Buying Ecological Services: Nature's Harmonies, Fragmented Reserves and the Agricultural Extensification Debate
AbstractGrowing demand for cropland products has placed intense pressure on the ability of land resources to support nature, straining public budgets to purchase environmental goods. Fixing overall agricultural output, two policy options are whether to promote more extensive and nature friendly farming practices or to produce intensively on some land and leave the rest wild. Microeconomic models of the topic have not accommodated widely recognized complementary spatial externalities in providing ecological services. This article does so, identifying also a third policy possibility. This is that environmental services can follow a smoothly varying spatial path characterized by harmonic functions.
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Bibliographic InfoPaper provided by Center for Agricultural and Rural Development (CARD) at Iowa State University in its series Center for Agricultural and Rural Development (CARD) Publications with number 08-wp482.
Date of creation: Nov 2008
Date of revision:
biofuels; environmental policy; spatial externalities; Wirtinger's inequality.;
Find related papers by JEL classification:
- H40 - Public Economics - - Publicly Provided Goods - - - General
- Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
- D62 - Microeconomics - - Welfare Economics - - - Externalities
This paper has been announced in the following NEP Reports:
- NEP-AGR-2008-12-01 (Agricultural Economics)
- NEP-ALL-2008-12-01 (All new papers)
- NEP-ENV-2008-12-01 (Environmental Economics)
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