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Identifying the impacts of critical habitat designation on land cover change

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  • Nelson, Erik J.
  • Withey, John C.
  • Pennington, Derric
  • Lawler, Joshua J.

Abstract

The US Endangered Species Act (ESA) regulates what landowners, land managers, and industry can do on lands occupied by listed species. The ESA does this in part by requiring the designation of habitat within each listed species’ range considered critical to their recovery. Critics have argued that critical habitat (CH) designation creates significant economic costs while contributing little to species recovery. Here we examine the effects of CH designation on land cover change. We find that the rate of change from 1992 to 2011 in developed (urban and residential) and agricultural land in CH areas was not significantly different compared to similar lands without CH designation, but still subject to ESA regulations. Although CH designation on average does not affect overall rates of land cover change, CH designation did slightly modify the impact of land cover change drivers. Generally, variation in land prices played a larger role in land cover decisions within CH areas than in similar areas without CH designation. These trends suggest that developers may require a greater than typical expected return to development in CH areas to compensate for the higher risk of regulatory scrutiny. Ultimately, our results bring into question the very rationale for the CH regulation. If it is for the most part not affecting land cover choices, is CH helping species recover?

Suggested Citation

  • Nelson, Erik J. & Withey, John C. & Pennington, Derric & Lawler, Joshua J., 2017. "Identifying the impacts of critical habitat designation on land cover change," Resource and Energy Economics, Elsevier, vol. 47(C), pages 89-125.
  • Handle: RePEc:eee:resene:v:47:y:2017:i:c:p:89-125
    DOI: 10.1016/j.reseneeco.2016.12.002
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    Cited by:

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    2. Richard T. Melstrom, 2021. "The Effect of Land Use Restrictions Protecting Endangered Species on Agricultural Land Values," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(1), pages 162-184, January.
    3. Christian Langpap & Joe Kerkvliet & Jason F Shogren, 2018. "The Economics of the U.S. Endangered Species Act: A Review of Recent Developments," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 12(1), pages 69-91.

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    More about this item

    Keywords

    Endangered Species Act; Critical habitat; Opportunity cost; Land cover change; Matching analysis;
    All these keywords.

    JEL classification:

    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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