 Land-Use Patterns and Spatially Dependent Ecosystem Services: Some Microeconomic FoundationsDavid Lewis and JunJie Wu International Review of Environmental and Resource Economics, 2015, vol. 8, issue 2, 191-223 Abstract: This paper develops and reviews some microeconomic foundations for the provision of spatially-dependent ecosystem services from land. We focus on ecosystem services described by a production function with spatial dependencies in the primary input — the amount and pattern of land in particular uses and management. Many ecosystem service production functions are affected by spatial dependences, particularly those involving fish, wildlife, and water quality. We illustrate the various sources of demand for ecosystem services and then provide a novel development of the effects of alternative spatial dependencies on the shape of the supply curve for ecosystem services. Our analysis emphasizes that the optimal supply curve requires a mechanism to coordinate landowners' decisions and internalize the input externalities that arise from production functions being spatially dependent. Finally, we use our framework to illustrate and review some key implications for linking demand and supply for policy design. Keywords: Ecosystem services; Land use patterns; Payments for ecosystem services; Spatial dependency; Asymmetric information (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:now:jirere:101.00000069 Access Statistics for this article More articles in International Review of Environmental and Resource Economics from now publishers |
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