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Potential Cost-Effectiveness of Incentive Payment Programs for the Protection of Non-Industrial Private Forests

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  • Juha Siikamäki
  • David F. Layton

Abstract

This study assesses the potential cost-effectiveness of incentive payment programs relative to traditional, top-down regulatory programs for biological conservation. We develop site-level estimates of the opportunity cost and non-monetized biological benefits of protecting biodiversity hotspots in Finnish non-industrial private forests. We then use these estimates to contrast and compare the cost-effectiveness of alternative conservation programs. Our results suggest that incentive payment programs, which tacitly capitalize on landowners’ private knowledge about the opportunity costs of conservation, may be considerably more cost-effective than traditional, top-down regulatory programs.

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File URL: http://le.uwpress.org/cgi/reprint/83/4/539
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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Land Economics.

Volume (Year): 83 (2007)
Issue (Month): 4 ()
Pages: 539-560

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Handle: RePEc:uwp:landec:v:83:y:2007:i:4:p:539-560

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Web page: http://le.uwpress.org/

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Cited by:
  1. Rabotyagov, Sergey S. & Lin, Sonja, 2013. "Small forest landowner preferences for working forest conservation contract attributes: A case of Washington State, USA," Journal of Forest Economics, Elsevier, vol. 19(3), pages 307-330.
  2. Lindhjem, Henrik & Mitani, Yohei, 2012. "Forest owners’ willingness to accept compensation for voluntary conservation: A contingent valuation approach," Journal of Forest Economics, Elsevier, vol. 18(4), pages 290-302.
  3. Vives, Xavier, 2011. "Endogenous Public Information and Welfare," CEPR Discussion Papers 8437, C.E.P.R. Discussion Papers.
  4. Kipperberg, Gorm & Bond, Craig A. & Hoag, Dana L., 2008. "An Application of Mixed Logit Estimation in the Analysis of Producers’ Stated Preferences," Working Papers 108719, Colorado State University, Department of Agricultural and Resource Economics.
  5. Gren, Ing-Marie & Carlsson, Mattias, 2011. "Estimation of cost functions for preserving biodiversity in Swedish forests," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114596, European Association of Agricultural Economists.
  6. Juutinen, Artti & Mönkkönen, Mikko & Ylisirniö, Anna-Liisa, 2009. "Does a voluntary conservation program result in a representative protected area network?: The case of Finnish privately owned forests," Ecological Economics, Elsevier, vol. 68(12), pages 2974-2984, October.
  7. LeVert, Michael & Stevens, Thomas & Kittredge, Dave, 2009. "Willingness-to-sell conservation easements: A case study," Journal of Forest Economics, Elsevier, vol. 15(4), pages 261-275, December.

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