How should we incentivize private landowners to "produce" more biodiversity?

Citation

Hanley N, Banerjee S, Lennox GD & Armsworth PR (2012) How should we incentivize private landowners to "produce" more biodiversity?. Stirling Economics Discussion Paper, 2012-02.

Abstract
Globally, much biodiversity is found on private land. Acting to conserve such biodiversity thus requires the design of policies which influence the decision-making of farmers and foresters. In this paper, we outline the economic characteristics of this problem, before reviewing a number of policy options such as conservation auctions and conservation easements. We then discuss a number of policy design problems, such as need for spatial coordination and the choice between paying for outcomes rather than actions, before summarizing what the evidence and theory developed to date tells us about those aspects of biodiversity policy design which need careful attention from policy makers and environmental regulators.

Keywords
biodiversity; policy design; conservation auctions; agglomeration bonus; Landowners Biodiversity conservation; Incentives in conservation of natural resources

JEL codes

• Q57: Ecological Economics: Ecosystem Services; Biodiversity Conservation; Bioeconomics; Industrial Ecology
• Q58: Environmental Economics: Government Policy
• Q24: Renewable Resources and Conservation: Land