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.

Log in through your institution