Market‐based conservation: Aligning static theory with dynamic systems

This paper provides a broad evaluation of the implications of market‐based conservation ( MBC ) strategies from economic, social and ecological perspectives. After reviewing the economic theory that underlies MBC initiatives, we develop a list of approaches that have been labeled as “market‐based”, and categorize them according to the degree to which they are free‐standing markets or require the intervention of the state. A multidisciplinary critique reveals the potential problems and pitfalls of MBC are due to a lack of ability to deal with dynamic systems in the real world. The dynamics of these three systems can undermine the intended goals of MBC .