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Charles R. Loesch

This paper examines the impact of production network economies on designing cost-effective conservation targeting strategies. We first develop a theoretical model to study the decision to convert land from an extensive (or biodiversity-friendly) use to an intensive use (e.g., crop agriculture) in the presence of network economies in land use returns. The model supports the possibility of multiple land use equilibria due to network economies and identifies policy outcomes that increase welfare. Bandwagon effects can occur whereby spatial production spillovers from lands under intensive use can prompt further conversions on proximate lands under extensive use. Conversely, conservation sites can be placed strategically...
Categories: Publication; Types: Citation
This study investigates optimal grassland easement acquisition strategies with a focus on the roles of environmental benefit additionality and spatial spillover effect of grassland conversion. Numerical analysis shows that the optimal solution under a targeting strategy that does not consider any spatial spillover effect may secure less environmental benefit additionality than does a heuristic algorithm that considers spatial spillover. Moreover, heuristic algorithms that consider either conversion probability or spatial spillover can generally achieve more than 97% of environmental benefit additionality obtained under the optimal solution of a targeting strategy that considers both additionality and spatial spillover.
Categories: Publication; Types: Citation
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