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Land-use hysteresis triggered by staggered payment schemes for more permanent biodiversity conservation

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  • Drechsler, Martin
  • Grimm, Volker

Abstract

Making conservation payment schemes permanent so that conservation efforts are retained even after the payment has been stopped, is a major challenge. Another challenge is to design conservation so that they counteract the ongoing spatial fragmentation of species habitat. The agglomeration bonus in which a bonus is added to a flat payment if the conservation activity is carried out in the neighbourhood of other conserved land, has been shown to induce the establishment of spatially contiguous habitat. I the present paper we show, with a generic spatially explicit agent-based simulation model, that the interactions between the landowners in an agglomeration bonus scheme can lead to hysteresis in the land-use dynamics, implying permanence of the scheme. It is shown that this permanence translates into efficiency gains, especially if discount rates are low and the spatial heterogeneity of conservation costs is high.

Suggested Citation

  • Drechsler, Martin & Grimm, Volker, 2022. "Land-use hysteresis triggered by staggered payment schemes for more permanent biodiversity conservation," MPRA Paper 110361, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:110361
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    References listed on IDEAS

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    1. Albers, H. J. & Lee, K. D. & Sims, K. R. E., 2018. "Economics of Habitat Fragmentation: A Review and Critique of the Literature," International Review of Environmental and Resource Economics, now publishers, vol. 11(2), pages 97-144, May.
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    4. Parkhurst, Gregory M. & Shogren, Jason F., 2007. "Spatial incentives to coordinate contiguous habitat," Ecological Economics, Elsevier, vol. 64(2), pages 344-355, December.
    5. Drechsler, Martin & Wätzold, Frank & Johst, Karin & Shogren, Jason F., 2010. "An agglomeration payment for cost-effective biodiversity conservation in spatially structured landscapes," Resource and Energy Economics, Elsevier, vol. 32(2), pages 261-275, April.
    6. Engel, Stefanie, 2016. "The Devil in the Detail: A Practical Guide on Designing Payments for Environmental Services," International Review of Environmental and Resource Economics, now publishers, vol. 9(1-2), pages 131-177, July.
    7. Shogren,Jason F. & Tschirhart,John (ed.), 2001. "Protecting Endangered Species in the United States," Cambridge Books, Cambridge University Press, number 9780521662109.
    8. 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.
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    10. Frank Wätzold & Martin Drechsler, 2005. "Spatially Uniform versus Spatially Heterogeneous Compensation Payments for Biodiversity-Enhancing Land-Use Measures," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 31(1), pages 73-93, May.
    11. Madhu Khanna & Amy Ando, 2009. "Science, economics and the design of agricultural conservation programmes in the US," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 52(5), pages 575-592.
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    Cited by:

    1. Nguyen, Chi & Latacz-Lohmann, Uwe, 2023. "Assessing the performance of agglomeration bonus in budget-constrained conservation auctions," 97th Annual Conference, March 27-29, 2023, Warwick University, Coventry, UK 334544, Agricultural Economics Society - AES.

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    More about this item

    Keywords

    agent-based model; agglomeration bonus; conservation payment; land use; permanence;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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