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Evaluating the Return in Ecosystem Services from Investment in Public Land Acquisitions

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Listed:
  • Kovacs, Kent F.
  • Polasky, Stephen
  • Keeler, Bonnie
  • Pennington, Derric
  • Nelson, Erik
  • Plantinga, Andrew J.
  • Taff, Steven J.

Abstract

We evaluate how land use change and the value ecosystem services affect the decision to invest in public land acquisitions. Our application is for the state of Minnesota, and we consider the acquisitions by Department of Natural Resources over the last two decades. We calculate a return on investment (ROI) in conservation showing the increase in the value of ecosystem goods and services from public lands per dollar spent on acquisition. A spatially-explicit modeling tool, the Integrated Valuation of Ecosystem Services and Tradeoffs (InVEST), quantifies how changes in land use and land cover (LULC) influence the provision and value of a suite of ecosystem services: carbon sequestration, timber production, water quality, habitat quality, and outdoor recreation. The present value of the difference in the value of ecosystem services from landscapes with and without acquisitions in 1992 and for the econometrically modeled future landscapes in 2022 and 2052 is the return from the investment in the acquisitions. We find a limited number of acquisitions have a ROI above one. Also, we observe the estimated return in the acquisitions is much more influenced by the economic value of ecosystem services than the projected development threat to the acquisitions.

Suggested Citation

  • Kovacs, Kent F. & Polasky, Stephen & Keeler, Bonnie & Pennington, Derric & Nelson, Erik & Plantinga, Andrew J. & Taff, Steven J., 2012. "Evaluating the Return in Ecosystem Services from Investment in Public Land Acquisitions," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124660, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea12:124660
    DOI: 10.22004/ag.econ.124660
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    Cited by:

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    2. Jianxin Yang & Jian Gong & Wenwu Tang, 2019. "Prioritizing Spatially Aggregated Cost-Effective Sites in Natural Reserves to Mitigate Human-Induced Threats: A Case Study of the Qinghai Plateau, China," Sustainability, MDPI, vol. 11(5), pages 1-23, March.
    3. Bin Fu & Pei Xu & Yukuan Wang & Yingman Guo, 2019. "Integrating Ecosystem Services and Human Demand for a New Ecosystem Management Approach: A Case Study from the Giant Panda World Heritage Site," Sustainability, MDPI, vol. 12(1), pages 1-20, December.
    4. Daigneault, Adam & Strong, Aaron L. & Meyer, Spencer R., 2021. "Benefits, costs, and feasibility of scaling up land conservation for maintaining ecosystem services in the Sebago Lake watershed, Maine, USA," Ecosystem Services, Elsevier, vol. 48(C).
    5. Wang, Yangyang & Atallah, Shady & Shao, Guofan, 2017. "Spatially explicit return on investment to private forest conservation for water purification in Indiana, USA," Ecosystem Services, Elsevier, vol. 26(PA), pages 45-57.
    6. Noe, Ryan R. & Nachman, Elizabeth R. & Heavenrich, Hannah R. & Keeler, Bonnie L. & Hernández, Daniel L. & Hill, Jason D., 2016. "Assessing uncertainty in the profitability of prairie biomass production with ecosystem service compensation," Ecosystem Services, Elsevier, vol. 21(PA), pages 103-108.
    7. Yanan Li & Linghua Duo & Ming Zhang & Zhenhua Wu & Yanjun Guan, 2021. "Assessment and Estimation of the Spatial and Temporal Evolution of Landscape Patterns and Their Impact on Habitat Quality in Nanchang, China," Land, MDPI, vol. 10(10), pages 1-19, October.
    8. Christie Klimas & Allison Williams & Megan Hoff & Beth Lawrence & Jennifer Thompson & James Montgomery, 2016. "Valuing Ecosystem Services and Disservices across Heterogeneous Green Spaces," Sustainability, MDPI, vol. 8(9), pages 1-21, August.

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    Environmental Economics and Policy; Land Economics/Use;

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