Understanding the Performance of Biodiversity Offset Markets: Evidence from an Integrated Ecological-Economic Model

Katherine Hannah Simpson, Frans de Vries, Martin Dallimer, Paul R Armsworth and Nick Hanley

Land Economics, 2021, vol. 97, issue 4, 836-857

Abstract: Biodiversity offset markets can incentivize private landowners to take actions that benefit biodiversity. A spatially explicit integrated ecological-economic model is developed and employed for a U.K. region where offset buyers (house developers) and sellers (farmers) interact by trading offset credits. We simulate how changes in the ecological metric and geographic scale affects the performance of the offset market. Results show that the choice of the metric has a significant effect on market liquidity and the spatial distribution of gains and losses in the “target” species. The results also consistently reveal relatively higher potential welfare gains for developers than for farmers.

JEL-codes: Q57 Q58 (search for similar items in EconPapers)
Date: 2021
Note: DOI: 10.3368/le.97.4.030420-0032R
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://le.uwpress.org/cgi/reprint/97/4/836
A subscription is required to access pdf files. Pay per article is available.

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:uwp:landec:v:97:y:2021:i:4:p:836-857

Access Statistics for this article

More articles in Land Economics from University of Wisconsin Press
Bibliographic data for series maintained by ().