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The conversion of biodiversity-rich land and ecosystem services

Author

Listed:
  • Rafat Alam

    (Grant MacEwan University)

  • Nguyen Quyen

    (University of Ottawa)

Abstract

Biologically diverse land provides ecosystem services to the agricultural sector. The paper develops a general equilibrium model with overlapping generation to explain the long-run dynamics of land conversion. Inclusion of ecosystem services in the production process imposes a limit to the growth of agricultural production. The market’s inability to value ecosystem services generated from biodiversity-rich land leads to inefficient use of biodiversity-rich land. In any period, the amount of land developed in the South depends on the relative size of the younger generation compared to the size of maximum available land. The absence of asset market for old-age savings, low land-clearing costs and low discount rates cause loss of biodiversity-rich land. Tools like land development fees or land taxes and market creation through payment for ecosystem services can conserve the biodiversity.

Suggested Citation

  • Rafat Alam & Nguyen Quyen, 2018. "The conversion of biodiversity-rich land and ecosystem services," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 20(1), pages 157-178, January.
    • Handle: RePEc:spr:envpol:v:20:y:2018:i:1:d:10.1007_s10018-017-0188-3
    DOI: 10.1007/s10018-017-0188-3
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    References listed on IDEAS

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    1. Eichner, Thomas & Pethig, Rüdiger, 2009. "Pricing the ecosystem and taxing ecosystem services: A general equilibrium approach," Journal of Economic Theory, Elsevier, vol. 144(4), pages 1589-1616, July.
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    4. J. C. Burgess, 1998. "The economics of tropical forest land use options," Chapters, in: The Economics of Environment and Development, chapter 11, pages 223-253, Edward Elgar Publishing.
    5. Huang, Ju-Chin & Kerry Smith, V., 1998. "Weak complementarity and production," Economics Letters, Elsevier, vol. 60(3), pages 329-333, September.
    6. Kraft, Steven E., 2008. "Ecosystem Services: A 21st Century Policy Challenge," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 23(2), pages 1-2.
    7. Pearce, David, 1992. "Economic valuation and the natural world," Policy Research Working Paper Series 988, The World Bank.
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    Cited by:

    1. Wenjuan Cheng & Alessio D’Amato & Giacomo Pallante, 2020. "Benefit sharing mechanisms for agricultural genetic diversity use and on-farm conservation," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(1), pages 337-355, April.

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    More about this item

    Keywords

    Land conversion; Ecosystem services; Biodiversity; Conservation; Value of ecosystem services;
    All these keywords.

    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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