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Paying for the conservation of endangered ecosystems: a comparison of direct and indirect approaches

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  • Simpson, R. David
  • Sedjo, Roger A.

Abstract

A number of international conservation donors support efforts to encourage conservation indirectly by subsidizing commercial activities. Such plans beg two questions. First, if commercial ventures are expected to be profitable, why is external financing necessary for their initiation? Second, if commercial ventures are not expected to be profitable, could not greater incentives for conservation be generated by making direct payments? We examine these questions in detail. While we find that the practical impediments to instituting a direct payment programme may be substantial, the practical impediments to instituting any effective conservation programme may be substantial. On balance, there is a strong case to be made for greater experimentation with direct payment schemes than heretofore.

Suggested Citation

  • Simpson, R. David & Sedjo, Roger A., 1996. "Paying for the conservation of endangered ecosystems: a comparison of direct and indirect approaches," Environment and Development Economics, Cambridge University Press, vol. 1(2), pages 241-257, May.
    • Handle: RePEc:cup:endeec:v:1:y:1996:i:2:p:241-257_7
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    Cited by:

    1. Wunder, Sven, 2015. "Revisiting the concept of payments for environmental services," Ecological Economics, Elsevier, vol. 117(C), pages 234-243.
    2. FOUDI Sebastien, 2006. "Agriculture and Resource Exploitation: A Dynamic Bioeconomic Model of Agricultural Effort and Land Use Determination," LERNA Working Papers 06.25.218, LERNA, University of Toulouse.
    3. Ingram, Jane Carter & Wilkie, David & Clements, Tom & McNab, Roan Balas & Nelson, Fred & Baur, Erick Hogan & Sachedina, Hassanali T. & Peterson, David Dean & Foley, Charles Andrew Harold, 2014. "Evidence of Payments for Ecosystem Services as a mechanism for supporting biodiversity conservation and rural livelihoods," Ecosystem Services, Elsevier, vol. 7(C), pages 10-21.
    4. van Soest,Daan & Adjognon,Guigonan Serge & van der Heijden,Eline, 2021. "Incentivizing Conservation of de facto Community-Owned Forests," Policy Research Working Paper Series 9693, The World Bank.
    5. Heidi Gjertsen & Theodore Groves & David A Miller & Eduard Niesten & Dale Squires & Joel Watson, 2021. "Conservation Agreements: Relational Contracts with Endogenous Monitoring," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 37(1), pages 1-40.
    6. Paul J. Ferraro & R. David Simpson, 2002. "The Cost-Effectiveness of Conservation Payments," Land Economics, University of Wisconsin Press, vol. 78(3), pages 339-353.
    7. Robert Innes & George Frisvold, 2009. "The Economics of Endangered Species," Annual Review of Resource Economics, Annual Reviews, vol. 1(1), pages 485-512, September.
    8. Rico García-Amado, Luis & Ruiz Pérez, Manuel & Barrasa García, Sara, 2013. "Motivation for conservation: Assessing integrated conservation and development projects and payments for environmental services in La Sepultura Biosphere Reserve, Chiapas, Mexico," Ecological Economics, Elsevier, vol. 89(C), pages 92-100.
    9. Heidi Gjertsen & Theodore Groves & David A. Miller & Eduard Niesten & Dale Squires & Joel Watson, 2014. "A Contract-theoretic Model of Conservation Agreements," World Scientific Book Chapters, in: Kaddour Hadri & William Mikhail (ed.), Econometric Methods and Their Applications in Finance, Macro and Related Fields, chapter 15, pages 425-455, World Scientific Publishing Co. Pte. Ltd..

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