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Abstract
Debt-for-nature swaps have been successfully applied in an international context to
achieve nature conservation objectives in developing countries. The swap involves
alleviating a country’s external debt burden in exchange for that country investing the
equivalent amount of resources into specified nature conservation programs or
activities. This paper explores to what extent the concept might be applicable and
relevant in a domestic setting – by alleviating farm debt in return for on-farm
conservation activities. The case for relevance of the instrument is argued on the basis
of empirical data from a grazing region in northern Australia. Stakeholders and
participants are identified for debt-for-conservation swaps and details for instrument
design discussed. Preliminary results from a grazier survey and lessons from a similar
incentive in the USA support a critique of the incentive instrument against a range of
policy criteria.