Market-based conservation: Aligning static theory with dynamic systems

This paper provides a broad evaluation of the implications of market-based conservation (MBC) strategies from economic, social and ecological perspectives. After reviewing the economic theory that underlies MBC initiatives, we develop a list of approaches that have been labeled as "market-based", and categorize them according to the degree to which they are free-standing markets or require the intervention of the state. A multidisciplinary critique reveals the potential problems and pitfalls of MBC are due to a lack of ability to deal with dynamic systems in the real world. The dynamics of these three systems can undermine the intended goals of MBC.