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Tradable Set-Aside Requirements (TSARs): Conserving Spatially Dependent Environmental Amenities

  • Parkhurst, Gregory M
  • Shogren, Jason F
  • Crocker, Thomas

In the lab, we examine the effectiveness of two land use conservation policies: a tradable set aside requirements (TSARs), and the TSARs combined with an agglomeration bonus. Evaluated by bioeconomic efficiency, our experimental results suggest: 1) TSARs is a cost-effective land conservation tool; and 2) combining TSARS with the agglomeration bonus increases habitat connectivity but at a price—lower economic efficiency.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 34555.

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Date of creation: 2011
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Handle: RePEc:pra:mprapa:34555
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  1. Parkhurst, Gregory M. & Shogren, Jason F., 2007. "Spatial incentives to coordinate contiguous habitat," Ecological Economics, Elsevier, vol. 64(2), pages 344-355, December.
  2. Claudio Mezzetti, 2004. "Mechanism Design with Interdependent Valuations: Efficiency," Econometrica, Econometric Society, vol. 72(5), pages 1617-1626, 09.
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  5. Drechsler, Martin & Johst, Karin & Wätzold, Frank & Shogren, Jason F., 2007. "An agglomeration payment for cost-effective biodiversity conservation in spatially structured landscapes," UFZ Discussion Papers 4/2007, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
  6. Simanti Banerjee & Frans P. de Vries & Nick Hanley & Daan P. van Soest, 2014. "The Impact of Information Provision on Agglomeration Bonus Performance: An Experimental Study on Local Networks," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(4), pages 1009-1029.
  7. Feng, Hongli, 2002. "Green Payments And Dual Policy Goals," 2002 Annual meeting, July 28-31, Long Beach, CA 19697, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  8. Lewis, David J. & Plantinga, Andrew J. & Nelson, Erik & Polasky, Stephen, 2009. "The Efficiency of Voluntary Incentive Policies for Preventing Biodiversity Loss," Staff Paper Series 533, University of Wisconsin, Agricultural and Applied Economics.
  9. Christian Langpap, 2004. "Conservation Incentives Programs for Endangered Species: An Analysis of Landowner Participation," Land Economics, University of Wisconsin Press, vol. 80(3), pages 375-388.
  10. Banerjee, Simanti & Kwasnica, Anthony M. & Shortle, James S., 2012. "Agglomeration bonus in small and large local networks: A laboratory examination of spatial coordination," Ecological Economics, Elsevier, vol. 84(C), pages 142-152.
  11. Langpap, Christian, 2006. "Conservation of endangered species: Can incentives work for private landowners?," Ecological Economics, Elsevier, vol. 57(4), pages 558-572, June.
  12. Hans-Peter Weikard, 2002. "Diversity Functions and the Value of Biodiversity," Land Economics, University of Wisconsin Press, vol. 78(1), pages 20-27.
  13. Albers, Heidi J. & Ando, Amy W. & Batz, Michael, 2008. "Patterns of multi-agent land conservation: Crowding in/out, agglomeration, and policy," Resource and Energy Economics, Elsevier, vol. 30(4), pages 492-508, December.
  14. Stoneham, Gary & Chaudhri, Vivek & Ha, Arthur & Strappazzon, Loris, 2003. "Auctions for conservation contracts: an empirical examination of Victoria’s BushTender trial," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(4), December.
  15. Gregory M. Parkhurst & Jason F. Shogren, 2008. "Smart Subsidies for Conservation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(5), pages 1192-1200.
  16. Goldman, Rebecca L. & Thompson, Barton H. & Daily, Gretchen C., 2007. "Institutional incentives for managing the landscape: Inducing cooperation for the production of ecosystem services," Ecological Economics, Elsevier, vol. 64(2), pages 333-343, December.
  17. Reeson, Andrew F. & Rodriguez, Luis C. & Whitten, Stuart M. & Williams, Kristen & Nolles, Karel & Windle, Jill & Rolfe, John, 2011. "Adapting auctions for the provision of ecosystem services at the landscape scale," Ecological Economics, Elsevier, vol. 70(9), pages 1621-1627, July.
  18. Gary Stoneham & Vivek Chaudhri & Arthur Ha & Loris Strappazzon, 2003. "Auctions for conservation contracts: an empirical examination of Victoria's BushTender trial," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(4), pages 477-500, December.
  19. Ferraro, Paul J., 2008. "Asymmetric information and contract design for payments for environmental services," Ecological Economics, Elsevier, vol. 65(4), pages 810-821, May.
  20. Mills, David E., 1980. "Transferable development rights markets," Journal of Urban Economics, Elsevier, vol. 7(1), pages 63-74, January.
  21. Lewis, David J. & Plantinga, Andrew J. & Wu, JunJie, 2008. "Targeting Incentives to Reduce Habitat Fragmentation," Staff Paper Series 531, University of Wisconsin, Agricultural and Applied Economics.
  22. Stephen Polasky & Erik Nelson & Derric Pennington & Kris Johnson, 2011. "The Impact of Land-Use Change on Ecosystem Services, Biodiversity and Returns to Landowners: A Case Study in the State of Minnesota," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 48(2), pages 219-242, February.
  23. Parkhurst, Gregory M. & Shogren, Jason F. & Bastian, Chris & Kivi, Paul & Donner, Jennifer & Smith, Rodney B. W., 2002. "Agglomeration bonus: an incentive mechanism to reunite fragmented habitat for biodiversity conservation," Ecological Economics, Elsevier, vol. 41(2), pages 305-328, May.
  24. Armsworth, Paul R & Banerjee, Simanti & Hanley, Nicholas & Lennox, Gareth D, 2012. "How should we incentivize private landowners to "produce" more biodive rsity?," Stirling Economics Discussion Papers 2012-02, University of Stirling, Division of Economics.
  25. Warziniack, Travis & Shogren, Jason F. & Parkhurst, Gregory, 2007. "Creating contiguous forest habitat: An experimental examination on incentives and communication," Journal of Forest Economics, Elsevier, vol. 13(2-3), pages 191-207, August.
  26. Uwe Latacz-Lohmann & Carel Van der Hamsvoort, 1997. "Auctioning Conservation Contracts: A Theoretical Analysis and an Application," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 407-418.
  27. Smith, Rodney B. W. & Shogren, Jason F., 2002. "Voluntary Incentive Design for Endangered Species Protection," Journal of Environmental Economics and Management, Elsevier, vol. 43(2), pages 169-187, March.
  28. Drechsler, Martin & Wätzold, Frank, 2009. "Applying tradable permits to biodiversity conservation: Effects of space-dependent conservation benefits and cost heterogeneity on habitat allocation," Ecological Economics, Elsevier, vol. 68(4), pages 1083-1092, February.
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