IDEAS home Printed from https://ideas.repec.org/p/crs/wpaper/2019-25.html
   My bibliography  Save this paper

Ecological compensation: how much and where?

Author

Listed:
  • Pascal GASTINEAU

    (IFSTTAR, AME, EASE, Bouguenais, France.)

  • Pascal MOSSAY

    (School of Economics and Trade, Kyungpook National University, Korea. CORE, Université catholique de Louvain, Belgium.)

  • Emmanuel TAUGOURDEAU

    (CNRS, CREST, ENSAE, Ecole Polytechnique, ENS Paris-Saclay, Institut Polytechnique de Paris,F-91128 Palaiseau ,France.)

Abstract

We propose a spatial framework to study ecological compensation. The policy-maker implements a No Net Loss policy that meets the No Worse-Off principle as well as a location constraint on the offset. This determines both the location and the level of compensation that minimize the total cost of restoration. We describe the additional ecological cost induced by the No Worse-Off principle and how the spatial distribution of individuals, the environment and land costs affect the compensation location. The location constraint is shown to introduce a trade-off between the compensation cost and inequality.

Suggested Citation

  • Pascal GASTINEAU & Pascal MOSSAY & Emmanuel TAUGOURDEAU, 2019. "Ecological compensation: how much and where?," Working Papers 2019-25, Center for Research in Economics and Statistics.
  • Handle: RePEc:crs:wpaper:2019-25
    as

    Download full text from publisher

    File URL: http://crest.science/RePEc/wpstorage/2019-25.pdf
    File Function: CREST working paper version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Vaissière, Anne-Charlotte & Quétier, Fabien & Calvet, Coralie & Levrel, Harold & Wunder, Sven, 2020. "Biodiversity offsets and payments for environmental services: Clarifying the family ties," Ecological Economics, Elsevier, vol. 169(C).
    2. Michael Burton & Abbie Rogers & Claire Richert, 2017. "Community acceptance of biodiversity offsets: evidence from a choice experiment," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 61(1), pages 95-114, January.
    3. Gastineau, Pascal & Taugourdeau, Emmanuelle, 2014. "Compensating for environmental damages," Ecological Economics, Elsevier, vol. 97(C), pages 150-161.
    4. Zafonte, Matthew & Hampton, Steve, 2007. "Exploring welfare implications of resource equivalency analysis in natural resource damage assessments," Ecological Economics, Elsevier, vol. 61(1), pages 134-145, February.
    5. Fujita,Masahisa, 1991. "Urban Economic Theory," Cambridge Books, Cambridge University Press, number 9780521396455, January.
    6. Anne-Charlotte Vaissière & Léa Tardieu & Fabien Quétier & Sébastien Roussel, 2018. "Corrigendum: Preferences for biodiversity offset contracts on arable land: a choice experiment study with farmers," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 45(4), pages 675-675.
    7. Hannon, Bruce, 1994. "Sense of place: geographic discounting by people, animals and plants," Ecological Economics, Elsevier, vol. 10(2), pages 157-174, July.
    8. Anne-Charlotte Vaissière & Léa Tardieu & Fabien Quétier & Sébastien Roussel, 2018. "Preferences for biodiversity offset contracts on arable land: a choice experiment study with farmers," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 45(4), pages 553-582.
    9. Pascal Gastineau, 2014. "Compensating for environmental damages," Post-Print hal-00968954, HAL.
    10. Nicholas E. Flores & Jennifer Thacher, 2002. "Money, Who Needs It? Natural Resource Damage Assessment," Contemporary Economic Policy, Western Economic Association International, vol. 20(2), pages 171-178, April.
    11. Pascal Gastineau & Emmanuelle Taugourdeau, 2014. "Compensating for environmental damages," Post-Print hal-00944236, HAL.
    12. Laura J. Sonter & Jeremy S. Simmonds & James E. M. Watson & Julia P. G. Jones & Joseph M. Kiesecker & Hugo M. Costa & Leon Bennun & Stephen Edwards & Hedley S. Grantham & Victoria F. Griffiths & Kenda, 2020. "Local conditions and policy design determine whether ecological compensation can achieve No Net Loss goals," Nature Communications, Nature, vol. 11(1), pages 1-11, December.
    13. Richert, Claire & Rogers, Abbie & Burton, Michael, 2015. "Measuring the extent of a Social License to Operate: The influence of marine biodiversity offsets in the oil and gas sector in Western Australia," Resources Policy, Elsevier, vol. 43(C), pages 121-129.
    14. Oliver Taherzadeh & Peter Howley, 2018. "No net loss of what, for whom?: stakeholder perspectives to Biodiversity Offsetting in England," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 20(4), pages 1807-1830, August.
    15. Yamaguchi, Rintaro & Shah, Payal, 2020. "Spatial discounting of ecosystem services," Resource and Energy Economics, Elsevier, vol. 62(C).
    16. Kangas, Johanna & Ollikainen, Markku, 2019. "Economic Insights in Ecological Compensations: Market Analysis With an Empirical Application to the Finnish Economy," Ecological Economics, Elsevier, vol. 159(C), pages 54-67.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kyriazi, Zacharoula & Lejano, Raul & Maes, Frank & Degraer, Steven, 2015. "Bargaining a net gain compensation agreement between a marine renewable energy developer and a marine protected area manager," Marine Policy, Elsevier, vol. 60(C), pages 40-48.
    2. Christian Sponagel & Andre Raichle & Martin Maier & Susanne Zhuber-Okrog & Ulrike Greifenhagen-Kauffmann & Elisabeth Angenendt & Enno Bahrs, 2021. "Expert-Based Maps as a Regional Planning Tool Supporting Nature Conservation and Production-Integrated Compensation—A German Case Study on Biodiversity Offsets," Land, MDPI, vol. 10(8), pages 1-21, August.
    3. Czajkowski, Mikołaj & Zagórska, Katarzyna & Letki, Natalia & Tryjanowski, Piotr & Wąs, Adam, 2021. "Drivers of farmers’ willingness to adopt extensive farming practices in a globally important bird area," Land Use Policy, Elsevier, vol. 107(C).
    4. Cole, Scott, 2012. "Equity over Efficiency: A Problem of Credibility in Scaling Resource-Based Compensatory?," CERE Working Papers 2012:12, CERE - the Center for Environmental and Resource Economics.
    5. Defrancesco, Edi & Gatto, Paola & Rosato, Paolo, 2014. "A ‘component-based’ approach to discounting for natural resource damage assessment," Ecological Economics, Elsevier, vol. 99(C), pages 1-9.
    6. Pascal Gastineau & Emmanuelle Taugourdeau, 2013. "Compensating for environmental damages," EconomiX Working Papers 2013-21, University of Paris Nanterre, EconomiX.
    7. Pascal Gastineau & Emmanuelle Taugourdeau, 2012. "Which compensation for whom ?," Post-Print halshs-00768884, HAL.
    8. Kermagoret, Charlène & Levrel, Harold & Carlier, Antoine & Dachary-Bernard, Jeanne, 2016. "Individual preferences regarding environmental offset and welfare compensation: a choice experiment application to an offshore wind farm project," Ecological Economics, Elsevier, vol. 129(C), pages 230-240.
    9. Bougherara, Douadia & Lapierre, Margaux & Préget, Raphaële & Sauquet, Alexandre, 2021. "Do farmers prefer increasing, decreasing, or stable payments in Agri-environmental schemes?," Ecological Economics, Elsevier, vol. 183(C).
    10. Pascal Gastineau & Emmanuelle Taugourdeau, 2012. "Which compensation for whom ?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00768884, HAL.
    11. Vaissière, Anne-Charlotte & Quétier, Fabien & Calvet, Coralie & Levrel, Harold & Wunder, Sven, 2020. "Biodiversity offsets and payments for environmental services: Clarifying the family ties," Ecological Economics, Elsevier, vol. 169(C).
    12. Anne-Charlotte Vaissière & Fabien Quétier & Adeline Bierry & Clémence Vannier & Florence Baptist & Sandra Lavorel, 2021. "Modeling Alternative Approaches to the Biodiversity Offsetting of Urban Expansion in the Grenoble Area (France): What Is the Role of Spatial Scales in ‘No Net Loss’ of Wetland Area and Function?," Sustainability, MDPI, vol. 13(11), pages 1-23, May.
    13. Calvet, Coralie & Le Coent, Philippe & Napoleone, Claude & Quétier, Fabien, 2019. "Challenges of achieving biodiversity offset outcomes through agri-environmental schemes: Evidence from an empirical study in Southern France," Ecological Economics, Elsevier, vol. 163(C), pages 113-125.
    14. Desvousges, William H. & Gard, Nicholas & Michael, Holly J. & Chance, Anne D., 2018. "Habitat and Resource Equivalency Analysis: A Critical Assessment," Ecological Economics, Elsevier, vol. 143(C), pages 74-89.
    15. Ouvrard, Benjamin & Abildtrup, Jens & Bostedt, Göran & Stenger, Anne, 2019. "Determinants of forest owners attitudes towards wood ash recycling in Sweden - Can the nutrient cycle be closed?," Ecological Economics, Elsevier, vol. 164(C), pages 1-1.
    16. Huber, Robert & Zabel, Astrid & Schleiffer, Mirjam & Vroege, Willemijn & Brändle, Julia M. & Finger, Robert, 2021. "Conservation Costs Drive Enrolment in Agglomeration Bonus Scheme," Ecological Economics, Elsevier, vol. 186(C).
    17. Gastineau, Pascal & Taugourdeau, Emmanuelle, 2014. "Compensating for environmental damages," Ecological Economics, Elsevier, vol. 97(C), pages 150-161.
    18. Nthambi, Mary & Markova-Nenova, Nonka & Wätzold, Frank, 2021. "Quantifying Loss of Benefits from Poor Governance of Climate Change Adaptation Projects: A Discrete Choice Experiment with Farmers in Kenya," Ecological Economics, Elsevier, vol. 179(C).
    19. Millon, Lara & Barré, Kévin & Julliard, Romain & Compère, Pierre & Kerbiriou, Christian, 2021. "Calculation of biodiversity level between different land-uses to improve conservation outcomes of biodiversity offsetting," Land Use Policy, Elsevier, vol. 101(C).
    20. Sponagel, Christian & Angenendt, Elisabeth & Piepho, Hans-Peter & Bahrs, Enno, 2021. "Farmers’ preferences for nature conservation compensation measures with a focus on eco-accounts according to the German Nature Conservation Act," Land Use Policy, Elsevier, vol. 104(C).

    More about this item

    Keywords

    Ecological compensation; no net loss policy; welfare; inequality;
    All these keywords.

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:crs:wpaper:2019-25. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/crestfr.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Secretariat General (email available below). General contact details of provider: https://edirc.repec.org/data/crestfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.