Landscapes generate a wide range of valuable ecosystem services, yet land use decisions often ignore the value of these services. Using the example of the UK, we show the significance of land use change not only for agricultural production but also for emissions and sequestration of greenhouse gases, open-access recreational visits, urban green space and wild species diversity. We use spatially explicit models in conjunction with valuation methods to estimate comparable economic values for these services, taking account of climate change impacts. We show that, while decisions which focus solely upon agriculture reduce overall ecosystem service values, highly significant value increases can be obtained from targeted planning incorporating all potential services and their values, and that this approach also conserves wild species diversity.One Sentence Summary: Valuation of ecosystem services within land-use planning creates significant gains relative to current, market-dominated, decision making. Main Text:The Millennium Ecosystem Assessment (1) provided important evidence of the ongoing global degradation of ecosystem services and highlighted the need to incorporate their value into the economic analyses which underpin real-world decision-making. Previous studies have shown that the overall values of unconverted natural habitats can exceed the private benefits following conversion (2, 3), that knowledge of landscape heterogeneity and ecological processes can support cost effective land planning (4-7), that trade-offs in land-use decisions affect values from ecosystem services and biodiversity at local level (8, 9), and that current land use is vulnerable to the impacts of global change (10, 11). In the UK National Ecosystem Assessment (NEA) (12), a comprehensive assessment of the UK's ecosystems was linked to a systematic, environmental and economic analysis of the benefits they generate. Here we show how taking account of multiple objectives in a changing environment (including, but not restricted to, climate change) fundamentally alters decisions regarding optimal land use. The NEA analyses are based upon highly detailed, spatially-referenced environmental data covering all of Great Britain. These data supported the design and parameterization of models of both the drivers and consequences of land use decisions, incorporating the complexity of the natural environment and its variation across space and time (13). Model outputs provide inputs to economic analyses which assess the value of both marketed and non-marketed goods (Table 1).The NEA specifically addressed the consequences of land use change driven by either just agricultural or a wider set of values, all within the context of ongoing climate change. To assess this, raw data on land use and its determinants were drawn from multiple sources to compile a 40 year dataset, spatially disaggregated at a resolution of 2km grid squares (400ha) or finer across all of Great Britain, forming more than ½ million sets of spatially referenced, time specific...

The recent report from the Secretariat of the Convention on Biological Diversity [(2010) Global Biodiversity Outlook 3] acknowledges that ongoing biodiversity loss necessitates swift, radical action. Protecting undisturbed lands, although vital, is clearly insufficient, and the key role of unprotected, private land owned is being increasingly recognized. Seeking to avoid common assumptions of a social planner backed by government interventions, the present work focuses on the incentives of the individual landowner. We use detailed data to show that successful conservation on private land depends on three factors: conservation effectiveness (impact on target species), private costs (especially reductions in production), and private benefits (the extent to which conservation activities provide compensation, for example, by enhancing the value of remaining production). By examining the high-profile issue of palm-oil production in a major tropical biodiversity hotspot, we show that the levels of both conservation effectiveness and private costs are inherently spatial; varying the location of conservation activities can radically change both their effectiveness and private cost implications. We also use an economic choice experiment to show that consumers' willingness to pay for conservation-grade palm-oil products has the potential to incentivize private producers sufficiently to engage in conservation activities, supporting vulnerable International Union for Conservation of Nature Red Listed species. However, these incentives vary according to the scale and efficiency of production and the extent to which conservation is targeted to optimize its cost-effectiveness. Our integrated, interdisciplinary approach shows how strategies to harness the power of the market can usefully complement existing-and to-date insufficient-approaches to conservation.conservation | economics | Sumatra | oil-palm | biodiversity

We present an integrated model of the direct consequences of climate change on land use, and the indirect effects of induced land use change upon the natural environment. The model predicts climate-driven shifts in the profitability of alternative uses of agricultural land. Both the direct impact of climate change and the induced shift in land use patterns will cause secondary effects on the water environment, for which agriculture is the major source of diffuse pollution. We model the impact of changes in such pollution on riverine ecosystems showing that these will be spatially heterogeneous. Moreover, we consider further knock-on effects upon the recreational benefits derived from water environments, which we assess using revealed preference methods. This analysis permits a multi-layered examination of the economic consequences of climate change, assessing the sequence of impacts from climate change through farm gross margins, land use, water quality and recreation, both at the individual and catchment scale.

Climate change is expected to impact agricultural land use. Steadily accumulating changes in temperature and water availability can alter the relative profitability of different farming activities and promote land-use changes. There is also potential for high-impact 'climate tipping points', where abrupt, nonlinear change in climate occurs, such as the potential collapse of the Atlantic Meridional Overturning Circulation (AMOC). Here, using data from Great Britain, we develop a methodology to analyse the impacts of a climate tipping point on land use and economic outcomes for agriculture. We show that economic and land-use impacts of such a tipping point are likely to include widespread cessation of arable farming with losses of agricultural output that are an order of magnitude larger than the impacts of climate change without an AMOC collapse. The agricultural effects of AMOC collapse could be ameliorated by technological adaptations such as widespread irrigation, but the amount of water required and the costs appear to be prohibitive in this instance.