Examining Participation in and Supply of Private Land for Voluntary Conservation in Australia’s Tropical Savannas: A Discrete-Continuous Choice Experiment

Abstract

Australia’s tropical savannas are a vast landscape of grasslands with high biodiversity value. Effective biodiversity conservation in this landscape requires private contributions to complement the under-sized formal conservation estate. The landscape is dominated by rangelands, in particular extensive cattle grazing on pastoral stations which typically measure hundreds or thousands of square kilometers. The paper reports the results of a discrete–continuous (or “two-stage”) choice experiment conducted with savanna pastoralists. A discrete choice experiment explored the stated willingness to participate in two long-term conservation strategies: (i) total exclusion of cattle from designated parcels of land with management of that land for biodiversity, and (ii) the implementation of rotational grazing systems governed by the requirements of biodiversity, among other contractual attributes. An extension question asked about the area that respondents were willing to supply and a contract they were willing to accept. Double-hurdle (type II tobit) modelling was used for combined data analysis. The results show that potential participation in voluntary conservation contracts by pastoralists is primarily influenced by contract attributes, namely, the conservation action required, the stewardship payment received, contract length and whether the contract contains flexibility provisions. Land productivity is also significant. The level of stewardship payment required to incentivize participation in the conservation of grasslands is in line with opportunity costs, in particular option value. The amount of land that pastoralists are willing to supply is determined by the conservation payment as well as farm size and intrinsic motivation. This research illustrates strategies for integrating biodiversity conservation into cattle grazing operations in Australia’s tropical savannas, which are applicable to grasslands globally. It provides data of an economic nature to inform the development of multi-tenure biodiversity conservation strategies.