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Agri-Environmental Policies When the Spatial Pattern of Biodiversity Reserves Matters

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  • Bamiere, Laure
  • David, Maia
  • Vermont, Bruno

Abstract

The aim of this paper is to compare different policy instruments for cost-effective habitat conservation on agricultural lands, when the desired spatial pattern of reserves is a random mosaic. We use a spatially explicit mathematical programming model which studies the farmers' behavior as profit maximizers under technical and administrative constraints. Facing different policy measures, each farmer chooses its land-use at the field level, which determines the landscape at the regional level. A spatial pattern index (Ripley L function) is then associated to the obtained landscape, indicating on the degree of dispersion of the reserve. We compare a subsidy per hectare of reserve with an auction scheme and an agglomeration malus. We find that the auction is superior to the uniform subsidy both for cost-efficiency and for the spatial pattern of the reserve. The agglomeration malus does better than the auction for the spatial pattern but is more costly.

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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland with number 114239.

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Date of creation: 2011
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Handle: RePEc:ags:eaae11:114239

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Related research

Keywords: agri-environmental policies; biodiversity; mathematical programming; spatial optimization; reserve design; cost-efficiency; Environmental Economics and Policy; Resource /Energy Economics and Policy; H23; Q57; Q12; Q28;

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  1. Petr Havlík & Patrick Veysset & Jean-Marie Boisson & Michel Lherm & Florence Jacquet, 2005. "Joint production under uncertainty and multifunctionality of agriculture: policy considerations and applied analysis," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 32(4), pages 489-515, December.
  2. David J. Lewis & Andrew J. Plantinga, 2007. "Policies for Habitat Fragmentation: Combining Econometrics with GIS-Based Landscape Simulations," Land Economics, University of Wisconsin Press, vol. 83(2), pages 109-127.
  3. van Wenum, Jaap & Wossink, Ada & Renkema, Jan, 2002. "Location-Specific Modeling For Optimizing Wildlife Management On Crop Farms," 2002 Annual meeting, July 28-31, Long Beach, CA 19705, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  4. Lewis, David J. & Plantinga, Andrew J. & Nelson, Erik & Polasky, Stephen, 2011. "The efficiency of voluntary incentive policies for preventing biodiversity loss," Resource and Energy Economics, Elsevier, vol. 33(1), pages 192-211, January.
  5. Uwe Latacz-Lohmann & Carel Van der Hamsvoort, 1997. "Auctioning Conservation Contracts: A Theoretical Analysis and an Application," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 407-418.
  6. Wu, JunJie & Babcock, Bruce A., 1996. "Contract Design for the Purchase of Environmental Goods from Agriculture," Staff General Research Papers 1050, Iowa State University, Department of Economics.
  7. Ohl, C. & Drechsler, M. & Johst, K. & Wätzold, F., 2008. "Compensation payments for habitat heterogeneity: Existence, efficiency, and fairness considerations," Ecological Economics, Elsevier, vol. 67(2), pages 162-174, September.
  8. Ruben N. Lubowski & Michael J. Roberts, 2005. "How Cost-Effective Are Land Retirement Auctions? Estimating the Difference between Payments and Willingness to Accept in the Conservation Reserve Program," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(5), pages 1239-1247.
  9. Ando, Amy Whritenour & Shah, Payal, 2009. "Demand-Side Factors in Optimal Land Conservation Choice," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49209, Agricultural and Applied Economics Association.
  10. Parkhurst, Gregory M. & Shogren, Jason F. & Bastian, Chris & Kivi, Paul & Donner, Jennifer & Smith, Rodney B. W., 2002. "Agglomeration bonus: an incentive mechanism to reunite fragmented habitat for biodiversity conservation," Ecological Economics, Elsevier, vol. 41(2), pages 305-328, May.
  11. Frank Wätzold & Martin Drechsler, 2005. "Spatially Uniform versus Spatially Heterogeneous Compensation Payments for Biodiversity-Enhancing Land-Use Measures," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 31(1), pages 73-93, 05.
  12. 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.
  13. Parkhurst, Gregory M. & Shogren, Jason F., 2007. "Spatial incentives to coordinate contiguous habitat," Ecological Economics, Elsevier, vol. 64(2), pages 344-355, December.
  14. Bourgeon, Jean-Marc & Jayet, Pierre-Alain & Picard, Pierre, 1995. "An incentive approach to land set-aside programs," European Economic Review, Elsevier, vol. 39(8), pages 1487-1509, October.
  15. Smith, Rodney B. W. & Shogren, Jason F., 2002. "Voluntary Incentive Design for Endangered Species Protection," Journal of Environmental Economics and Management, Elsevier, vol. 43(2), pages 169-187, March.
  16. Wossink, Ada, et al, 1999. "Co-ordinating Economic, Behavioural and Spatial Aspects of Wildlife Preservation in Agriculture," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 26(4), pages 443-60, December.
  17. David J. Lewis & Andrew J. Plantinga & JunJie Wu, 2009. "Targeting Incentives to Reduce Habitat Fragmentation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 1080-1096.
  18. Gregory M. Parkhurst & Jason F. Shogren, 2008. "Smart Subsidies for Conservation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(5), pages 1192-1200.
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