The fiscal impact of biodiversity loss and a pathway for conservation finance

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Source: Science Magazine

Original: https://www.science.org/doi/abs/10.1126/science.ady0066?af=R...

Published: 2026-03-12T06:00:03Z

The study examines how biodiversity loss affects city finances and creates opportunities for conservation investors[1]. The researchers focused on the case of the sudden decline of bats that provide pest control services in agriculture[1]. They found that the loss of bat populations reduces agricultural land tax revenue in rural counties and increases bond yields by 11.5 basis points, a 27 percent increase[1]. Research shows that if conservation investors buy $1 million worth of bonds and the bat population recovers, the expected spread reduction will increase bond prices by $14,124[1]. This financial return could potentially cover the cost of nature conservation without the need for new government measures[1]. The study thus demonstrates the mechanism of how private investors can contribute to the goals of nature protection through financial instruments[1].