conservation corridors. The conservation concession model thus can comple-
ment sustainable agroforestry efforts in Bahia.
The two scenarios just sketched out suggest that the search for solutions in
areas where agroforestry and biodiversity may collide can benefit from tools to
finance set-asides and retirement of cultivated plots as a conservation service.
Particularly in areas where economic prospects for cultivation are dim, such
tools can prove a welcome source of relief to local stakeholders and are cost-
effective from a conservation perspective. In essence, set-asides and retirement
involve direct compensation for choosing conservation rather than cultivation.
The conservation concession approach offers a conceptual model for design-
ing such compensation mechanisms.
Conservation Concessions in Practice:
Issues and Considerations
Biodiversity is under imminent threat from a wide range of activities through-
out the world, and it would be unreasonable to burden agroforestry, conserva-
tion concessions, or any other single tool with the expectation of addressing
them all. The conservation concession approach should not compete with
agroforestry but instead should serve as a complementary tool, particularly in
areas where sustainable agroforestry is unfeasible for institutional or financial
reasons. In areas where farming may be a sunset industry, conservation con-
cessions can help the transition from cultivation to biodiversity protection by
financing retirement of cultivated areas. Finally, in areas where agroforestry or
other interventions in productive systems are deemed necessary, the two
approaches can work hand in hand: a conservation concession can help to sta-
bilize the agricultural frontier by designating set-asides for protection, in
return for social investments in changes in agricultural practices in remaining
areas.
Agroforestry remains a second-best option as a tool for biodiversity conser-
vation. Though potentially less detrimental than other forms of land use, agro-
forestry systems entail an environmental disturbance that does not necessarily
result in a stable spatial equilibrium. The robustness of agroforestry systems
over time in the face of changing agroclimatic and economic conditions
remains an open question. Market mechanisms cannot be relied on to induce
adoption of sustainable agroforestry systems because discount rates are high
and international markets for green-labeled products are limited. Moreover,
the more financially attractive sustainable agroforestry becomes, the stronger
the incentives to convert remaining natural habitat become (see Chapter 5,
this volume). Fundamentally, agroforestry rewards farmers for increasing
physical demands on ecosystems, perhaps less so than under other forms of
land use, but certainly relative to conservation of natural habitat. By comple-
menting sustainable agroforestry efforts with conservation concession payments,
- Achieving Biodiversity Conservation Using Conservation Concessions 145