Irreversibility and uncertainty cause an intergenerational equity-efficiency trade-off
Nikolai Hoberg, Stefan Baumgärtner
Two important policy goals in intergenerational problems are Pareto-efficiency and sustainability, i.e. intergenerational equity. We demonstrate that the pursuit of these goals is subject to an intergenerational equity-efficiency trade-off. Our analysis highlights two salient characteristics of intergenerational problems and policy: (i) temporal irreversibility, i.e. the inability to revise one's past actions; and (ii) uncertainty of future consequences of present actions in human-environment systems - Full article
Land for biodiversity conservation — To buy or borrow?
Oliver Schöttker, Karin Johst , Martin Drechsler, Frank Wätzold
The conservation of endangered species and habitats frequently requires a certain type of land use which, however, leads to opportunity costs compared to profit-maximising land-use. In such a setting biodiversity conservation organisations have two main options: (1) The ‘buy alternative’ where they buy the area of interest and either carry out the necessary land-use measures themselves or hire firms to do so, or (2) the ‘borrow alternative’ where they ‘borrow’ the land for conservation from private landowners who agree to carry out biodiversity-enhancing land-use measures over a certain period while the conservation organisation compensates them for their opportunity costs - Full article
How (not) to Pay - Field Experimental Evidence on the Design of REDD+ Payments
Tim Reutemann, Stefanie Engel, Eliana Pareja
Payments for Ecosystem Services (PES) can use many design features. We investigate the impact of payment conditionality types, i.e. different specifications when to pay and when not to pay, for PES on deforestation and agricultural production in a lab-in-the-field experiment. Our experiment also tests variations in contract period and payment volatility. We designed a highly visual simulation game to characterize the decision situation of a cattle rancher in Brazil. - Full article
Deforestation Rate in the Long-run: the Case of Brazil
Luca Di Corato, Michele Moretto, Sergio Vergalli
In this article we study the long-run average rate of forest conversion in Brazil. Deforestation results from the following trade-off: on the one hand, the uncertain value of benefits associated with forest conservation (biodiversity, carbon sequestration and other ecosystem services), on the other hand, the economic profits associated with land development (agriculture, ranching, etc.). We adopt the model by Bulte et al. (2002) as theoretical frame for studying land conversion and then derive, following Di Corato et al. (2013), the associated long-run average rate of forest conversion. We then identify the parameters to be used in our model - Working paper
Characterizing commercial cattle farms in Namibia: Risk, management, and sustainability
Roland Olbrich, Martin F. Quaas, Stefan Baumgärtner
In this paper, we provide an empirical characterization of Namibian commercial cattle farming and explore the link between risk, management, and sustainability by examining structural farm patterns with a cluster analysis. Our data comes from a large-scale survey across the Namibian commercial cattle farming area, to which 398 farmers responded. Our results show that the most distinct of the three identified clusters is characterized by high sustainability and low financial risk management, and that it does not differ from the remaining two clusters with respect to income - Full article
Deconstructing the Reality of Community-Based Management of Marine Resources in a Small Island Context in Indonesia
Philipp Gorris
This study offers a detailed analysis of community-based management (CBM) in a small island in Indonesia. In the study site, area-specific stewardship for a marine territory was informally institutionalized and, in addition to state rules, locally devised rules based on informal agreements have emerged. Using multiple methods for the analysis of the perceptions of the local community, this research examines the actual impact of the different rules on the fishing patterns in that sea territory, and illuminates the rationales of the local population to engage (or not) in the community-based approach to manage the marine resources - Full article