The Economic Analysis Of Conservation Concession

This paper addresses the issue of a new method in environment protection, which is called "conservation concession". This method is aimed to protect critical terrestrial and marine habitats. We usually build national park to protect these areas, but the approach has many shortcomings, the most serious shortcoming is the contradiction between environment protection and economic development.To address the problem, a novel approach that seeks to directly reconcile resource protection with development has been developed, that is "conservation concession". Under a conservation concession agreement, concession sellers protect natural ecosystems in exchange for a steady stream of structured compensation from conservationists and other investors.This paper analyzes conservation concession from the aspect of economics. It focuses on the impact of ownership of a conservation project on the investment incentives of different parties. It is shown in this context that, although conservation concessions are a complement rather than a replacement to national parks and other traditional protected areas, the use of conservation concessions for resource protection offers a number of distinct benefits.Based on the analysis, this paper studied the potential for the implementation of conservation concession in china. Two core issues are examined: the necessary of implement conservation concession in china; the financial and government support. At last some suggestions was given to introduce conservation concession into china.