Economic efficiency of nature-based solutions: Theoretical framework and application to semi-natural habitat implementation

The application of nature-based solutions to agriculture is promising because it allows the sustainable management of ecosystems and the reconciling of human well-being with the benefits of biodiversity. However, scientists lack robust economic arguments and concepts in the area of nature-based solutions that are well aligned with the expectations of the agricultural sector. This study addresses this gap by developing an interdisciplinary economic framework that integrates nature-based solutions and allows for an assessment of their efficient use. The conceptual framework is derived from a standard agricultural production model, making it possible to determine optimal levels of use and value. The framework is then applied to the establishment of semi-natural habitats, using econometric calibration and simulations based on agronomic, economic, psychological, and ecological data from a single case study in western France. The estimations show that the optimal semi-natural habitat coverage rate was 17.5% which was half the observed level, suggesting an underuse according to this framework. The present framework, which builds on standard economic efficiency models, demonstrates that ecosystems contribute to production similarly to conventional agricultural inputs, providing a productivity-based justification for their conservation. •NBSs have not been studied from the perspective of economic efficiency.•A novel and innovative interdisciplinary framework is developed.•Illustration with the implementation of semi-natural habitats in western France.•Inefficient underuse of semi-natural habitats regarding their benefits for production.•Provides robust economic concepts and arguments to promote conservation.