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Agglomeration payment, agglomeration bonus or homogeneous payment?

Wätzold, Frank LU and Drechsler, Martin (2014) In Resource and Energy Economics 37. p.85-101
Abstract
When designing compensation payments for biodiversity conservation measures setting appropriate incentives so that landowners select spatially connected land parcels for conservation is of key importance for many species. The proposition of an agglomeration bonus, where landowners receive a homogeneous payment and a bonus on top if the spatial allocation of conserved land benefits biodiversity, has been widely discussed. Here, we compare for various ecological and economic parameters the cost-effectiveness and budget efficiency of an agglomeration bonus with a spatially homogeneous payment (where landowners receive the same payment regardless of the spatial allocation of conserved land) and an agglomeration payment (where landowners... (More)
When designing compensation payments for biodiversity conservation measures setting appropriate incentives so that landowners select spatially connected land parcels for conservation is of key importance for many species. The proposition of an agglomeration bonus, where landowners receive a homogeneous payment and a bonus on top if the spatial allocation of conserved land benefits biodiversity, has been widely discussed. Here, we compare for various ecological and economic parameters the cost-effectiveness and budget efficiency of an agglomeration bonus with a spatially homogeneous payment (where landowners receive the same payment regardless of the spatial allocation of conserved land) and an agglomeration payment (where landowners receive money only if conserved land parcels are spatially connected). Key results include that whether side payments between participants take place plays an important role in the relative performance of the payment options, and that the performance of the agglomeration bonus is either clearly dominated by one of the two other options, but never by both, or very close to the better performing option. (C) 2013 Elsevier B.V. All rights reserved. (Less)
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Agri-environment scheme, Biodiversity conservation, Spatial, heterogeneity, Payments for environmental services
in
Resource and Energy Economics
volume
37
pages
85 - 101
publisher
Elsevier
external identifiers
  • wos:000340329400005
  • scopus:84952758968
ISSN
1873-0221
DOI
10.1016/j.reseneeco.2013.11.011
language
English
LU publication?
yes
id
0d555811-8e86-4180-8a91-93b9886a89e4 (old id 4659627)
date added to LUP
2014-09-25 12:23:18
date last changed
2017-10-22 03:24:47
@article{0d555811-8e86-4180-8a91-93b9886a89e4,
  abstract     = {When designing compensation payments for biodiversity conservation measures setting appropriate incentives so that landowners select spatially connected land parcels for conservation is of key importance for many species. The proposition of an agglomeration bonus, where landowners receive a homogeneous payment and a bonus on top if the spatial allocation of conserved land benefits biodiversity, has been widely discussed. Here, we compare for various ecological and economic parameters the cost-effectiveness and budget efficiency of an agglomeration bonus with a spatially homogeneous payment (where landowners receive the same payment regardless of the spatial allocation of conserved land) and an agglomeration payment (where landowners receive money only if conserved land parcels are spatially connected). Key results include that whether side payments between participants take place plays an important role in the relative performance of the payment options, and that the performance of the agglomeration bonus is either clearly dominated by one of the two other options, but never by both, or very close to the better performing option. (C) 2013 Elsevier B.V. All rights reserved.},
  author       = {Wätzold, Frank and Drechsler, Martin},
  issn         = {1873-0221},
  keyword      = {Agri-environment scheme,Biodiversity conservation,Spatial,heterogeneity,Payments for environmental services},
  language     = {eng},
  pages        = {85--101},
  publisher    = {Elsevier},
  series       = {Resource and Energy Economics},
  title        = {Agglomeration payment, agglomeration bonus or homogeneous payment?},
  url          = {http://dx.doi.org/10.1016/j.reseneeco.2013.11.011},
  volume       = {37},
  year         = {2014},
}