Economic approaches in the conservation of nature: A comprehensive review

Abstract

The urgent need for environmental conservation arises from the rapid loss of biodiversity, climate change and the unsustainable use of natural resources. While traditional strategies like legal protections, designating protected areas, and community-based stewardship are crucial, there is growing recognition that economic mechanisms can enhance and support these efforts. This review explores economic approaches to nature conservation, focusing on strategies that align financial incentives with environmental goals. Key instruments discussed include Payment for Ecosystem Services (PES), green accounting, environmental taxation, circular economy principles, and community-led conservation. These tools demonstrate how economic incentives can encourage sustainable resource use, reduce pollution and protect biodiversity. The review considers both the opportunities and limitations of each method, emphasizing the importance of long-term collaboration, inclusive stakeholder engagement, and effective valuation practices. Ultimately, it provides a comprehensive analysis of how economically driven strategies, when applied with policy coherence and ecological sensitivity, can foster effective and sustainable environmental stewardship.