Land retirement: a biodiversity policy for the rangelands of Western N.S.W.

In this article we examine land retirement as a biodiversity policy option for the rangelands of Western NSW, a region seriously under-represented in biodiversity provision. We argue that the use of policies that rely on moral suasion, education and minimal costsharing will not yield the level of on-farm biodiversity provision demanded by society. Instead, a much greater commitment to the use of monetary incentives to induce the voluntary cooperation and production of biodiversity is required. The analysis explains the importance in policy design of determining transparent, meaningful and achievable objectives in delivering cost-effective environmental outcomes. We propose a land retirement
policy that rakes account of environmental, economic and political criteria. Finally, our land retirement proposal is supported quantitatively by benefit-cost analysis.

Agricultural land retirement: lessons from an Australian case study

In this paper, we analyse the case for agricultural land retirement in Australia. For the case study considered, using defined criteria, we demonstrate that land retirement is an effective policy option. This finding depends crucially on the magnitude and sign of the price effect resulting from a fall in wool production because of agricultural land retirement. Uniquely in the literature, we argue that the price effect will positively contribute to a benefit–cost analysis of agricultural land retirement. We detail the necessary conditions that need to prevail for this to occur. We also explain why the expected benefits of land-use change are fewer than might be expected in the case study.