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Buying Ecological Services: Fragmented Reserves, Core and Periphery National Park Structure, and the Agricultural Extensification Debate

Listed author(s):
  • Hennessy, David A.
  • Lapan, Harvey E.

Growing demand for cropland products has placed intense pressure on the abilityof land resources to support nature, straining public budgets to purchase environmental goods.Fixing overall agricultural output, two environmental policy options are whether to a) promotemore agricultural extensification and nature friendly farming practices or b) produce intensivelyon some land and leave the rest wild. Microeconomic models of the topic have not accounted forwidely recognized spatial externalities regarding fragmented reserves. This article does so, usingWirtinger's inequality to also identify a third policy possibility. This is that ecological servicescan follow a smoothly varying spatial path chararacterized by harmonic functions. We use theresults to rationalize the core and periphery National Park structure put in place around theworld, i.e., versions of our third policy possibility have been implemented.

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Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers Archive with number 31296.

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Date of creation: 07 Nov 2008
Publication status: Published in Natural Resource Modeling, May 2010, vol. 23 no. 2, pp. 176-217
Handle: RePEc:isu:genres:31296
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Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070

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