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This paper examines the opportunity costs of conserving the forest habitats of the endangered orangutan (Pongo pygmaeus spp.) of Indonesia and Malaysia in the face of a highly profitable alternative land use, the conversion of these habitats for the production of palm oil. It shows that one component of the financial opportunity cost of conserving orangutan habitat, the business opportunity cost (profits foregone), was high in both Malaysia and Indonesia in the case of oil-palm development. It is argued that this would be difficult to offset under the payments-for-ecosystem-services (PES) approach. However, the government opportunity cost of conservation in Indonesia, such as the land-tax revenue foregone by local governments by conserving rather than leasing out orangutan habitats for agricultural use, are sometimes lower than the business opportunity cost of conservation. It is suggested that targeting government opportunity costs to conserve unleased forests could potentially offer lower-cost opportunities for conserving orangutan habitats. If, however, political and institutional realities are taken into account, there might exist another type of opportunity cost of conservation— a political one— that could impede the success of the PES approach. Some oil-palm companies in Borneo offer financial inducements in the form of kickbacks and other types of political donations to government officials to obtain land for growing oil palm. This ‘government decisionmaker’s opportunity cost’ has not been addressed in the PES literature, which typically compares potential ecosystem payments with the commercial profits that would have to be sacrificed as a result of conserving forests. The impact of this political opportunity cost on oil-palm expansion is discussed. It is suggested that solutions to this conservation problem cannot be restricted to the monetary valuation method but must also involve alternative political economic interventions.

Managing the forested landscape in Malaysia and Indonesia for timber extraction while also conserving the endangered orangutan that inhabit some of the remaining forests in this region is a challenge. Heavy logging is a common feature of the Indonesian and Malaysian timber industries. It is profitable but detrimental to the survival of this primate species. A type of logging which appears to be compatible with maintaining orangutans in the forested landscape is light logging. It involves extracting fewer logs and ensures that the logged area is minimally damaged. However, switching to a light logging regime involves a financial opportunity cost, a cost which is an obstacle to the widespread adoption of this type of logging by businesses and the state. This paper reviews the case study of a unique light logging experiment conducted in the Deramakot Forest Reserve, in one of the orangutan’s strongholds, the Malaysian state of Sabah. The Deramakot experiment claims to generate revenue from low-impact logging while also sustaining its population of orangutans. Here, we survey the importance of the timber industry to Sabah, the profitability of the Deramakot scheme, the orangutan conservation aspect of this scheme, and the influence of the politico-bureaucratic factor or public economics on sustaining the domestic light-logging agenda. Then, this paper attempts to answer the question of whether economic returns could be balanced with orangutan conservation given the light and heavy logging regimes, bearing in mind the opportunity costs associated with these. More specifically, using the data that has been made available from the Deramakot case study, this paper employs a mathematical model to analyse whether the foregone profits of pursuing light logging is higher than setting aside strict protected areas while more intense logging the remaining forests, subject to the goal of maintaining a desired orangutan population size. The results reveal that, under certain conditions, the option of conserving the orangutan under mainly light logging is economically more attractive for a scenario involving Sabahan forests than the option of strictly protecting orangutan habitats and heavily logging the forests without significant orangutan populations. This finding contributes to the question asked by conservationists of how forests should be partitioned to satisfy both economic and conservation needs.

The extent to which conservation is feasible is constrained by budgets and the financial sacrifice stakeholders are willing to bear. Therefore a possible objective for conserving a species is to minimise the cost of achieving that stated aim. For example, if a minimum viable population (MVP) of a species is to be conserved, the size and type of habitats reserved for this could be selected to minimise cost. This requires consideration of the comparative (relative) opportunity costs of reserving different land types for conservation. A general model is developed to demonstrate this and is applied to the case of the orangutan. In the ecological literature, recommendations for reserving different types of land for conservation have been based on comparisons of either the absolute economic returns they generate if converted to commercial use or on differences in the density of a species they support. These approaches are shown to be deficient because they ignore relative trade-offs between species population and economic conversion gains at alternative sites. The proposed model for orangutan conservation shows that where land conversion may be impending, the selection of habitats (peat forests or dryland forests or combinations of both) for securing an MVP may in fact be different when comparative costs are factored in than if only absolute values are considered.

The future of the orangutan (Pongo spp.) is far from secure despite the species’ high profile and media attention. The traditional threat to the orangutan has been widespread logging, but the continuing conversion of remaining habitat for oil palm (Elaeis guineensis) cultivation is hastening its extinction in the wild. This situation is driven by a robust global market for palm oil as a vegetable oil and biofuel. In tackling this conservation problem, therefore, economic factors cannot be overlooked. This article analyses these factors and how they curtail effective orangutan conservation. Of significance are the high opportunity costs of orangutan conservation and market failures associated with the public-goods nature of the orangutan’s forest habitat. Conservationists should consider these constraints when formulating remedial action. This article assesses strategies that reduce the opportunity cost of conserving habitat (via supply-side approaches that divert oil palm cultivation away from forests) and enhance the realisable value of orangutan habitat (by capitalising on the demand for non-market values such as carbon storage). It is concluded that the former group of strategies are likely to have limited effect on curtailing deforestation, but with the right institutional policies in place they can act as stopgaps while strategies involving carbon financing and payments for biodiversity develop sufficiently to render habitat retention financially competitive.

Tropical forests are biodiversity-rich but are dwindling at a rapid rate, not only in Southeast Asia but elsewhere also. The result is a loss of natural ecosystems, a reduction in carbon sequestration, and increasing global extinction of wild species, including iconic species. While several developments contribute to the destruction of tropical forests, the main threat comes from their clearing for the purpose of agricultural production, for example in the Amazon Basin for the expansion of the beef industry and soya bean cultivation. In Borneo and Sumatra, the principal threat to tropical forests comes from the expansion of oil palm (Elaeis guineensis) cultivation. This is expected to result in significant biodiversity loss and is a danger to the continuing existence of the iconic orangutan (Pongo pygmaeus). The preferred route for oil palm expansion is by the conversion of lowland tropical forests to plantations. Lowland tropical forests are the prime habitat of the orangutan and this species is especially at risk as a result of oil palm expansion. Two supply-side policies have been suggested in the literature as ways to reduce this expansion and reduce pressure on species such as the orangutan. It has been recommended that Imperata cylindrica grasslands be used to help accommodate future oil palm expansion in Borneo and Sumatra and that emphasis be placed on raising the yield of oil palms. It is hypothesised that this will reduce the demand for clearing tropical forest for the purpose of oil palm expansion. Both of these hypotheses are critically evaluated by means of economic analysis. It is concluded that neither of these policies are likely to be very effective in reducing the clearing of tropical forests in Borneo and Sumatra in order to grow oil palm.

Concentrating on their presence in Borneo, the ecology and conservation of two large Southeast Asian primates, the orangutan Pongo pymaeus and the proboscis monkey Nasalis larvatus are reviewed. The former species occurs only in Borneo and Sumatra and the latter only in Borneo. The comparative threats facing these two endangered primates and their approximate numbers in the wild are put into perspective. The long-term survival of both species is adversely affected by the degradation and conversion of their suitable forest habitat by logging and agriculture, the occurrence of hunting, poaching and forest fires. The effectiveness of measures to conserve these species are discussed and evaluated from the standpoint of economics. It is concluded that informed assessment of the opportunity costs of conserving these species and their habitat is required and better incentives for law enforcement must be created. Properly regulated ecotourism may draw the necessary attention to the plight of these species and may even help fund conservation research. Economics can help identify least, or low, cost opportunities for conserving species as is demonstrated in this article, even if it is not always possible to demonstrate their economic value convincingly.

The management of saltwater crocodiles (Crocodylus porosus) in the Northern Territory is an important component of the State’s wildlife management policy. It encompasses saltwater crocodile control (the removal of problem crocodiles dangerous to humans and livestock), and the regulation of harvesting, farming and ranching of saltwater crocodiles for the production of commercial products. The distribution of saltwater crocodiles and their habitats often extend onto private and communal lands along the coastal belt of the Northern Territory, and therefore are a concern of landholders both Aboriginal and pastoral. This report presents the findings of a study of managers of Northern Territory cattle properties (pastoralists). Their attitudes are surveyed towards saltwater crocodiles on their properties and their views of the Northern Territory Parks and Wildlife Commission’s saltwater crocodile management plan are outlined. This report addresses social, economic and environmental aspects of the issue: pastoralists’ attitudes towards saltwater crocodiles in general, the impact saltwater crocodiles have on their cattle-raising business, their opinions of the Northern Territory Government’s saltwater crocodile plan and its operation, and their views of saltwater crocodile harvesting, its potential as an income earner and its contribution to the conservation of the saltwater crocodile. Opinions of pastoralists about new management schemes such as trophy hunting of saltwater crocodiles are also analysed. A concluding statement ties up the findings of the study and provides a snapshot of the current views of pastoral landholders of saltwater crocodiles and their management in the Northern Territory.

Opinions differ about what types of policies are likely to be most effective in conserving wildlife species. For example, the Convention on International Trade in Endangered Species of Wild Flora and Fauna (CITES) is based on the premise that curbing the commercial use of endangered species favours their conservation, whereas the Convention on Biological Diversity envisages the possibility that such use may contribute to the conservation of species. In Australia, as illustrated in the case of the saltwater crocodile, the governments of the Northern Territory and Western Australia have favoured the latter policy in recent years whereas Queensland has favoured the former approach. The saltwater crocodile management plan of the Northern Territory provides an instructive case study of the consequences of adopting a commercial use strategy to promote wildlife conservation. The methodology used in this study, which involves a survey of crocodile farm managers and managers of cattle properties in the Northern Territory as well as secondary data, is outlined, after providing background on the conservation status of saltwater crocodiles in Australia and the saltwater crocodile management plan of the Northern Territory. In the results section, after outlining the nature and structure of the Northern Territory crocodile farming industry, evidence is presented on whether or not the crocodile management plan of the Northern Territory encourages pastoralists to conserve crocodiles on their properties. This study concludes with a discussion of the overall conservation effectiveness of the crocodile management scheme of the Northern Territory and considers its possible implications for saltwater crocodile management in areas of Asia where the species occurs.

Managing hawksbill turtle populations for use and conservation requires (i) adequate scientific understanding of their population status and dynamics and (ii) consideration of the public’s attitudes to this species. This study employs experimental surveys to assess the Australian public’s attitudes towards the hawksbill turtle, their knowledge of it, their views about its sustainable commercial harvesting, and their support and financial contribution for the species’ conservation. Contingent valuation reveals that the Australian public’s willingness to contribute to the conservation of the hawksbill turtle is high even in comparison to threatened Australian bird and mammal fauna. Most of this stated contribution is based on the intrinsic (non-use) value associated with the hawksbill turtle. It seems that the Australian public will only accept its harvesting if the sustainability of this is assured and its population is more secure. The CITES categorisation of the hawksbill as an Appendix I species hampers the development of techniques for its sustainable use.

Reports experimental results involving 204 members of the public who were asked their willingness to pay for the conservation of the mahogany glider Petaurus gracilis on three occasions: prior to information being provided to them about the glider and other wildlife species; after such information was provided, and after participants had an opportunity to see live specimens of this endangered species. Variations in the mean willingness to pay are analysed. Concerns arise about whether information provision and experience reveal ‘true’ contingent valuations of public goods and about the choice of the relevant contingent valuation measure.

Examines empirically the relative influence of the degree of endangerment of wildlife species and their stated likeability on individuals’ willingness to pay (WTP) for their conservation. To do this, it utilises data obtained from the IUCN Red List and likeability and WTP data obtained from two serial surveys of a sample of the Australian public who were requested to assess 24 Australian wildlife species in each of three animal classes: mammals, birds and reptiles. Between the first and second survey, respondents were provided with extra information about the focal species. This information resulted in the clear dominance of endangerment as the major influence on the WTP of respondents for the conservation of the focal wildlife species. Our results throw doubts on the proposition in the literature that the likeability of species is the dominant influence on WTP for conservation of wildlife species. Furthermore, our results suggest that the relationship between WTP for the conservation of wildlife in relation to their population levels may be more complex and different to that suggested in some of the literature on ecological economics.

This paper surveys a sample of 204 members of the Australian public to determine their attitude to the sustainable commercial harvesting of wildlife generally, and considers their specific support for the sustainable commercial harvesting of each of 24 Australian native species. The general attitude of the sample to wildlife harvesting is related to their attitude to nature conservation. The relationship between respondents’ support for the sustainable commercial harvesting of each of the species and their degree of endangerment based on IUCN Red List rankings is established and found to be an inverse one. Support for the commercial sustainable use of each of the species is compared with the willingness of respondents to pay for their conservation. Support for sustainable commercial harvesting of species is found to be inversely related to the willingness of respondents to pay is for a particular species’ conservation. In turn, this willingness to pay is found to rise with the degree of endangerment of species. While the likeability of a species has some influence on whether there is support or not for its commercial harvesting, it does not seem to be the predominant influence— the degree of endangerment of a species appears to be the major influence here. Even so, this does not imply majority support for the harvest of all species that are not threatened; rather, majority support for harvest was observed only for some species known to be abundant. None of the species that appear in the Red List have majority support for harvesting. Implications are outlined of the results for the policy of promoting wildlife conservation by means of sustainable use.

This paper reports the results of an experiment involving a sample of 204 members of the public who were assessed on three occasions about their willingness to pay for the conservation of the mahogany glider. They were asked this question prior to information being provided to them about the glider and other focal wildlife species; after such information was provided, and finally after participants had had an opportunity to see live specimens of this glider. The mean willingness to pay of the relevant samples are compared and found to show significant variations. Theories are considered that help explain the dynamics of these variations. Serious concerns are raised about the capacity of information provision to reveal ‘true’ contingent valuations of public goods.

This paper investigates factors influencing the public’s support for conservation of tropical reptile species in a focal group drawing on Australian data and an experiment involving a sample of the Australian public. The influences of the likeability of the species, their degree of endangerment, ethical considerations as well as knowledge are examined and found to be important. Likeability is found to be much less important than the existing literature suggests. This is highlighted by comparing the likeability of the focal group of reptiles with that for a group of birds and a group of mammals with differences in willingness to pay for their conservation.

We surveyed a sample of 204 individuals selected from the public in Brisbane, Australia, to ascertain the extent to which they like or dislike 24 species of wildlife present in tropical Australia. The species belong to three classes: mammals, birds and reptiles. We calculated likeability indices for each of these species. We also asked respondents if they favoured the survival of each of these species and so the percentage of respondents favouring survival of each of these species could be calculated. Thus, using linear regression analysis, the percentage of respondents favouring survival of each of the species was related to their indices of likeability. In addition, the data enables the average likeability of species in the three classes (mammals, birds and reptiles) to be compared with the average support for survival of species in each of these three classes. As a result, we are able to assess how important stated likeability seems to be for preferences for survival of species, and to reconsider the hypothesis in the literature that there is likely to be more public support for the survival of mammals than for birds than for reptiles.

Five species of reptiles present in tropical Australia are considered in this study. These are the hawksbill turtle (Eretmochelys imbricata); the northern long-necked turtle (Chelodina rugosa); the taipan snake (Oxyuranus scutellatus); the freshwater crocodile (Crocodylus johnstoni); and the saltwater crocodile (Crocodylus porosus). Background information is provided on the ecological status of each of these species and after outlining their human use (including commercial use) and management in Australia, an experimental survey method is introduced and results from its application are reported and analysed. The survey method involves two serial surveys of a sample of 204 Brisbane (Australia) residents. The first survey is based on the initial knowledge of the respondents of the reptile species and for the subsequent survey the knowledge available to participants about these species is experimentally increased. These surveys provide information on the amount of knowledge possessed by this sample of the public about the relevant reptile species, the respondents’ attitudes to these species (including their attitudes to commercial use), respondents’ support for the survival of these reptiles and for their conservation. Furthermore, data is gathered from the surveys on the comparative amount respondents’ state they would be prepared to contribute to support the conservation of each of these focal reptile species. Respondents are asked to assume that they are given $1,000 and that this can only be allocated to the conservation of these reptiles. Later, however, they are also given the option to donate this money to any charity concerned with human welfare. The contingent valuation data for each of the reptile species are used to isolate factors that influence the comparative allocation of conservation funds to each of the relevant reptile species. Factors considered include the extent of the respondents’ knowledge of the species, the stated degree to which respondents’ reported that they liked or disliked the species, and ethical views of the respondents. Implications of the findings for the theory of economic valuation of wildlife species and for of the focal reptile species in Australia are discussed in concluding this chapter.

Reviews the ecological status of the mahogany glider and describes its distribution, habitat and abundance, life history and threats to it. Three serial surveys of Brisbane residents provide data on the knowledge of respondents about the mahogany glider. The results provide information about the attitudes of respondents to the mahogany glider, to its conservation and relevant public policies and about variations in these factors as the knowledge of participants of the mahogany glider alters. Similarly data is provided and analysed about the willingness to pay of respondents to conserve the mahogany glider. Population viability analysis is applied to estimate the required habitat area for a minimum viable population of the mahogany glider to ensure at least a 95% probability of its survival for 100 years. Places are identified in Queensland where the requisite minimum area of critical habitat can be conserved. Using the survey results as a basis, the likely willingness of groups of Australians to pay for the conservation of the mahogany glider is estimated and consequently their willingness to pay for the minimum required area of its habitat. Methods for estimating the cost of protecting this habitat are outlined. Australia-wide benefits seem to exceed the costs. Establishing a national park containing the minimum viable population of the mahogany glider is an appealing management option. This would also be beneficial in conserving other endangered wildlife species. Therefore, additional economic benefits to those estimated on account of the mahogany glider itself can be obtained.