Toward Optimal Environmental Policy: The Case of Biodiversity Conservation

Introduction .................................................... 244 I. The Context for Policymaking .......................... 247 A. The Importance of Biodiversity Conservation ...... 247 B. Pressures on Biodiversity ........................... 248 C. Australia's Biodiversity Record ..................... 249 D. Biodiversity's Special Features ...................... 251 E. Evaluation Criteria ................................. 252 II. Towards an Optimal Policy Mix ......................... 253 A. Motivational and Informational Mechanisms and Instrum ents ......................................... 255 1. Motivational Instruments ....................... 256 2. Informational Instruments ...................... 257 B. Voluntary Instruments .............................. 259 C. Property Rights and Price-Based Instruments ...... 263 D. Regulatory Instruments ............................. 271 E. The Role of Precautionary Regulation .............. 274 F. Mixing Voluntary, Property Right, Price-Based, and Regulatory Approaches ............................. 276 III. D esign Criteria ......................................... 279 A. Designing for Precaution ........................... 280 B. Preference for Underlying Causes .................. 281