Using Cost‐Effective Targeting to Enhance the Efficiency of Conservation Investments in Payments for Ecosystem Services

Abstract: Ecosystem services are being protected and restored worldwide through payments for ecosystem services in which participants are paid to alter their land‐management approaches to benefit the environment. The efficiency of such investments depends on the design of the payment scheme. Land features have been used to measure the environmental benefits of and amount of payment for land enrollment in payment for ecosystem services schemes. Household characteristics of program participants, however, may also be important in the targeting of land for enrollment. We used the characteristics of households participating in China's Grain‐to‐Green program, and features of enrolled land to examine the targeting of land enrollment in that program in Wolong Nature Reserve. We compared levels of environmental benefits that can be obtained through cost‐effective targeting of land enrollment for different types of benefits under different payment schemes. The efficiency of investments in a discriminative payment scheme (payments differ according to opportunity costs, i.e., landholders’ costs of forgoing alternative uses of land) was substantially higher than in a flat payment scheme (same price paid to all participants). Both optimal targeting and suboptimal targeting of land enrollment for environmental benefits achieved substantially more environmental benefits than random selection of land for enrollment. Our results suggest that cost‐effective targeting of land through the use of discriminative conservation payments can substantially improve the efficiency of investments in the Grain‐to‐Green program and other payment for ecosystem services programs.     

Difference in the net value of ecological services between natural and artificial forests in China

Land degradation is a global problem that seriously threatens human society. However, in China and elsewhere, ecological restoration still largely relies on a traditional approach that focuses only on ecological factors and ignores socioeconomic factors. To improve the effectiveness of ecological restoration and maximize its economic and ecological benefits, a more efficient approach is needed that provides support for policy development and land management and thereby promotes environmental conservation. We devised a framework for assessing the value of ecosystem services that remain after subtracting costs, such as the opportunity costs, costs of forest protection, and costs for the people who are affected by the program; that is, the net value of ecosystem services (NVES). To understand the difference between the value of a resource and the net value of the ecosystem service it provides, we used data on VES, timber sales, and afforestation costs from China's massive national afforestation programs to calculate the net value of forest ecosystem services in China. Accounting for the abovementioned costs revealed an NVES of ¥6.1 × 10¹² for forests in 2014, which was 35.9% less than the value calculated without accounting for costs. As a result, the NVES associated with afforestation was 55.9% less than the NVES of natural forests. In some regions, NVES was negative because of the huge costs of human-made plantations, high evapotranspiration rates (thus, high water opportunity costs), and low forest survival rates. To maximize the ecological benefits of conservation, it is necessary to account for as many costs as possible so that management decisions can be based on NVES, thereby helping managers choose projects that maximize both economic and ecological benefits.     

Generating spatially optimized habitat in a trade‐off between social optimality and budget efficiency

Auctions have been proposed as alternatives to payments for environmental services when spatial interactions and costs are better known to landowners than to the conservation agency (asymmetric information). Recently, an auction scheme was proposed that delivers optimal conservation in the sense that social welfare is maximized. I examined the social welfare and the budget efficiency delivered by this scheme, where social welfare represents the difference between the monetized ecological benefit and the conservation cost incurred to the landowners and budget efficiency is defined as maximizing the ecological benefit for a given conservation budget. For the analysis, I considered a stylized landscape with land patches that can be used for agriculture or conservation. The ecological benefit was measured by an objective function that increases with increasing number and spatial aggregation of conserved land patches. I compared the social welfare and the budget efficiency of the auction scheme with an agglomeration payment, a policy scheme that considers spatial interactions and that was proposed recently. The auction delivered a higher level of social welfare than the agglomeration payment. However, the agglomeration payment was more efficient budgetarily than the auction, so the comparative performances of the 2 schemes depended on the chosen policy criterion–social welfare or budget efficiency. Both policy criteria are relevant for conservation. Which one should be chosen depends on the problem at hand, for example, whether social preferences should be taken into account in the decision of how much money to invest in conservation or whether the available conservation budget is strictly limited.     

Evaluating the Potential for Conservation Development: Biophysical, Economic, and Institutional Perspectives

Abstract:  The widespread conversion of rural land to low-density residential development poses an immediate threat to biodiversity and to the provision of ecosystem services. Given that development will continue and environmental stakes are high, analyzing alternative growth strategies is critical. Conservation development is one such strategy that has the potential to benefit ecosystems and diverse stakeholders including developers, homebuyers, governments, and society as a whole. Conservation development clusters homes on one part of a property to manage the most ecologically important land for the conservation of biodiversity and ecosystem services. We draw on lessons learned from landscape ecology, open-space development, and regional planning to weigh the biophysical, economic, and institutional evidence for and against conservation development. Conservation development offers many potential environmental and economic advantages: relatively high home values and appreciation rates, lower development costs, and social and ecological benefits to society including landscape connectivity, protection and active stewardship of important ecological assets, and the maintenance of ecosystem services. But this approach also has shortcomings: it may require enlightened institutional regulations and regional planning (and/or ecologically aware developers), it is not always more profitable than conventional development and thus may require subsidies or incentives, and additional research is required to fully understand its benefits and drawbacks. With more information on the effects of clustering, the development of flexible zoning laws, and effective regional planning, conservation development could be a viable strategy for sustaining biodiversity and ecosystem services in changing landscapes.     

Effects of preference heterogeneity among landowners on spatial conservation prioritization

The participation of private landowners in conservation is crucial to efficient biodiversity conservation. This is especially the case in settings where the share of private ownership is large and the economic costs associated with land acquisition are high. We used probit regression analysis and historical participation data to examine the likelihood of participation of Danish forest owners in a voluntary conservation program. We used the results to spatially predict the likelihood of participation of all forest owners in Denmark. We merged spatial data on the presence of forest, cadastral information on participation contracts, and individual‐level socioeconomic information about the forest owners and their households. We included predicted participation in a probability model for species survival. Uninformed and informed (included land owner characteristics) models were then incorporated into a spatial prioritization for conservation of unmanaged forests. The choice models are based on sociodemographic data on the entire population of Danish forest owners and historical data on their participation in conservation schemes. Inclusion in the model of information on private landowners’ willingness to supply land for conservation yielded at intermediate budget levels up to 30% more expected species coverage than the uninformed prioritization scheme. Our landowner‐choice model provides an example of moving toward more implementable conservation planning.     

Expanding marine protected areas to include degraded coral reefs

Marine protected areas (MPAs) are a commonly applied solution to coral reef degradation, yet coral reefs continue to decline worldwide. We argue that expanding the range of MPAs to include degraded reefs (DR‐MPA) could help reverse this trend. This approach requires new ecological criteria for MPA design, siting, and management. Rather than focusing solely on preserving healthy reefs, our approach focuses on the potential for biodiversity recovery and renewal of ecosystem services. The new criteria would help identify sites with the highest potential for recovery and the greatest resistance to future threats (e.g., increased temperature and acidification) and sites that contribute to MPA connectivity. The DR‐MPA approach is a compliment rather than a substitute for traditional MPA design approaches. We believe that the DR‐MPA approach can enhance the natural, or restoration‐assisted, recovery of DRs and their ecosystem services; increase total reef area available for protection; promote more resilient and better‐connected MPA networks; and improve conditions for human communities dependent on MPA ecosystem services.     

Meta-analysis of landowner participation in voluntary incentive programs for provision of forest ecosystem services

Many voluntary incentive programs for provision of forest ecosystem services (ES) have low participation rates, insufficient enrollment areas, and inefficient ecological outcomes. Understanding participation behavior in such programs has therefore become a crucial part of policy success. We synthesized a large body of literature on the behavior of nonindustrial private forest owners based on surveys of stated (intended) participation or data on actual participation in existing or hypothetical programs. Using metaregression analysis, we examined how methodological, program-characteristic, and economic-incentive variables affected participation rate estimates. Participation rates tended to be overestimated when landowner participation was elicited in hypothetical choice situations (compared with real situations) and when dichotomous choice surveys (compared with census data) were used. The marginal effect sizes were quite large, for example, a 31% increase with use of stated choices in hypothetical scenarios, and practitioners should therefore be aware of them. However, use of choice experiment surveys in a modified scenario based on existing programs had no effect on participation when all other determinants were controlled for. Participation rates decreased significantly as length of the contract increased and when there was no withdrawal option. These results suggest that perpetual contracts have a lower negative impact on participation than time-limited contracts with a duration of over 50 years. We confirmed that as compensation amounts increased, participation increased. One-time up-front payments were more effective in increasing initial participation than annual payments for contracts of over 5 years. We identified the robust determinants and the effect sizes of those determinants on landowner participation rate estimates, thereby contributing to a better understanding of forest owner behavior and offering useful insights to enable researchers and resource managers to improve the design and efficiency of new and existing forest ES programs.     

The additionality problem with offsets: Optimal contracts for carbon sequestration in forests

Carbon offsets are a frequently discussed tool for reducing the costs of an emissions reduction policy. However, offsets have a basic problem stemming from asymmetric information. Sellers of offsets have private information about their opportunity costs, leading to concerns about whether offsets are additional. Non-additional offsets can undermine a cap-and-trade program or, if the government purchases them directly, result in enormous government expenditures. We analyze contracts for carbon sequestration in forests that mitigate the asymmetric information problem. Landowners are offered a menu of two-part contracts that induces them to reveal their type. Under this scheme, the government is able to identify ex post how much additional forest each landowner contributes and minimize ex ante its expenditures on carbon sequestration. To explore the performance of the contracting scheme, we conduct a national-scale simulation using an econometric model of land-use change. The results indicate that for an increase in forest area of 61 million acres, government expenditures are $5.3 billion lower under the contracting approach compared to a uniform subsidy offered to all landowners. This compares to an increase in private opportunity costs of just $110 million dollars under the contracts. Thus, the contracting scheme is preferable from society's perspective.     

Ecological Efficiency of Voluntary Conservation of Boreal-Forest Biodiversity

Abstract: Current networks of protected areas are biased in many countries toward landscapes of low productivity. Voluntary conservation incentives have been suggested as a socially acceptable way to supplement existing networks with more productive, privately owned areas of high priority for nature conservation. The limited resources committed to nature conservation demand cost‐efficiency. Efficiency, however, depends not only on costs incurred to society from alternative ways of maintaining biodiversity but also on ecological values that can be captured. We examined the ecological efficiency of the new market‐based voluntary program to preserve forest habitats on private land in southwestern Finland. We compared sites that have become protected (10‐year contracts) in the program with managed forests, with sites that have been negotiated for protection for which no contract has been signed, and with the most ecologically valuable privately owned sites in the region that have not been offered for protection by forest owners. We surveyed sites for the amount of dead wood, wood‐decomposing fungi, and epiphytic lichens to evaluate their ecological quality. Contracted sites had more features important for overall biodiversity than managed forests and negotiated sites with no contract. These results indicate that procedures used during site selection and negotiations were appropriate and not opportunistic. The contracted sites were also as valuable in ecological terms as the best, still‐unprotected, privately owned forests in the region that have not been offered for protection. We conclude that voluntary conservation programs have the potential to yield ecologically valuable sites for protection if the site‐selection procedures are appropriate. Reliance on completely voluntary programs, however, may entail uncertainties and inadequacies, for example, in terms of spatial configuration and persistence of the ecological values. Thus, such programs may often need to be supplemented with alternative methods such as land purchase to achieve an ecologically effective network of protected sites.     

The Role of Prices in Conserving Critical Natural Capital

Abstract: Until recent decades, economic decision makers have largely ignored the nonmarket benefits provided by nature, resulting in unprecedented threats to ecological life‐support functions. The economic challenge today is to decide how much ecosystem structure can be converted to economic production and how much must be conserved to provide essential ecosystem services. Many economists and a growing number of life scientists hope to address this challenge by estimating the marginal value of environmental benefits and then using this information to make economic decisions. I assessed this approach first by examining the role and effectiveness of the price mechanism in a well‐functioning market economy, second by identifying the issues that prevent markets from pricing many ecological benefits, and third by focusing on problems inherent to valuing services generated by complex and poorly understood ecosystems subject to irreversible change. I then focus on critical natural capital (CNC), which generates benefits that are essential to human welfare and have few if any substitutes. When imminent ecological thresholds threaten CNC, conservation is essential and marginal valuation becomes inappropriate. Once conservation needs have been met, remaining ecosystem structure is potentially available for economic production. Demand for this available supply will determine prices. In other words, conservation needs should be price determining, not price determined. Conservation science must help identify CNC and the quantity and quality of ecosystem structure required to ensure its sustained provision.     

Costa Rica's Payment for Environmental Services Program: Intention, Implementation, and Impact

Abstract:  We evaluated the intention, implementation, and impact of Costa Rica's program of payments for environmental services (PSA), which was established in the late 1990s. Payments are given to private landowners who own land in forest areas in recognition of the ecosystem services their land provides. To characterize the distribution of PSA in Costa Rica, we combined remote sensing with geographic information system databases and then used econometrics to explore the impacts of payments on deforestation. Payments were distributed broadly across ecological and socioeconomic gradients, but the 1997–2000 deforestation rate was not significantly lower in areas that received payments. Other successful Costa Rican conservation policies, including those prior to the PSA program, may explain the current reduction in deforestation rates. The PSA program is a major advance in the global institutionalization of ecosystem investments because few, if any, other countries have such a conservation history and because much can be learned from Costa Rica's experiences.     

An Ecosystem Management Program and Assessment Process for Ontario National Parks

Abstract: An ecosystem management program and assessment process was developed to standardize an ecosystem-based approach to protecting the ecological integrity of Ontario's national parks. The elements of the ecosystem management program collectively represent the dominant planning and technical aspects of ecosystem management. Within the program, 11 specific products—ecosystem conservation plan, greater park ecosystem inventory and analysis, greater park ecosystem scope, area of cooperation, stakeholder analysis, partnership group management guidelines, scientific research program, ecological indicators, ecological integrity monitoring program, information network, and communication strategy—are considered requisite tools to improve the scientific understanding required for park management within the context of greater park ecosystems and to increase communication and coordination among governments and citizens to improve decision making. The formal process uses evaluation criteria associated with the 11 products to assess progress in developing an ecosystem management program and the content of the related products. The assessment process, which provides comprehensive identification of a park's specific ecosystem management needs, has been applied to all national parks in Ontario in the past year, which has had the immediate effect of refining their ecosystem management programs.     

Obscuring Ecosystem Function with Application of the Ecosystem Services Concept

Abstract: Conservationists commonly have framed ecological concerns in economic terms to garner political support for conservation and to increase public interest in preserving global biodiversity. Beginning in the early 1980s, conservation biologists adapted neoliberal economics to reframe ecosystem functions and related biodiversity as ecosystem services to humanity. Despite the economic success of programs such as the Catskill/Delaware watershed management plan in the United States and the creation of global carbon exchanges, today's marketplace often fails to adequately protect biodiversity. We used a Marxist critique to explain one reason for this failure and to suggest a possible, if partial, response. Reframing ecosystem functions as economic services does not address the political problem of commodification. Just as it obscures the labor of human workers, commodification obscures the importance of the biota (ecosystem workers) and related abiotic factors that contribute to ecosystem functions. This erasure of work done by ecosystems impedes public understanding of biodiversity. Odum and Odum's radical suggestion to use the language of ecosystems (i.e., emergy or energy memory) to describe economies, rather than using the language of economics (i.e., services) to describe ecosystems, reverses this erasure of the ecosystem worker. Considering the current dominance of economic forces, however, implementing such solutions would require social changes similar in magnitude to those that occurred during the 1960s. Niklas Luhmann argues that such substantive, yet rapid, social change requires synergy among multiple societal function systems (i.e., economy, education, law, politics, religion, science), rather than reliance on a single social sphere, such as the economy. Explicitly presenting ecosystem services as discreet and incomplete aspects of ecosystem functions not only allows potential economic and environmental benefits associated with ecosystem services, but also enables the social and political changes required to ensure valuation of ecosystem functions and related biodiversity in ways beyond their measurement on an economic scale.     

Selecting cost‐effective areas for restoration of ecosystem services

Selection of areas for restoration should be based on cost‐effectiveness analysis to attain the maximum benefit with a limited budget and overcome the traditional ad hoc allocation of funds for restoration projects. Restoration projects need to be planned on the basis of ecological knowledge and economic and social constraints. We devised a novel approach for selecting cost‐effective areas for restoration on the basis of biodiversity and potential provision of 3 ecosystem services: carbon storage, water depuration, and coastal protection. We used Marxan, a spatial prioritization tool, to balance the provision of ecosystem services against the cost of restoration. We tested this approach in a mangrove ecosystem in the Caribbean. Our approach efficiently selected restoration areas that at low cost were compatible with biodiversity targets and that maximized the provision of one or more ecosystem services. Choosing areas for restoration of mangroves on the basis carbon storage potential, largely guaranteed the restoration of biodiversity and other ecosystem services. Selección de Áreas Rentables para la Restauración de Servicios Ambientales     

依据(代)生物体对化学品的反应预测对生态系统服务功能的影响

保护生态系统服务功能越来越多地被作为风险评估的目标，但是目前生态风险评估的终点和评估生态系统服务功能受到的潜在影响之间有很大的差距。作者提出了一个框架，将常用的生态毒理学终点与对种群和群落的影响以及生态系统的服务功能联系起来。这个框架建立在机制效应模型的长足进步上，这些模型旨在跨越多种生物组织，并解释各种生物相互作用和反馈。为了说明这一点，作者引入了2个研究案例，它们采用了已完善和已验证的机制效应模型：鱼种群的inSTREAM个体模型和AQUATOX生态系统模型。他们还展示了动态能量平衡理论可以为解释组织级毒性提供一种通用货币。他们认为，一个基于机制模型的框架，可以预测化学品暴露对生态系统服务的影响，再结合经济估值，可以为环境管理提供一种有用的方法。作者强调了使用这个框架的潜在好处以及未来工作中需要解决的挑战。
精选自Forbes, V. E., Salice, C. J., Birnir, B., Bruins, R. J.F., Calow, P., Ducrot, V., Galic, N., Garber, K., Harvey, B. C., Jager, H., Kanarek, A., Pastorok, R., Railsback, S. F., Rebarber, R. and Thorbek, P. (2017), A framework for predicting impacts on ecosystem services from (sub)organismal responses to chemicals. Environmental Toxicology and Chemistry, 36: 845–859. doi: 10.1002/etc.3720
详情请见http://onlinelibrary.wiley.com/doi/10.1002/etc.3720/full
     

How economics can further the success of ecological restoration

Restoration scientists and practitioners have recently begun to include economic and social aspects in the design and investment decisions for restoration projects. With few exceptions, ecological restoration studies that include economics focus solely on evaluating costs of restoration projects. However, economic principles, tools, and instruments can be applied to a range of other factors that affect project success. We considered the relevance of applying economics to address 4 key challenges of ecological restoration: assessing social and economic benefits, estimating overall costs, project prioritization and selection, and long‐term financing of restoration programs. We found it is uncommon to consider all types of benefits (such as nonmarket values) and costs (such as transaction costs) in restoration programs. Total benefit of a restoration project can be estimated using market prices and various nonmarket valuation techniques. Total cost of a project can be estimated using methods based on property or land‐sale prices, such as hedonic pricing method and organizational surveys. Securing continuous (or long‐term) funding is also vital to accomplishing restoration goals and can be achieved by establishing synergy with existing programs, public–private partnerships, and financing through taxation.     

Combining Auctions and Performance‐Based Payments in a Forest Enrichment Field Trial in Western Kenya

Cost‐effectiveness is an important aspect in the assessment of payments for environmental services (PES) initiatives. In participatory field trials with communities in Western Kenya, we combined procurement auctions for forest enrichment contracts with performance‐based payments and compared the outcomes with a baseline scenario currently used by the Kenyan Forest Service. Procurement auctions were the most cost‐effective. The competitive nature of the auction reduced contracting expenses (provision costs), and the result‐oriented payments provided additional incentives to care for the planted seedlings, resulting in their improved survival rates (service quantity). These gains clearly exceeded increases in transaction costs associated with conducting an auction. The number of income‐poor auction participants and winners was disproportionately high and local institutional buy‐in was remarkably strong. Our participatory approach may, however, require adaptations when conducted at a larger scale. Although the number of contracts we monitored was limited and prohibited the use of statistical tests, our study is one of the first to reveal the benefits of using auctions for PES in developing countries. Combinando Subastas y Pagos Basados en Desempeño en un Ensayo de Campo de Enriquecimiento de Bosques en el Oeste de Kenia     

Stakeholder participation in management of invasive vertebrates

Stakeholders are increasingly involved in species conservation. We sought to understand what features of a participatory conservation program are associated with its ecological and social outcomes. We conducted a case study of the management of invasive vertebrates in Australia. Invasive vertebrates are a substantial threat to Australia's native species, and stakeholder participation in their management is often necessary for their control. First, we identified potential influences on the ecological and social outcomes of species conservation programs from the literature. We used this information to devise an interview questionnaire, which we administered to managers of 34 participatory invasive-vertebrate programs. Effects of invasive species were related to program initiator (agency or citizen), reasons for use of a participatory approach, and stakeholder composition. Program initiator was also related to the participation methods used, level of governance (i.e., governed by an agency or citizens), changes in stakeholder interactions, and changes in abundance of invasive species. Ecological and social outcomes were related to changes in abundance of invasive species and stakeholder satisfaction. We identified relations between changes in the number of participants, stakeholder satisfaction, and occurrence of conflict. Potential ways to achieve ecological and social goals include provision of governmental support (e.g., funding) to stakeholders and minimization of gaps in representation of stakeholder groups or individuals to, for example, increase conflict mitigation. Our findings provide guidance for increasing the probability of achieving ecological and social objectives in management of invasive vertebrates and may be applicable to other participatory conservation programs.     

Suitability of short or long conservation contracts under ecological and socio-economic uncertainty

Acquisition of land rights has become a primary tool used to protect terrestrial biodiversity. Fixed length contracts are often used when trying to secure conservation benefits on private land in agri-environment schemes and payment for environmental services schemes, but the duration of the conservation contracts used in different programmes varies. To date, very little research has been undertaken to determine the situations in which contracts of differing lengths are optimal or when conservation agencies or groups should use a portfolio of different contract lengths rather than relying on a single type. Using stochastic dynamic programming and related heuristic methods, we investigate how the choice between short or long conservation contracts is affected by uncertainty regarding the future availability of sites and their ecological condition. We also examine the benefits offered by using a portfolio of different contract lengths. Conservation agencies must pay private landowners a premium to secure longer agreements and because of this, shorter contracts are advantageous if sites are likely to remain available for conservation in the future. Long contracts are preferred when future site availability becomes more unlikely. In contrast to uncertainty over site availability, uncertainty over future ecological conditions has little effect on contract selection and only markedly influences the choice between short and long contracts when there is heterogeneity across sites in expected conservation outcomes and future availability of sites is also uncertain. Finally, when future site availability is unlikely, the use of a portfolio of short and long contracts would offer greater conservation gains than using either type in isolation, even though this option is not yet one that is commonly found in conservation practice.     

Effects of human demand on conservation planning for biodiversity and ecosystem services

Safeguarding ecosystem services and biodiversity is critical to achieving sustainable development. To date, ecosystem services quantification has focused on the biophysical supply of services with less emphasis on human beneficiaries (i.e., demand). Only when both occur do ecosystems benefit people, but demand may shift ecosystem service priorities toward human-dominated landscapes that support less biodiversity. We quantified how accounting for demand affects the efficiency of conservation in capturing both human benefits and biodiversity by comparing conservation priorities identified with and without accounting for demand. We mapped supply and benefit for 3 ecosystem services (flood mitigation, crop pollination, and nature-based recreation) by adapting existing ecosystem service models to include and exclude factors representing human demand. We then identified conservation priorities for each with the conservation planning program Marxan. Particularly for flood mitigation and crop pollination, supply served as a poor proxy for benefit because demand changed the spatial distribution of ecosystem service provision. Including demand when jointly targeting biodiversity and ecosystem service increased the efficiency of conservation efforts targeting ecosystem services without reducing biodiversity outcomes. Our results highlight the importance of incorporating demand when quantifying ecosystem services for conservation planning.