Friday, February 27, 2009

A derivative approach to endangered species conservation

"Under their plan, the government would determine the cost of protecting a species if it becomes endangered. That money would be set aside to fund contracts with payouts pegged to species health. The contracts would be sold to landowners and developers whose actions directly affect the animals, though the contracts could be freely re-sold.

Should animal numbers fall beneath a predetermined threshold, contracts would be voided, and money devoted to anticipated recovery programs. If the species thrives, investors would be rewarded, with profits growing in direct proportion to species health (Wired)."

Not sure they picked a good timing to publicize the approach--many will probably turn around when seeing the word "derivative". On the other hand, I do like their idea of risk-sharing and incentive creating.

P.S. I didn't find the article in the March issue of Frontier though.

No comments: