Supporting on-farm biodiversity conservation through debt-for-conservation swaps: Concept and critique

Debt-for-nature swaps have been extensively applied in an international context to achieve nature conservation objectives in developing countries. The swap involves alleviating a country's external debt burden in exchange for that country investing the equivalent amount of resources into specified nature conservation programs or activities. This paper explores to what extent the debt-swap concept might be applicable and relevant in a domestic setting—by alleviating farm debt in return for on-farm conservation activities. The case for relevance of the instrument is argued on the basis of empirical data from a grazing region in northern Australia. Stakeholders and participants are identified for debt-for-conservation swaps and details for instrument design discussed. Results from a grazier survey and lessons from a similar incentive in the USA support a critique of the incentive instrument against a range of policy criteria.