Socio-economic aspects of biodiversity offsets. Joshua Bishop IUCN-The World Conservation Union. 29 September 2006 Pretoria, RSA. Ecological sustainability “no net loss” → “net positive impact” Economic efficiency cost effectiveness → sustainable production Social equity
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IUCN-The World Conservation Union
29 September 2006
Financing mechanismsImproving the socio-economic sustainability of biodiversity offsets
Demographic trends (e.g. migration)
Regulatory framework (offset requirements; rights to trade offsets)
Resource ownership, access, use and control
Direct and underlying threats to biodiversity
Capacity of NGOs, CBOs, government, etc
Assessment of values
Net benefits of resource uses (= opportunity costs of an offset)
Financial costs of creating an offset (land purchase, environmental enhancement, validation, management in perpetuity)
Non-market benefits of benchmark, impact and offset sites
Social impact analysis
Costs and benefits of impact AND offset to vulnerable groups (e.g. landless and female-headed households, children)1. Socio-economic information and analysis for biodiversity offsets
Local initiation and control
Distant stakeholders (regional, national, global)
Who provides what information when, how and to whom?
What institutions are trusted to assess impacts, to design, validate and implement sustainable offsets?2. Decision making processesfor biodiversity offsets
Market values (surveys, cost models)
Non-market values (revealed preference, stated preference, dose-response function)
Benefits transfer (“fit” data from elsewhere)
Macroeconomic models (for indirect impacts)Assessing biodiversity values
Source: Richards M., Kanel K., Maharjan M. & Davies J. 1999. Towards Participatory Economic Analysis By Forest User Groups In Nepal. Overseas Development Institute in collaboration with the Nepal-UK Community Forestry Project (June).
Non-market Valuation Techniques
Change in Outputs (productivity)
Hedonic Property Analysis
Contingent Valuation Method
Conjoint Analysis (choice models)
Change in Inputs (resource costs)
Hedonic Wage-risk Analysis
Travel Cost Method
World Bank, 1996. “Croatia Coastal Forest Reconstruction and Protection Project: Staff Appraisal Report.” Report No.15518-HR. Washington: World Bank
Adapted from: Naidoo R, Ricketts TH (2006) Mapping the Economic Costs and Benefits of Conservation. PLoS Biol 4(11): e360
Mbaracayu Forest Biosphere Reserve
Benefit-cost ratios of corridor options:
Ecosystem services valued:
Carret, J.-C., and D. Loyer. 2003. “Comment financer durablement le réseau d’aires protégées terrestres á Madagascar? Apport de l’analyse économique.” Paris: AFD and World Bank
How to ensure equitable decision-making and sharing of costs and benefits over the very long-term?
How to avoid ‘leakage’ i.e. the transfer of damaging activities to other locations?
How to quantify the indirect impacts of a project and offset (e.g. migration, product use)?
Should developers be liable for indirect impacts, and to what extent?Questions for discussion