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An agglomeration payment for cost-effective biodiversity conservation in spatially structured landscapes

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  • Drechsler, Martin
  • Johst, Karin
  • Wätzold, Frank
  • Shogren, Jason F.

Abstract

Compensation schemes in which land owners receive payments for voluntarily managing their land in a biodiversity-enhancing manner have become one of the most important instruments for biodiversity conservation worldwide. One key challenge when designing such schemes is to account for the spatial arrangement of habitats bearing in mind that for given total habitat area connected habitats are ecologically more valuable than isolated habitats. To integrate the spatial dimension in compensation schemes and based on the idea of an agglomeration bonus we consider a scheme in which land-owners only receive payments if managed patches are arranged in a specific spatial configuration. We compare the cost-effectiveness of agglomeration payments with spatially homogeneous payments on a conceptual level and for a real world case and find that efficiency gains of agglomeration payments are positive or zero but never negative. In the real world case, agglomeration payments lead to cost-savings of up to 70% compared to spatially homogeneous payments. --

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Bibliographic Info

Paper provided by Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS) in its series UFZ Discussion Papers with number 4/2007.

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Date of creation: 2007
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Handle: RePEc:zbw:ufzdps:42007

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Keywords: agglomeration bonus; biodiversity conservation; cost-effectiveness; ecologicaleconomic modelling; metapopulation; spatial heterogeneity;

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  1. 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, Elsevier, vol. 41(2), pages 305-328, May.
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Citations

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Cited by:
  1. Cong, Rong-Gang & Smith, Henrik G. & Olsson, Ola & Brady, Mark, 2014. "Managing ecosystem services for agriculture: Will landscape-scale management pay?," Ecological Economics, Elsevier, Elsevier, vol. 99(C), pages 53-62.
  2. Francisco Candel-Sánchez, 2012. "Pigouvian taxes and the Varian’s mechanism in dynamic settings," Journal of Regulatory Economics, Springer, Springer, vol. 42(1), pages 39-51, August.
  3. Alix-Garcia, Jennifer & Wolff, Hendrik, 2014. "Payment for Ecosystem Services from Forests," IZA Discussion Papers 8179, Institute for the Study of Labor (IZA).
  4. Bamière, Laure & Havlík, Petr & Jacquet, Florence & Lherm, Michel & Millet, Guy & Bretagnolle, Vincent, 2011. "Farming system modelling for agri-environmental policy design: The case of a spatially non-aggregated allocation of conservation measures," Ecological Economics, Elsevier, Elsevier, vol. 70(5), pages 891-899, March.

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