Second, the number of farmers and their degree of organization in coopera-
tives or collectives influence the costs of negotiating and transacting an agree-
ment.
As a rule, transaction costs incurred in negotiating a conservation conces-
sion are lower, on a per hectare basis, for large areas with few stakeholders. The
degree to which transaction costs increase in scenarios such as those consid-
ered earlier, with numerous farmers on small plots, remains to be seen. In any
case, over the long term the total costs of a conservation concession are dom-
inated by compensation payments. Because payments reflect opportunity
costs, situations in which farmers in agroforestry systems are struggling to
break even suggest highly cost-effective conservation opportunities in the
form of set-asides or plot retirement. Additionally, conservation concessions in
areas with marginal economic prospects may yield promising opportunities
for co-financing and coordination with income support and poverty allevia-
tion initiatives of governments and nongovernment development organiza-
tions.
Conclusions
The preceding discussion suggests that a range of issues, some predictable and
others unanticipated, will accompany the implementation of conservation
concessions in any given context. From a global perspective, the applicability
of the conservation concession approach depends on cost considerations and
conservation priorities. In some areas the approach is prohibitively expensive,
and in others the opportunity cost of conservation may be low but biodiver-
sity values limited. The configuration of stakeholders and property rights also
is a crucial determinant of suitability of a target area for the approach. Ulti-
mately, appropriate design of compensation, monitoring, and enforcement
components of a conservation concession rests on a thorough analysis of stake-
holder needs and interests, from local communities to regional authorities and
national governments. However, the inherent flexibility of the framework
presents an invitation for creative adaptation of the model to locally specific
circumstances. In many situations in which enhanced protection entails
engagement with local communities to explore alternative cultivation forms,
the joint application of conservation concessions and sustainable agroforestry
programs may yield a powerful answer to the economic, social, and institu-
tional forces that threaten biodiversity around the globe.
References
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