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Potential Cost-Effectiveness of Incentive Payment Programs for Biological Conservation

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  • Siikamäki, Juha

    ()
    (Resources for the Future)

  • Layton, David F.

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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Bibliographic Info

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

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  1. Cooper, Joseph C., 2001. "A Joint Framework for Analysis of Agri-Environmental Payment Programs," 2001 Annual meeting, August 5-8, Chicago, IL 20493, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  2. Wu, JunJie & Babcock, Bruce A., 1998. "Choice of Tillage, Rotation, and Soil Testing Practices: Economic and Environmental Implications (The)," Staff General Research Papers 979, Iowa State University, Department of Economics.
  3. Joseph C. Cooper & Russ W. Keim, 1996. "Incentive Payments to Encourage Farmer Adoption of Water Quality Protection Practices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 54-64.
  4. 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.
  5. 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.
  6. Siikamaki, Juha & Layton, David F., 2007. "Discrete choice survey experiments: A comparison using flexible methods," Journal of Environmental Economics and Management, Elsevier, vol. 53(1), pages 122-139, January.
  7. Gardner M. Brown & Jason F. Shogren, 1998. "Economics of the Endangered Species Act," Journal of Economic Perspectives, American Economic Association, vol. 12(3), pages 3-20, Summer.
  8. Cooper, Joseph C. & Osborn, Tim, 1998. "The effect of rental rates on the extension of Conservation Reserve Program contracts," MPRA Paper 24781, University Library of Munich, Germany.
  9. Costello, Christopher & Polasky, Stephen, 2004. "Dynamic reserve site selection," Resource and Energy Economics, Elsevier, vol. 26(2), pages 157-174, June.
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Cited by:
  1. Engel, Stefanie & Palmer, Charles, 2008. "Payments for environmental services as an alternative to logging under weak property rights: The case of Indonesia," Ecological Economics, Elsevier, vol. 65(4), pages 799-809, May.

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