Grassland biodiversity can pay

Seth Binder, Forest Isbell, Stephen Polasky, Jane A. Catford, David Tilman

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

The biodiversity-ecosystem functioning (BEF) literature provides strong evidence of the biophysical basis for the potential profitability of greater diversity but does not address questions of optimal management. BEF studies typically focus on the ecosystem outputs produced by randomly assembled communities that only differ in their biodiversity levels, measured by indices such as species richness. Landholders, however, do not randomly select species to plant; they choose particular species that collectively maximize profits. As such, their interest is not in comparing the average performance of randomly assembled communities at each level of biodiversity but rather comparing the best-performing communities at each diversity level. Assessing the best-performing mixture requires detailed accounting of species' identities and relative abundances. It also requires accounting for the financial cost of individual species' seeds, and the economic value of changes in the quality, quantity, and variability of the species' collective output-something that existing multifunctionality indices fail to do. This study presents an assessment approach that integrates the relevant factors into a single, coherent framework. It uses ecological production functions to inform an economic model consistent with the utility-maximizing decisions of a potentially risk-averse private landowner. We demonstrate the salience and applicability of the framework using data from an experimental grassland to estimate production relationships for hay and carbon storage. For that case, our results suggest that even a risk-neutral, profit-maximizing landowner would favor a highly diverse mix of species, with optimal species richness falling between the low levels currently found in commercial grasslands and the high levels found in natural grasslands.

Original languageEnglish (US)
Pages (from-to)3876-3881
Number of pages6
JournalProceedings of the National Academy of Sciences of the United States of America
Volume115
Issue number15
DOIs
StatePublished - Jan 1 2018

Fingerprint

Biodiversity
Ecosystem
Economic Models
Seeds
Carbon
Economics
Costs and Cost Analysis
Grassland

Keywords

  • Agriculture
  • Biodiversity
  • Ecological production function
  • Multifunctionality
  • Optimal management

PubMed: MeSH publication types

  • Journal Article
  • Research Support, Non-U.S. Gov't
  • Research Support, U.S. Gov't, Non-P.H.S.

Cite this

Grassland biodiversity can pay. / Binder, Seth; Isbell, Forest; Polasky, Stephen; Catford, Jane A.; Tilman, David.

In: Proceedings of the National Academy of Sciences of the United States of America, Vol. 115, No. 15, 01.01.2018, p. 3876-3881.

Research output: Contribution to journalArticle

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