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

Gregory M. Parkhurst (), Jason Shogren and Thomas Crocker ()
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Gregory M. Parkhurst: Weber State University
Thomas Crocker: University of Wyoming

Environmental & Resource Economics, 2016, vol. 63, issue 4, No 3, 719-744

Abstract: Abstract Land conversion patterns can conflict with endangered species protection by fragmenting the landscape. Incentive mechanisms can help mitigate the threat of habitat fragmentation by aggregating landowner conservation decisions across the landscape. The optimal conservation strategy for endangered species can target the most connected habitat cluster as an initial starting point, and then expand the conservation patch to maximize connectivity. Herein we present an incentive mechanism, the tradable set-aside requirements (TSARs), designed to target the low cost contiguous conservation landscape and share the burden of conservation among landowners. In the lab, we examine the performance of two land use conservation policies: TSARs, and the TSARs combined with an agglomeration bonus. Evaluated by economic and biological measures of efficiency, we find that TSARs, relative to a command and control policy, increases patch size and habitat connectivity within the landscape. Additionally, combining TSARS with the agglomeration bonus increases biological efficiency (habitat connectivity and patch size within the landscape) but at a price—higher opportunity cost. TSARs with the agglomeration bonus can be more cost-effective than a TSARs only policy for species sensitive to large core habitat requirements and landscape connectivity.

Keywords: Mechanism design; Conservation; Tradable set-aside requirements; Agglomeration bonus; Experimental economics (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (11)

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Working Paper: Tradable Set-Aside Requirements (TSARs): Conserving Spatially Dependent Environmental Amenities (2011)
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DOI: 10.1007/s10640-014-9826-4

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