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Economic Tools for Conservation - USAID Peru

A 5-day course in Economic Tools for Conservation for USAID staff in Peru.

Introduction to Economics

  • Economic fundamentals and the Super Six
  • Supply, demand, market equilibrium, and competition
  • Market and institutional failures related to public goods, open access and property rights

Environmental Policy

  • Public policy tools to address market failures 
  • Policy overview, incentives, command and control legislation 
  • Economic instruments for conservation such as taxes, subsidies, and tradable permit systems

Environmental Valuation

  • How economists measure the benefits people derive from ecosystems
  • Environmental values, methods used to calculate them, and guidance on best practices

Cost-Benefit Analysis

  • Overview of CBA framework, financial analysis and time value of money
  • Economic CBA and incorporation of externalities, indicators of project feasibility, sensitivity and risk analysis
  • CBA examples from the field, case study exercise 

Incentives

  • Economics of incentivizing conservation: opportunity cost curves, ecosystem services, distribution of benefits and costs, definition of payment for ecosystem services, effectiveness evaluations
  • Designing incentive programs: chocolate game, behavioral economics, case studies