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Targeting Conservation Investments in Heterogeneous Landscapes: A Distance-Function Approach and Application to Watershed Management

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  • Paul J. Ferraro

Abstract

To achieve an environmental objective at least cost, decision makers must integrate information about spatially variable biophysical and economic conditions. Although the biophysical attributes that contribute to an environmental outcome are often known, the way in which these attributes interact to produce the outcome is often unknown. We introduce a nonparametric conservation targeting approach that relies on distance functions to cost-efficiently allocate conservation funds. We apply the approach empirically to the case of conservation contracting for water-quality objectives. The contract portfolios derived from the application have many desirable properties, including intuitive appeal and robust performance across plausible parametric scoring measures. Copyright 2004, Oxford University Press.

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File URL: http://hdl.handle.net/10.1111/j.0002-9092.2004.00642.x
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Bibliographic Info

Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 86 (2004)
Issue (Month): 4 ()
Pages: 905-918

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Handle: RePEc:oup:ajagec:v:86:y:2004:i:4:p:905-918

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Cited by:
  1. Ferraro, Paul J., 2008. "Asymmetric information and contract design for payments for environmental services," Ecological Economics, Elsevier, vol. 65(4), pages 810-821, May.
  2. Bellenger, Moriah J. & Herlihy, Alan T., 2009. "An economic approach to environmental indices," Ecological Economics, Elsevier, vol. 68(8-9), pages 2216-2223, June.
  3. Moore, Rebecca, 2013. "Prioritizing Ecosystem Service Protection and Conservation Efforts in the Forest Plantations of the Red Hills," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 42(1), April.
  4. Hein, Lars & van Koppen, Kris & de Groot, Rudolf S. & van Ierland, Ekko C., 2006. "Spatial scales, stakeholders and the valuation of ecosystem services," Ecological Economics, Elsevier, vol. 57(2), pages 209-228, May.
  5. Macpherson, Alexander J. & Principe, Peter P. & Smith, Elizabeth R., 2010. "A directional distance function approach to regional environmental-economic assessments," Ecological Economics, Elsevier, vol. 69(10), pages 1918-1925, August.
  6. Bellenger, Moriah J. & Herlihy, Alan T., 2010. "Performance-based environmental index weights: Are all metrics created equal?," Ecological Economics, Elsevier, vol. 69(5), pages 1043-1050, March.
  7. Engel, Stefanie & Pagiola, Stefano & Wunder, Sven, 2008. "Designing payments for environmental services in theory and practice: An overview of the issues," Ecological Economics, Elsevier, vol. 65(4), pages 663-674, May.
  8. Neville D Crossman & Jeffrey D Connor & Brett A Bryan & David A Summers & John Ginnivan, 2009. "Reconfiguring an Irrigation Landscape to Improve Provision of Ecosystem Services," Socio-Economics and the Environment in Discussion (SEED) Working Paper Series 2009-07, CSIRO Sustainable Ecosystems.
  9. A. Ruijs & M. Kortelainen & A. Wossink & C.J.E. Schulp & R. Alkemade & Paul Madden, 2012. "Opportunity cost estimation of ecosystem services," The School of Economics Discussion Paper Series 1222, Economics, The University of Manchester.
  10. Crossman, Neville D. & Connor, Jeffrey D. & Bryan, Brett A. & Summers, David M. & Ginnivan, John, 2010. "Reconfiguring an irrigation landscape to improve provision of ecosystem services," Ecological Economics, Elsevier, vol. 69(5), pages 1031-1042, March.
  11. Bell, Kathleen P. & Dalton, Timothy J., 2006. "Spatial Economic Analysis in Data-Rich Environments," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25241, International Association of Agricultural Economists.
  12. W√ľnscher, Tobias & Engel, Stefanie & Wunder, Sven, 2008. "Spatial targeting of payments for environmental services: A tool for boosting conservation benefits," Ecological Economics, Elsevier, vol. 65(4), pages 822-833, May.

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