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Incentives for Spatially Coordinated Land Conservation: A Conditional Agglomeration Bonus Mechanism

Author

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  • Grout, Cyrus A.

Abstract

The agglomeration bonus literature has not recognized the potential of conditional agreements to overcome the informational requirements, particularly those of landowners, necessary to induce spatially coordinated land conservation. The model presented in this paper shows that the net social benefits produced by a conditional agglomeration bonus program are at least as large as those produced by a traditional uniform subsidy whenever the benefit function exhibits threshold effects and the uniform and CAB subsidies are equal. This result requires no assumptions about the information available to landowners. A regulator’s informational requirements are limited to the shape of the benefit function.

Suggested Citation

  • Grout, Cyrus A., 2009. "Incentives for Spatially Coordinated Land Conservation: A Conditional Agglomeration Bonus Mechanism," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49328, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea09:49328
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    File URL: http://purl.umn.edu/49328
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    References listed on IDEAS

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    1. Ward, Clement E. & Schroeder, Ted C., 2007. "Price Discovery and Captive Supply Implications for the Canadian Beef Industry," CAFRI: Current Agriculture, Food and Resource Issues, Canadian Agricultural Economics Society, issue 08.
    2. Rude, James & Carlberg, Jared G., 2006. "Kill or Shill: Processing Capacity and Cattle Prices with a Closed Border," CAFRI: Current Agriculture, Food and Resource Issues, Canadian Agricultural Economics Society, issue 07.
    3. Tonsor, Glynn T. & Dhuyvetter, Kevin C. & Mintert, James R., 2004. "Improving Cattle Basis Forecasting," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(02), August.
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    Cited by:

    1. Lawley, Chad & Yang, Wanhong, 2015. "Spatial interactions in habitat conservation: Evidence from prairie pothole easements," Journal of Environmental Economics and Management, Elsevier, vol. 71(C), pages 71-89.

    More about this item

    Keywords

    Land Economics/Use; Q2;

    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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