Spatially Uniform versus Spatially Heterogeneous Compensation Payments for Biodiversity-Enhancing Land-Use Measures

Frank Wätzold () and Martin Drechsler ()

Environmental & Resource Economics, 2005, vol. 31, issue 1, 73-93

Abstract: The importance of compensation payments for biodiversity-enhancing land-use measures has grown over the past decade, particularly in connection with agri-environmental policy. Given that both the costs and the benefits of biodiversity-enhancing land-use measures are subject to spatial variation, the criterion of cost-effectiveness calls for spatially heterogeneous compensation payments. However, when deciding whether to implement uniform or heterogeneous compensation payments, the regulator has to compare the disadvantage of uniform payments in terms of cost-effectiveness with the disadvantages of spatially heterogeneous payments. To help resolve this issue, this paper provides a simple ecological-economic model that allows the reduced cost-effectiveness associated with uniform payments for biodiversity-enhancing land-use measures to be assessed for different types of benefit and cost functions. Copyright Springer 2005

Keywords: agri-environmental policy; biodiversity; compensation payments; conservation; cost-effectiveness; ecological-economic modelling; land use (search for similar items in EconPapers)
Date: 2005
References: Add references at CitEc
Citations: View citations in EconPapers (58)

Downloads: (external link)
http://hdl.handle.net/10.1007/s10640-004-6979-6 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:enreec:v:31:y:2005:i:1:p:73-93

Ordering information: This journal article can be ordered from
http://www.springer. ... al/journal/10640/PS2

DOI: 10.1007/s10640-004-6979-6

Access Statistics for this article

Environmental & Resource Economics is currently edited by Ian J. Bateman

More articles in Environmental & Resource Economics from Springer, European Association of Environmental and Resource Economists Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().