Handbook of Market Creation for Biodiversity

The loss of biodiversity affects us in many ways. For some of us, its loss is felt in the same way that we regret the destruction of a great work of art -- it may not affect us directly, but the indirect impact is strong. For others, its loss is felt in changes in lifestyles and livelihoods -- the measurable costs are high. Striking the right balance between the conservation/sustainable use and the loss of biodiversity requires accounting for all the impacts of its destruction. Weighing the loss against any potential benefits will ensure that the social, as well as economic, well-being of everyone are at the best levels possible. Market-based economic systems have the potential to ensure that such a balancing occurs, but require that all the impacts of its loss, or use, have been fully internalised into market transactions. This book shows how public policy in the form of market creation can be used to internalise the loss of biodiversity. It promotes the use of markets to ensure that our collective preferences for conservation and sustainable use are reflected in economic outcomes.