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How to make land use policy decisions: Integrating science and economics to deliver connected climate, biodiversity, and food objectives

Author

Listed:
  • Ian J. Bateman

    (a Land, Environment, Economics and Policy Institute, University of Exeter Business School , Exeter EX4 4PU , United Kingdom)

  • Amy Binner

    (a Land, Environment, Economics and Policy Institute, University of Exeter Business School , Exeter EX4 4PU , United Kingdom)

  • Ethan T. Addicott

    (a Land, Environment, Economics and Policy Institute, University of Exeter Business School , Exeter EX4 4PU , United Kingdom)

  • Ben Balmford

    (a Land, Environment, Economics and Policy Institute, University of Exeter Business School , Exeter EX4 4PU , United Kingdom)

  • Frankie H. T. Cho

    (a Land, Environment, Economics and Policy Institute, University of Exeter Business School , Exeter EX4 4PU , United Kingdom)

  • Gretchen C. Daily

    (b Department of Biology, Stanford University , Stanford , CA 94305)

  • Anthony De-Gol

    (c School of Environmental Sciences, University of East Anglia , Norwich NR4 7TJ , United Kingdom)

  • Sabrina Eisenbarth

    (d Swiss Institute for International Economics and Applied Economic Research, University of St. Gallen , St. Gallen 9000 , Switzerland)

  • Michela Faccioli

    (e Department of Economics and Management, School of International Studies, University of Trento , Trento 38122 , Italy)

  • Henry Ferguson-Gow

    (f Centre for Biodiversity and Environment Research, Department of Genetics, Evolution and Environment, University College London , London WC1E 6BT , United Kingdom)

  • Silvia Ferrini

    (c School of Environmental Sciences, University of East Anglia , Norwich NR4 7TJ , United Kingdom)

  • Carlo Fezzi

    (g Department of Economics and Management, University of Trento , Trento 38122 , Italy)

  • Kate Gannon

    (a Land, Environment, Economics and Policy Institute, University of Exeter Business School , Exeter EX4 4PU , United Kingdom)

  • Ben Groom

    (h Grantham Research Institute, London School of Economics and Political Science , London WC2A 2AE , United Kingdom)

  • Anna B. Harper

    (i Department of Geography, University of Georgia , Athens , GA 30602)

  • Amii Harwood

    (c School of Environmental Sciences, University of East Anglia , Norwich NR4 7TJ , United Kingdom)

  • Jon Hillier

    (j Global Academy of Agriculture and Food Systems, The Royal (Dick) School of Veterinary Studies and The Roslin Institute, Easter Bush Campus , Midlothian EH25 9RG , United Kingdom)

  • Mark F. Hulme

    (k The British Trust for Ornithology, Thetford , Norfolk IP24 2PU , United Kingdom)

  • Christopher F. Lee

    (a Land, Environment, Economics and Policy Institute, University of Exeter Business School , Exeter EX4 4PU , United Kingdom)

  • Lorena Liuzzo

    (a Land, Environment, Economics and Policy Institute, University of Exeter Business School , Exeter EX4 4PU , United Kingdom)

  • Andrew Lovett

    (c School of Environmental Sciences, University of East Anglia , Norwich NR4 7TJ , United Kingdom)

  • Mattia C. Mancini

    (a Land, Environment, Economics and Policy Institute, University of Exeter Business School , Exeter EX4 4PU , United Kingdom)

  • Robert Matthews

    (l Forest Research, Farnham , Surrey GU10 4LH , United Kingdom)

  • James I. L. Morison

    (l Forest Research, Farnham , Surrey GU10 4LH , United Kingdom)

  • Nathan Owen

    (a Land, Environment, Economics and Policy Institute, University of Exeter Business School , Exeter EX4 4PU , United Kingdom)

  • Richard G. Pearson

    (f Centre for Biodiversity and Environment Research, Department of Genetics, Evolution and Environment, University College London , London WC1E 6BT , United Kingdom)

  • Stephen Polasky

    (m Department of Applied Economics, University of Minnesota , St. Paul , MN 55108)

  • Gavin Siriwardena

    (k The British Trust for Ornithology, Thetford , Norfolk IP24 2PU , United Kingdom)

  • Pete Smith

    (n Institute of Biological and Environmental Sciences, School of Biological Sciences, University of Aberdeen , Aberdeen AB24 3UU , United Kingdom)

  • Pat Pat Snowdon

    (o Policy and Practice, Scottish Forestry , Edinburgh EH11 3XD , United Kingdom)

  • Peter Tippett

    (p Exeter Clinical Trials Unit, University of Exeter , Exeter EX1 2LU , United Kingdom)

  • Sylvia H. Vetter

    (n Institute of Biological and Environmental Sciences, School of Biological Sciences, University of Aberdeen , Aberdeen AB24 3UU , United Kingdom)

  • Shailaja Vinjili

    (a Land, Environment, Economics and Policy Institute, University of Exeter Business School , Exeter EX4 4PU , United Kingdom)

  • Christian A. Vossler

    (q Department of Economics and Baker School of Public Policy and Public Affairs, University of Tennessee , Knoxville , TN 37996)

  • Robert T. Watson

    (a Land, Environment, Economics and Policy Institute, University of Exeter Business School , Exeter EX4 4PU , United Kingdom)

  • Daniel Williamson

    (a Land, Environment, Economics and Policy Institute, University of Exeter Business School , Exeter EX4 4PU , United Kingdom)

  • Brett H. Day

    (a Land, Environment, Economics and Policy Institute, University of Exeter Business School , Exeter EX4 4PU , United Kingdom)

Abstract

Land use change is crucial to addressing the existential threats of climate change and biodiversity loss while enhancing food security [M. Zurek et al. , Science 376 , 1416–1421 (2022)]. The interconnected and spatially varying nature of the impacts of land use change means that these challenges must be addressed simultaneously [H.-O. Pörtner et al. , Science 380 , eabl4881 (2023)]. However, governments commonly focus on single issues, incentivizing land use change via “Flat-Rate†subsidies offering constant per hectare payments, uptake of which is determined by the economic circumstances of landowners rather than the integrated environmental outcomes that will be delivered [G. Q. Bull et al. , Forest Policy Econ. 9 , 13–31 (2006)]. Here, we compare Flat-Rate subsidies to two alternatives: “Land Use Scenario†allocation of subsidies through consultation across stakeholders and interested parties; and a “Natural Capital†approach which targets subsidies according to expected ecosystem service response. This comparison is achieved by developing a comprehensive decision support system, integrating new and existing natural, physical, and economic science models to quantify environmental, agricultural, and economic outcomes. Applying this system to the United Kingdom’s net zero commitment to increase carbon storage via afforestation, we show that the three approaches result in significantly different outcomes in terms of where planting occurs, their environmental consequences, and economic costs and benefits. The Flat-Rate approach actually increases net carbon emissions while Land Use Scenario allocation yields poor economic outcomes. The Natural Capital targeted approach outperforms both alternatives, providing the highest possible social values while satisfying net zero commitments.

Suggested Citation

  • Ian J. Bateman & Amy Binner & Ethan T. Addicott & Ben Balmford & Frankie H. T. Cho & Gretchen C. Daily & Anthony De-Gol & Sabrina Eisenbarth & Michela Faccioli & Henry Ferguson-Gow & Silvia Ferrini & , 2024. "How to make land use policy decisions: Integrating science and economics to deliver connected climate, biodiversity, and food objectives," Proceedings of the National Academy of Sciences, Proceedings of the National Academy of Sciences, vol. 121(49), pages 2407961121-, December.
  • Handle: RePEc:nas:journl:v:121:y:2024:p:e2407961121
    DOI: 10.1073/pnas.2407961121
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    Keywords

    decision-making; land use; natural capital; climate change; biodiversity;
    All these keywords.

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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