Landowners’ conservation motives and the size of information rents in environmental bidding systems

We examine landowners’ conservation motives, conservation costs and information rents in environmental bidding systems designed for forestry with the help of Faustmann and Hartman models and data from Finnish conservation program. We show that the Faustmann landowners receive information rents, on average 55% of the rental payments. For the Hartman landowners the high conservation costs of old stands result in low information rents; they are only 13% of the rental payments. This estimate omits amenity benefits the landowners derive from their forests; accounting for these benefits would increase information rents dramatically. Despite the high information rents, landowners’ conservation motives decrease the rental payment required for participation in the conservation program. Hence, landowners’ conservation motives give governments a great opportunity to allocate conservation contracts in a more cost effective way, thereby extracting larger benefits for scarce conservation funds.     

Changing decisions in a changing landscape: How might forest owners in an urbanizing region respond to emerging bioenergy markets?

The global bioenergy market has considerable impacts on local land use patterns, including landscapes in the Southeastern United States where increased demand for bioenergy feedstocks in the form of woody biomass is likely to affect the management and availability of forest resources. Despite extensive research investigating the productivity and impacts of different bioenergy feedstocks, relatively few studies have assessed the preferences of private landowners, who control the majority of forests in the eastern U.S., to harvest biomass for the bioenergy market. To better understand contingent behaviors given emerging biomass markets, we administered a stated preference experiment to private forest owners in the rapidly urbanizing Charlotte Metropolitan region. Respondents indicated their preferences for harvesting woody biomass under a set of hypothetical market-based scenarios with varying forest management plans and levels of economic return. Our analytical framework also incorporated data from a previously-administered revealed preference survey and spatially-explicit remote sensing data, enabling us to analyze how individuals’ ownership characteristics, their emotional connection the forests they manage, and the spatial patterns of nearby land uses, influence willingness to grow bioenergy feedstocks. We found conditional support for feedstock production, even among woodland owners with no history of active management. Landowners preferred higher economic returns for each management plan. However low-intensity harvest options were always preferred to more intensive management alternatives regardless of economic return, suggesting that these landowners may be more strongly motivated by aesthetic or quality-of-life concerns than feedstock revenues. Our analysis indicated preferences were dependent upon individual and environmental characteristics, with younger, more rural landowners significantly more interested in growing feedstocks relative to their older and more urban counterparts. While this study focuses on one small sample of urban forest owners, our results do suggest that policy makers and resource managers can better inform stand-level decision-making by understanding how feedstock production preferences vary across populations.     

An assessment of the policies and practices of selective logging and timber utilisation: A case study from natural forests of Tarai Nepal and Queensland Australia

Selective logging (SL) contributes nearly 15 percent of the global timber needs. Considering its role in sustainable timber production, biodiversity conservation and forest carbon enhancement, assessment of SL policies and practices is crucial. This paper assesses the policies and practices of SL in natural production forests of the Tarai region of Nepal and Queensland Australia to explore the key differences in such policies and practices and their possible implications in achieving sustainable forest management objectives. The primary methods applied in the study were review and synthesis of key policy documents and qualitative analysis of the information gathered from key informant interviews and stakeholders’ workshop. Altogether, 53 respondents from a wide range of stakeholder groups (government organizations-15, non-government organizations/networks-15, private sector including the individual landowners-13, local political leaders-3 and independent forest experts/scientists-7) were consulted. Findings suggest that: (1) frequent and inconsistent changes in policy provisions, lengthy administrative procedures and heavy engagement of state forest agencies in forest product harvesting and sales processes play key roles in sub-optimal forest production in Nepal, whereas lower dependency on forest-products, higher labour costs, lack of species-wise royalty rate and flexibility in selecting optional logs are the key factors for increased wastages of forest products in Queensland; (2) recovery and utilisation of the harvested forest product is better in Nepal but policy and practical considerations on biodiversity and environment are better in Queensland; and (3) Forest harvesting specific codes of practice, occupational health and safety standards, and their compliance mechanism of Queensland could be beneficial for Nepal to minimise operational harvesting risks and to attract professional harvesters that support promoting sustainable use and management of natural forests, as we found this aspect almost neglected in Nepal.     

Landowner knowledge and willingness to supply woody biomass for wood-based bioenergy: Sample selection approach

Nonindustrial private forest (NIPF) landowners’ willingness to harvest woody biomass for wood-based bioenergy is important if sustainable feedstock supplies are to be realized in the U.S. However, a significant number of them do not know that unused logging residues could be used to produce wood-based bioenergy. Therefore, this study analyzed landowner willingness to harvest woody biomass in Mississippi contingent upon their knowledge of wood-based bioenergy. The requisite data were analyzed in accordance with the Heckman approach. Results indicated that elderly, male, and resident landowners, having larger tracts of pine plantations were more likely to be aware of wood-based bioenergy. The results further revealed the need for bioenergy related extension education focusing on female landowners and those having small tracts of forest land.     

Does private income support sustainable agroforestry in Spanish dehesa?

Oak woodland dehesa suffers from the aging of trees without a natural regeneration of young oaks coming in to replace them. Recent European Union (EU) policy reforms for rural development focus on supporting multifunctional agriculture that complies with the EU's environmental goals, such as mitigating biodiversity losses and climate change. Such reforms could result in government support for natural woodland regeneration practices in European agroforestry systems, which are recognized for providing valuable environmental services. Managing dehesa cork oak and holm oak woodlands to stimulate the growth of new oaks could be an efficient option for maintaining, and even increasing, the dehesa's current carbon stock and biodiversity. Here we develop and apply a new agroforestry accounting system based on the concept of Hicksian income to a dehesa in the Monfragüe area of western Spain, using primary microeconomic data from a large case study. Private total income and profitability rates are measured for individual goods and services, and for the entire dehesa in a steady state. Our application extends the EU system of accounts for agriculture and forestry by including private amenity consumption by landowners and the gain or loss in human-made and natural capital. We compare an actual typical unsustainable woodland management scenario with an ideal sustainable management scenario in which there is a continuous regeneration and recruitment of holm and cork oaks as predicted by silvicultural models. The results show that, given current land use policy incentives, allowing a slow depletion of oak trees is more profitable for a dehesa private landowner than maintaining the dehesa's trees. As a result many dehesa environmental services are gradually lost. This market failure requires new land use policies that induce private land owners to invest in the renewal of aging oak woodlands. To evaluate the impacts of this new policy, we show how private landowner income is affected when changes are made to achieve sustainable management of dehesa oaks. More research is needed in order to understand how the dehesa's landowner market income and private amenities trade-off can affect the owner's land use preferences and decisions.     

Legal framework of private afforestation: The case of Turkey

In Turkey, 99.9 % of the forest land belongs to the state, and according to the Turkish Constitution, the ownership of the state forests cannot be transferred to private parties or other non-state organizations. However, some permits have been granted to use and benefit from the state forests without transferring the ownership. One such is the private afforestation permit. Private afforestation aims to increase forest lands and the growing stock, to re-establish the deteriorating balance between soil, water, and plants, to improve the environmental value, and to provide income to natural entities. This study aims to identify the legal and administrative regulation dimensions of the land use policy on private afforestation in Turkey and to compare them with other successful international afforestation policies.The second part of this paper is a case study on the impact of the legal changes over time in private afforestation in the sample area. Interviews were conducted with participants in the program using questions addressing the socio-economic and cultural benefits of private afforestation along with their afforestation practices and problems. The overall conclusion of this survey was that private afforestation practice had contributed to the income level of the participants. Further, to increase the participation in the program, more public awareness was necessary and incentives to participate must be increased.     

Money,Land or self-employment? Understanding preference heterogeneity in landowners’ choices for compensation under land acquisition in India

Land acquisition policies, upon which future land use patterns in India depend, are controversially tied to the question of whether to provide monetary or non-monetary compensation to affected landowners. However, turning to the preferences of landowners for answers only serves to complicate matters, as these are not homogenous on the question. This implies there is a need to identify the underlying factors giving rise to this preference heterogeneity, in order to develop more effective and efficient policy. This paper aims to address this gap using a contingent ranking experiment to study landowner disposition toward a range of compensation options, presented in a survey conducted in an ‘about-to-be-submerged’ region of a large, multi-stage irrigation project in India. Rankings were based on a selection of six compensation options, constituting different combinations of the attributes - cash, land, housing and self-employment. While the results suggest that landowners generally prefer non-monetary compensation, both the size of landholding and level of education of the landholder appear to influence the preferences for different compensation options. We find that landowners with more land or education tended to favour monetary compensation, while those with lower education or less land tended to favour housing and self-employment options. We close the text by exploring possible explanations for this specific form of heterogeneity, including access to information, to networks and capacities for income generation, and providing some reflections on the implications of these results for ensuring that rehabilitation and resettlement policies are both well targeted and effective.     

Private transaction costs of participation in water quality improvement programs for Australia's Great Barrier Reef: Extent,causes and policy implications

The direct private cost to landholders of participating in programs that result in improved farming activities (IFAs) is generally well understood. However, the private indirect or transaction costs, such as the cost of a landholder's time and the expense to learn about IFAs and apply for assistance to implement these changes on‐farm, are not so well understood. Where these have been studied, they have been shown to be extensive. We assess the extent and causes of private transaction costs incurred by sugarcane growers participating in the Australian Government's Reef Rescue scheme which pays farmers to adopt environmentally beneficial farm management practices. Utilising a mail‐out‐mail‐back survey of 110 growers, we found that the average total transaction cost per farm of participating in the program was AU$8389. The average total transaction costs per farm as a percentage of the average funding provided was 38 per cent. We also assessed which type of improved farming activity (soil, nutrient, pest or water management) generated the greatest transaction costs and how landholder characteristics such as bounded rationality, opportunism and social connection impacted on the extent of transaction costs.     

Current agri-environmental policies dismiss varied perceptions and discourses on management of traditional rural biotopes

Traditional rural biotopes (TRBs) are threatened habitats that host significant biodiversity and several ecosystem services, and depend on active management such as low-intensity grazing. The current study explores private landowners’ decision-making on TRB management and abandonment within a social-ecological system framework. We provide insight into supporting resilience of TRB systems in the face of agricultural modernization. Using a mixed methods approach with content analysis and Q analysis, we demonstrate that TRB management fosters cultural, biological, aesthetic, and utilitarian values. These are reflected in different ways through conservationist’s, profit-oriented farmer’s, landscape manager’s, and landscape admirer’s discourses on TRB management. Overall, management reinforces landowners’ place attachment, and reflects an approach to landscapes as spatial representations of cultural heritage and identity over multiple generations. Landowners consider TRB pasturage and its social-ecological outcomes motivating and rewarding. Giving up grazing cattle and perceived bureaucracy of national agri-environment scheme contribute to TRB abandonment. Landowners point out that current policies detach TRB management from what is seen as “regular agriculture”, and the focus on monetary compensation bypasses the multiple values tied to TRB management. Based on our results, we suggest that promoting TRBs requires reconfiguring the current arrangement of remedial management payments and adopting a more participatory governance approach. Locally, resilience of TRB systems relies on the connections between landowners and landscapes that foster sense of place and landscape identity, which can be supported by knowledge sharing and collaborative grazing efforts among landowners.     

The effectiveness of state preferential property tax programs in conserving forests: Comparisons,measurements, and challenges

Forest property taxes have been identified as one of the major driving forces behind forest loss and parcelization. Among various policy alternatives for reducing the burden of forest property taxes on landowners, preferential property tax programs have been widely used across states. Existing research has mostly focused on individual property tax programs, particularly those based on current use valuation, while little has been done to document, analyze and compare programs across states. By examining survey data from state preferential property tax program administrators across the United States, this paper describes the commonalities and differences among states regarding their preferential property tax programs, provides a preliminary understanding of the relationship between state preferential property tax policy and trends in private forest conditions, and identifies issues related to the effectiveness of state preferential property tax programs and private forest land management and conservation. Our analysis revealed three fundamental disconnects: (1) Program attributes that were previously considered to be important for preferential property tax programs to be effective in retaining forest land and fostering management did not consistently correlate with program effectiveness as viewed by the administrators of these programs; (2) These program attributes did not consistently correlate with actual program effectiveness as measured at the state level by forest trend indicators used in this study (i.e., change in private forest land cover, change in average size of private forest holdings, extent to which private forest land is being actively managed); and (3) The self-assessed program effectiveness did not consistently correlate with actual program effectiveness, either. The various ways in which the effectiveness of preferential property tax programs is defined and measured contribute to explaining these disconnects. It is particularly important for researchers and policy makers to be explicit about how they define and measure effectiveness and the scale on which they conduct their analysis before assessing and comparing programs or suggesting improvement strategies.     

Cost-effective nitrogen leaching reduction as influenced by linkages between farm-level decisions

This article focuses on how the linkages between various farm‐level decisions affect the choice of measures to reduce nitrogen leaching from crop production. A mathematical programming model is developed. The model considers not only management decisions that affect nitrogen leaching directly, but also other decision variables such as scheduling of field operations and machinery investments. A simplified analysis that ignores the latter management decisions, and the linkages between the various decisions, may result in abatement policies that are not cost‐effective because the policies will have other effects than expected. As an example, the empirical results show that subsidies to catch crops and spring ploughing may contribute to increased nitrogen load, quite contrary to the purpose of these subsidies. Further, it is noted that the characteristics of the production system make it costly to change land use, tillage practices, or fertilizer use drastically. Instead, cost‐effective nitrogen abatement includes a mix of various adjustments of farm‐level production practices. The EU set‐aside payment appears to reduce abatement costs.     

Farmers’ objectives as determinants of organic farming adoption: the case of Catalonian vineyard production

This article assesses the decision to adopt organic farming practices. We use Duration Analysis (DA) to determine why farmers adopt organic farming practices and what influences the timing of adoption. We extend previous studies by including farmers’ objectives, risk preferences, and agricultural policies as covariates in the DA model. The Analytical Hierarchy Process is used as a multicriteria decision‐making methodology to measure farmers’ objectives. The empirical analysis uses farm‐level data from a sample of vineyard farms in the Spanish region of Catalonia. Farmers’ objectives are found to influence the conversion decision. Moreover, farmers who are not risk averse are more likely to adopt organic farming. Results point to the policy changes that have been most relevant in motivating adoption of organic practices.     

A model of shifting cultivation: can soil conservation reduce deforestation?

Shifting cultivators manage soil not only by adjusting soil use on already‐cleared lands, as in continuous cultivation, but also by clearing forests to obtain new fertile soils. This study examines the crucial link between on‐farm soil conservation and deforestation in shifting cultivation by modeling forest clearing as an investment in soil for a private farmer. More generally, by doing so the study attempts to integrate deforestation and soil conservation models which have been separately developed in the literature. Our policy goal is to arrest tropical deforestation—as destruction of global commons—caused by land degradation in shifting cultivation while improving the well‐being of poor shifting cultivators. Our integrated approach enables joint policy analyses of deforestation and land degradation. Three welfare‐enhancing policies are considered. The first is agricultural and nonagricultural subsidies affecting farm and nonfarm income opportunities. The second is fiscal and tenure policies affecting discount rates. Our question is whether the link between forest clearing and soil fertility alters the outcomes of these two standard macroeconomic policies commonly found in the literature. The third policy (or program) is various soil conservation measures affecting soil regeneration and erosivity on already‐cleared lands. This article examines a very important question which has received little attention in previous theoretical works: can soil conservation reduce deforestation? This study confirms anti‐deforestation effects of the promotion of nonfarming activities—a common and often emphasized finding in previous works—among shifting cultivators. More importantly, it also demonstrates that improving various soil conservation measures not only discourages forest clearing among shifting cultivators but also tends to have greater effects on forest protection than promoting nonfarming activities. Contrarily, agricultural price subsidy or technological progress gives rise to the opposite outcome, and lowering the farmer's discount rate or improving tenure security encourages him/her to clear more forests just to accumulate soil.     

Market structure and the demand for veterinary services in India

The livestock sector is emerging as one of the fastest growing agricultural sub‐sectors in India and the expectations are that this growth could further accelerate due to growing incomes and the high income elasticity of demand for livestock products. Given the size and relatively equitable distribution of livestock in India, this presents an excellent opportunity for the country to boost rural incomes and accelerate the pace of poverty reduction. But, successful capitalisation of such opportunities requires a policy regime that facilitates growth in productivity at the farm level as well as in the processing sector. The productive potential of animals depends crucially on the quality of nutrition, genetic material and the animal health system, and on all these counts, India has a poor record. The public sector continues to be the primary provider of veterinary services, and the deteriorating fiscal situation of most state governments is making it extremely difficult to either expand the reach of these services or improve the quality of service delivery. Although, on efficiency grounds, there is good rationale for commercialised delivery of these services, serious concerns prevail in India about the equity implications of private sector delivery or full cost recovery within the government system. Evaluation of the desirability of user fees or private delivery of livestock services requires an understanding of the factors influencing the demand for these services. This paper examines the nature of demand for veterinary services in three states of India and presents first estimates of demand elasticities for veterinary services. The results indicate that price is not an important determinant of the decision to use these services. Also, practically no variation is found in price elasticities across income groups. These results suggest that the fears of sharp declines in the use of these services as a result of full cost recovery and/or private sector delivery are unfounded.     

Analysing foregone costs of communities and carbon benefits in small scale community based forestry practice in Nepal

Reducing emissions from deforestation and forest degradation, conservation and sustainable management of forests and enhancement of forest carbon (REDD+) are considered to be important cost effective approaches for global climate change mitigation; therefore, such practices are evolving as the REDD+ payment mechanism in developing countries. Using six years (2006–2012) data, this paper analyses trade-offs between carbon stock gains and the costs incurred by communities in generating additional carbon in 105 REDD+ pilot community forests in Nepal. It estimates foregone benefits for communities engaged in increasing carbon stocks in various dominant vegetation types. At recent carbon and commodity prices, communities receive on average US$ 0.47/ha/year of carbon benefits with the additional cost of US$ 67.30/ha/year. One dollar’s worth of community cost resulted 0.23 Mg of carbon sequestration. Therefore, carbon payment alone may not be an attractive incentive within small-scale community forestry and should link with payments for ecosystem services. Moreover, the study found highest community sacrificed benefits in Shorea mixed broadleaf forests and lowest in Schima-Castanopsis forests, while carbon benefits were highest in Pine forests followed by Schima-Castanopsis forests and lowest in Rhododendron-Quercus forests. This indicates that costs and benefits may vary by vegetation type. A policy should consider payment for other environmental services, carbon gains, co-benefits and trade off while designing the REDD+ mechanism in community based forest land use practice with equitable community outcomes. The learning from this study will help in the formulation of an appropriate REDD+ policy for community forestry.     

Property taxation and rural land values: Their effect on private forestland ownership structure in Texas

The objective of this study was to estimate the effect of property tax and rural land market value on the ownership structure of private forestland in Texas. Using county-level panel data in an Instrumental Variable regression framework, we estimated the effect of property tax rate and rural land value on two measures of ownership fragmentation: the total number of private forest landowners and the average size of private forest holdings. The results indicate that after controlling for the total amount of private forest area in a county, both property tax rates and rural land values increased ownership fragmentation. However, the rate of ownership fragmentation was relatively inelastic in both property tax rate and rural land value. While further restructuring local property tax rates might minimize the negative effect on private ownership dynamics, policy instruments that decrease the disparity between productivity value and market value of rural forestland might be needed to check the ongoing ownership fragmentation in Texas and elsewhere in the United States.     

Land use determines interest in conservation easements among private landowners

Protection of private lands through conservation easements has garnered recent attention from scientists and conservation practitioners. Questions remain, however, about the specific characteristics and activities driving landowners’ interest in conservation easements and their willingness to consider granting them. Resolving these questions could improve prospects for private land conservation by helping land conservation organizations identify and better understand potential easement grantors. We conducted a survey of 513 private landowners in a peri-urban fringe area in the Finger Lakes region of upstate New York, USA. Logistic regression analysis returned seven significant predictors of landowner willingness to consider granting conservation easements. Participation in environmental organizations, recreational land-use activities, wild food gathering, and land entitlement were the strongest factors promoting interest in conservation easements. Long-term residency, male gender, and hunting or fishing, on the other hand, significantly decreased the likelihood of considering conservation easements. The findings suggest that landowners most interested in to granting conservation easements are active land users. Notably, among all the land-use activities reported, the most frequent and the most important in predicting interest in conservation easements are those undertaken for recreational and subsistence, rather than economic, purposes. This suggests that while easements might be appropriate for working lands, their role in reconciling land use with conservation requires a flexible definition of work.     

Potential hazards of land policy: Conservation,rural development and fire use in the Brazilian Amazon

With growing awareness of fire hazard as an environmental threat within tropical rainforests, the state of Brazil initiated a set of fire control policies aimed at monitoring and ameliorating fire hazard in the Amazon region. These policies were developed in the aftermath of large-scale fire events and reflect a conservationist discourse that responded to internal as well as international environmental concerns. In doing so, the policies have framed the “fire problem” around those who use fire in their land use practices, in particular small-scale agriculturalists. Yet, land policy in general has repeatedly failed to address the institutional arrangements which compel small-scale farmers to use fire in their agricultural practices and the underlying development processes that have made the landscape more vulnerable to accidental spread of fire. Using regional level data on small-scale farmers, I suggest that the conservation oriented approach of fire policy may not be enough to curtail accidental fire events and instead that the fire issue needs to be positioned within rural development as well.     

Agricultural extension policy in Australia: the good, the bad and the misguided

In most states of Australia, agricultural extension policies and practices have increasingly been based on considerations of private/public goods, user pays and cost recovery. In addition, the delivery of extension has been strongly influenced by changing administrative structures and a change in the paradigm within which the extension community operates. These changes have had major impacts, including more extension being delivered by the private sector. There are positive aspects to the changes and, for some issues, they are appropriate. However, we have a number of reservations, particularly about the effectiveness of current extension systems in assisting the adoption of complex environmental and farming system technologies.     

Adjusting policy to institutional,cultural and biophysical context conditions: The case of conservation banking in California

This paper examines the political construction of a policy instrument for matching particular institutional, biophysical and cultural context conditions in a social–ecological system, using the case of conservation banking in California as an example. The guiding research question is: How is policy design negotiated between various actors on its way from early formulation of ideas and principles to an accepted policy solution on a state or national level? The underlying assumption is that in order for a policy instrument to be implemented, it has to be adjusted to various context conditions. That is, it has to become accepted by affected actors associated with the institutional framework, and it has to gain local validity for implementation by actors related to a particular ecological and cultural context. We assume that ideas about policy adjustments are not only functionalistic questions determined for example by the materiality of the resource it governs, but are constructed and politically negotiated because these ideas may differ among the mental models of the associated actors. These actors are stakeholders affiliated with the policy process, i.e. authorities, public and private organizations, interest groups, firms or think tanks dealing with, or being shaped by, the policy at different stages of its development.As a result certain context conditions and related concerns such as institutional interplay or match to ecological particularities become inscribed in policy design as an outcome of power struggles, values, and interests. These in turn may vary at different stages of policy development and implementation. Each time the instrument is transferred in a new setting it is likely that the incipient policy design may be opened-up and begin a mutual adjustment process among the newly concerned actors. Thus, such policy developments are not immutable but are dynamic. In this paper, the creation of fit for policies on conservation banking to the issue of species protection in the State of California and later to the U.S. environmental governance domain, are analyzed to understand the instrument's emergence and development toward an established policy solution. The focus is on the negotiation processes among the enrolled actors and their strategies for matching the instrument to certain institutional, cultural and ecological context conditions on different scales. Changes in policy design, its underlying influences, actors’ interests, conflicts and perceived effects are identified, respectively.