Landholders Willingness to Participate in Environmental Offsets

The NSW government (e.g. DEC, DIPNR) is increasingly turning to MBIs to address environmental and resource allocation issues. Markets are developing for commodities such as water and carbon, this will increase in the future to include salt, nutrients and biodiversity etc. For these markets to develop there needs to be among other things; improved quality and flow of information; identification of buyers and sellers; a defined product; and a means of linking buyers to sellers. At present limitations in these ensure that the transaction costs are too high and buyers are unable to link with sellers. The NSW EPA, in particular, is using case studies to obtain experience in the design and implementation of salinity offsets. A recent CSIRO study 'Balancing Act' identified extensive grazing systems as having a negative environmental affect. MBIs have the potential to provide commodity options (in the form of credits or offsets) for producers in these areas. The MDBC is developing a salt credit system which is not yet appropriate for small producers. MBIs are becoming part of regulatory environment and have the potential to play a major role in improving the environment, providing alternative income streams and encouraging viable development. This study will;

1. Identify buyers and sellers of salinity/biodiversity etc credits/offsets in the extensive grazing systems of NSW;

2. Estimate the willingness to accept payments to produce credits/offsets;

3. Through consultation with stakeholders identify the institutional approach that will facilitate the design and implementation of offset and credit markets.

Related publications

Landholders Willingness to Participate in Environmental Offsets - Project Brochure
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Completed in 2007

Funded by: Environmental Trust (DEC)

Contact: Ian Patrick