Can Economic Incentives Truly Drive Conservation?

Karner blue butterfly pollinating a dandelion flower (USFWS midwest creative commons license).

In a blog post last month on the Public Library of Science (PLoS) Blog, Dr. Katie Barry examined research on the economic valuation of ecosystem services. Ecosystem services, such as pollination, soil retention, and pest control, are defined as the functions of ecosystems from which humans benefit. Today, various ecosystem services are being negatively affected by climate change and other major environmental disturbances. Many policy makers assert that economic incentives “provide the strongest impetus for conservation goals”, and subsequently, the maintenance of ecosystem services. But is this really true? Many ecologists find this problematic.

First, it is very difficult to quantify ecosystem services, largely because one singular framework does not exist. How can scientists and policymakers agree on an economic value for biodiversity, pest control, or climate regulation? Evaluating an ecosystem requires that a complex ecosystem be understood only as the sum of its parts: it must be deconstructed into processes, structures, and then identified again in terms of its services.

Furthermore, evaluating the improvements of ecosystem services is not an easy task. For instance, Chinese researchers found mixed results in a rehabilitation effort in the Loess Plateau. Grain production increased despite a net loss of farmland, and water yield decreased while carbon sequestration improved. How can one of these results be weighed against another in economic terms?

Finally, because ecosystems are so diverse, applying a single approach of conservation that utilizes economic valuation would be extremely complicated. And even if this were achieved, is it worth it? Some ecosystem services do not provide a visible, immediate benefit to humans and will likely be ignored. Perhaps the biggest question is whether non-economic benefits outweigh economic benefits of conservation and ecosystem services.