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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.)

  • Emmanuelle 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 & Emmanuelle Taugourdeau, 2019. "Ecological compensation: how much and where?," Working Papers 2019.23, FAERE - French Association of Environmental and Resource Economists.
    • Handle: RePEc:fae:wpaper:2019.23
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    References listed on IDEAS

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    14. 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.
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    Cited by:

    1. Barral, Stéphanie & Guillet, Fanny, 2023. "Preserving peri-urban land through biodiversity offsets: Between market transactions and planning regulations," Land Use Policy, Elsevier, vol. 127(C).
    2. Zhidong Li & Boru Su & Moucheng Liu, 2022. "Research Progress on the Theory and Practice of Grassland Eco-Compensation in China," Agriculture, MDPI, vol. 12(5), pages 1-16, May.
    3. Rebotier, Julien, 2023. "Oil offsets in Esmeraldas (Ecuador) When the promotion of development shores up unequal risk situations," Ecological Economics, Elsevier, vol. 213(C).
    4. Li, Meng & Lu, Shibao & Li, Wei, 2022. "Stakeholders′ ecological-economic compensation of river basin: A multi-stage dynamic game analysis," Resources Policy, Elsevier, vol. 79(C).
    5. Xue, Jibin & Lang, Jiahui & Guan, Yanjun & Lu, Shibao, 2023. "Design and measurement of small-scale regional ecological compensation model," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 1392-1405.

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    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

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