The conservation of biological diversity from an economic point of view

This paper demonstrates the importance of the conservation of biological di versity from an economic point of view Economic reasoning demands that in d eciding how biological resources should be used, the consequences of this d ecision for the whole society should be taken into account. In practice, on ly the costs and benefits which are perceived by the immediate users of the se resources are decisive for the use of biological resources. Biological r esources are systematically undervalued, and we currently perceive a rate o f loss of biological diversity which is too high. This paper deals with three major contributions of economics to biodiversit y conservation. Firstly, it analyses the underlying driving forces of biodi versity loss. Without such an analysis, it is virtually impossible to desig n successful conservation strategies. Secondly, it explains why economists are concerned about the rate of biodiversity loss. Thirdly, policy instrume nts and institutions are identified allowing the economic value of biologic al diversity to be realised.