RT Journal Article
SR Electronic
T1 Understanding the Performance of Biodiversity Offset Markets: Evidence from an Integrated Ecological-Economic Model
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 836
OP 857
DO 10.3368/le.97.4.030420-0032R
VO 97
IS 4
A1 Simpson, Katherine Hannah
A1 Vries, Frans de
A1 Dallimer, Martin
A1 Armsworth, Paul R
A1 Hanley, Nick
YR 2021
UL http://le.uwpress.org/content/97/4/836.abstract
AB Biodiversity offset markets can incentivize private landowners to take actions that benefit biodiversity. A spatially explicit integrated ecological-economic model is developed and employed for a U.K. region where offset buyers (house developers) and sellers (farmers) interact by trading offset credits. We simulate how changes in the ecological metric and geographic scale affects the performance of the offset market. Results show that the choice of the metric has a significant effect on market liquidity and the spatial distribution of gains and losses in the “target” species. The results also consistently reveal relatively higher potential welfare gains for developers than for farmers