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Potential Cost-Effectiveness of Incentive Payment Programs for Biological Conservation

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Author Info
Siikamäki, Juha () (Resources for the Future)
Layton, David F.

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Abstract

This study assesses the potential cost-effectiveness of incentive payment programs relative to traditional top-down regulatory programs for biological conservation. We develop site-level estimates of the opportunity cost and the nonmonetized biological benefits of protecting biodiversity hotspots in Finnish nonindustrial private forests. We then use these estimates to compare and contrast the cost-effectiveness of alternative conservation programs. Our results suggest that incentive payment programs, which tacitly capitalize on landowners’ private knowledge about the opportunity costs of conservation, may be considerably more cost-effective than traditional top-down regulatory programs.

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Paper provided by Resources For the Future in its series Discussion Papers with number dp-06-27.

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Date of creation: 13 Jun 2006
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Handle: RePEc:rff:dpaper:dp-06-27

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Related research
Keywords: biodiversity conservation; incentive payments; cost-effectiveness; opportunity cost; biological benefits; non-industrial private forests;

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Find related papers by JEL classification:
C42 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Survey Methods
C46 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Specific Distributions
Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation
Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply (the Commons)
Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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  1. Lori Lynch & Sabrina J. Lovell, 2003. "Combining Spatial and Survey Data to Explain Participation in Agricultural Land reservation Programs," Land Economics, University of Wisconsin Press, vol. 79(2), pages 259-276. [Downloadable!] (restricted)
  2. Christian Langpap, 2004. "Conservation Incentives Programs for Endangered Species: An Analysis of Landowner Participation," Land Economics, University of Wisconsin Press, vol. 80(3), pages 375-388. [Downloadable!] (restricted)
  3. Brown, Gardner M, Jr & Shogren, Jason F, 1998. "Economics of the Endangered Species Act," Journal of Economic Perspectives, American Economic Association, vol. 12(3), pages 3-20, Summer. [Downloadable!] (restricted)
  4. Costello, Christopher & Polasky, Stephen, 2004. "Dynamic reserve site selection," Resource and Energy Economics, Elsevier, vol. 26(2), pages 157-174, June. [Downloadable!] (restricted)
  5. Wu, JunJie & Babcock, Bruce A., 1996. "Choice of Tillage, Rotation, and Soil Testing Practices: Economic and Environmental Implications (The)," Staff General Research Papers 979, Iowa State University, Department of Economics. [Downloadable!]
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  6. Joseph C. Cooper, 2003. "A Joint Framework for Analysis of Agri-Environmental Payment Programs," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 85(4), pages 976-987, November. [Downloadable!] (restricted)
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