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The role of market-based instruments for biodiversity conservation in Central and Eastern Europe

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  • Chobotová, Veronika

Abstract

This paper analyses the development and emergence of market based instruments for biodiversity conservation in Central and Eastern European (CEE) countries. The development of market-based instruments for biodiversity conservation has been receiving increased attention as a possible cheaper and more effective alternative to the global regulatory approach. The implementation of such instruments is particularly challenging in post-socialist countries, where the former state command-and-control economy disturbed the normal functioning of markets. Our analysis indicates that market-based instruments can increase the effectiveness of biodiversity conservation, but are not always suitable and appropriate. The following preconditions for the effective design of market-based instruments in CEE countries have been identified: clear property rights and decision making structure, transparent rules for information dissemination, and monitoring responsibilities. Our results show that the successful implementation of market-based instruments for biodiversity conservation in CEE countries is furthermore influenced by pre-existing formal and informal institutions, in which reputation and trust may play a role. However, market-based instruments should complement rather than substitute regulatory approaches, and in combination with traditional regulation, such can become critical in achieving the objectives of biodiversity conservation.

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  • Chobotová, Veronika, 2013. "The role of market-based instruments for biodiversity conservation in Central and Eastern Europe," Ecological Economics, Elsevier, vol. 95(C), pages 41-50.
    • Handle: RePEc:eee:ecolec:v:95:y:2013:i:c:p:41-50
    DOI: 10.1016/j.ecolecon.2013.08.007
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