An agglomeration payment for cost-effective biodiversity conservation in spatially structured landscapes

Martin Drechsler (), Frank Wätzold, Karin Johst and Jason Shogren

Resource and Energy Economics, 2010, vol. 32, issue 2, 261-275

Abstract: Connected habitats are ecologically more valuable than isolated habitats for many species. A key challenge when designing payments for biodiversity in fragmented landscapes is to increase the spatial connectivity of habitats. Based on the idea of an agglomeration bonus we consider a scheme in which land-owners only receive payments if habitats are arranged in an ecologically favourable configuration. We compare the cost-effectiveness of agglomeration payments to spatially homogeneous payments on a conceptual level. Our results suggest that positive efficiency gains exist for agglomeration payments. We use Large Blue butterfly habitat in Germany as a specific case study, and find the agglomeration payments may lead to cost-savings of nearly 70% relative to homogenous payments.

Keywords: Agglomeration; bonus; Biodiversity; conservation; Cost-effectiveness; Ecological-economic; modelling; Metapopulation; Spatial; heterogeneity (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (58)

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Working Paper: An agglomeration payment for cost-effective biodiversity conservation in spatially structured landscapes (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:resene:v:32:y:2010:i:2:p:261-275

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