Spatial incentives to coordinate contiguous habitat

Parkhurst, Gregory M.; Shogren, Jason F.

doi:10.1016/j.ecolecon.2007.07.009

Cited by 189 publications

(97 citation statements)

References 18 publications

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“…Participants were not told the context of their decisions in the experiment (enrolling in CP-42), since this type of parallelism can lead to loss of control over experimental outcomes [39]. The experiment used the created ten by ten land grid model, consistent with previous studies (e.g., [33,40]). Four participants were included in each experimental session representing The values in Figure 1 were used to assign the various cropping rotations values in the created experimental land grid.…”

Section: Experimental Economics Methodsmentioning

confidence: 69%

“…This type of laboratory experiment has been used previously in the literature and shown to work well to test incentive mechanisms for land conservation decisions [33][34][35]. Since CP-42 is a relatively new policy and actual detailed enrollment data are unavailable, we use these economic experiments to predict behavior under the implementation of this policy.…”

Section: Experimental Economics Methodsmentioning

confidence: 99%

“…Then, each session consisted of up to ten rounds [33]. To avoid end-game-effects, the participants were informed that the experiment had a random number of rounds [41].…”

Section: Experimental Economics Methodsmentioning

confidence: 99%

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Understanding Pollinator Habitat Conservation under Current Policy Using Economic Experiments

Ritten

Bastian

Shogren

et al. 2017

Land

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Pollinators provide critical ecosystems services vital to the production of numerous crops in the United States' agricultural sector. However, the U.S. is witnessing a serious decline in the abundance and diversity of domestic and wild pollinators, which threatens U.S. food security. In response, the U.S. Department of Agriculture has created the Pollinator Habitat Initiative (CP-42) to induce landowners to create quality habitat for pollinators by planting beneficial crops and wildflowers on Conservation Reserve Program (CRP)-eligible land. Landowners' potential conservation decisions under CP-42 and the resulting impact on land use decisions regarding crop production are not well-understood. We examine these issues by designing an economic experiment that simulates landowners' decisions to enroll in CP-42. As our motivating example, we focus on how CP-42 might affect crop production patterns and the resulting returns in Goshen County, Wyoming. The results indicate that about 16% of CRP-eligible land would be enrolled. Based on the relatively low CP-42 payment, our subjects remove only lower value crops from production. Our results suggest that (1) all dry wheat and sunflower production and a portion of barley, corn, and dry beans could be taken out of production when transferred to pollinator habitat, and (2) that habitat fragmentation would likely occur, which would reduce the efficacy of pollination. Overall, our results suggest that there are significant limits to the overall effectiveness of the CP-42 policy.

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Section: Experimental Economics Methodsmentioning

confidence: 69%

Section: Experimental Economics Methodsmentioning

confidence: 99%

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Understanding Pollinator Habitat Conservation under Current Policy Using Economic Experiments

Ritten

Bastian

Shogren

et al. 2017

Land

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“…However, ecological efficiency might not be reached when procurement from the lowest bidders delivers a fragmented outcome and crucial pathways to connect different habitat patches are not formed (Margules and Pressey 2000, Williams and Snyder 2005, Conrad et al 2012. 1 Mechanisms in which the payment received for conserving a plot depends on the number of retired neighboring plots (so-called agglomeration bonuses) can help reduce this potential fragmentation problem (Parkhurst et al 2002, Parkhurst and Shogren 2007, Wätzold and Drechsler 2005, Drechsler et al 2010. 2 Experimental studies on the effectiveness and efficiency of agglomeration bonuses typically use fixed corridor values and opportunity costs, and they also impose that participation is mandatory (cf.…”

Section: Introductionmentioning

confidence: 99%

Buyouts and Agglomeration Bonuses in Wildlife Corridor Auctions

Dijk¹,

Ansink²,

Soest

2017

SSRN Journal

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We present a general model of bidding behavior in wildlife corridor auctions. Given (i) some spatial configuration of landowners in a landscape, (ii) the landowners' opportunity costs, and (iii) the value of establishing the corridor, our model predicts individual landowners' bids, overall participation rates in the auction, as well as the expected net benefits to the conservation agency. We find that market efficiency of the auction increases in the number of potential corridors. We use simulations to compare a benchmark auction with two policy scenarios in a hypothetical landscape. In one scenario, members of a winning corridor receive an agglomeration bonus. In the other scenario, we buy out a pivotal landowner (one that is part of many potential corridors) prior to the auction. Given equal budgets for the agglomeration bonus and the buyout policy, an agglomeration bonus is less efficient than a buyout for conservation agencies facing low budgets, and vice versa. A risk-averse conservation agency is however always better off using a buyout policy.

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“…The agglomeration bonus can be structured to satisfy numerous spatial configurations (see Parkhurst and Shogren, 2007;2008).…”

Section: Introductionmentioning

confidence: 99%

Tradable Set-Aside Requirements (TSARs): Conserving Spatially Dependent Environmental Amenities

Parkhurst

Shogren

Crocker

2014

Environ Resource Econ

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In the lab, we examine the effectiveness of two land use conservation policies: a tradable set aside requirements (TSARs), and the TSARs combined with an agglomeration bonus. Evaluated by bioeconomic efficiency, our experimental results suggest: 1) TSARs is a cost-effective land conservation tool; and 2) combining TSARS with the agglomeration bonus increases habitat connectivity but at a price-lower economic efficiency. * Thanks to the USDA, and the UW Stroock and Bugas funds for partial financial support. Shogren thanks the Norwegian University of Life Sciences for their support while working on this project. Additional thanks to Travis Warziniack and students at the University of Wyoming for insightful comments and discussions.2

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Spatial incentives to coordinate contiguous habitat

Cited by 189 publications

References 18 publications

Understanding Pollinator Habitat Conservation under Current Policy Using Economic Experiments

Understanding Pollinator Habitat Conservation under Current Policy Using Economic Experiments

Buyouts and Agglomeration Bonuses in Wildlife Corridor Auctions

Tradable Set-Aside Requirements (TSARs): Conserving Spatially Dependent Environmental Amenities

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