Seeking Prevention of Continuous Biodiversity Degradation: An Economic Analysis of Law Approach

Biodiversity degradation continues; IUCN announced that 28% of the biodiversity is in the endangered category until today, despite many programs and policies to prevent it. This is a big concern for the world because biodiversity is the main support for life on earth. Therefore, the no net loss' of biodiversity movement needs to be pursued optimally. One possible effective approach is to use the principles of Economic Analysis of Law (EAL) as a basic principle for preventing biodiversity degradation. Using normative juridical methods, and using a literature study approach in the form of literature review and qualitative juridical analysis, the research results show that EAL can be applied as a tool to prevent biodiversity degradation by combining the principles of efficiency with compensation. The form of EAL implementation is in the 2 (two) incentives: financial and non-financial. Financial incentives in the form of tax exemptions for the use of technology, land use, and other forms of business that have an impact on biodiversity protection, efficiency in harvesting techniques, training people in process skills or investigation of new products and technologies that have an impact on reducing biodiversity degradation, community benefit-sharing, and the most challenging is to invite the private sector and community to invest in biodiversity. On the other hand, the non-financial incentive group in the form of biodiversity management; access and rights to use biodiversity; subsidies for biodiversity conservation activities, including the implementation of corporate social responsibility in company activities that have an impact on the environment and biodiversity. Another alternative is the implementation of environmental insurance as a form of multi-layered compensation for fast treatment with the polluter pays principle.