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Assessing the cost-effectiveness of a biodiversity conservation policy: A bio-econometric analysis of Natura 2000 contracts in forest

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  • Hily, Emeline
  • Garcia, Serge
  • Stenger, Anne
  • Tu, Gengyang

Abstract

In France, the implementation of the EU biodiversity conservation policy within the Natura 2000 network combines regulatory tools and voluntary contracting. In this article, we empirically assess the cost-effectiveness of Natura 2000 contracts in forest areas. We simultaneously estimate a cost function for biodiversity conservation and the production set of biodiversity output and timber, while controlling for conservation measures. We show strong substitutability between biodiversity conservation and timber production. Estimate results on the cost-elasticity of biodiversity conservation also suggest the possibility of more ecologically ambitious contracts with lower average costs. Results also show that public owners are able to bear higher opportunity costs than private owners. Our findings may help to formulate policy recommendations in terms of contracts' targeting, likely to enhance the cost-effectiveness of the incentive scheme.

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  • Hily, Emeline & Garcia, Serge & Stenger, Anne & Tu, Gengyang, 2015. "Assessing the cost-effectiveness of a biodiversity conservation policy: A bio-econometric analysis of Natura 2000 contracts in forest," Ecological Economics, Elsevier, vol. 119(C), pages 197-208.
    • Handle: RePEc:eee:ecolec:v:119:y:2015:i:c:p:197-208
    DOI: 10.1016/j.ecolecon.2015.08.008
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    1. Brusselaers, Jan & Van Huylenbroeck, Guido & Buysse, Jeroen, 2017. "Green Public Procurement of Certified Wood: Spatial Leverage Effect and Welfare Implications," Ecological Economics, Elsevier, vol. 135(C), pages 91-102.
    2. Valatin, G. & Ovando, P. & Abildtrup, J. & Accastello, C. & Andreucci, M.B. & Chikalanov, A. & El Mokaddem, A. & Garcia, S. & Gonzalez-Sanchis, M. & Gordillo, F. & Kayacan, B. & Little, D. & Lyubenova, 2022. "Approaches to cost-effectiveness of payments for tree planting and forest management for water quality services," Ecosystem Services, Elsevier, vol. 53(C).
    3. Oliver Schöttker & Frank Wätzold, 2022. "Climate Change and the Cost-Effective Governance Mode for Biodiversity Conservation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 82(2), pages 409-436, June.
    4. Ding, Zhenmin & Yao, Shunbo, 2021. "Ecological effectiveness of payment for ecosystem services to identify incentive priority areas: Sloping land conversion program in China," Land Use Policy, Elsevier, vol. 104(C).
    5. Gerling, Charlotte & Wätzold, Frank, 2019. "Evaluating policy instruments for the conservation of biodiversity in a changing climate," MPRA Paper 95512, University Library of Munich, Germany.
    6. Augustynczik, Andrey Lessa Derci & Yousefpour, Rasoul & Rodriguez, Luiz Carlos Estraviz & Hanewinkel, Marc, 2018. "Conservation Costs of Retention Forestry and Optimal Habitat Network Selection in Southwestern Germany," Ecological Economics, Elsevier, vol. 148(C), pages 92-102.
    7. Augustynczik, Andrey Lessa Derci & Gutsch, Martin & Basile, Marco & Suckow, Felicitas & Lasch, Petra & Yousefpour, Rasoul & Hanewinkel, Marc, 2020. "Socially optimal forest management and biodiversity conservation in temperate forests under climate change," Ecological Economics, Elsevier, vol. 169(C).
    8. Josset, Clement & Shanafelt, David W. & Abildtrup, Jens & Stenger, Anne, 2023. "Probabilistic typology of private forest owners: A tool to target the development of new market for ecosystem services," Land Use Policy, Elsevier, vol. 134(C).
    9. Schöttker, Oliver & Wätzold, Frank, 2017. "Cost-effectiveness of buying land for conservation versus paying land-users for conservation measures – the case of preserving an oligotrophic lake in a Natura 2000 area in North Germany," MPRA Paper 80661, University Library of Munich, Germany.

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    More about this item

    Keywords

    Forest; Biodiversity index; Cost of biodiversity conservation; Payment for ecosystem services;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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