EcoTerra Model - application of environmental fiscal reform in local government financing in Portugal

Abstract

Land use management is one of the least studied, more diffi cult, but possibly one of the most important fi elds for the application of economic instruments in environmental policy. Present biodiversity loss is a consequence of the decisions of many individual users of environmental products and service fl ows. This is a result of the ‘unpriced scarcity’ and ‘lack of property rights’ nature of the environment. The social value of various biodiversity goods and service fl ows is not or is insuffi - ciently refl ected in market prices. As a result, an undesirable level of provision of these goods and services will result in their destruction or degradation