Three-Stage Tradable Set-Aside Requirements, Interdependent Values, and Biodiversity Production on Private Lands

Mark D. Agee and Thomas D. Crocker

Abstract

We propose a static three-stage incentive-compatible, budget-balanced, execution-contingent mechanism for a regulator to allocate biodiversity-protection responsibilities across a landscape mosaic with multiple value-interdependent owners. The mechanism motivates owners to truthfully report their opportunity costs of protection to the regulator and comply with their assigned habitat protection responsibilities.

JEL

This article requires a subscription to view the full text. If you have a subscription you may use the login form below to view the article. Access to this article can also be purchased.

Purchase access

You may purchase access to this article. This will require you to create an account if you don't already have one.