RT Journal Article
SR Electronic
T1 Will Ecosystem Services Attract Investors?
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 111422-0097R
DO 10.3368/le.100.2.111422-0097R
A1 Sims, Charles
A1 Blachly, Ben
A1 Warziniack, Travis
YR 2023
UL http://le.uwpress.org/content/early/2023/10/09/le.100.2.111422-0097R.abstract
AB An unanswered question in conservation economics is how to leverage impact investing for the provision of ecosystem services. We develop and apply a general conceptual model of a diversified ecosystem service portfolio to highlight two key insights about which ecosystem services will attract impact investing. First, generating a positive expected return via markets or payments for ecosystem services is a necessary but not sufficient condition to elicit impact investment in ecosystem services. Second, ecosystem services can exhibit a novel diversification value that increases the value of the ecosystem service asset to an institutional investor.