Conversations around "Economics of Biodiversity" naturally lead us to the groundbreaking report, "The Dasgupta Review." Authored by Sir Partha Dasgupta, a distinguished economist from the University of Cambridge, the UK government commissioned this report and released it in 2021. It sheds light on the alarming concerns stemming from biodiversity loss while emphasizing the economic significance of biodiversity.

Inspired by the insights derived from this report, we at the Tribhuvan College, positioned among the leading environmental science colleges in Neemrana, have undertaken the responsibility to spread the word about the impending threat, i.e., an estimate of a 90% biodiversity loss in the near future. We firmly believe that sensitization programs highlighting the economic implications of biodiversity can prove helpful in mitigating this crisis and fostering sustainable economic growth.

To delve deeper into these dynamics, let us explore the distinct parameters of biodiversity-driven economic considerations. Keep reading for more insights!

• Biodiversity as an Economic Asset:

Biodiversity is more than a provider of aesthetic pleasure and recreational opportunities. Its significance extends to the core of the global economy. Moreover, it stands as a cornerstone for economic activities and human well-being. It is known that biodiversity fuels pollination, soil fertility maintenance, water purification, and climate regulation, each of which is irreplaceable in supporting numerous economic sectors.

For instance, pollination, carried out by diverse insects, birds, and other organisms, facilitates the reproduction of countless plant species, including those essential for agricultural productivity. According to recent studies, approximately 75% of the world's food crops rely on animal pollinators, with the economic value of this service estimated at hundreds of billions of dollars annually. This further underlines the need to view biodiversity from the economic lens and work towards preserving the same.

• Recognition in Economic Valuation:

Owing to the tremendous economic significance of biodiversity, we at the Tribhuvan College recognize the need to include biodiversity as one of the monetary parameters in the nation’s economic valuation.

It is unfortunate that valuing nature's contributions to the economy and integrating these numbers into decision-making processes remains a distant dream. This calls for urgent attention to conventional economic measures such as GDP, which fail to account for the depletion of natural capital and the loss of biodiversity, making development economically unsustainable.

If this is reversed, biodiversity will get its due and be recognized as a non-negotiable in a country’s economic valuation.

• Room for Natural Capital Accounting:

Setting biodiversity for economic valuation can only see the light of the day using natural capital accounting methods. Currently, these continue to remain out of league. This can be overcome with the development of natural capital accounting frameworks. These frameworks will help capture the value of biodiversity and ecosystem services in the nation’s national accounts.

By quantifying the contributions of nature to economic output and well-being, policymakers will be able to assess trade-offs between economic growth and environmental sustainability. This will help set the missing economic equilibrium, particularly in terms of nature and biodiversity.

• Introduction of Incentive Mechanisms:

With a preliminary focus on the conservation and sustainable use of biodiversity, we at the Tribhuvan College of Environment and Development Sciences believe that incentivizing is the way forward.

This becomes all the more significant amidst the current economic periphery. Introductions of this nature can be made with economic instruments such as payments for ecosystem services, biodiversity offsets, eco-certification schemes, and environmental taxes.

Eventually, these can act as silent motivators contributing to the internalization of the biodiversity value while making way for sustainable practices.

• Policy Interventions Synced with Biodiversity Economics:

Tackling biodiversity economics can become a less tedious affair with policy interventions in place. The objective of these policies would be to design a framework that can prevent market failures while making way for thoughtful use of biodiversity.

Even though policy interventions open up a massive canvas for dissecting the economics of biodiversity, it would be ideal to introduce regulations to protect critical habitats, rewards for biodiversity-friendly practices, subsidies for ecosystem restoration, and public awareness campaigns at periodic intervals.

The framework here would see biodiversity economics as a two-way game, making give and take of economic value a prerequisite for multiplying the overall skin in the game.

Biodiversity X Economic Considerations: A Call for the Future

In conclusion, viewing biodiversity through an economic lens reveals its fundamental role as nature's capital, essential for sustaining human well-being and economic prosperity. As highlighted by the Dasgupta Review, failing to account for biodiversity's value in economic decision-making shall put the nation on a lasting economic downfall.

With over 1 million species facing extinction due to human activities, valuing and investing in biodiversity shall not just be an ethical mandate but also an economic necessity. At Tribhuvan College, regarded as one of the leading environmental science colleges in India, we believe that by recognizing the economic benefits of biodiversity, we can forge a path towards inclusive and sustainable development, safeguarding nature and humans for generations. Are you up for it?