Validating costly protected area restoration after (increasing) disasters

Area of Science:

• Environmental Economics
• Conservation Management
• Climate Change Adaptation

Background:

• Protected areas face increasing threats from climate change events like bushfires.
• Restoration efforts require substantial public funding, necessitating clear economic assessments.
• Previous economic studies often lacked complete government cost and benefit data.

Purpose of the Study:

• To conduct a comprehensive economic assessment of protected area restoration post-bushfire.
• To evaluate the costs and benefits of restoring Kangaroo Island's protected areas.
• To provide a robust economic case for funding conservation and restoration efforts.

Main Methods:

• Utilized a case study of Kangaroo Island, South Australia, focusing on bushfire-affected protected areas (2019-20).
• Employed economic methods to analyze restoration costs and projected tourism and regional economic benefits.
• Incorporated unique State government cost data for a complete assessment.

Main Results:

• The discounted net present value of returning tourists is 3.15 over ten years, indicating strong returns.
• Achieved an internal rate of return of 22% for park tourism and regional economic impacts.
• Projected job creation: 430 full-time equivalent (FTE) jobs during reconstruction and 744 FTEs for tourism support.

Conclusions:

• Protected area restoration following natural disasters yields significant positive economic returns.
• Economic assessments are crucial for justifying funding for conservation and rebuilding efforts.
• The Kangaroo Island case study demonstrates the economic viability of investing in protected area recovery.