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D. P. McCarthy, P. F. Donald, J. P. W. Scharlemann, G. M. Buchanan, A. Balmford, J. M. H. Green, L. A. Bennun, N. D. Burgess, L. D. C. Fishpool, S. T. Garnett, D. L. Leonard, R. F. Maloney, P. Morling, H. M. Schaefer, A. Symes, D. A. Wiedenfeld and S. H. M. Butchart, “Financial Costs of Meeting Global Biodiversity Conservation Targets: Current Spending and Unmet Needs,” Science, Vol. 338, No. 6109, 2012, pp. 946-949. doi:10.1126/science.1229803

has been cited by the following article:

• TITLE: A Macroeconomic Model of Biodiversity Protection

  AUTHORS: David Martin

  KEYWORDS: Biodiversity Protection; Natural Capital; Conservation; Macroeconomics; Sustainable Development

  JOURNAL NAME: Theoretical Economics Letters, Vol.3 No.5A, September 18, 2013

  ABSTRACT: Many biodiversity researchers have responded to the financial constraints faced by policy makers to develop models based upon the “Noah’s Ark” metaphor, implying that society can save only a limited amount of biodiversity. Unfortunately, as Herman Daly (Land Economics, 1991) pointed out, such microeconomic rules can allow an ark to sink albeit in some optimal fashion. So, I step back to look at the macroeconomic question, how big should the ark be? I start with Norgaard’s (Ecological Economics, 2010) framework, which is based upon the concept of a production possibility frontier combined with a sustainability criterion. I develop a model from that starting point by shifting to an isoquant framework while maintaining the strong sustainability criterion. I demonstrate how this model allows for identifying and addressing the key biodiversity protection policy criteria at the macroeconomic level. One key conclusion from this modeling is that Daly’s analysis remains remarkably prescient.