The price based MBI is better than the other MBI’s because of the economic input brought into government consideration for improving the area. The government would be able to make use of the money levied as taxations or penalties. They would be able to use this money for improving catchment ecosystem and ecosystem services. For instance, some of the sewage and effluent treatment plants are seen to result in concentration of bio algae blooms. With better economic activity, the government could create a surplus of treatment plants. This could be created to distribute the adverse effect and make the effect minimal instead of high concentrations in some areas.
Useful native species can also be rotated back with the help of monetary incentives. Some of the implementations to help conservator water are seen to be quite expensive. Consider for instance, the ACT water showerhead scheme was implemented in Australia in the Southern Murray Darling Basin. This cost the government but has savings of around $1,700 per mega-liter of water (Whitten et al., 2003). These forms of mainstream implementations could be possible from the money that is saved in the case of price based MBIs. Implementing them on Federal and State level and not just the catchment level becomes a reality.
The ecosystem is where people, organisms, flora and fauna thrive in. The ecosystem services are the benefits that are provided by the ecosystem to people and the benefits can be small or large. There are many ways in which mankind can benefit from the ecosystem. It was the purpose of this work to present a consultancy report on the management of key ecosystem services of the South Esk and McQuarrie river catchments in Tasmania. The appropriate Market based instruments for addressing the challenges for improving existing ecosystem services are presented. In addition to a summation on the existing market based instruments, the work considered the design of an appropriate MBI to address the challenges that are faced in the two catchments. A critical evaluation process furthermore is used to justify the MBI developed. Insights into its implementation and more are discussed.