IDEAS home Printed from https://ideas.repec.org/a/sae/envira/v21y1989i8p1027-1036.html
   My bibliography  Save this article

Compensation for Nature Conservation

Author

Listed:
  • I D Hodge

    (Department of Land Economy, University of Cambridge, Cambridge CB3 9EP, England)

Abstract

The approach adopted towards environmental management in the rural context is different from that in the urban context in that the first is generally based on voluntary controls accompanied by compensation, whereas the second is based on involuntary controls without compensation. The arguments relating to the payment of compensation are examined with the use of management agreements on Sites of Special Scientific Interest taken as an example. Criteria for determining whether or not compensation is paid may be based on arguments concerning efficiency or fairness. Standard Pareto measures of efficiency cannot determine whether or not compensation should be paid. The basis on which compensation is paid can create incentives, either for occupiers to take preemptive action and extinguish conservation values or for them to make claims for excess compensation. The payment of compensation by the state may provide an incentive for the efficient allocation of resources, but this will not be so if it is based on the financial cost rather than the opportunity cost. Any approach to compensation is based upon a reference point which indicates the level of environmental quality which is expected to be achieved by a land manager. But this point is not immutable and could shift towards an expectation of a higher level of environmental management. There is no single level of compensation which can simultaneously provide appropriate incentives both to the farmer and to the state. A possible resolution would be for the conservation agency to pay only the proportion of the compensation payment which represents the resource cost.

Suggested Citation

  • I D Hodge, 1989. "Compensation for Nature Conservation," Environment and Planning A, , vol. 21(8), pages 1027-1036, August.
    • Handle: RePEc:sae:envira:v:21:y:1989:i:8:p:1027-1036
    DOI: 10.1068/a211027
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1068/a211027
    Download Restriction: no
    File URL: https://libkey.io/10.1068/a211027?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sandra S. Batie, 1984. "Alternative Views of Property Rights: Implications for Agricultural Use of Natural Resources," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(5), pages 814-818.
    2. MacKillop, Andrew, 1985. "Review of member states' energy policies : Publication COM (84) 88 final, Commission of the European Communities, Brussels, 1984, 175 pp, free," Energy Policy, Elsevier, vol. 13(1), pages 106-107, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Iain M. Fraser, 1995. "An Analysis Of Management Agreement Bargaining Under Asymmetric Information," Journal of Agricultural Economics, Wiley Blackwell, vol. 46(1), pages 20-32, January.
    2. Sinden, Jack A., 2003. "Who Pays to Protect Native Vegetation? Costs to Farmers in Moree Plains Shire, New South Wales," Working Papers 12951, University of New England, School of Economics.
    3. Fraser, Iain & Chisholm, Tony, 2000. "Conservation or cultural heritage? Cattle grazing in the Victoria Alpine National Park," Ecological Economics, Elsevier, vol. 33(1), pages 63-75, April.
    4. Ian Hodge & Dionisio Ortiz-Miranda, 2007. "An Institutional Transactions Approach to Property-Rights Adjustment: An Application to Spanish Agriculture," Environment and Planning A, , vol. 39(7), pages 1735-1751, July.
    5. J R Crabtree, 1997. "The Supply of Public Access to the Countryside—A Value for Money and Institutional Analysis of Incentive Policies," Environment and Planning A, , vol. 29(8), pages 1465-1476, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. James Hite, 1987. "Rural people, resources and communities: An assessment of the capabilities of the social sciences in agriculture," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 4(1), pages 27-41, December.
    2. Jongwook Kim & Joseph T. Mahoney, 2002. "Resource-based and property rights perspectives on value creation: the case of oil field unitization," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 23(4-5), pages 225-245.
    3. Genser, Bernd & Weck-Hannemann, Hannelore, 1992. "Fuel taxation in EC counties: A political economy approach," Discussion Papers, Series II 192, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
    4. Dennis A. Rondinelli & James S. McCullough & Ronald W. Johnson, 1989. "Analysing Decentralization Policies in Developing Countries: a Political‐Economy Framework," Development and Change, International Institute of Social Studies, vol. 20(1), pages 57-87, January.
    5. G Parker, 1999. "Rights, Symbolic Violence, and the Micropolitics of the Rural: The Case of the Parish Paths Partnership Scheme," Environment and Planning A, , vol. 31(7), pages 1207-1222, July.
    6. Giersch, Herbert, 1986. "Internal and external liberalisation for faster growth," Kiel Working Papers 275, Kiel Institute for the World Economy (IfW Kiel).
    7. Geerlings, Harry & van der Sluis - van Meijeren, M., 2008. "The dominance of the Lisbon agreement as a barrier for an environmentally oriented transport policy in Europe; the gap between theory and implementation in policy integration," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 39, pages 14-32.
    8. Siebert, Horst, 1989. "The harmonization issue in Europe: prior agreement or a competitive process?," Kiel Working Papers 377, Kiel Institute for the World Economy (IfW Kiel).
    9. Martin, William E. & Seitz, Wesley D., 1991. "The Search for an Optimal U.S. Agricultural Water Quality Policy," 1991 Annual Meeting, August 4-7, Manhattan, Kansas 271213, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Streit Manfred E., 1998. "Competition Among Systems, Harmonisation and Integration," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 8(2-3), pages 239-254, June.
    11. E. Wesley & F. Peterson & J. Aiken & Bruce Johnson, 1993. "Property rights and groundwater in Nebraska," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 10(4), pages 41-49, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:envira:v:21:y:1989:i:8:p:1027-1036. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.