Biodiversity Case

The world's biodiversity has benefits to the local inhabitants due to renewal of soil fertility, cycling of nutrients, and the pollination of plant, to the surrounding community through their use as watersheds, natural parks, and to the international community as place of tourism, a source of carbon sink, medicinal plants, and other natural resources. In the case of the world's biodiversity, compensation from the international community for inhabitants that live within or around "hotspots" of diversity should take into account the opportunity costs of alternative uses of the land, the costs of administering and enforcing protection and the challenges of managing the political transition if pre-existing interests are misplaced. The Global Biodiversity Outlook Convention has gained support through regional cooperation (Executive Summary). Because the sustainable use of "hotspots" and conservation create the largest incentive at the regional level due to economic benefits that can oftentimes be fueled from the international community (such as through ecotourism), I will focus on the regional level.

In Heals chapter 4 of Nature in the Marketplace, Heal discusses the importance of watersheds for biodiversity because they serve as a natural area where clean water can be easily filtered and water flows can be stabilized for constant annual access to the surrounding area. Strong biodiversity in a watershed can contribute to its ability to filter water through microbial organisms. Filtering is only achievable otherwise with expensive chemicals that have carcinogenic affects on human health and the environment(Ch4., 8).

One biodiversity case that Heal is the New York City water supply from the Caatskill watershed. Anthropogenic sources were contaminating the watershed to undrinkable levels. Since the cost of building a new water treatment plant was double the cost of preserving the watershed, the city decided to buy 100 thousand acres in the Caatskills and pay farmers not to graze cattle or farm near streams. Because property rights were clearly established, the coasian agreement was equitable for both the local community, farmers and also for New York City, which has saved about 6 billion dollars.

Since large amount of healthy drinking water is crucial to an urban area, and transportation costs for water are so high, preserving watersheds near urban areas is crucial to the welfare of city populations. With the benefits of preservation far exceeding the costs of allowing degradation, equitable agreements usually achieved between both parties. The myriad of life-forms found in a watershed co-exist in a sensitive and dynamic cycle that must be conserved in order to reap the benefits.

Biodiversity has been promoted through ecotourism in South Africa as well. Thousands of hectares of land have been converted from previous crop and ranch land where profits were between $25-$70 per hectare