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Assessing the cost-effectiveness of a biodiversity conservation policy: A bio-econometric analysis of Natura 2000 contracts in forest

Author

Listed:
  • Serge S. Garcia

    (LEF - Laboratoire d'Economie Forestière - INRA - Institut National de la Recherche Agronomique - AgroParisTech)

  • Emeline Hily

    (LEF - Laboratoire d'Economie Forestière - INRA - Institut National de la Recherche Agronomique - AgroParisTech)

  • Anne Stenger-Letheux

    (LEF - Laboratoire d'Economie Forestière - INRA - Institut National de la Recherche Agronomique - AgroParisTech, BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique)

  • Gengyang Tu

    (LEF - Laboratoire d'Economie Forestière - INRA - Institut National de la Recherche Agronomique - AgroParisTech)

Abstract

In France, the implementation of the EU biodiversity conservation policy within the Natura 2000 network combines regulatory tools and voluntary contracting. In this article, we empirically assess the cost-effectiveness of Natura 2000 contracts in forest areas. We simultaneously estimate a cost function for biodiversity conservation and the production set of biodiversity output and timber, while controlling for conservation measures. We show strong substitutability between biodiversity conservation and timber production. Estimate results on the cost-elasticity of biodiversity conservation also suggest the possibility of more ecologically ambitious contracts with lower average costs. Results also show that public owners are able to bear higher opportunity costs than private owners. Our findings may help to formulate policy recommendations in terms of contracts' targeting, likely to enhance the cost-effectiveness of the incentive scheme.

Suggested Citation

  • Serge S. Garcia & Emeline Hily & Anne Stenger-Letheux & Gengyang Tu, 2015. "Assessing the cost-effectiveness of a biodiversity conservation policy: A bio-econometric analysis of Natura 2000 contracts in forest," Post-Print hal-01215313, HAL.
    • Handle: RePEc:hal:journl:hal-01215313
    DOI: 10.1016/j.ecolecon.2015.08.008
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    References listed on IDEAS

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    1. Signe Anthon & Serge Garcia & Anne Stenger, 2010. "Incentive Contracts for Natura 2000 Implementation in Forest Areas," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 46(3), pages 281-302, July.
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    5. Vedel, Suzanne Elizabeth & Jacobsen, Jette Bredahl & Thorsen, Bo Jellesmark, 2015. "Forest owners' willingness to accept contracts for ecosystem service provision is sensitive to additionality," Ecological Economics, Elsevier, vol. 113(C), pages 15-24.
    6. Rosenkranz, Lydia & Seintsch, Björn & Wippel, Bernd & Dieter, Matthias, 2014. "Income losses due to the implementation of the Habitats Directive in forests — Conclusions from a case study in Germany," Forest Policy and Economics, Elsevier, vol. 38(C), pages 207-218.
    7. Prokofieva, Irina & Gorriz, Elena, 2013. "Institutional analysis of incentives for the provision of forest goods and services: An assessment of incentive schemes in Catalonia (north-east Spain)," Forest Policy and Economics, Elsevier, vol. 37(C), pages 104-114.
    8. Engel, Stefanie & Pagiola, Stefano & Wunder, Sven, 2008. "Designing payments for environmental services in theory and practice: An overview of the issues," Ecological Economics, Elsevier, vol. 65(4), pages 663-674, May.
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    10. Jean-Jacques Laffont & Jean Tirole, 1993. "A Theory of Incentives in Procurement and Regulation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121743, December.
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    Cited by:

    1. Brusselaers, Jan & Van Huylenbroeck, Guido & Buysse, Jeroen, 2017. "Green Public Procurement of Certified Wood: Spatial Leverage Effect and Welfare Implications," Ecological Economics, Elsevier, vol. 135(C), pages 91-102.
    2. Ding, Zhenmin & Yao, Shunbo, 2021. "Ecological effectiveness of payment for ecosystem services to identify incentive priority areas: Sloping land conversion program in China," Land Use Policy, Elsevier, vol. 104(C).
    3. Gerling, Charlotte & Wätzold, Frank, 2019. "Evaluating policy instruments for the conservation of biodiversity in a changing climate," MPRA Paper 95512, University Library of Munich, Germany.
    4. Augustynczik, Andrey Lessa Derci & Yousefpour, Rasoul & Rodriguez, Luiz Carlos Estraviz & Hanewinkel, Marc, 2018. "Conservation Costs of Retention Forestry and Optimal Habitat Network Selection in Southwestern Germany," Ecological Economics, Elsevier, vol. 148(C), pages 92-102.
    5. Augustynczik, Andrey Lessa Derci & Gutsch, Martin & Basile, Marco & Suckow, Felicitas & Lasch, Petra & Yousefpour, Rasoul & Hanewinkel, Marc, 2020. "Socially optimal forest management and biodiversity conservation in temperate forests under climate change," Ecological Economics, Elsevier, vol. 169(C).
    6. Valatin, G. & Ovando, P. & Abildtrup, J. & Accastello, C. & Andreucci, M.B. & Chikalanov, A. & El Mokaddem, A. & Garcia, S. & Gonzalez-Sanchis, M. & Gordillo, F. & Kayacan, B. & Little, D. & Lyubenova, 2022. "Approaches to cost-effectiveness of payments for tree planting and forest management for water quality services," Ecosystem Services, Elsevier, vol. 53(C).
    7. Oliver Schöttker & Frank Wätzold, 2022. "Climate Change and the Cost-Effective Governance Mode for Biodiversity Conservation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 82(2), pages 409-436, June.
    8. Josset, Clement & Shanafelt, David W. & Abildtrup, Jens & Stenger, Anne, 2023. "Probabilistic typology of private forest owners: A tool to target the development of new market for ecosystem services," Land Use Policy, Elsevier, vol. 134(C).
    9. Schöttker, Oliver & Wätzold, Frank, 2017. "Cost-effectiveness of buying land for conservation versus paying land-users for conservation measures – the case of preserving an oligotrophic lake in a Natura 2000 area in North Germany," MPRA Paper 80661, University Library of Munich, Germany.

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    More about this item

    Keywords

    Payment for ecosystem services; Cost of biodiversity conservation; Biodiversity index; Forest;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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