In this thesis, the impact of conservation banking on biodiversity is assessed by examining the bird species richness in U.S. counties that have implemented the policy. Conservation banking is a market-based instrument designed for developers who need to comply with the Endangered Species Act for the negative environmental impacts that their projects have made. Conservation banking aims to “protect and recover imperilled species and the ecosystems upon which they depend” (USFWS 2013, p. 1). In this thesis, a staggered difference-in-difference with differential timing by Goodman-Bacon (2018) and further developed by Callaway and Sant’Anna (2021) is used to estimate the effect of conservation banks on biodiversity. Data for biodiversity, bird species richness are collected from U.S. Geological Survey's data from the North American Breeding Bird Survey (BBS). Information on conservation banks is gathered from the Regulatory In-lieu fee and Bank Information Tracking System (RIBITS). This thesis focuses on 107 conservation banks in 53 counties in the U.S. established between 2005 and 2016. The main results from this study indicate a positive impact of the introduction of conservation banks, with an increase in biodiversity of 4,1%. Consequently, this confirms the positive effect of the policy intervention. Despite these results, it is vital to consider caution regarding this market-based instrument. Market-based instruments that commodify elements of nature into the market are a new frontier in capitalist expansion. This approach may exclude areas from the natural evolutionary selection process, leading to potential long-term ecological imbalances. Current payment structures in conservation banking can lead to misallocation of taxpayers’ money at the same time as biodiversity outcomes are not optimized. Therefore, the most fundamental recommendation for this policy is to change to outcome-based payments.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:lnu-130071 |
| Date | January 2024 |
| Creators | Sindre, Josef |
| Publisher | Linnéuniversitetet, Institutionen för nationalekonomi och statistik (NS) |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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