Identifying cost-effective hotspots for restoring natural capital and enhancing landscape multifunctionality

Much effort is expended toward planning for conservation, natural resource management and sustainable land use in agricultural landscapes. Although often not explicitly stated, the aims of these efforts are often to restore natural capital for the provision of ecosystem services and stimulate multifunctionality in landscapes. However, the scarcity of resources for, and the potential economic impact of, ameliorative actions that restore natural capital necessitates the identification of cost-effective geographic priorities, or hotspots, which provide multiple ecosystem goods and services. This requires the integrated spatial modelling of multiple environmental and economic processes accompanied by clear goals and performance indicators. Identification of hotspots provides guidance for highly targeted land use change that cost-effectively adds to the stocks of natural capital in a landscape. Additionally, the multifunctionality of the landscape can be increased through the provision of multiple ecosystem goods and services. This paper begins by examining data requirements for identifying geographic hotspots for land use change. This study integrates traditionally disparate landscape-scale biophysical and economic data and models. The elements of natural capital considered here are species and ecosystems, soil and water resources, and the atmosphere. It is demonstrated that locating ameliorative actions towards hotspots will be more cost-effective at restoring natural capital and stimulating landscape multifunctionality than a random targeting approach. We calculate these efficiencies using a small set of indicators for assessing aspects of multifunctionality. The focus of this study is the agricultural landscapes of the Lower Murray region of south-eastern Australia. Crown Copyright (C) 2008 Published by Elsevier B.V. All rights reserved.