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The conservation costs and economic benefits of using biodiversity offsets to meet international targets for protected area expansion

Published online by Cambridge University Press:  12 December 2017

Falko T. Buschke*
Affiliation:
Centre for Environmental Management (IB 67), University of the Free State, P.O. Box 339, Bloemfontein 9300, South Africa.
Susie Brownlie
Affiliation:
deVilliers Brownlie Associates, Claremont, South Africa
Jeff Manuel
Affiliation:
Centre for Biodiversity Conservation, Kirstenbosch National Botanical Garden, South African National Biodiversity Institute, Claremont, South Africa
*
(Corresponding author) E-mail falko.buschke@gmail.com
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Abstract

Aichi Biodiversity Target 11 under the Convention on Biological Diversity sets out to conserve at least 17% of terrestrial area by 2020. However, few countries are on track to meet this target and it is uncertain whether developing countries have allocated sufficient resources to expand their protected areas. Biodiversity offsets could resolve this conservation shortfall if developers who affect biodiversity negatively at one locality are made responsible for its protection elsewhere. Here we simulate the use of biodiversity offsetting to expand protected area coverage in South Africa's grassland biome. South Africa's biodiversity offsets policy has been designed specifically to compensate for the residual loss of biodiversity caused by development, by establishing and managing protected areas within the same ecosystem type. We show that it is possible to meet protected area targets using only offsets, while facilitating economic development. However, doing so could slash the current extent of intact habitat by half. These losses could be reduced considerably should the gains in protected areas through offsetting supplement rather than supplant existing government commitments to protected area expansion. Moreover, supplementing existing government commitments would result in comparatively small reductions in potential economic gains, because the marginal economic benefit of transforming habitat decreases as more intact habitat is lost. Therefore, the intended role of biodiversity offsetting in achieving a country's protected area target should be made explicit to fully understand the associated trade-offs between conservation and economic development.

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Copyright © Fauna & Flora International 2017 
Figure 0

Fig. 1 The simplified South African biodiversity offsetting framework used in simulations for a hypothetical ecosystem with a biodiversity target of 25% and current protection levels of 5% for ecosystems categorized as Least Threatened, Vulnerable, Endangered and Critically Endangered.

Figure 1

Table 1 The four simulated scenarios for the use of offsetting to extend the protected area network in South Africa, with their protected area targets, and how they use biodiversity offsets.

Figure 2

Fig. 2 The amount of intact habitat for each of the 72 ecosystem types in the South African grassland biome (a) currently, and simulated for (b) Scenario 1, (c) Scenario 2, (d) Scenario 3 and (e) Scenario 4 (Table 1).

Figure 3

Fig. 3 The monetary value of gross value-added factor costs for each of the 72 ecosystem types in the South African grassland biome (a) modelled for the current situation, and simulated for (b) Scenario 1, (c) Scenario 2, (d) Scenario 3 and (e) Scenario 4 (Table 1).

Figure 4

Fig. 4 The relationship between the median percentage of intact habitat and the modelled total economic value for the current situation (both empirical and modelled) in the 72 ecosystem types in the South African grassland biome, as well as the four simulated scenarios (Table 1). Lines represent the modelled relationship between intact habitat and ecosystem services, gross value-added factor cost and total economic value. Error bars denote the 25th and 75th percentiles.

Figure 5

Table 2 P-values from the multiple comparison tests between every combination of scenarios for the use of offsetting to extend the protected area network in South Africa (Table 1). Values below the diagonal are for comparisons of intact habitat and those above the diagonal are for total economic value.

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