New study shows that investing in nature improves equity and boosts the economy

A new study shows that current trends in environmental degradation will lead to major economic losses over the coming decades, with the poorest countries hardest hit. But there is hope: investing in nature can turn these losses into gains.

Researchers from the University of Minnesota and Purdue University recently published their findings in the journal Proceedings of the National Academy of Sciences. The team developed a first-of-its-kind global earth economy model to capture the interactions between the economy and the environment. These interactions include how nature benefits humans by pollinating crops, providing timber, storing carbon and fuelling marine fisheries, as well as how these benefits ultimately impact on the economy as a whole.

"We've long thought that the economy and the environment worked against each other," said Justin Johnson, assistant professor of applied economics at the University of Minnesota. "Investing in nature doesn't stifle the economy, it stimulates it. But until recently, it was difficult to model these interactions".

This is what the researchers found:

Policy options for investing in nature have resulted in annual gains of $100-350 billion (2014 USD), with the largest increases as a percentage of GDP occurring in low-income countries. Policy options examined in this study include removing agricultural subsidies, funding research to improve crop yields, and international payments from rich to poor countries to support conservation.

Habitat will apply this new model and work with Dr. Justin Johnson to adapt the economic evaluation approach to the Quebec and California context. This is part of our our project funded by the Quebec government to conserve 30% of land and water by 2030.