For Profit Land Conservation Essay

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Patagonia Sur: For-Profit Land Conservation in Chile Your name Name of Professor School affiliation Date Introduction Patagonia is a region that occupies about one third of South America region and it forms part of the south of Chile. Patagonia Sur is a company that was started by warren Adams (Segel, Ibanez, & Jay, 2011) and is aimed at land conservation at the same time generating revenues. This is a new concept where a land is expected to generate revenue that conserves it, Is a for-profit land conservation model a good economic model or is it philanthropy in disguise For-profit land conservation model is a very good economic model. This is because the land being conserved is usually made to generate revenues which in turn pay for the conservation. It is a total turnover from the traditional land model where conservation of land mostly relied on federal and regional governments, non-governmental organizations and private philanthropists. Analysis of the viability of Patagonia Sur’s investment proposition Patagonia Sur main resource which is land is not sold outright but it rather sold in a very innovative manner. According to (Segel, Ibanez, & Jay, 2011), it is sold in “keys” with each key representing the right to develop a specified amount of land. A key goes at a minimum price of $50,000 and 8,400 acres of land at valle California supports 250 key. Therefore after the sale of the keys, revenue of over $ 12,500,000 will be generated. This land has already repaid itself and generated a huge profit. Due to land tracts of land in Patagonia and the availability of potential foreign buyers, eco-brokerage services have a source of revenue for Patagonia. Eco-brokerage involves brokering land which is not owned by Patagonia Sur and this has been made possible by their (Patagonia Sur management) connection in the area. As of

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