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73
THE FINANCIAL BENEFITS OF
ECOSYSTEM RESTORATION –
GREEN ECONOMY
An analysis of 89 major ecosystem restoration projects worldwide concluded that ecologi-
cal restoration increased provision of biodiversity and ecosystem services increased by 44
and 25%, respectively (Benayas
et al
., 2009). Increases in ecosystem services and biodiver-
sity were positively related. In a survey of managers of 317 river restoration projects in the
US, nearly two-thirds believed the projects to be completely successful. At the same time, a
series of investigations have shown extraordinary high willingness to pay and support for
restoration in certain public questionnaires, up to 78% of the interviewees, suggesting high
awareness and low risk for these investments in terms of public feedback (Brander
et al
.,
2006; Cao
et al
., 2009; Dehghani
et al
., 2010; Sodhi
et al
., 2010).
Biome/
Ecosystem
Coral reefs
Coastal
mangroves
inland wetlands
Lakes/rivers
tropical forests
other forests
Woodland/shrubland
Grasslands
Typical cost of resto-
ration (high scenario)
USD/ha
542,500
232,700
2,880
33,000
4,000
3,450
2,390
990
260
Est. annual benefits from
restoration (avg. scenario)
USD/ha
129,200
73,900
4,290
14,200
3,800
7,000
1,620
1,571
1,010
Net present value of
benefits over 40 years
USD/ha
1 ,166,000
935,400
86,900
171,300
69,700
148,700
26,300
32,180
22,600
Internal rate
of return
%
7%
11%
40%
12%
27%
50%
20%
42%
79%
Benefit/cost
ratio
Ratio
2,8
4.4
26.4
5.4
15.5
37.3
10.3
28.4
75.1
Table 4:
Estimates of costs and benefits of restoration projects in different biomes
Source: TEEB, 2009. Please note that there is substatial uncertainty with regard to these numbers. Updated figures are expected to be available by 2010/11.