| Abstract: | Abstract The central question for this paper is whether land managers in Panama might protect or restore forests on their lands in response to the market for the existence value of biodiversity. Conservation financing provided by non-Panamanian sources is used as a proxy for investigating the nature of the market for the existence value of biodiversity. Debt-for-nature swaps and environmental trust funds, such as the Global Environment Facility (GEF), provide examples of demand in this market. This paper examines trends and policies that could change the cost of supplying biodiversity protection and factors that could improve or undermine demand for the existence value of biodiversity. If ecological restoration receives as much support within the conservation community as protection of pristine areas has in the past, then demand in this market is likely to remain strong. The largest challenge for this market will be shifting to the provision of biodiversity conservation by private landowners rather than solely by the national government. |
