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Validating costly protected area restoration after (increasing) disasters.

Adam Loch1, Glen Scholz2, David Adamson3

  • 1Centre for Global Food and Resources, School of Economics and Public Policy, The University of Adelaide, Adelaide, South Australia.

Journal of Environmental Management
|September 7, 2024
PubMed
Summary

Restoring fire-damaged national parks offers significant economic returns. Kangaroo Island

Keywords:
Cost-benefit analysisEconomic impactsEconomic valuationProtected areas

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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.