The economics of restoration: looking back and leaping forward

Abstract

Since the publication of the Millennium Ecosystem Assessment in 2005 there has been a surge of interest in ecological restoration (ER) to recover biodiversity, re-establish ecosystem functioning and connectivity, and reactivate the delivery of ecosystem services. In policy spheres, there have also been repeated calls for expansion of restoration efforts. In many countries, new legislation now requires some form of restoration and/or a form of offset investment. All of this will require major increases in financial allocations toward restoration science, technology, and implementation, and much more detailed valuation techniques. The economics of restoration is a new field emerging to support these needs. Our paper here starts with an analysis of the articles and reviews published on this broad subject from 1928 to 2012, as captured in the Scopus academic search platform. Our goal is to present and summarize what has been said and done in this area to date. Next, we map out one possible way forward, illustrated by examples and based on a coherent bundle of decision parameters related to the economics of ER and, more broadly, to the restoration of natural capital. The restoration of natural capital is defined as activities that integrate investment in, and replenishment of, natural capital stocks to improve the flows of ecosystem goods and services, and the preservation of biodiversity, while enhancing all aspects of human well-being. We give special attention to system dynamic approaches and other promising tools and techniques.

Evaluating the process of ecological restoration

“…To fully evaluate the outcomes, all relevant variables, including the social ones, should be included. Barthélémy and Armani (2015) noted that social processes and local experiences are often ignored in restoration projects and Aronson et al (2010) and Blignaut et al (2013Blignaut et al ( , 2014 found that the benefits of restoration for society were not given due attention. In most of our case studies, however, the social component was fairly well included in the projects.…”

Restoring ecosystem services on private farmlands: Lessons from economics

“…Only recently have ecologists begun to include economic and social considerations in the design of restoration projects (Blignaut et al 2014). With few exceptions, ecological restoration studies that include economics focus only on the cost side of restoration projects (Bullock et al 2011;Wilson et al 2012).…”

“…Restoration projects, which are primarily aimed at restoring ecosystems of varying levels of degradation, are generally more costly than conservation projects, which are aimed at the protection of existing ecologically intact ecosystems (Blignaut et al 2014). Some types of costs are common for both restoration and conservation projects (e.g.…”

Restoration planning of degraded tropical forests for biodiversity and ecosystem services

“…Still lacking is knowledge related to the economics of restoration, an integration between the fields of restoration ecology and environmental economics (Blignaut et al, 2014;Wilson et al, 2012).…”

“…These include restoration offsetting to compensate the impact of development activities on biodiversity and ecosystem services (BBOP, 2012;Blignaut et al, 2014;Gardner et al, 2013;Maron et al, 2012). Analysis on restoration offsetting in agricultural landscapes is rare compared with, for example, mining and urban development, which are generally less land-consumptive yet more profitable (Madsen et al, 2010).…”