Paid not to extract oil: Ecuador Sets Environmental Precedent
The idea of paying people not to do something is often met with unease and suspicion. However, sometimes it is the only realistic alternative when faced with the destruction of the environment. Even in the United States—a developed, first-world country—some farmers are paid annually not to grow crops in order to preserve soil quality, and this is only one example of many.
A similar program unfolding over the past few months has recently come to fruition. A group of countries—Germany, Spain, France, Sweden, and Switzerland—has agreed to pay Ecuador $1.5 billion out of an eventual $3.6 billion not to drill for oil in the Yasuni Rainforest. The oil reserve contains an estimated $7 billion of oil at today’s market prices, but it is located under one of the most biodiverse areas of the world. In fact, in just 2.5 acres acres of the Yasuni Rainforest, there are as many tree species as in all of the United States and Canada combined.
When one hears of a deal similar to this one, the first words that come to mind are extortion and blackmail: unless other countries pay Ecuador money, Ecuador will destroy the rainforest. However, one must keep in mind that Ecuador is accepting about half of the money that it otherwise would receive if it were to extract the oil. Also, the countries that paid Ecuador not to drill are receiving benefits themselves: 400 million tons of carbon dioxide will be prevented from entering the atmosphere and many endangered species of both plants and animals will be protected.
In the end, all benefit. Ecuador receives money to promote development and reduce poverty in compensation for not developing their natural resources, while the rest of us can enjoy a healthier planet. Hopefully other countries will follow in the footsteps of the precedent that Ecuador so that the world will have one more tool in the fight against global warming and species extinction.
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