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Estimating optimal conservation in agricultural landscapes when costs and benefits of conservation measures are heterogeneous in space and over time

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  • Wätzold, Frank
  • Lienhoop, Nele
  • Drechsler, Martin
  • Settele, Josef

Abstract

Designing agri-environmental schemes targeted at conservation poses the key question of how many financial resources should be allocated to address a particular aim such as the conservation of an endangered species. Economists can contribute to an answer by estimating the 'optimal level of species conservation'. This requires an assessment of the supply and the demand curve for conservation and a comparison of the two curves to identify the optimal conservation level. In a case study we estimate the optimal conservation level of Large Blue butterflies (protected by the EU Habitats Directive) in the region of Landau, Germany. The difference to other studies estimating optimal conservation is that a problem is addressed where costs and benefits of conservation measures are heterogeneous in space and over time. In our case study we find a corner solution where the highest proposed level of butterfly conservation is optimal. Although our results are specific to the area and species studied, the methodology is generally applicable to estimate how many financial resources should be allocated to conserve an endangered species in the context of agri-environmental schemes.

Suggested Citation

  • Wätzold, Frank & Lienhoop, Nele & Drechsler, Martin & Settele, Josef, 2006. "Estimating optimal conservation in agricultural landscapes when costs and benefits of conservation measures are heterogeneous in space and over time," UFZ Discussion Papers 5/2006, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    • Handle: RePEc:zbw:ufzdps:52006
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    References listed on IDEAS

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    1. Frank Wätzold & Martin Drechsler, 2005. "Spatially Uniform versus Spatially Heterogeneous Compensation Payments for Biodiversity-Enhancing Land-Use Measures," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 31(1), pages 73-93, May.
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