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Cost Sharing for Biodiversity Conservation: A Conceptual Framework


  • Barbara Aretino

    (Productivity Commission)

  • Paula Holland

    (Productivity Commission)

  • Anna Matysek

    (Prodcutivity Commission)

  • Deborah Peterson

    (Productivity Commission)


„h Many resource users undertake actions that conserve biodiversity. If, however, there were public demand for more conservation than would be provided voluntarily by the private sector alone, there are two broad principles for determining who should bear the costs ¡X ¡¥impacter pays¡¦ or ¡¥beneficiary pays¡¦. The two principles have different efficiency and distributional effects. „h A fundamental step in determining which cost sharing principle to apply is the clarification of the rights and responsibilities implied by existing property rights. This is an important issue that requires further work. „h If property rights effectively require resource users to meet an environmental standard, resource users who fail to achieve this may be considered to generate external costs. In these circumstances, on efficiency grounds, the impacter pays principle should generally be adopted to internalise external costs. This effectively amounts to enforcement of an individual¡¦s existing legal responsibilities. However, if the costs of implementing the impacter pays principle were to outweigh its efficiency advantages, the beneficiary pays principle may be considered.

Suggested Citation

  • Barbara Aretino & Paula Holland & Anna Matysek & Deborah Peterson, 2001. "Cost Sharing for Biodiversity Conservation: A Conceptual Framework," Others 0105001, EconWPA.
  • Handle: RePEc:wpa:wuwpot:0105001
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    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Joël Houdet & Charlotte Pavageau & Michel Trommetter & Jacques Weber, 2009. "Accounting for changes in biodiversity and ecosystem services from a business perspective," Working Papers hal-00434450, HAL.
    2. Byron, Neil Holland & Holland, Paula & Schuele, Michael, 2001. "Constraints on Private Conservation: Some Challenges in Managing Australia's Tropical Rainforests," Conference/Workshop Proceedings 31910, Productivity Commission.
    3. repec:eee:ecoser:v:29:y:2018:i:pb:p:404-410 is not listed on IDEAS
    4. Yang, Wanhong & Bryan, Brett A. & MacDonald, Darla Hatton & Ward, John R. & Wells, Geoff & Crossman, Neville D. & Connor, Jeffrey D., 2010. "A conservation industry for sustaining natural capital and ecosystem services in agricultural landscapes," Ecological Economics, Elsevier, vol. 69(4), pages 680-689, February.
    5. Hatfield-Dodds, Steve, 2006. "The catchment care principle: A new equity principle for environmental policy, with advantages for efficiency and adaptive governance," Ecological Economics, Elsevier, vol. 56(3), pages 373-385, March.
    6. Houdet, Joël & Trommetter, Michel & Weber, Jacques, 2012. "Understanding changes in business strategies regarding biodiversity and ecosystem services," Ecological Economics, Elsevier, vol. 73(C), pages 37-46.

    More about this item


    environment; conservation; biodiversity;

    JEL classification:

    • P - Economic Systems
    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Z - Other Special Topics


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