One of the key elements of the Strategic Plan on Biodiversity Conservation
and the Aichi Targets adopted by the Conference of Parties in the Tenth Session at
Aichi Nagoya has been the issue of resource mobilization for Biodiversity
Conservation. Resource mobilization for biodiversity conservation calls for deployment
of economic instruments that mobilize resources and /or secure corrective behavior that
facilitates biodiversity conservation in mega-diversity countries such as India. The
paper looks at the concept of economic incentives and its role in biodiversity
conservation through creative use of economic instruments. The backdrop chosen for
the analysis is India. After delving into the different types of economic incentives in
relation to their biodiversity impacts, the paper looks at how different fiscal and non
fiscal instruments, including taxes, cess and related imposts can be combined with price
and non price incentives and dedicated funds to create conditions for promoting
conservation and sustainable utilization of biodiversity resources. The main argument
advanced in this paper is that, apart from dedicated environmental fiscal and non fiscal
instruments, it is possible to utilize existing fiscal instruments, including conventional
direct and indirect taxes, by re-orienting their focus to securing positive biodiversity
outcomes. The paper summarizes its findings by linking these concepts to valuation
exercises conducted under the auspices of The Economics of Ecosystems and
Biodiversity (TEEB) in India and elsewhere and the proposed novel trading instruments
such as Biodiversity Off sets proposed in various economic and environmental forums.
Keywords: Biodiversity conservation, biological resources, cess, economic
instruments, financing mechanisms, impost, India, indirect taxes, seigniorage,
sops, tax.
