Creating Markets for Habitat Conservation when Habitats are Heterogeneous

Kenneth M. Chomitz, Timothy S. Thomas, Antônio Salazar P. Brandão

World Bank, Washington, DC eBooks · 2004 · 12 citations · 0 references

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Abstract

A tradable development rights (TDR)
\n program focusing on biodiversity conservation faces a
\n crucial problem defining which areas of habitat should be
\n considered equivalent. Restricting the trading domain to a
\n narrow area could boost the range of biodiversity conserved
\n but could increase the opportunity cost of conservation. The
\n issue is relevant to Brazil, where TDR-like programs are
\n emerging. Current regulations require each rural property to
\n maintain a forest reserve of at least 20 percent, but
\n nascent policies allow some tradability of this obligation.
\n The authors use a simple, spatially explicit model to
\n simulate a hypothetical state-level program. They find that
\n wider trading domains drastically reduce landholder costs of
\n complying with this regulation and result in environmentally
\n preferable landscapes.