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Creating markets for habitat conservation when habitats are heterogeneous

Author

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  • Chomitz, Kenneth M.
  • Thomas, Timothy S.
  • Salazar Brandao, Antonio

Abstract

A tradable development rights (TDR) program focusing on biodiversity conservation faces a crucial problem defining which areas of habitat should be considered equivalent. Restricting the trading domain to a narrow area could boost the range of biodiversity conserved but could increase the opportunity cost of conservation. The issue is relevant to Brazil, where TDR-like programs are emerging. Current regulations require each rural property to maintain a forest reserve of at least 20 percent, but nascent policies allow some tradability of this obligation. The authors use a simple, spatially explicit model to simulate a hypothetical state-level program. They find that wider trading domains drastically reduce landholder costs of complying with this regulation and result in environmentally preferable landscapes.

Suggested Citation

  • Chomitz, Kenneth M. & Thomas, Timothy S. & Salazar Brandao, Antonio, 2004. "Creating markets for habitat conservation when habitats are heterogeneous," Policy Research Working Paper Series 3429, The World Bank.
    • Handle: RePEc:wbk:wbrwps:3429
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    References listed on IDEAS

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    1. Norman Myers & Russell A. Mittermeier & Cristina G. Mittermeier & Gustavo A. B. da Fonseca & Jennifer Kent, 2000. "Biodiversity hotspots for conservation priorities," Nature, Nature, vol. 403(6772), pages 853-858, February.
    2. Kenneth M. Chomitz, 2004. "Transferable Development Rights and Forest Protection: An Exploratory Analysis," International Regional Science Review, , vol. 27(3), pages 348-373, July.
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    Cited by:

    1. Drechsler, Martin & Wätzold, Frank, 2009. "Applying tradable permits to biodiversity conservation: Effects of space-dependent conservation benefits and cost heterogeneity on habitat allocation," Ecological Economics, Elsevier, vol. 68(4), pages 1083-1092, February.
    2. Chomitz, Kenneth M. & Wertz-Kanounnikoff, Sheila, 2005. "Measuring the initial impacts on deforestation of Mato Grosso's program for environmental control," Policy Research Working Paper Series 3762, The World Bank.
    3. Alain Karsenty, 2004. "Des rentes contre le développement ? Les nouveaux instruments d’acquisition mondiale de la biodiversité et l’utilisation des terres dans les pays tropicaux," Mondes en développement, De Boeck Université, vol. 127(3), pages 61-74.

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