Ecosystems provide great benefit to society and economies throughout the world. Unfortunately, due to their nature as public goods, markets related to their supply often see failure. The conservation of many of these ecosystems is vital to the health of the planet, humanity and the economy. The goods and services ecosystems provide are not restricted by border. As developed countries take stronger roles by investing in conservation and environmental production within their own borders, developing countries struggle to follow their example. The main reason for this is their diminished ability to pay for such conservation. Their short-term needs, such as poverty reduction, tend to overshadow long-term needs, such as conserving a sustainable environment. Therefore it is necessary that developed countries compensate developing countries for the conservation of ecosystems of which they receive the greatest benefit.
Date of Completion
Platts, Justin, "The Tropical Rainforest Market Failure: An Argument for the Pursuance of Compensation for Conservation Policy" (2007). Economics Theses. 52.