The Australian National University)

A cost-benefit analysis (CBA) of an investment in the protection of malleefowl and associated native vegetation in the Lachlan Catchment’s central-west yielded a benefitcost ratio of 1.4. The CBA is based on project expenditures over the past four years coupled with benefit estimates from a recent Choice Modelling study in the Lachlan Catchment. The project targets the protection of malleefowl on private land which has not yet been surveyed but where the species is known to be present. The CBA is subject to significant uncertainty due to a lack of available data. Nonetheless, sensitivity analysis indicates that the BCR is consistently larger than unity, if marginal in some cases. This suggests that the project is a worthwhile investment at this early stage. Furthermore, greater gains may be achieved by addressing the numerous threats facing the species and its habitat. The increased cost of such an investment may be more than offset by the gains in benefits due to relatively conservative assumptions associated with the benefit calculations in the BCA.

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Paper provided by Environmental Economics Research Hub, Crawford School of Public Policy, The Australian National University in its series Environmental Economics Research Hub Research Reports with number 1099.

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Date of creation: Mar 2011
Handle: RePEc:een:eenhrr:1099
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  1. Campbell,Harry F. & Brown,Richard P. C., 2003. "Benefit-Cost Analysis," Cambridge Books, Cambridge University Press, number 9780521528986, October.
  2. Kasia Mazur & Jeff Bennett, 2009. "A Choice Modelling Survey of Community Attitudes to Improvements in Environmental Quality in NSW Catchments," Environmental Economics Research Hub Research Reports 0913, Environmental Economics Research Hub, Crawford School of Public Policy, The Australian National University.
  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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