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Estimating the demand and supply of conservation banking markets in the United States

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  • Poudel, Jagdish
  • Zhang, Daowei
  • Simon, Benjamin

Abstract

This paper presents an econometric analysis of factors influencing the demand and supply of habitat conservation credit markets in the United States. Two-stage least squares is used. The results suggest that both the demand and supply for habitat conservation credits are inelastic. The results also suggest that the availability of habitat conservation credits (and new habitat bank formation) is likely to decrease with increases in land value. These results are only suggestive as the dataset used has some significant limitations. Data challenges point to the need for greater public availability of transaction-level data. The availability of such data can help improve the modelling efficiency of habitat conservation banking markets.

Suggested Citation

  • Poudel, Jagdish & Zhang, Daowei & Simon, Benjamin, 2018. "Estimating the demand and supply of conservation banking markets in the United States," Land Use Policy, Elsevier, vol. 79(C), pages 320-325.
    • Handle: RePEc:eee:lauspo:v:79:y:2018:i:c:p:320-325
    DOI: 10.1016/j.landusepol.2018.08.032
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    References listed on IDEAS

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    1. Ferraro, Paul J. & McIntosh, Craig & Ospina, Monica, 2007. "The effectiveness of the US endangered species act: An econometric analysis using matching methods," Journal of Environmental Economics and Management, Elsevier, vol. 54(3), pages 245-261, November.
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    4. Boisvert, Valérie, 2015. "Conservation banking mechanisms and the economization of nature: An institutional analysis," Ecosystem Services, Elsevier, vol. 15(C), pages 134-142.
    5. BenDor, Todd K. & Vitro, Kristen A. & Riggsbee, J. Adam, 2017. "Pre-listing conservation of candidate species under the endangered species act: An evaluation of prevalence, accessibility, and market-based conservation efforts," Environmental Science & Policy, Elsevier, vol. 74(C), pages 68-74.
    6. Galik, Christopher S. & McAdams, David, 2017. "Supply, Demand, and Uncertainty: Implications for Prelisting Conservation Policy," Ecological Economics, Elsevier, vol. 137(C), pages 91-98.
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    Cited by:

    1. Sebastian Theis & Mark S. Poesch, 2022. "Assessing Conservation and Mitigation Banking Practices and Associated Gains and Losses in the United States," Sustainability, MDPI, vol. 14(11), pages 1-24, May.
    2. Jagdish Poudel & Raju Pokharel, 2021. "Financial Analysis of Habitat Conservation Banking in California," Sustainability, MDPI, vol. 13(22), pages 1-12, November.
    3. Anne-Charlotte Vaissière & Fabien Quétier & Adeline Bierry & Clémence Vannier & Florence Baptist & Sandra Lavorel, 2021. "Modeling Alternative Approaches to the Biodiversity Offsetting of Urban Expansion in the Grenoble Area (France): What Is the Role of Spatial Scales in ‘No Net Loss’ of Wetland Area and Function?," Sustainability, MDPI, vol. 13(11), pages 1-23, May.

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