The cost of policy simplification in conservation incentive programs

Armsworth, P. R., Acs, S., Dallimer, M., Gaston, K. J., Hanley, N. and Wilson, P. (2012) The cost of policy simplification in conservation incentive programs. Ecology Letters, 15(5), pp. 406-414. (doi: 10.1111/j.1461-0248.2012.01747.x)

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Abstract

Incentive payments to private landowners provide a common strategy to conserve biodiversity and enhance the supply of goods and services from ecosystems. To deliver cost-effective improvements in biodiversity, payment schemes must trade-off inefficiencies that result from over-simplified policies with the administrative burden of implementing more complex incentive designs. We examine the effectiveness of different payment schemes using field parameterized, ecological economic models of extensive grazing farms. We focus on profit maximising farm management plans and use bird species as a policy-relevant indicator of biodiversity. Common policy simplifications result in a 49–100% loss in biodiversity benefits depending on the conservation target chosen. Failure to differentiate prices for conservation improvements in space is particularly problematic. Additional implementation costs that accompany more complicated policies are worth bearing even when these constitute a substantial proportion (70% or more) of the payments that would otherwise have been given to farmers.

Item Type:Articles
Additional Information:Research was funded as part of the UK Research Councils’ Rural Economy and Land Use Programme, a collaboration between ESRC, NERC and BBSRC, with additional funding from Defra and the Scottish Government. K.J.G. was supported by a Royal Society Wolfson Research Merit Award.
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Hanley, Professor Nicholas
Authors: Armsworth, P. R., Acs, S., Dallimer, M., Gaston, K. J., Hanley, N., and Wilson, P.
College/School:College of Medical Veterinary and Life Sciences > School of Biodiversity, One Health & Veterinary Medicine
Journal Name:Ecology Letters
Publisher:Wiley
ISSN:1461-023X
ISSN (Online):1461-0248
Published Online:03 April 2012

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