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Enforcement aspects of conservation policies: compensation payments versus reserves

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  • Sandra Rousseau

Abstract

This model explicitly incorporates the dynamic aspects of conservation programs with incomplete compliance and it allows landholders’ behavior to change over time. A distinction is made between initial and continuing compliance. We find that incomplete and instrument-specific enforcement can have a significant impact on the choice between subsidy schemes and reserves for conservation policies. The results suggest that it is useless to design a conservation scheme for landholders, if the regulator is not prepared to explicitly back the program with a monitoring and enforcement policy. In general, the regulator will prefer to use compensation payments, if the cost of using government revenues is sufficiently low, the environmental benefits are equal, and the cost efficiency benefits exceed the (possible) increase in inspection costs. If the use of government funds is too costly, the reserve-type instruments will be socially beneficial.

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  • Sandra Rousseau, 2008. "Enforcement aspects of conservation policies: compensation payments versus reserves," Working Papers of Department of Economics, Leuven ces0806, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    • Handle: RePEc:ete:ceswps:ces0806
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    1. C. Choe & I. Fraser, 1998. "A Note on Imperfect Monitoring of Agri‐Environmental Policy," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(2), pages 250-258, June.
    2. Chongwoo Choe & Iain Fraser, 1999. "Compliance Monitoring and Agri‐Environmental Policy," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(3), pages 468-487, September.
    3. Gibson, Clark C. & Williams, John T. & Ostrom, Elinor, 2005. "Local Enforcement and Better Forests," World Development, Elsevier, vol. 33(2), pages 273-284, February.
    4. Konstantinos Giannakas & Jonathan D. Kaplan, 2005. "Policy Design and Conservation Compliance on Highly Erodible Lands," Land Economics, University of Wisconsin Press, vol. 81(1).
    5. Ellefson, Paul V. & Kilgore, Michael A. & Granskog, James E., 2007. "Government regulation of forestry practices on private forest land in the United States: An assessment of state government responsibilities and program performance," Forest Policy and Economics, Elsevier, vol. 9(6), pages 620-632, February.
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    Keywords

    monitoring and enforcement; policy instruments; conservation policy;
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