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Grassland biodiversity can pay.

Seth Binder1,2, Forest Isbell3,4, Stephen Polasky4,5

  • 1Department of Economics, St. Olaf College, Northfield, MN 55057; binder@stolaf.edu.

Proceedings of the National Academy of Sciences of the United States of America
|March 28, 2018
PubMed
Summary
This summary is machine-generated.

Maximizing profits requires considering species identity and abundance, not just diversity levels. This study introduces a framework for landowners to optimize biodiversity for economic gain, suggesting higher diversity is often more profitable.

Keywords:
agriculturebiodiversityecological production functionmultifunctionalityoptimal management

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Area of Science:

  • Ecology and Environmental Economics
  • Biodiversity-Ecosystem Functioning (BEF) research

Background:

  • Existing BEF studies often focus on randomly assembled communities, overlooking landowner profit maximization.
  • Current biodiversity assessments lack integration of species-specific costs and economic output value.

Purpose of the Study:

  • To develop a novel assessment framework integrating ecological and economic factors for optimal biodiversity management.
  • To guide private landowners in maximizing profits through strategic species selection and diversity levels.

Main Methods:

  • Utilized ecological production functions to inform an economic model.
  • Incorporated species identity, relative abundance, seed costs, and output value (quality, quantity, variability).
  • Applied the framework to experimental grassland data for hay and carbon storage production.

Main Results:

  • The developed framework accounts for landowner utility-maximizing decisions, including risk aversion.
  • Results indicate that even risk-neutral landowners benefit from highly diverse species mixtures.
  • Optimal species richness for profit lies between current commercial and natural grassland levels.

Conclusions:

  • A comprehensive approach integrating ecological and economic data is crucial for effective biodiversity management.
  • Profit-maximizing landowners should consider diverse species compositions for enhanced economic returns.
  • The study provides a practical tool for optimizing land use based on biodiversity and profitability.