A significant quantity of native vegetation and biodiversity remains on privately managed rangeland properties. Due to a lack of appropriate incentives, landholders do not always conserve these resources at a level that society desires. Regulations to conserve native vegetation can impose substantial costs on landholders. Market-Based Instruments have therefore been developed to provide market incentives aimed at achieving conservation at lower costs. We review the application of a Market-Based Instrument scheme, the West 2000 Plus Enterprise-Based Conservation program, which was designed for the Western Division of New South Wales. We estimate the private and social costs of increasing groundcover on privately managed properties, with and without the scheme. The costs are estimated under actual market and climatic conditions, and simulated under a wider range of conditions. The results indicate that costs vary widely across different conservation areas, depending on the location and previous management strategies of the property. The Enterprise-Based Conservation scheme has increased conservation in the region, and the implications from its application are reviewed to assist the further development of Market-Based Instruments.

Government funding to protect native plant communities is usually limited. For cost effectiveness, priority sites for conservation must therefore be identified and funds allocated to protect these sites according to the quantity of communities conserved per dollar of cost. In 1999, invasion of coastal vegetation in New South Wales (NSW) by bitou bush was listed as a key threatening process under the NSW 'Threatened Species Conservation Act' 1995. In accordance with the Act, a Threat Abatement Plan (TAP) was prepared to reduce the impacts of the weed to threatened biodiversity at priority sites. In the present study, data collected for the TAP were analysed by linear programming to determine the feasibility of achieving cost effectiveness in identifying sites and allocating funds, and to explore the impact of associated economic issues on the quantity of native plant communities that are protected. In addition to the total funds and costs per site, the quantity was influenced by alternative funding policies and different site selection strategies. Allocations that recognise these issues can enhance protection outcomes, and promote the cost effectiveness of weed management.