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Potential Cost-Effectiveness of Incentive Payment Programs for Biological Conservation

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  • Siikamäki, Juha

    (Resources for the Future)

  • Layton, David F.

Abstract

This study assesses the potential cost-effectiveness of incentive payment programs relative to traditional top-down regulatory programs for biological conservation. We develop site-level estimates of the opportunity cost and the nonmonetized biological benefits of protecting biodiversity hotspots in Finnish nonindustrial private forests. We then use these estimates to compare and contrast the cost-effectiveness of alternative conservation programs. Our results suggest that incentive payment programs, which tacitly capitalize on landowners’ private knowledge about the opportunity costs of conservation, may be considerably more cost-effective than traditional top-down regulatory programs.

Suggested Citation

  • Siikamäki, Juha & Layton, David F., 2006. "Potential Cost-Effectiveness of Incentive Payment Programs for Biological Conservation," RFF Working Paper Series dp-06-27, Resources for the Future.
    • Handle: RePEc:rff:dpaper:dp-06-27
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    File URL: http://www.rff.org/RFF/documents/RFF-DP-06-27.pdf
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    Cited by:

    1. Engel, Stefanie & Palmer, Charles, 2008. "Payments for environmental services as an alternative to logging under weak property rights: The case of Indonesia," Ecological Economics, Elsevier, vol. 65(4), pages 799-809, May.
    2. Zhou, Mo, 2017. "Valuing environmental amenities through inverse optimization: Theory and case study," Journal of Environmental Economics and Management, Elsevier, vol. 83(C), pages 217-230.

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    More about this item

    Keywords

    biodiversity conservation; incentive payments; cost-effectiveness; opportunity cost; biological benefits; non-industrial private forests;
    All these keywords.

    JEL classification:

    • C42 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Survey Methods
    • C46 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Specific Distributions
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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