Strengths and shortcomings of habitat exchange programs for species conservation

Habitat exchange programs, a form of biodiversity offsetting, aim to compensate for negative impacts in one area by conservation in another. A newer subset of habitat exchange programs includes programs that have three distinct characteristics: they allow for temporary (as opposed to only permanent) credits; they are centralized and overseen by nonregulatory, independent administrators; and they exist in the absence of mandatory mitigation policy. As a result, these programs may be relatively flexible and practical in areas where environmental regulation is unpalatable politically. We synthesized gray and peer-reviewed literature to evaluate these programs' strengths and shortcomings. On the basis of our synthesis, we suggest that temporary conservation credits in habitat exchanges could encourage participation of landowners in conservation and enable programs to respond to environmental change. However, temporary credits can lead to trade-offs between flexibility and uncertainty. Moreover, there is little evidence that these habitat exchange programs have benefited target species, and many challenges associated with offsetting programs persist. Newer forms of habitat exchange programs may have potential to achieve no net loss or net gains of biodiversity to a greater extent than other forms of offsetting, but this potential has not yet been realized.