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Individual vs. collective agglomeration bonuses to conserve biodiversity

Author

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  • François Bareille

    (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Raphaël Soubeyran

    (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier)

Abstract

Agglomeration bonuses (AB) are payments conditional on the contiguity of landowners' conservation areas. It is widely accepted that, by encouraging landowners to cooperate, ABs promote more cost-effective biodiversity conservation than homogeneous payments. This article challenges this conclusion by studying the impact of different AB designs, which may or may not encourage cooperation. Specifically, we show that differentiating the bonus between internal (within-landholding) and external (between-landholdings) boundaries affects AB costeffectiveness. Using an economic-ecological model and game theory, our simulations on realistic landscapes show that the most cost-effective ABs are those presenting relatively larger internal bonuses. Conversely, ABs with relatively larger external bonuses are less cost-effective, despite fostering cooperation between landowners.

Suggested Citation

  • François Bareille & Raphaël Soubeyran, 2024. "Individual vs. collective agglomeration bonuses to conserve biodiversity," CEE-M Working Papers hal-04454553, CEE-M, Universtiy of Montpellier, CNRS, INRA, Montpellier SupAgro.
    • Handle: RePEc:hal:wpceem:hal-04454553
    Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-04454553
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