46
3 Economic Framework of Conservation
Besides the attempt to quantify the value of PGRFA, it is important to identify
the beneficiaries of PGRFA conservation. Apart from the breeders who are
utilizing PGRFA as a substantial input for their breeding activities, farmers are
benefiting from the agrobiodiversity through new, improved seed. Furthermore, all
consumers are benefiting through stable or decreasing food price development due
to lasting yield increases.
So far, often no price is charged for the utilization of PGRFA through breeders.
Furthermore, hardly any remuneration is offered, either to farmers who are
maintaining PGRFA diversity in their fields, or to the ex situ conservators, who
are involved in the first processing of genetically coded information derived from
PGRFA. Although PGRFA are a public good, it is assumed that there are three
different conservation levels. Following the private benefit expectations, the
individual farmer will maintain a specific level of PGRAF diversity in his or her
fields, which is different from the optimal PGRFA diversity at a country level.
Moreover, there is a different optimal diversity level in a single country than the
expected social benefit at an international level.
Because of the different levels of optimal agrobiodiversity to be conserved,
there is a need for adequate incentives at the different levels. Specific farmers may
have to be provided with incentives by the national government to maintain or
even to increase a certain diversity level. In addition to this, countries may have to
be stimulated in the international interest to increase the level of conserved
agrobiodiversity beyond their optimum
20 • Adequate instruments have to be found
for both incentives. Institutional incentives, the internalization of external effects,
as well as economic incentives, the compensation for maintaining
agrobiodiversity, may be necessary.
3.2
Economic Valuation of Environmental Goods at a
National Level
The process of expanding the measure of wealth of a country to include natural
and institutional capital as well as human resources besides produced assets is
challenging economists as well as being caused by the increased economic interest
in natural resources. Especially in developing countries with a high natural capital
stock, economic growth in terms of GDP is challenged today by the question
whether this growth was achieved by drawing down the stock of national natural
resources. To arrive at a nation's total capital stock, the decline of natural
resources and the degradation of the environment has to be included, estimating
the environmentally adjusted net domestic product (EDP) (Lutz, 1993). This
20
The indicators for defining a PGRFA-rich ("agrobiodiversity-rich") country are the amount of
accessions stored in ex situ collections (more than 10,000 accessions) as well as the fact
whether the specific country is part of one of the 8 gene centres. This may be a sufficient
classification as long as comprehensive inventories concerning the existence of landraces in
situ are still missing.
3 Economic Framework of Conservation
Besides the attempt to quantify the value of PGRFA, it is important to identify
the beneficiaries of PGRFA conservation. Apart from the breeders who are
utilizing PGRFA as a substantial input for their breeding activities, farmers are
benefiting from the agrobiodiversity through new, improved seed. Furthermore, all
consumers are benefiting through stable or decreasing food price development due
to lasting yield increases.
So far, often no price is charged for the utilization of PGRFA through breeders.
Furthermore, hardly any remuneration is offered, either to farmers who are
maintaining PGRFA diversity in their fields, or to the ex situ conservators, who
are involved in the first processing of genetically coded information derived from
PGRFA. Although PGRFA are a public good, it is assumed that there are three
different conservation levels. Following the private benefit expectations, the
individual farmer will maintain a specific level of PGRAF diversity in his or her
fields, which is different from the optimal PGRFA diversity at a country level.
Moreover, there is a different optimal diversity level in a single country than the
expected social benefit at an international level.
Because of the different levels of optimal agrobiodiversity to be conserved,
there is a need for adequate incentives at the different levels. Specific farmers may
have to be provided with incentives by the national government to maintain or
even to increase a certain diversity level. In addition to this, countries may have to
be stimulated in the international interest to increase the level of conserved
agrobiodiversity beyond their optimum
20 • Adequate instruments have to be found
for both incentives. Institutional incentives, the internalization of external effects,
as well as economic incentives, the compensation for maintaining
agrobiodiversity, may be necessary.
3.2
Economic Valuation of Environmental Goods at a
National Level
The process of expanding the measure of wealth of a country to include natural
and institutional capital as well as human resources besides produced assets is
challenging economists as well as being caused by the increased economic interest
in natural resources. Especially in developing countries with a high natural capital
stock, economic growth in terms of GDP is challenged today by the question
whether this growth was achieved by drawing down the stock of national natural
resources. To arrive at a nation's total capital stock, the decline of natural
resources and the degradation of the environment has to be included, estimating
the environmentally adjusted net domestic product (EDP) (Lutz, 1993). This
20
The indicators for defining a PGRFA-rich ("agrobiodiversity-rich") country are the amount of
accessions stored in ex situ collections (more than 10,000 accessions) as well as the fact
whether the specific country is part of one of the 8 gene centres. This may be a sufficient
classification as long as comprehensive inventories concerning the existence of landraces in
situ are still missing.