Environmental and Distributional Impacts of Conservation Targeting Strategies
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The Center for Agricultural and Rural Development (CARD) conducts innovative public policy and economic research on agricultural, environmental, and food issues. CARD uniquely combines academic excellence with engagement and anticipatory thinking to inform and benefit society.
CARD researchers develop and apply economic theory, quantitative methods, and interdisciplinary approaches to create relevant knowledge. Communication efforts target state and federal policymakers; the research community; agricultural, food, and environmental groups; individual decision-makers; and international audiences.
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Abstract
Resource purchasing funds have become a major tool for environmental protection and resource conservation. Existing conservation funds do not use identical strategies for targeting purchases, which may be determined by both political and economic considerations. This paper compares the effects of alternative targeting strategies in consumer surplus, producer surplus, and environmental benefits. It shows that the performance of a purchasing strategy depends on the variability of a correlation between productivity and environmental benefits of resources, and that ignoring the output price effect of purchasing funds may have severe consequences.