Land & Water Australia. 2009. Market Based Instruments. [Online] (Updated April 22nd, 2009)
Available at: http://lwa.gov.au/node/3123 [Accessed Friday 12th of March 2010 02:13:04 AM ].
New Markets: buying and selling environmental goods and services
Market-based Instruments (MBIs) are frameworks for buying and selling environmental goods and services. For a producer, MBIs provide structures and processes for selling aspects of their land stewardship; like selling cattle at the regional stockyard. A producer might sell:
- clean runoff water,
- endangered grasslands,
- remnant woodlands or
- even carbon captured through growing new farm forests.
Rather than going to the stockyard, the instruments used to sell these goods and services are auctions, offsets, cap-and-trade and credit systems.
In Natural Resource Management (NRM), MBIs work by providing a framework for a market exchange between buyers of environmental services (such as government agencies, regional NRM bodies or licensed polluters), and willing sellers of these services (such as landholders).
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