Encyclopedia of Biodiversity (Third Edition) - Biodiversity as a Commodity

Biodiversity has great economic value and importance, yet is it hard to capture these properties in conventional markets. This is largely because of the public good nature of biodiversity, and the related difficulties in establishing property rights in the services that it provides. This entry reviews the economic importance of biodiversity and the services that it provides to the rest of the economy, and then considers the policy options available for better conservation of biodiversity. These include both market-based approaches (such as bundling biodiversity with conventional goods to enhance their value) and regulatory approaches such as protected areas and the endangered species act.