Fiscal incentives for Australian bushland

Abstract

The clearing of over 80% of the native vegetation from Australian agricultural areas has contributed significantly to the degradation classification applied to more than half this land. Soil erosion, siltation, and salinity damage continue to increase yearly. This situation not only threatens the productivity of the farm sector but has contributed to the estimated loss of 78 species of native flora, endangerment of an additional 2206 species, and the loss of 20 species of Australia's marsupials.

Private returns diverge from social returns because the action (or inaction) of farmers has an impact upon others, both now and in the future. There is justification, therefore, for the public sector to intervene on behalf of society in an attempt to influence private decision making for the social good. This article argues for increased incentives from the public sector in Australia to encourage the voluntary cooperation of farmers to improve the balance between development and conservation. In contrast to the essentially temporary nature of man-made measures such as flood-mitigating capital works, increasing the area set aside to native bushland offers scope for the permanent stewardship of the resource—land.