Using return‐on‐investment to guide restoration: a case study from Hawaii

Abstract

Restoring natural capital is essential for biodiversity and ecosystem services that support human well‐being. Although ecological pathways for restoration are a major area of study, little is known about the economic pathways to which these efforts must be linked. This linkage, however, is important for maximizing return‐on‐investment (ROI) from restoration projects. We developed a general ROI framework to guide investments in restoration. We applied this framework to reforestation of montane pastureland in Hawaii, focusing on two specific conservation targets: native forest birds and understory plants. We found that restoring partial tree cover on pastureland is most attractive for birds, while understory plants require investment in full forest restoration. Nonlinearities in restoration pathways present in Hawaii, and likely elsewhere, generate these substantially different ROI profiles across potential projects. This information can guide the design of policies supporting cost‐effective practices to help ensure that limited resources achieve the greatest impact.