We analyze the impact of land conservation policies on income distribution using a two-sector model. We find that conservation policies can have important distributional effects through changes in rents and wages. We show how aggregate rents rise when protected areas increase despite the reduction of land availability. Simultaneously, real wages decrease in consequence of higher agricultural prices. These distributional changes also affect the efficiency of conservation policies since higher rents lead to deforestation elsewhere. Results suggest that Pareto improving compensation should also be aimed at agricultural workers.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
file. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.