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Constraining Forest Certificate’s Market to Improve Cost-Effectiveness of Biodiversity Conservation in São Paulo State, Brazil

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  • Paula Bernasconi
  • Stefan Blumentrath
  • David N Barton
  • Graciela M Rusch
  • Ademar R Romeiro

Abstract

The recently launched Brazilian “forest certificates” market is expected to reduce environmental compliance costs for landowners through an offset mechanism, after a long history of conservation laws based in command-and-control and strict rules.In this paper we assessed potential costs and evaluated the cost-effectiveness of the instrument when introducing to this market constraints that aim to address conservation objectives more specifically. Using the conservation planning software Marxan with Zones we simulated different scopes for the “forest certificates” market, and compared their cost-effectiveness with that of existing command-and-control (C&C), i.e. compliance to the Legal Reserve on own property, in the state of São Paulo. The simulations showed a clear potential of the constrained “forest certificates” market to improve conservation effectiveness and increase cost-effectiveness on allocation of Legal Reserves. Although the inclusion of an additional constraint of targeting the BIOTA Conservation Priority Areas doubled the cost (+95%) compared with a “free trade” scenario constrained only by biome, this option was still 50% less costly than the baseline scenario of compliance with Legal Reserve at the property.

Suggested Citation

  • Paula Bernasconi & Stefan Blumentrath & David N Barton & Graciela M Rusch & Ademar R Romeiro, 2016. "Constraining Forest Certificate’s Market to Improve Cost-Effectiveness of Biodiversity Conservation in São Paulo State, Brazil," PLOS ONE, Public Library of Science, vol. 11(10), pages 1-18, October.
    • Handle: RePEc:plo:pone00:0164850
    DOI: 10.1371/journal.pone.0164850
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    References listed on IDEAS

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    1. Norman Myers & Russell A. Mittermeier & Cristina G. Mittermeier & Gustavo A. B. da Fonseca & Jennifer Kent, 2000. "Biodiversity hotspots for conservation priorities," Nature, Nature, vol. 403(6772), pages 853-858, February.
    2. Oliveira, Samuel Jose de Magalhaes & Bacha, Carlos Jose Caetano, 2003. "Avaliação do cumprimento da reserva legal no Brasil," Revista de Economia e Agronegócio / Brazilian Review of Economics and Agribusiness, Federal University of Vicosa, Department of Agricultural Economics, vol. 1(2), pages 1-26.
    3. Drechsler, Martin & Wätzold, Frank, 2009. "Applying tradable permits to biodiversity conservation: Effects of space-dependent conservation benefits and cost heterogeneity on habitat allocation," Ecological Economics, Elsevier, vol. 68(4), pages 1083-1092, February.
    4. Drechsler, Martin & Wätzold, Frank, 2007. "Applying tradable permits to biodiversity conservation: effects of space-dependent ecological benefits and cost heterogeneity on habitat allocation," UFZ Discussion Papers 1/2007, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
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    1. van der Hoff, Richard & Rajão, Raoni, 2020. "The politics of environmental market instruments: Coalition building and knowledge filtering in the regulation of forest certificates trading in Brazil," Land Use Policy, Elsevier, vol. 96(C).
    2. Young, Carlos Eduardo Frickmann & Castro, Biancca Scarpeline, 2021. "Financing mechanisms to bridge the resource gap to conserve biodiversity and ecosystem services in Brazil," Ecosystem Services, Elsevier, vol. 50(C).
    3. Brito, Brenda, 2020. "The pioneer market for forest law compliance in Paragominas, Eastern Brazilian Amazon," Land Use Policy, Elsevier, vol. 94(C).

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