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Grassland easement acquisition: Conversion hazard rate, additionality, spatial spillover, and heuristics

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  • Ruiqing Miao
  • Hongli Feng
  • David A. Hennessy
  • Gaurav Arora
  • Charles R. Loesch

Abstract

This study investigates optimal grassland easement acquisition strategies with a focus on the roles of environmental benefit additionality and spatial spillover effect of grassland conversion. Numerical analysis shows that the optimal solution under a targeting strategy that does not consider any spatial spillover effect may secure less environmental benefit additionality than does a heuristic algorithm that considers spatial spillover. Moreover, heuristic algorithms that consider either conversion probability or spatial spillover can generally achieve more than 97% of environmental benefit additionality obtained under the optimal solution of a targeting strategy that considers both additionality and spatial spillover.

Suggested Citation

  • Ruiqing Miao & Hongli Feng & David A. Hennessy & Gaurav Arora & Charles R. Loesch, 2023. "Grassland easement acquisition: Conversion hazard rate, additionality, spatial spillover, and heuristics," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(2), pages 928-946, June.
    • Handle: RePEc:wly:apecpp:v:45:y:2023:i:2:p:928-946
    DOI: 10.1002/aepp.13318
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    References listed on IDEAS

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    1. Ruiqing Miao & David A. Hennessy & Hongli Feng, 2022. "Grassland easement evaluation and acquisition with uncertain conversion and conservation returns," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 70(1), pages 41-61, March.
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