Designing market-based instruments for biodiversity conservation: learning with the Australian experience and evaluating Portugal's potential

• Author(s): Clemente, Pedro Miguel Rodrigues Jacinto
• Date: 2009
• Persistent ID: http://hdl.handle.net/10362/2662
• Origin: Repositório Institucional da UNL
• Subject(s): Biodiversity; Ecosystem services; Conservation; Market-based instruments
• Document Type: Master thesis
• Language: English
• Advisor(s): Santos, Rui
• Contributor(s): RUN

Description

Dissertação apresentada na Faculdade de Ciências e Tecnologia da Universidade Nova de Lisboa para a obtenção do grau de Mestre em Engenharia do Ambiente, perfil Gestão de Sistemas Ambientais

Biodiversity has been increasingly recognized as one of the key elements in human development and well-being. The loss of biodiversity is considered alarming not only because of its ethical and esthetical value, but also, because it comprises a variety of services essential for the health, regulation and prosperity of the biosphere. Given their significance, one might expect that the ecosystem services would be prized by markets and explicitly protected by the law, however, neither has been the case. International experience has shown that market-based instruments (MBIs), which basically provide economic incentives to modify behaviour, may be a more effective way to achieve many environmental goals, often yielding better results by harnessing the powerful cost-benefit motivations of businesses and individuals. This study intends to demonstrate the potential of market-based instruments in biodiversity conservation, particularly in protected areas. However biodiversity is not restricted to the network of national parks and other protected areas on state-owned land, it also needs to be protected and managed on privately-owned land. The goal of this work is to design a MBI, to be implemented in Portugal, in order to incentive private landowners in protected areas to achieve economic and social development without depleting the natural capital available. The design of the instrument started with the assessment of MBIs already running, with a special focus in the Australian experience. A methodology is proposed for that assessment in order to standardize the approach and analysis of this type of instrument. To overcome uncertainties and to get more information on the likely costs and benefits it is considered preferable to use an already trialled mechanism as basic framework. The instrument is designed using the basics of the Liverpool Plains Scheme (Australia), but some changes are introduced to improve it and make it more suitable to Portuguese reality. A potential target area in Portugal is selected according to several criteria, as a case study to illustrate the instrument application. It is proposed an implementation program and schedule. MBIs offer an opportunity to integrate biodiversity conservation into the economic market, however without a strong economic foundation, designing market mechanisms can result in costly mistakes. The success of this instrument will mainly depend on the ability to motivate the landowners to participate, in order to create competition between them, which will result in better outcomes at a lower cost. On the other hand, the ability to involve companies in the scheme, basically increasing the demand, will be decisive to its economic sustainability and growth. These are the keys features that will decide the success or failure of its implementation.