Private-sector conservation under theUSEndangered Species Act: a return-on-investment perspective

TheUSEndangered Species Act (ESA) is an important safety net for the protection and recovery of critically imperiled species. One mechanism of theESAis prohibitions on harming listed species and their habitat, yet theESAdoes not require proactive conservation by the private sector, which is necessary for the recovery of many species. A range ofESAprograms have been developed - including Candidate Conservation Agreements, Safe Harbor Agreements, and a Voluntary Prelisting Conservation Actions policy - to enhance flexibility and encourage voluntary conservation activities. But why would businesses and other private landowners voluntarily engage in proactive conservation efforts above and beyond what is required forESAcompliance? We applied a return-on-investment (ROI) perspective to outline sources of costs and benefits and to explore program participation incentives. ThisROIperspective sheds light on the types of financial factors likely to affect private-sector participation and program effectiveness, and points to better ways to target private-sector engagement and design more effective programs.