under certain conditions, is the potential to stabilize the spatial proliferation
of production systems, thus protecting forest borders (see Chapter 5, this vol-
ume).
Any degree to which agroforestry can halt or slow shifting agricultural
frontiers offers a valuable contribution to biodiversity conservation. Agricul-
tural commodity production drives deforestation as conventional techniques
for a broad range of crops exhaust soil resources; under these techniques,
declining productivity on aging plots leads growers to establish new plots in
areas of intact habitat (Angelsen and Kaimowitz 2001; see also Chapter 6, this
volume). However, agroforestry land uses also can induce deforestation in a
similar dynamic, as when declining productivity of cocoa trees leads farmers
to establish new plots in pristine forests (Petithuguenin 1995; Ruf 1995).
Even if agroforestry supports greater biodiversity than other cultivation sys-
tems, the greatest ecological benefits from agroforestry are derived if produc-
tion is concentrated on already cleared lands; if forests are being disturbed by
the introduction of agroforestry, then alternatives that lead to more direct pro-
tection are warranted.
Conservation concessions offer one such alternative. A conservation con-
cession directly compensates local stakeholders and relevant government bod-
ies for providing expanded conservation services. National resource authorities
and local resource users protect natural ecosystems in return for a steady
stream of structured investments under a negotiated agreement between local
stakeholders, the host government, and investors such as environmental con-
servation organizations or private companies seeking environmental offset
opportunities. For instance, a conservation concession might replace cultiva-
tion altogether, or the agreement might designate certain areas for agroforestry
and set aside others exclusively for conservation. Negotiated elements of the
agreement include the size of payments, the duration of the payment, the
investment portfolio where these payments will be directed, and norms and
guidelines for monitoring and enforcing natural resource protection.
Components of a Conservation Concession
Agreement
A conservation concession involves a long-term contract, typically lasting
between 25 and 40 years, that provides periodic payments from an endowed
fund in return for the conservation of a specified area. The payments in part
reflect the opportunity cost of not exploiting the natural resources in the area,
addressing issues of lost employment, government revenue, and foreign
currency capture. Payments can be negotiated to reflect other factors, such as
government administration and enforcement burdens surrounding the con-
cession, but the basis of any payment should be the economic value of
exploitation forgone by conserving the area. Because financial flows do not
- Achieving Biodiversity Conservation Using Conservation Concessions 137