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Opportunity costs of conservation in a biodiversity hotspot: the case of southern Bahia

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  • CHOMITZ, KENNETH M.
  • ALGER, KEITH
  • THOMAS, TIMOTHY S.
  • ORLANDO, HELOISA
  • NOVA, PAULO VILA

Abstract

Biodiversity ‘hotspot’ areas, which are characterized by concentrations of endemic species and severe anthropogenic loss of natural habitat, might be thought to present steep opportunity costs for maintaining forest cover against pressures of agricultural conversion. We examine this proposition for the southern part of the state of Bahia, a center of endemism within the Brazilian Atlantic Forest, which has less than 8 per cent of its original primary forest cover remaining. Using data from a survey of property values, we relate land price to land characteristics, including land cover, soil quality, slope, climate, and road proximity. We find median land values of R$725/hectare, or about US$400/hectare at recently prevailing exchange rates. Remaining land under forest has a market value 70 per cent below comparable cleared land.

Suggested Citation

  • Chomitz, Kenneth M. & Alger, Keith & Thomas, Timothy S. & Orlando, Heloisa & Nova, Paulo Vila, 2005. "Opportunity costs of conservation in a biodiversity hotspot: the case of southern Bahia," Environment and Development Economics, Cambridge University Press, vol. 10(3), pages 293-312, June.
    • Handle: RePEc:cup:endeec:v:10:y:2005:i:03:p:293-312_00
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    1. Paulina Legutko-Kobus & Maciej Nowak & Alexandru-Ionut Petrisor & Dan Bărbulescu & Cerasella Craciun & Atena-Ioana Gârjoabă, 2023. "Protection of Environmental and Natural Values of Urban Areas against Investment Pressure: A Case Study of Romania and Poland," Land, MDPI, vol. 12(1), pages 1-33, January.
    2. Chomitz, Kenneth M. & Thomas, Timothy S. & Brandão, Antônio Salazar P., 2005. "The economic and environmental impact of trade in forest reserve obligations: a simulation analysis of options for dealing with habitat heterogeneity," Revista de Economia e Sociologia Rural (RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 43(4), January.
    3. Nunes, Paulo A.L.D. & Ojea, Elena & Loureiro, Maria L., 2009. "Mapping of Forest Biodiversity Values: A Plural Perspective," Sustainable Development Papers 47768, Fondazione Eni Enrico Mattei (FEEM).
    4. Wang, Yangyang & Atallah, Shady & Shao, Guofan, 2017. "Spatially explicit return on investment to private forest conservation for water purification in Indiana, USA," Ecosystem Services, Elsevier, vol. 26(PA), pages 45-57.
    5. Aline Chiabai & Chiara Travisi & Anil Markandya & Helen Ding & Paulo Nunes, 2011. "Economic Assessment of Forest Ecosystem Services Losses: Cost of Policy Inaction," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 50(3), pages 405-445, November.
    6. Benra, F. & Nahuelhual, L. & Felipe-Lucia, M. & Jaramillo, A. & Jullian, C. & Bonn, A., 2022. "Balancing ecological and social goals in PES design – Single objective strategies are not sufficient," Ecosystem Services, Elsevier, vol. 53(C).
    7. Josie Carwardine & Kerrie A Wilson & Matt Watts & Andres Etter & Carissa J Klein & Hugh P Possingham, 2008. "Avoiding Costly Conservation Mistakes: The Importance of Defining Actions and Costs in Spatial Priority Setting," PLOS ONE, Public Library of Science, vol. 3(7), pages 1-6, July.
    8. Elena Ojea & Paulo Nunes & Maria Loureiro, 2010. "Mapping Biodiversity Indicators and Assessing Biodiversity Values in Global Forests," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 47(3), pages 329-347, November.
    9. Chomitz, Kenneth M. & Wertz-Kanounnikoff, Sheila, 2005. "Measuring the initial impacts on deforestation of Mato Grosso's program for environmental control," Policy Research Working Paper Series 3762, The World Bank.
    10. Christopher A Kirkby & Renzo Giudice-Granados & Brett Day & Kerry Turner & Luz Marina Velarde-Andrade & Agusto Dueñas-Dueñas & Juan Carlos Lara-Rivas & Douglas W Yu, 2010. "The Market Triumph of Ecotourism: An Economic Investigation of the Private and Social Benefits of Competing Land Uses in the Peruvian Amazon," PLOS ONE, Public Library of Science, vol. 5(9), pages 1-14, September.
    11. Ojea, Elena & Loureiro, Maria L. & Alló, Maria & Barrio, Melina, 2016. "Ecosystem Services and REDD: Estimating the Benefits of Non-Carbon Services in Worldwide Forests," World Development, Elsevier, vol. 78(C), pages 246-261.
    12. Robin Naidoo & Taylor H Ricketts, 2006. "Mapping the Economic Costs and Benefits of Conservation," PLOS Biology, Public Library of Science, vol. 4(11), pages 1-12, October.

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