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Alternative to Comprehensive Ecosystem Services Markets: The Contribution of Forest-Related Programs in New Zealand

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  • Bhatta, Arun
  • Bigsby, Hugh R.
  • Cullen, Ross

Abstract

Due to the public goods characteristics of many ecosystem services and their vital importance to human welfare, various mechanisms have been put in place to motivate private landowners in the provision of ecosystem services. A common approach is to try to develop a comprehensive ecosystem services market where landowners can receive payments from beneficiaries of ecosystem services. Much research has been directed at developing methods for valuing the range of ecosystem services so that they can be incorporated into ecosystem services markets. However, valuation methods are difficult, expensive and time consuming. Other approaches to the provision of ecosystem services such as payments for ecosystem services usually focus on a single service like water or biodiversity. However, in the provision of a particular ecosystem service, there are spill-over effects of providing other ecosystem services, and thus studying those spill-over effects may provide a simple and cost-effective way of ensuring the provision of a wide range of ecosystem services. In New Zealand, there are a variety of forestry programs which provide incentives to landowners to plant trees on their lands to meet particular objectives, but which also produce other ES. This research aims to evaluate the cost-effectiveness of the provision of a wide range of ES by these approaches, the New Zealand Emissions Trading Scheme, the East Coast Forestry Scheme, and the QEII National Trust.

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Bibliographic Info

Paper provided by New Zealand Agricultural and Resource Economics Society in its series 2011 Conference, August 25-26, 2011, Nelson, New Zealand with number 115350.

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Date of creation: 2011
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Handle: RePEc:ags:nzar11:115350

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Web page: http://www.nzares.org.nz/
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Keywords: ecosystem services market; spill-over effect; cost-effectiveness; New Zealand; Environmental Economics and Policy;

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  1. Ananda, Jayanath & Herath, Gamini, 2003. "The use of Analytic Hierarchy Process to incorporate stakeholder preferences into regional forest planning," Forest Policy and Economics, Elsevier, vol. 5(1), pages 13-26, January.
  2. Cullen, Ross & Hughey, Kenneth F.D. & Kerr, Geoffrey N., 2006. "Public Perceptions of New Zealand's Environment," 2006 Conference, August 24-25, 2006, Nelson, New Zealand 31958, New Zealand Agricultural and Resource Economics Society.
  3. Straton, Anna, 2006. "A complex systems approach to the value of ecological resources," Ecological Economics, Elsevier, vol. 56(3), pages 402-411, March.
  4. Dymond, John R. & Ausseil, Anne-Gaelle E. & Overton, Jacob McC., 2008. "A landscape approach for estimating the conservation value of sites and site-based projects, with examples from New Zealand," Ecological Economics, Elsevier, vol. 66(2-3), pages 275-281, June.
  5. Heal, G., 1999. "Valuing Ecosystem Services," Papers 98-12, Columbia - Graduate School of Business.
  6. 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.
  7. Kumar, Manasi & Kumar, Pushpam, 2008. "Valuation of the ecosystem services: A psycho-cultural perspective," Ecological Economics, Elsevier, vol. 64(4), pages 808-819, February.
  8. Richard T. Woodward & Ronald A. Kaiser, 2002. "Market Structures for U.S. Water Quality Trading," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 24(2), pages 366-383.
  9. Thomas L. Saaty, 1986. "Axiomatic Foundation of the Analytic Hierarchy Process," Management Science, INFORMS, vol. 32(7), pages 841-855, July.
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