Economic incentives at HL: Economic incentives for conservation — like payments for ecosystem services — are taught the same way for SL and HL. This is one place where the HL focus on environmental economics fits naturally, so it's worth getting really solid as an HL student.
No HL-only material to add here — just understand how economic incentives protect nature.
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💰 Economic incentives: PES, ecotourism, certifications
Big idea: Forests recover faster when people can earn money by keeping forests standing, not by clearing them.
1) Payment for Ecosystem Services (PES)
Payment for Ecosystem Services (PES) = paying landowners to conserve or replant forest.
- Reduces deforestation by making conservation profitable
- Encourages reforestation/restoration
- Links to ecosystem services
2) Ecotourism
Ecotourism can fund parks and create jobs, so forests gain economic value alive.
- Income for communities → support conservation
- Revenue funds park management/enforcement
- Forests become an asset rather than land to clear
3) Certifications (bonus example)
Certification can reduce pressure to clear forests by rewarding sustainable practices.
- Incentive: access to higher-value markets
- Encourages sustainable forestry/agriculture
- Can reduce deforestation over time
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IB-style question — Economic incentives for conservation
Payments for ecosystem services (PES) have been proposed to incentivise farmers in the Monteverde cloud-forest corridor of Costa Rica to maintain forest buffers on their land rather than clear them for cattle pasture. Suggest two methods that could be used to incentivise local farming communities to actively support this forest conservation effort. [2]
How to answer it, step by step
- Method 1 — Direct payment (PES)
• Government/NGO pays farmers per hectare of intact forest retained, making conservation financially competitive with cattle ranching. - Method 2 — Ecotourism revenue sharing
• Local communities receive a share of income from birdwatching/wildlife tours, linking intact biodiversity directly to household income.
Final answer
Both methods must show how communities benefit financially — answers that only describe protecting wildlife without incentivising people earn no credit.
HL. HL.b: Natural capital valuation — intact cloud forest provides genetic resources (bio-prospecting) and watershed services valued at market rates; economic modelling can demonstrate that forest is worth more standing than cleared for beef production.