Covenants as a Policy Mechanism for Providing Conservation of Natural Features: Survey of QEII

Conservation covenants have received scant attention internationally as a tool for providing conservation. This paper examines their use in New Zealand where they have been almost the sole policy measure in protecting land under private ownership. Under these covenants landowners/managers surrender some of their property rights in perpetuity in return for little if any compensation. The motivation for this is important in understanding their applicability to other situations. A survey of covenantees in the Canterbury region of New Zealand did highlight a high proportion had entered the covenant for altruistic reasons the main attraction being protection in perpetuity. Whilst the covenanted land was managed less intensively three quarters had alternative uses mainly development and forestry implying a not insignificant positive opportunity cost for covenantees. However on the commercially managed holdings the covenanted land was only a small part. The survey highlights the fact that landowners/managers are more willing to providing conservation than may be expected given an appropriate mechanism. Conservation covenants may therefore have wider appeal especially where there are limited resources. They are suited best to areas of land which are small proportions of commercial holdings; uncontroversial and well defined management prescriptions which are static; little active management; and little conflict between the conservation and other objectives for the land