New Wine In Old Bottles: A Brief History
Of The Use Of Economic Incentives
In Natural Resources Management
Author(s)
V. Bjornlund & H. Bjornlund
Abstract
During the last two decades economic instruments have increasingly been
introduced around the world to reverse the process of land and water
degradation. This has been presented as a policy change and in the context of
water management has been subject to heated debate. However, economic
instruments have been used for more than 5000 years to achieve government
policy objectives. Historically this has often resulted in environmental
degradation and in some instances to the decline or collapse of cultures.
Economic instruments are therefore nothing new, what is new is that the policy
objective has changed from providing incentives to expand production, clear
forest, increase water use, drain wetlands etc to now providing incentives to
reduce resource use. While the expansionary use of incentives has mainly been
seen as a positive among resource users and their communities, the new direction
is challenging and threatening both for resource users and the communities
depending on them as the economic engine for jobs, services and tax revenue.
Keywords: economic instruments, economic incentives, water, land.
1 Introduction
Since the Rio Convention there has been increased emphasis on the use of
economic instruments and incentives for the management of water and other
natural resources. This represents an acknowledgement of the scarce nature of
these resources and the growing environmental impact of their extraction. The
use of economic instruments has been presented as a major shift in policy
direction, as if it is something new. In the context of water management this
Keywords
economic instruments, economic incentives, water, land
Related Book
Other papers in this volume
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