Estimating the Costs of Conservation in Multiple Output Agricultural Setting
Scarcity of resources for biodiversity conservation gives rise to the need of strategic investment with priorities given to the cost of conservation. While the literature provides abundant methodological options for biodiversity conservation; estimating true cost of conservation remains abstract and simplistic, without recognising dynamic nature of the cost. Some recent works demonstrate the prominence of economic theory to inform biodiversity decisions, particularly on the costs and benefits of biodiversity however, the integration of the concept of true cost into biodiversity actions and planning are very slow to come by, and specially on a farm level. Conservation planning studies often use area as a proxy for costs neglecting different land values as well as protected areas. These literature consider only heterogeneous benefits while land costs are considered homogenous. Analysis with the assumption of cost homogeneity results in biased estimation; since not only it doesn’t address the true total cost of biodiversity actions and plans, but also it fails to screen out lands that are more (or less) expensive and/or difficult (or more suitable) for biodiversity conservation purposes, hindering validity and comparability of the results. Economies of scope” is one of the other most neglected aspects in conservation literature. The concept of economies of scope introduces the existence of cost complementarities within a multiple output production system and it suggests a lower cost during the concurrent production of multiple outputs by a given farm. If there are, indeed, economies of scope then simplistic representation of costs will tend to overestimate the true cost of conservation leading to suboptimal outcomes. The aim of this paper, therefore, is to provide first road review of the various theoretical ways in which economies of scope are likely to occur of how they might occur in conservation. Consequently, the paper addresses gaps that have to be filled in future analysis.
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costs into conservation planningacross Africa. Biological Conservation
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(2006). Integrating economic costs into conservation planning. Journal
of Trends in Ecology and Evolution, Vol.21 No.12.
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Omer, A., Pascual, U., & Russell, N. P. (2007). Biodiversity
Conservation and Productivity in Intensive Agricultural Systems.
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9552.2007.00091.x
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ecological economics”. Trends Ecol. Evol. 16, 229–234
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does it cost to expand a protected area system? Some critical
determining factors and ranges of costs for Queensland. PLoS ONE, 6 .
e25447
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B.G., Martinez-Ramos, M., Morales, H., Nigh, R., Soto-Pinto, L., van
Breugel, M., Philpott, S.M.,2009. Beyond reserves: a research agenda
for conserving biodiversity in human modified Tropical landscapes.
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"protected areas". Proceedings of the National Academy of Sciences of
the United States of America 105, 6673-6678.
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accounts. Nature 401: 323–324.
[11] Hansen, A. J., and R. DeFries. 2007. Ecological mechanisms linking
protected areas to surrounding lands. Ecological Applications
17(4):974–988.
[12] Bruner, A. G., Gullison, R. E. and Balmford, A. (2004) Financial costs
and shortfalls of managing and expanding protected-areas systems in
developing countries. BioScience 54: 1119–1126
[13] Frazee, S.R., Cowling, R.M., Pressey, R.L., Turpie, J.K., Lindenberg, N.,
2003. Estimating the costs of conserving a biodiversity hotspot: a case
study of the Cape Floristic Region, South Africa. Biological
Conservation 112, 275–290.
[14] Hanley, N., Banerjee, S., Lennox, G. D., and Armsworth, P. R. (2012),
‘How Should We Incentivize Private Landowners to ‘Produce’ More
Biodiversity?’, Oxford Review of Economic Policy,28(2), 93–113
[15] Ando A., Camm J., Polasky S. and Solow A. (1998) “Species
distributions, land values and efficient conservation” Science, 279, 2126-
2128
[16] Polasky S., Camm J.D. & Garber-Yonts B. (2001). Selecting Biological
Reserves Cost-Effectively: An Application to Terrestrial Vertebrate
Conservation in Oregon. Land Economics 77, 68-78
[17] Stewart R. & Possingham H. (2005). Efficiency, costs and trade-offs in
marine reserve system design. Environmental Modeling and Assessment
10, 203-213
[18] Stoms, D., Chomitz, K.M., Davis, F.W., (2004). Tamarin: a landscape
framework for evaluating economic incentives for rainforest restoration.
Landscape and Urban Planning 68 (2004) 95–108
[19] Rodrigues, A.S.L., Gaston, K.J., 2002. Optimisation in reserve selection
procedures: why not? Biol. Conserv. 107, 123–129
[20] Meir, E., Andelman, S., Possingham, H.P., 2004. Does conservation
planning matter in a dynamic and uncertain world? Ecology Letters 7
(8), 615–622.
[21] Ausden M. & Hirons G.J.M. (2002) Grassland nature reserves for
breeding wading birds in England and the implications for the ESA agrienvironment
scheme. Biological Conservation, 106, 279-291
[22] Balmford, A., Gaston, K. J., Blyth, S., James, A. & Kapos, V. (2003).
Global variation in terrestrial conservation costs, conservation benefits,
and unmet conservation needs. Proceedings of the National Academy of
Sciences , 100,1046-1050.
[23] Ausden, M., 2007. Habitat Management for Conservation: A Handbook
of Techniques. Oxford University Press, Oxford.
[24] Strange, N., Jacobson, J.B., Thorsen, B.J., 2007. Value for money:
protecting endangered species on Danish heathland. Environmental
Management 40,761–774.
[25] Jantke, K. & Schneider, U. A. 2008, Multiple-species conservation
planning with different degrees of coordination: Quantifying area
requirements using mixed integer programming, Research Unit
Sustainability and Global Change, Hamburg University
[26] Murdoch, W, J. Ranganathan, S. Polasky, and J. Regetz. 2010. Using
return on investment to maximize conservation effectiveness in
Argentine grasslands. Proceedings of the National Academy of Sciences
107(49): 20855-20862.
[27] Naidoo, R., Iwamura, T., 2007. Global-scale mapping of economic
benefits from agricultural lands: implications for conservation priorities.
Biological Conservation 140, 40–49.
[28] Knight, A., Cowling, R.M. 2007. Embracing Opportunism in the
Selection of Priority Conservation Areas. Conservation Biology Volume
21, No. 4, 1124–1126
[29] Pence, G.Q.K., Botha, M.A., Turpie, J.K., 2003. Evaluating
combinations of on-and off-reserve conservation strategies for the
Agulhas Plain, South Africa: a financial perspective. Biological
Conservation 112, 253–273.
[30] Wilson, K.A., Underwood, E.C., Morrison, S.A., Klausmeyer,
K.R.,Murdoch, W.W., Reyers, B. et al. (2007). Conserving biodiversity
efficiently: what to do, where, and when. PLoS Biol., 5, 1850–1861.
[31] Lu, H., (2006) “A Two-Stage Value Chain Model for Vegetable
Marketing Chain Efficiency Evaluation: A Transaction Cost Approach”
International Association of Agricultural Economists Conference, Gold
Coast, Australia
[32] Ruben, R., Hualiang Lu and Kuiper, E. (2007). “Marketing Chains
Transaction Costs and Resource Management: Efficiency and trust
within tomato supply chains in Nanjing City”. In: Spoor, M., Heerink, N.
and Qu, F. (eds.), “Dragons with Clay Feet? Transaction, Sutainable
Land Use and Rura Environment in China and Vietnam” (pp. 161-180),
Lexington: Rowman & Littlefield Publishers, Inc.
[33] Costello, C. & Polasky, S. (2004). Dynamic reserve site selection.
Resour. Energy Econ., 26, 157–174
[34] Faith D.P. and P.A. Walker. 1996. Integrating conservation and
development: effective trade-offs between biodiversity and cost in the
selection of protected areas. Journal of Biodiversity and Conversation.
Vol 5 431-44.
[35] Faith D.P. and P.A. Walker. 2002. The role of trade-offs in biodiversity
conservation planning: linking local management, regional planning and
global conservation efforts. Journal of Biosciences. 27. 101-115.
[36] Latacz-Lohmann, U., Schilizzi, S. 2007, 'Quantifying the Benefits of
Conservation Auctions', EuroChoices:agri-food & rural resources issues,
6, 3, pp. 32-39
[37] Nowicki, P. L. (2004). Jointness of production as a market concept. In
Floor Brouwer (Ed.), Sustaining Agriculture and the Rural Envionrment:
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@article{"International Journal of Business, Human and Social Sciences:62713", author = "T. Chaiechi and N. Stoeckl", title = "Estimating the Costs of Conservation in Multiple Output Agricultural Setting", abstract = "Scarcity of resources for biodiversity conservation gives rise to the need of strategic investment with priorities given to the cost of conservation. While the literature provides abundant methodological options for biodiversity conservation; estimating true cost of conservation remains abstract and simplistic, without recognising dynamic nature of the cost. Some recent works demonstrate the prominence of economic theory to inform biodiversity decisions, particularly on the costs and benefits of biodiversity however, the integration of the concept of true cost into biodiversity actions and planning are very slow to come by, and specially on a farm level. Conservation planning studies often use area as a proxy for costs neglecting different land values as well as protected areas. These literature consider only heterogeneous benefits while land costs are considered homogenous. Analysis with the assumption of cost homogeneity results in biased estimation; since not only it doesn’t address the true total cost of biodiversity actions and plans, but also it fails to screen out lands that are more (or less) expensive and/or difficult (or more suitable) for biodiversity conservation purposes, hindering validity and comparability of the results. Economies of scope” is one of the other most neglected aspects in conservation literature. The concept of economies of scope introduces the existence of cost complementarities within a multiple output production system and it suggests a lower cost during the concurrent production of multiple outputs by a given farm. If there are, indeed, economies of scope then simplistic representation of costs will tend to overestimate the true cost of conservation leading to suboptimal outcomes. The aim of this paper, therefore, is to provide first road review of the various theoretical ways in which economies of scope are likely to occur of how they might occur in conservation. Consequently, the paper addresses gaps that have to be filled in future analysis.
", keywords = "Cost, biodiversity conservation, Multi-output
production systems, Empirical techniques.", volume = "7", number = "6", pages = "1804-8", }
