Wednesday, March 31, 2010

What can we do to secure sustainable sources of funding for protected area stewardship?

In my last blog, I began by discussing the impossible expectations now being thrust on protected areas—they are growing in size and diversity. I ended up by suggesting that depending upon tourism to finance protected area stewardship was unrealistic on both philosophical and practical grounds. Expecting one use to support the stewardship of areas that provide a diversity of services and benefits leads to unrealistically high entrance and user fees, empowers one economic use and limits a sense of ownership of the citizens who ultimately benefit from protected areas.


In one sense, this issue can be partly resolved through more comprehensive programs of conservation that extend beyond the boundaries of protected areas. Broader conservation efforts lead to greater citizen involvement and awareness of the importance of conservation, more equitable access to ecosystem services and benefits and a higher quality of life. This all means that we decrease our reliance on protected areas as the source of ecosystem services and benefits.

Of course, this is a long term strategy. What can we do in the short term to develop sustainable financing mechanisms. Well, one way is for governments to market services and benefits that flow from protected areas. Such services as production of clean water, for example, could be sold in a marketplace so that those who benefit from this service would pay for it. By taxing transactions in the marketplace, governments could secure funding that would help pay for stewardship. This might work, but for a large number of protected areas, the flow of services and benefits might be too small to generate significant revenue.

Another mechanism might be to tax natural resource consumption—say wood, fiber, minerals—and to place the revenues in a trust or fund for stewardship purposes. Stewardship would emphasize conservation and use of renewable resource commodities, reducing pressures on protected areas.

A third mechanism might be to charge fees directly to users, but this would probably end up being a fee on tourism and visitation, as it is the most significant economic activity taking place within most protected areas. Another approach to taxing touristic activity would be to place a sales tax on certain purchases—lodging, food, transportation—near the protected area. Revenues would go to stewardship. In Montana, where I live, there is no statewide sales tax, but tourism dependent communities are allowed under state law to tax “luxury” items. The revenues from these taxes go to improve community infrastructure or to property tax relief.

A fourth mechanism is to fund management from the government’s general fund, monies raised from taxes, fees and duties. This is the way funding now occurs in many places, but changes in priorities have tended to reduce this funding source over time.

As I write this, it seems to me that there is no easy way, no silver bullet, no magic pill for sustainable funding of protected areas. Now, I am sure that thousands of reports, studies, queries and audits have been written about this issue. But they seem to have been ineffective, as we are still confronted with this issue? Why? Why can’t we come up with some good alternatives for sustainable funding? Is it a matter of our own creativity? Is it a matter of not understanding the consequences? Or is it a matter of political will?

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