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


  • Grout, Cyrus A.


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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    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.

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    Land Economics/Use; Q2;

    JEL classification:

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

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