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  • 1
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    Biophysical Causality and Environmental Preference Elicitation: Evaluating the Validity of Welfare Analysis over Intermediate Outcomes (2017)
    Oxford University Press
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    Publication Date: 2017-01-05
    Description: Stated preference scenarios often describe outcomes to be valued in terms of intermediate biophysical processes or ecosystem services with indirect utility effects, rather than in terms of final, directly welfare-relevant consequences. This article evaluates whether valid welfare estimates can emerge from this practice. We begin with a theoretical model demonstrating conditions under which stated preference scenarios that include intermediate outcomes will elicit welfare estimates identical to those from parallel scenarios that include associated final outcomes (i.e., convergent validity will hold). The model demonstrates that a necessary condition for convergent validity is the ability of respondents to correctly predict biophysical production functions linking intermediate to final outcomes. Hypotheses from the theoretical model are then evaluated empirically using an application of choice experiments to migratory fish restoration in the U.S. state of Rhode Island. Empirical results are mixed but generally reject convergent validity; welfare estimates are not robust to the use of an intermediate outcome in lieu of a related final outcome in stated preference scenarios, as predicted by theory. Results of the analysis suggest that greater attention should be given to the reliability of welfare estimation when final outcomes cannot be quantified.
    Keywords: D61 - Allocative Efficiency ; Cost-Benefit Analysis, Q51 - Valuation of Environmental Effects, Q57 - Ecological Economics: Ecosystem Services ; Biodiversity Conservation ; Bioeconomics
    Print ISSN: 0002-9092
    Electronic ISSN: 1467-8276
    Topics: Agriculture, Forestry, Horticulture, Fishery, Domestic Science, Nutrition , Economics
    Published by Oxford University Press
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  • 2
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    Learning about a Moving Target in Resource Management: Optimal Bayesian Disease Control (2017)
    Oxford University Press
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    Publication Date: 2017-01-05
    Description: Resource managers must often make difficult choices in the face of imperfectly observed and dynamically changing systems (e.g., livestock, fisheries, water, and invasive species). A rich set of techniques exists for identifying optimal choices when that uncertainty is assumed to be understood and irreducible. Standard optimization approaches, however, cannot address situations in which reducible uncertainty applies to either system behavior or environmental states. The adaptive management literature overcomes this limitation with tools for optimal learning, but has been limited to highly simplified models with state and action spaces that are discrete and small. We overcome this problem by using a recently developed extension of the Partially Observable Markov Decision Process (POMDP) framework to allow for learning about a continuous state. We illustrate this methodology by exploring optimal control of bovine tuberculosis in New Zealand cattle. Disease testing—the control variable—serves to identify herds for treatment and provides information on prevalence, which is both imperfectly observed and subject to change due to controllable and uncontrollable factors. We find substantial efficiency losses from both ignoring learning (standard stochastic optimization) and from simplifying system dynamics (to facilitate a typical, simple learning model), though the latter effect dominates in our setting. We also find that under an adaptive management approach, simplifying dynamics can lead to a belief trap in which information gathering ceases, beliefs become increasingly inaccurate, and losses abound.
    Keywords: C61 - Optimization Techniques ; Programming Models ; Dynamic Analysis, H41 - Public Goods, Q18 - Agricultural Policy ; Food Policy, Q57 - Ecological Economics: Ecosystem Services ; Biodiversity Conservation ; Bioeconomics
    Print ISSN: 0002-9092
    Electronic ISSN: 1467-8276
    Topics: Agriculture, Forestry, Horticulture, Fishery, Domestic Science, Nutrition , Economics
    Published by Oxford University Press
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  • 3
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    The Demonstration and Capture of the Value of an Ecosystem Service: A Quasi-Experimental Hedonic Property Analysis (2016)
    Oxford University Press
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    Publication Date: 2016-04-24
    Description: Water management can generate valuable ecosystem services but can be costly to implement. We examine this issue using irrigation water storage infrastructure which has the potential to provide desirable services to residential properties affected by the condition of the storage structure. We examine a particular prairie setting where concerns regarding fluctuations in water levels of an irrigation storage lake led to an agreement between the irrigation agency and the owners of properties around the lake to stabilize water levels. Using quasi-experimental hedonic property approaches with two different control groups we estimate the subsequent impact of this agreement on shoreline property values using a time series of sales data. The methods utilized in this article represent an effective approach to produce plausible estimates of some of the economic values captured by the infrastructure generating ecosystem services. We find that property values increased as a result of the agreement and that the additional property tax revenues arising from these values can be used to some extent to offset the annual service fees paid to the irrigation agency to provide the stabilized lake levels. This article illustrates the potential for irrigation infrastructure management to provide increases in ecosystem service values beyond irrigation, and also that these values can be captured to pay for the costs of providing these increased values.
    Keywords: Q51 - Valuation of Environmental Effects, Q57 - Ecological Economics: Ecosystem Services ; Biodiversity Conservation ; Bioeconomics
    Print ISSN: 0002-9092
    Electronic ISSN: 1467-8276
    Topics: Agriculture, Forestry, Horticulture, Fishery, Domestic Science, Nutrition , Economics
    Published by Oxford University Press
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  • 4
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    A Novel, Spatiotemporally Explicit Ecological-economic Modeling Procedure for the Design of Cost-effective Agri-environment Schemes to Conserve Biodiversity (2016)
    Oxford University Press
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    Publication Date: 2016-03-31
    Description: Agri-environment schemes (AES) compensate farmers for land use measures that are costly to them but beneficial to biodiversity and the environment. We present an ecological-economic modeling procedure for the design of cost-effective AES to conserve grassland biodiversity, which is applicable to large areas, covers many endangered species and grassland types, and includes several hundred different types of mowing regimes, grazing regimes, and combinations of mowing and grazing regimes as land use measures. The modeling procedure also accounts for the spatial variations in the land use measures' costs and in the effects on species and grassland types. The procedure's main novelty is that it considers variations of the costs and impacts on species and grassland types that arise from different timings of the land use measures. Considering the spatial and the temporal dimension of land use measures makes the modeling procedure spatiotemporally explicit. We demonstrate the power of the modeling procedure by evaluating an existing grassland AES in Saxony, Germany, and identify substantial improvements in terms of cost-effectiveness.
    Keywords: Q15 - Land Ownership and Tenure ; Land Reform ; Land Use ; Irrigation, Q57 - Ecological Economics: Ecosystem Services ; Biodiversity Conservation ; Bioeconomics
    Print ISSN: 0002-9092
    Electronic ISSN: 1467-8276
    Topics: Agriculture, Forestry, Horticulture, Fishery, Domestic Science, Nutrition , Economics
    Published by Oxford University Press
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  • 5
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    Conserving Spatially Explicit Benefits in Ecosystem Service Markets: Experimental Tests of Network Bonuses and Spatial Targeting (2016)
    Oxford University Press
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    Publication Date: 2016-03-31
    Description: Conserving contiguous areas often enhances environmental benefits. However, most conservation efforts are incentive-based and voluntary, and neither reward landowners for contiguity nor do they select based on contiguity. Thus, achieving optimal contiguity of conserved parcels is unlikely. Using lab and artefactual field experiments, this paper evaluates two mechanisms in the context of reverse auctions for achieving optimal contiguity: network bonuses and spatial targeting. Results suggest that spatial targeting alone improves the aggregate environmental and social welfare outcomes, while network bonuses alone result in worse outcomes. The interaction of the bonus effect and the targeting effect is positive. If a program was already using a competitive auction environment with bonuses, adding spatial targeting could reduce welfare loss.
    Keywords: C90 - General, Q20 - General, Q57 - Ecological Economics: Ecosystem Services ; Biodiversity Conservation ; Bioeconomics
    Print ISSN: 0002-9092
    Electronic ISSN: 1467-8276
    Topics: Agriculture, Forestry, Horticulture, Fishery, Domestic Science, Nutrition , Economics
    Published by Oxford University Press
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  • 6
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    Transgenic crops, production risk and agrobiodiversity (2015)
    Oxford University Press
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    Publication Date: 2015-12-29
    Description: Do transgenic crops cause agrobiodiversity erosion? We hypothesise that they increase productivity and reduce production risk and may therefore reduce farmers' demand for on-farm varietal diversity, especially when only a few transgenic varieties are available. We also hypothesise that varietal diversity can be preserved when more transgenic varieties are supplied. These hypotheses are tested and confirmed with panel data for the case of transgenic cotton in India. Cotton varietal diversity in India, with over 90 per cent adoption of transgenic technology, is now at the same level than it was before the introduction of this technology. Some policy implications are discussed.
    Keywords: O44 Environment and Growth, Q12 - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets, Q57 - Ecological Economics: Ecosystem Services ; Biodiversity Conservation ; Bioeconomics
    Print ISSN: 0165-1587
    Electronic ISSN: 1464-3618
    Topics: Agriculture, Forestry, Horticulture, Fishery, Domestic Science, Nutrition , Economics
    Published by Oxford University Press
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  • 7
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    Benefits and costs of biodiversity in agricultural public policies (2015)
    Oxford University Press
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    Publication Date: 2015-02-06
    Description: This paper examines the role played by biodiversity goals in the design of agricultural policies. A bio-economic model is developed with a dynamic and multi-scale perspective. It combines biodiversity dynamics, farming land-uses selected at the micro level and public policies at the macro level based on financial incentives for land-uses. The public decision-maker identifies optimal subsidies or taxes with respect to both biodiversity and budgetary constraints. These optimal policies are then analysed through their private, public and social costs. The model is calibrated and applied to metropolitan France at the small agricultural region scale, using common birds as biodiversity metrics. First results relying on optimality curves and private costs stress the bio-economic trade-off between biodiversity and economic scores. In contrast, the analysis of public costs suggests that accounting for biodiversity can generate a second benefit in terms of public budget. Social costs defined as the sum of private and public costs also show possible bio-economic synergies.
    Keywords: Q57 - Ecological Economics: Ecosystem Services ; Biodiversity Conservation ; Bioeconomics
    Print ISSN: 0165-1587
    Electronic ISSN: 1464-3618
    Topics: Agriculture, Forestry, Horticulture, Fishery, Domestic Science, Nutrition , Economics
    Published by Oxford University Press
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  • 8
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    Conservation Planning: A Review of Return on Investment Analysis (2015)
    Oxford University Press
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    Publication Date: 2015-01-29
    Description: Land and natural resource conservation programs are increasingly being evaluated on the basis of their return on investment (ROI). Conservation ROI analysis quantitatively measures the costs, benefits, and risks of investments, which allows conservation organizations to rank or prioritize them. This article surveys the literature in this area. We organize our discussion around the way studies treat the core elements of ROI, which include the definition and measurement of the conservation objective, identification of relevant baselines, the types of conservation investments considered, and investment costs. We discuss the state of the art of ROI analysis, highlight some unresolved issues, and make suggestions for improvements. We also describe options for extending ROI analysis beyond biodiversity conservation, which is the typical objective. The literature indicates that conservation planning that uses ROI analysis can considerably alter the location and targets of conservation, lead to more protection and higher quality conservation outcomes, and result in significant savings. The measurement and prediction of baseline ecological conditions and threats remains a central challenge for conservation ROI analysis, as does accounting for landowner and developer responses to conservation investments. Another key priority for future research is the identification of ways to more comprehensively incorporate ecosystem services and multiple environmental objectives into the assessment framework. ( JEL : Q20, Q30, Q51, Q57)
    Keywords: Q20 - General, Q30 - General, Q51 - Valuation of Environmental Effects, Q57 - Ecological Economics: Ecosystem Services ; Biodiversity Conservation ; Bioeconomics
    Print ISSN: 1750-6816
    Electronic ISSN: 1750-6824
    Topics: Energy, Environment Protection, Nuclear Power Engineering , Political Science , Economics
    Published by Oxford University Press
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