IDEAS home Printed from https://ideas.repec.org/p/osf/osfxxx/cu8rj.html
   My bibliography  Save this paper

An introduction to financial opportunities, ecological concepts, and risks underpinning aspirations for a nature-positive economy

Author

Listed:
  • Luxton, Sarah
  • Smith, Greg
  • Williams, Kristen
  • Ferrier, Simon
  • Bond, Anthelia
  • Prober, Suzanne

Abstract

Global biodiversity is in decline and businesses are being asked to urgently create new operating models to ameliorate the crisis. Amongst the strategies proposed to do this, the development of an economy that is ‘nature-positive’ has captured worldwide attention. Publicised as biodiversity’s catch-all equivalent for a carbon net-zero future, organisations from the Taskforce on Nature-related Financial Disclosures to the World Economic Forum are calling for a transition to nature-positive, but little guidance exists as to what this means and how to do it. In this article, we outline financial opportunities, ecological concepts, and risks underpinning aspirations for a nature-positive economy, including seven financial instruments, and four ecological concepts that form the foundation of nature-positive (health, abundance, diversity, and resilience). We then outline six classes and 30 drivers of risk that could arise through poor design or implementation of the nature-positive economy, and touch on mitigation measures to prevent these.

Suggested Citation

  • Luxton, Sarah & Smith, Greg & Williams, Kristen & Ferrier, Simon & Bond, Anthelia & Prober, Suzanne, 2023. "An introduction to financial opportunities, ecological concepts, and risks underpinning aspirations for a nature-positive economy," OSF Preprints cu8rj, Center for Open Science.
  • Handle: RePEc:osf:osfxxx:cu8rj
    DOI: 10.31219/osf.io/cu8rj
    as

    Download full text from publisher

    File URL: https://osf.io/download/64c0a0a8e638960064cb8840/
    Download Restriction: no

    File URL: https://libkey.io/10.31219/osf.io/cu8rj?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Blackman, Allen & Woodward, Richard T., 2010. "User financing in a national payments for environmental services program: Costa Rican hydropower," Ecological Economics, Elsevier, vol. 69(8), pages 1626-1638, June.
    2. Gustafsson, Bo, 1998. "Scope and limits of the market mechanism in environmental management," Ecological Economics, Elsevier, vol. 24(2-3), pages 259-274, February.
    3. Mason, Charles F. & Plantinga, Andrew J., 2013. "The additionality problem with offsets: Optimal contracts for carbon sequestration in forests," Journal of Environmental Economics and Management, Elsevier, vol. 66(1), pages 1-14.
    4. Muñoz-Piña, Carlos & Guevara, Alejandro & Torres, Juan Manuel & Braña, Josefina, 2008. "Paying for the hydrological services of Mexico's forests: Analysis, negotiations and results," Ecological Economics, Elsevier, vol. 65(4), pages 725-736, May.
    5. Rode, Julian & Gómez-Baggethun, Erik & Krause, Torsten, 2015. "Motivation crowding by economic incentives in conservation policy: A review of the empirical evidence," Ecological Economics, Elsevier, vol. 117(C), pages 270-282.
    6. de Groot, Rudolf S. & Wilson, Matthew A. & Boumans, Roelof M. J., 2002. "A typology for the classification, description and valuation of ecosystem functions, goods and services," Ecological Economics, Elsevier, vol. 41(3), pages 393-408, June.
    7. Freeman, Jody & Kolstad, Charles D., 2006. "Moving to Markets in Environmental Regulation: Lessons from Twenty Years of Experience," OUP Catalogue, Oxford University Press, number 9780195189650.
    8. Nicholas J Pates & Nathan P Hendricks, 2020. "Additionality from Payments for Environmental Services with Technology Diffusion," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(1), pages 281-299, January.
    9. David J. Pannell, 2008. "Public Benefits, Private Benefits, and Policy Mechanism Choice for Land-Use Change for Environmental Benefits," Land Economics, University of Wisconsin Press, vol. 84(2), pages 225-240.
    10. Chapman, Mollie & Satterfield, Terre & Chan, Kai M.A., 2019. "When value conflicts are barriers: Can relational values help explain farmer participation in conservation incentive programs?," Land Use Policy, Elsevier, vol. 82(C), pages 464-475.
    11. Kai Schulze, 2021. "Policy Characteristics, Electoral Cycles, and the Partisan Politics of Climate Change," Global Environmental Politics, MIT Press, vol. 21(2), pages 44-72, Spring.
    12. James Salzman & Genevieve Bennett & Nathaniel Carroll & Allie Goldstein & Michael Jenkins, 2018. "The global status and trends of Payments for Ecosystem Services," Nature Sustainability, Nature, vol. 1(3), pages 136-144, March.
    13. Marshall, Graham R., 2013. "Transaction Costs, Collective Action And Adaptation In Managing Social-Ecological Systems," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152166, Australian Agricultural and Resource Economics Society.
    14. Wei Li & Weining Li & Veikko Seppänen & Timo Koivumäki, 2023. "Effects of greenwashing on financial performance: Moderation through local environmental regulation and media coverage," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 820-841, January.
    15. Smessaert, Jacob & Missemer, Antoine & Levrel, Harold, 2020. "The commodification of nature, a review in social sciences," Ecological Economics, Elsevier, vol. 172(C).
    16. Andrew J Tanentzap, 2017. "The costs of saving nature: Does it make “cents”?," PLOS Biology, Public Library of Science, vol. 15(7), pages 1-7, July.
    17. Smessaert, Jacob & Missemer, Antoine & Levrel, Harold, 2020. "The commodification of nature, a review in social sciences," Ecological Economics, Elsevier, vol. 172(C).
    18. D. R. Bellwood & T. P. Hughes & C. Folke & M. Nyström, 2004. "Confronting the coral reef crisis," Nature, Nature, vol. 429(6994), pages 827-833, June.
    19. Marshall, Graham R., 2013. "Transaction costs, collective action and adaptation in managing complex social–ecological systems," Ecological Economics, Elsevier, vol. 88(C), pages 185-194.
    20. Georgina M. Mace & Mike Barrett & Neil D. Burgess & Sarah E. Cornell & Robin Freeman & Monique Grooten & Andy Purvis, 2018. "Aiming higher to bend the curve of biodiversity loss," Nature Sustainability, Nature, vol. 1(9), pages 448-451, September.
    21. Pannell, David J. & Roberts, Anna M., 2010. "Australia’s National Action Plan for Salinity and Water Quality: a retrospective assessment," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(4), pages 1-20.
    22. David Tilman & Emilie C. Snell-Rood, 2014. "Diversity breeds complementarity," Nature, Nature, vol. 515(7525), pages 44-45, November.
    23. Coggan, Anthea & Whitten, Stuart M. & Bennett, Jeff, 2010. "Influences of transaction costs in environmental policy," Ecological Economics, Elsevier, vol. 69(9), pages 1777-1784, July.
    24. S. Wunder & R. Brouwer & S. Engel & D. Ezzine-de-Blas & R. Muradian & U. Pascual & R. Pinto, 2020. "Reply to: In defence of simplified PES designs," Nature Sustainability, Nature, vol. 3(6), pages 428-429, June.
    25. Clark, Robyn & Reed, James & Sunderland, Terry, 2018. "Bridging funding gaps for climate and sustainable development: Pitfalls, progress and potential of private finance," Land Use Policy, Elsevier, vol. 71(C), pages 335-346.
    26. Bin Yang & Jun He, 2021. "Global Land Grabbing: A Critical Review of Case Studies across the World," Land, MDPI, vol. 10(3), pages 1-19, March.
    27. David Layton & Juha Siikamäki, 2009. "Payments for Ecosystem Services Programs: Predicting Landowner Enrollment and Opportunity Cost Using a Beta-Binomial Model," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 44(3), pages 415-439, November.
    28. Martine Maron & Susie Brownlie & Joseph W. Bull & Megan C. Evans & Amrei von Hase & Fabien Quétier & James E. M. Watson & Ascelin Gordon, 2018. "The many meanings of no net loss in environmental policy," Nature Sustainability, Nature, vol. 1(1), pages 19-27, January.
    29. Kangas, Johanna & Ollikainen, Markku, 2019. "Economic Insights in Ecological Compensations: Market Analysis With an Empirical Application to the Finnish Economy," Ecological Economics, Elsevier, vol. 159(C), pages 54-67.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Garrett, R.D. & Grabs, J. & Cammelli, F. & Gollnow, F. & Levy, S.A., 2022. "Should payments for environmental services be used to implement zero-deforestation supply chain policies? The case of soy in the Brazilian Cerrado," World Development, Elsevier, vol. 152(C).
    2. Bellanger, Manuel & Fonner, Robert & Holland, Daniel S. & Libecap, Gary D. & Lipton, Douglas W. & Scemama, Pierre & Speir, Cameron & Thébaud, Olivier, 2021. "Cross-sectoral externalities related to natural resources and ecosystem services," Ecological Economics, Elsevier, vol. 184(C).
    3. Valencia Torres, Angélica & Tiwari, Chetan & Atkinson, Samuel F., 2021. "Progress in ecosystem services research: A guide for scholars and practitioners," Ecosystem Services, Elsevier, vol. 49(C).
    4. Cortés-Capano, Gonzalo & Hanley, Nick & Sheremet, Oleg & Hausmann, Anna & Toivonen, Tuuli & Garibotto-Carton, Gustavo & Soutullo, Alvaro & Di Minin, Enrico, 2021. "Assessing landowners’ preferences to inform voluntary private land conservation: The role of non-monetary incentives," Land Use Policy, Elsevier, vol. 109(C).
    5. Nantongo, Mary & Vatn, Arild, 2019. "Estimating Transaction Costs of REDD+," Ecological Economics, Elsevier, vol. 156(C), pages 1-11.
    6. Kumar, Suresh & Madhu, M & Singh, Ranjay K & Kaushal, Rajesh & Jyotiprava Dash, Ch. & Gowda, Hombe H.C. & Barla, GW, 2024. "Changes in the value of ecosystem services due to watershed development in India’s Eastern Ghats and incentives for better stewardship," Ecosystem Services, Elsevier, vol. 65(C).
    7. Cooke, Benjamin & Moon, Katie, 2015. "Aligning ‘public good’ environmental stewardship with the landscape-scale: Adapting MBIs for private land conservation policy," Ecological Economics, Elsevier, vol. 114(C), pages 152-158.
    8. Fan, Shengyue & Yang, Jinfei & Liu, Wenwen & Wang, He, 2019. "Institutional Credibility Measurement Based on Structure of Transaction Costs: A Case Study of Ongniud Banner in the Inner Mongolia Autonomous Region," Ecological Economics, Elsevier, vol. 159(C), pages 212-225.
    9. Pannell, David J. & Roberts, Anna M. & Park, Geoff & Alexander, Jennifer, 2013. "Improving environmental decisions: A transaction-costs story," Ecological Economics, Elsevier, vol. 88(C), pages 244-252.
    10. Shahab, Sina & Clinch, J. Peter & O’Neill, Eoin, 2018. "Accounting for transaction costs in planning policy evaluation," Land Use Policy, Elsevier, vol. 70(C), pages 263-272.
    11. McCann, Laura, 2013. "Transaction costs and environmental policy design," Ecological Economics, Elsevier, vol. 88(C), pages 253-262.
    12. Phan, Thu-Ha Dang & Brouwer, Roy & Hoang, Long Phi & Davidson, Marc David, 2017. "A comparative study of transaction costs of payments for forest ecosystem services in Vietnam," Forest Policy and Economics, Elsevier, vol. 80(C), pages 141-149.
    13. Lundmark, Robert, 2022. "Time-adjusted transaction costs for energy renovations for single-family house-owners," Energy Economics, Elsevier, vol. 114(C).
    14. DeBoe, Gwendolen & Stephenson, Kurt, 2016. "Transactions costs of expanding nutrient trading to agricultural working lands: A Virginia case study," Ecological Economics, Elsevier, vol. 130(C), pages 176-185.
    15. Jones, Kelly W. & Powlen, Kathryn & Roberts, Ryan & Shinbrot, Xoco, 2020. "Participation in payments for ecosystem services programs in the Global South: A systematic review," Ecosystem Services, Elsevier, vol. 45(C).
    16. Blanco, Esther & Moros, Lina & Pfaff, Alexander & Steimanis, Ivo & Velez, Maria Alejandra & Vollan, Björn, 2023. "No crowding out among those terminated from an ongoing PES program in Colombia," Journal of Environmental Economics and Management, Elsevier, vol. 120(C).
    17. Georgina W. Njiraini & Djiby Racine Thiam & Anthea Coggan, 2017. "The Analysis of Transaction Costs in Water Policy Implementation in South Africa: Trends, Determinants and Economic Implications," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 3(01), pages 1-30, January.
    18. Gallemore, Caleb & Di Gregorio, Monica & Moeliono, Moira & Brockhaus, Maria & Prasti H., Rut Dini, 2015. "Transaction costs, power, and multi-level forest governance in Indonesia," Ecological Economics, Elsevier, vol. 114(C), pages 168-179.
    19. Martin-Ortega, Julia & Dekker, Thijs & Ojea, Elena & Lorenzo-Arribas, Altea, 2019. "Dissecting price setting efficiency in Payments for Ecosystem Services: A meta-analysis of payments for watershed services in Latin America," Ecosystem Services, Elsevier, vol. 38(C), pages 1-1.
    20. Mayer, Alex & Jones, Kelly & Hunt, David & Manson, Robert & Carter Berry, Z. & Asbjornsen, Heidi & Wright, Timothy Max & Salcone, Jacob & Lopez Ramirez, Sergio & Ávila-Foucat, Sophie & Von Thaden Ugal, 2022. "Assessing ecosystem service outcomes from payments for hydrological services programs in Veracruz, Mexico: Future deforestation threats and spatial targeting," Ecosystem Services, Elsevier, vol. 53(C).

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:osf:osfxxx:cu8rj. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: OSF (email available below). General contact details of provider: https://osf.io/preprints/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.