Economics and Policy of Biodiversity Loss

The first part of the chapter provides concise definitions of biodiversity. It explores the different meanings with which the term is used – genetic diversity, species diversity, intra-specific diversity, ecosystem diversity, functional diversity. It then considers the ecological services connected to biodiversity and the indices that can be used to quantify it, which may focus alternatively on species richness or on species diversity. The central part of the chapter focuses on the economics of biodiversity loss, including the economic value of biodiversity, biodiversity as a public good, use and non-use values, biodiversity and risk in agro-ecosystems. After analysing the social and economic factors driving the loss of biological diversity, the final sections discuss the available conservation policies: incentives, property rights, price reforms, protected areas, safe minimum standards, and international agreements such as the Convention on Biological Diversity and the Biosafety Protocol.