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Three-Stage Tradable Set-Aside Requirements, Interdependent Values, and Biodiversity Production on Private Lands

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  • Mark D. Agee
  • Thomas D. Crocker

Abstract

We propose a static three-stage incentive-compatible, budget-balanced, execution-contingent mechanism for a regulator to allocate biodiversity-protection responsibilities across a landscape mosaic with multiple value-interdependent owners. The mechanism motivates owners to truthfully report their opportunity costs of protection to the regulator and comply with their assigned habitat protection responsibilities.

Suggested Citation

  • Mark D. Agee & Thomas D. Crocker, 2022. "Three-Stage Tradable Set-Aside Requirements, Interdependent Values, and Biodiversity Production on Private Lands," Land Economics, University of Wisconsin Press, vol. 98(4), pages 690-699.
  • Handle: RePEc:uwp:landec:v:98:y:2022:i:4:p:690-699
    Note: DOI: 10.3368/le.98.4.090919-0130R1
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    File URL: http://le.uwpress.org/cgi/reprint/98/4/690
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    More about this item

    JEL classification:

    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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