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Understanding the 50/50 Cost Sharing Ratio in Natural Resource Management

This outline by Dr. Beth Clouston explores the concept of a 50/50 cost sharing framework in the context of natural resource management (NRM). It covers benefit-cost analysis, essential rules of thumb, and the importance of understanding both private and public benefits. The analysis highlights the challenges of information gaps, the significance of assessing costs versus benefits, and the potential for adverse selection in tenders for conservation contracts. For further information on effective cost-sharing approaches and incentives for improved NRM, visit www.regionalnrm.qld.gov.au.

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Understanding the 50/50 Cost Sharing Ratio in Natural Resource Management

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Presentation Transcript

  1. A 50/50 Ratio – Why? Dr Beth Clouston

  2. Outline • Cost Sharing Frameworks • Benefit Cost Analysis • “Rules of Thumb” • Tenders

  3. Assume Beneficiary Pays Aim to fund gap between public and private benefits Cost Sharing Frameworks $ Costs D C Benefits of Improved NRM 0 A (Landholder Benefit) B (Public Benefit)

  4. Benefit Cost Analysis • Scale • Lack of information and markets • Time and Money

  5. “Rules of Thumb” • Assume public benefit • Assess private costs and private benefits • Gap/Total Cost provides rule • Potential for adverse selection

  6. Tenders for Conservation Contracts • Costs provided by landholders • Indices ( “metrics”) measure environmental benefits • Possible tool for capturing actions and outcomes

  7. Further information Approaches to Cost sharing Incentives for improved NRM and much more www.regionalnrm.qld.gov.au

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