Economic efficiency of nature-based solutions: Theoretical framework and application to semi-natural habitat...

Area of Science:

• Agricultural Economics
• Ecology
• Environmental Science

Background:

• Nature-based solutions (NBS) offer sustainable agriculture but lack economic alignment with the sector.
• Robust economic arguments are needed to integrate NBS into agricultural practices and policy.
• Biodiversity benefits and human well-being are key aspects of NBS in agriculture.

Purpose of the Study:

• To develop an interdisciplinary economic framework for assessing the efficient use of nature-based solutions in agriculture.
• To determine optimal levels of use and economic value for NBS within agricultural production models.
• To bridge the gap between scientific understanding of NBS and agricultural sector expectations.

Main Methods:

• Developed a conceptual economic framework based on a standard agricultural production model.
• Applied the framework to semi-natural habitats using econometric calibration and simulations.
• Utilized integrated data from agronomic, economic, psychological, and ecological sources in a case study.

Main Results:

• The optimal semi-natural habitat coverage rate was estimated at 17.5% in the case study.
• Observed habitat coverage was approximately double the calculated optimal level, indicating potential underuse.
• Ecosystems were shown to contribute to agricultural production similarly to conventional inputs.

Conclusions:

• The developed economic framework provides a productivity-based justification for the conservation of ecosystems within agriculture.
• Nature-based solutions can be efficiently integrated into agricultural systems by applying economic efficiency models.
• Further research can refine the valuation and optimal implementation of NBS in diverse agricultural contexts.