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Externalities and biodiversity valuation’

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One of the most important reasons for loss of biodiversity, is that conservation and sustainable use of natural resources is generally not a viable financial option, and this is because of a combination of market and policy failures. Put simply, natural resources are under- valued because no account is taken of the time it takes to produce the next harvest, nor any costs involved in managing lands for future harvests, nor the environmental and social costs associated with loss of products. Internalising these costs, so that parties trading in a particular product pay a larger part of these costs, is a central element in dealing with the “externalities” that.

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