ABSTRACT
Population growth, agricultural expansion, and industrial development are causing degradation of large areas of species-rich habitat throughout the world (FAO 1990; Reid 1992). Although natural ecosystems often provide significant benefits, such as watershed protection, carbon sequestration, and ecotourist revenues, the magnitude, timing, and distribution of these benefits generally have not provided central governments or local populations with sufficient economic incentives to preserve primal forests, wetlands, coral reefs, and other biologically diverse ecosystems. The possibility of discovering valuable biochemical compounds is an additional justification for preserving natural ecosystems, and for some biologically rich habitats, the potential benefits of biochemical prospecting could tip the balance in favor of conservation. To evaluate how biochemical prospecting could or should affect land-use decisions and development strategies, it is necessary to define the benefits of potential prospecting activities, to understand how they will be distributed among affected parties, and to incorporate this information into a comprehensive framework for economic decision making.
