Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/45188
Authors: 
Wätzold, Frank
Drechsler, Martin
Year of Publication: 
2002
Series/Report no.: 
UFZ-Diskussionspapiere 3/2002
Abstract: 
Given that both the costs and the benefits of biodiversity-enhancing land-use measures are subject to spatial variation, considerations of allocational efficiency call for spatially differentiated compensation payments for such measures. However, when deciding whether to implement uniform or spatially differentiated compensation payments, the regulator has to balance the allocational efficiency losses of uniform payments with the disadvantages of spatially differentiated payments. To help resolve this issue, this paper provides a conceptual framework that allows the extent of allocational efficiency losses associated with uniform payments for biodiversity-enhancing land-use measures to be assessed. A simple ecologicaleconomic model is presented which calculates the efficiency losses associated with uniform payments for different types of benefit and cost functions.
Subjects: 
Ecological-economic modelling
compensation payments
biodiversity
JEL: 
Q20
Document Type: 
Working Paper

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