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An agglomeration payment for cost-effective biodiversity conservation in spatially structured landscapes

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  • Drechsler, Martin
  • Wätzold, Frank
  • Johst, Karin
  • Shogren, Jason F.

Abstract

Connected habitats are ecologically more valuable than isolated habitats for many species. A key challenge when designing payments for biodiversity in fragmented landscapes is to increase the spatial connectivity of habitats. Based on the idea of an agglomeration bonus we consider a scheme in which land-owners only receive payments if habitats are arranged in an ecologically favourable configuration. We compare the cost-effectiveness of agglomeration payments to spatially homogeneous payments on a conceptual level. Our results suggest that positive efficiency gains exist for agglomeration payments. We use Large Blue butterfly habitat in Germany as a specific case study, and find the agglomeration payments may lead to cost-savings of nearly 70% relative to homogenous payments.

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Bibliographic Info

Article provided by Elsevier in its journal Resource and Energy Economics.

Volume (Year): 32 (2010)
Issue (Month): 2 (April)
Pages: 261-275

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Handle: RePEc:eee:resene:v:32:y:2010:i:2:p:261-275

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Web page: http://www.elsevier.com/locate/inca/505569

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Keywords: Agglomeration bonus Biodiversity conservation Cost-effectiveness Ecological-economic modelling Metapopulation Spatial heterogeneity;

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Cited by:
  1. Cong, Rong-Gang & Smith, Henrik G. & Olsson, Ola & Brady, Mark, 2014. "Managing ecosystem services for agriculture: Will landscape-scale management pay?," Ecological Economics, Elsevier, vol. 99(C), pages 53-62.
  2. Francisco Candel-Sánchez, 2012. "Pigouvian taxes and the Varian’s mechanism in dynamic settings," Journal of Regulatory Economics, Springer, vol. 42(1), pages 39-51, August.
  3. Alix-Garcia, Jennifer & Wolff, Hendrik, 2014. "Payment for Ecosystem Services from Forests," IZA Discussion Papers 8179, Institute for the Study of Labor (IZA).
  4. Bamière, Laure & Havlík, Petr & Jacquet, Florence & Lherm, Michel & Millet, Guy & Bretagnolle, Vincent, 2011. "Farming system modelling for agri-environmental policy design: The case of a spatially non-aggregated allocation of conservation measures," Ecological Economics, Elsevier, vol. 70(5), pages 891-899, March.

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