Maksym Polyakov

Property Tax Policy and Land-Use Change

In this study, we analyze the effect of property taxes on changes between agricultural, forestry, Conservation Reserve Program, and developed land uses in Louisiana. We estimate a random parameters logit model of land-use conversion from the National Resources Inventory plot data. Our results indicate that land-use changes are inelastic with respect to property taxes. Simulation shows that current use valuation policy, while slowing down development of rural lands, also affects changes between rural land uses. (JEL Q15, H23)

Capitalized Amenity Value of Native Vegetation in a Multifunctional Rural Landscape

In many parts of the world, natural vegetation has been cleared to allow agricultural production. To ensure a long-term flow of ecosystem services without compromising agricultural activities, restoring the environment requires a balance between public and private benefits and costs. Information about private benefits generated by environmental assets can be utilized to identify conservation opportunities on private lands, evaluate environmental projects, and design effective policy instruments. We use a spatio-temporal hedonic model to estimate the private benefits of native vegetation on rural properties in the state of Victoria, Australia. Specifically, we estimate the marginal value of native vegetation on private land and examine how it varies with the extent of vegetation on a property and across a range of property types and sizes. Private benefits of native vegetation are greater per unit area on small and medium-sized properties and smaller on large production-oriented farms. Native vegetation exhibits diminishing marginal benefits as its proportion of a property increases. The current extent of native vegetation cover is lower than the extent that would maximize the amenity value to many landowners. There is scope for improved targeting of investment in the study region by incorporating private benefits of environmental projects into environmental planning processes. Landowners with high marginal private benefits from revegetation would be more willing to participate in a revegetation program. Targeting these landowners would likely provide higher value for money because such projects could be implemented at lower public cost.

A Multidisciplinary Conceptualization of Conservation Opportunity

An opportunity represents an advantageous combination of circumstances that allows goals to be achieved. We reviewed the nature of opportunity and how it manifests in different subsystems (e.g., biophysical, social, political, economic) as conceptualized in other bodies of literature, including behavior, adoption, entrepreneur, public policy, and resilience literature. We then developed a multidisciplinary conceptualization of conservation opportunity. We identified 3 types of conservation opportunity: potential, actors remove barriers to problem solving by identifying the capabilities within the system that can be manipulated to create support for conservation action; traction, actors identify windows of opportunity that arise from exogenous shocks, events, or changes that remove barriers to solving problems; and existing, everything is in place for conservation action (i.e., no barriers exist) and an actor takes advantage of the existing circumstances to solve problems. Different leverage points characterize each type of opportunity. Thus, unique stages of opportunity identification or creation and exploitation exist: characterizing the system and defining problems; identifying potential solutions; assessing the feasibility of solutions; identifying or creating opportunities; and taking advantage of opportunities. These stages can be undertaken independently or as part of a situational analysis and typically comprise the first stage, but they can also be conducted iteratively throughout a conservation planning process. Four types of entrepreneur can be identified (business, policy, social, and conservation), each possessing attributes that enable them to identify or create opportunities and take advantage of them. We examined how different types of conservation opportunity manifest in a social-ecological system (the Great Barrier Reef) and how they can be taken advantage of. Our multidisciplinary conceptualization of conservation opportunity strengthens and legitimizes the concept.

Characterizing spatial uncertainty when integrating social data in conservation planning

Recent conservation planning studies have presented approaches for integrating spatially referenced social (SRS) data with a view to improving the feasibility of conservation action. We reviewed the growing conservation literature on SRS data, focusing on elicited or stated preferences derived through social survey methods such as choice experiments and public participation geographic information systems. Elicited SRS data includes the spatial distribution of willingness to sell, willingness to pay, willingness to act, and assessments of social and cultural values. We developed a typology for assessing elicited SRS data uncertainty which describes how social survey uncertainty propagates when projected spatially and the importance of accounting for spatial uncertainty such as scale effects and data quality. These uncertainties will propagate when elicited SRS data is integrated with biophysical data for conservation planning and may have important consequences for assessing the feasibility of conservation actions. To explore this issue further, we conducted a systematic review of the elicited SRS data literature. We found that social survey uncertainty was commonly tested for, but that these uncertainties were ignored when projected spatially. Based on these results we developed a framework which will help researchers and practitioners estimate social survey uncertainty and use these quantitative estimates to systematically address uncertainty within an analysis. This is important when using SRS data in conservation applications because decisions need to be made irrespective of data quality and well characterized uncertainty can be incorporated into decision theoretic approaches.

Valuing Environmental Assets on Rural Lifestyle Properties

Lifestyle landowners value land for its amenities and ecological characteristics and could play an important role in managing and conserving native vegetation in multifunctional rural landscapes. We quantify values of ecosystem services captured by owners of rural lifestyle properties in Victoria, Australia, using a spatial hedonic property price model. The value of ecosystem services provided by native vegetation is maximized when that vegetation occupies about 40 percent of the area of a lifestyle property. Since the current median proportion of native vegetation is 15 percent, most lifestyle landowners could benefit from increasing the area of native vegetation on their properties.

Population Growth and Land Use Dynamics along Urban-Rural Gradient

In this study we apply a spatial conditional logit model to determine factors influencing land cover change in three contiguous counties in West Georgia between 1992 and 2001 using point (pixel) based observations of land characteristics. We found that accessibility to population and population growth affect not only development of rural lands and transition between agricultural and forestry uses, but also influence changes between forest types. The model could be used to project land use–land cover change at watershed or subwatershed level and thus serve as a valuable tool for county and city planners.

How economics can further the success of ecological restoration.

Restoration scientists and practitioners have recently begun to include economic and social aspects in the design and investment decisions for restoration projects. With few exceptions, ecological restoration studies that include economics focus solely on evaluating costs of restoration projects. However, economic principles, tools, and instruments can be applied to a range of other factors that affect project success. We considered the relevance of applying economics to address 4 key challenges of ecological restoration: assessing social and economic benefits, estimating overall costs, project prioritization and selection, and long-term financing of restoration programs. We found it is uncommon to consider all types of benefits (such as nonmarket values) and costs (such as transaction costs) in restoration programs. Total benefit of a restoration project can be estimated using market prices and various nonmarket valuation techniques. Total cost of a project can be estimated using methods based on property or land-sale prices, such as hedonic pricing method and organizational surveys. Securing continuous (or long-term) funding is also vital to accomplishing restoration goals and can be achieved by establishing synergy with existing programs, public-private partnerships, and financing through taxation.

Dynamics and the economics of carbon sequestration: common oversights and their implications

Accurate assessment of the cost of carbon sequestration is important for the development of mitigation policies globally. Given that sequestration in soils or vegetation is a lengthy process, such assessment requires financial discounting and making realistic assumptions about changes over time in the rate of sequestration, the price of carbon, and the opportunity cost incurred by adopting sequestration practices. Our objective is to demonstrate how these assumptions affect estimates of the cost of sequestration-based mitigation strategies. Using an Australian case study of soil carbon sequestration, our estimates of the carbon price required for financial viability are highly sensitive to dynamic assumptions, varying by a factor of four with different assumptions. Yet the influence of these time-related assumptions is poorly acknowledged in the literature, with many studies either failing to disclose their assumptions, or employing questionable assumptions and methods. Recommended global strategies are for researchers to report their assumptions related to dynamics much more transparently and to improve their research methods and the realism of their assumptions when analysing the economics of carbon sequestration. We recommend that policymakers become better aware of the issues created by dynamics, so that they are able to validly interpret assessments of the cost of sequestration and to ensure that they design policies in a way that facilitates fair comparison of the costs of mitigation strategies that operate over different timescales.

Economics of controlling invasive species: A stochastic optimization model for a spatial-dynamic process

&NA; We analyze the dynamic process of invasive‐species control in a spatially explicit and stochastic setting. An integer optimization model is applied to identify optimal strategies to deal with invasive species at a steady state. Optimal strategies depend on the spatial location of invasion as well as on stochastic characteristics of spread and control. Previous studies of invasive‐species control have been stochastic or spatial, but not both. We model a landscape as consisting of multiple cells, each of which may be subject to border control or eradication within the cell. Optimal strategies from the model are characterized as eradication, containment, or abandonment of control. Representing the rate of species spread as stochastic rather than deterministic results in less‐intensive control becoming optimal at equilibrium. The optimal strategy may switch from eradication to containment or from containment to abandonment. If an infestation occurs at the boundary of the region within which it may spread, it is more likely to be optimal to eradicate or contain the species, compared to an infestation in the interior of the region. If the effectiveness of border control is stochastic, then containment is not feasible in the long term, but it is still optimal as a temporary measure in some scenarios.

Restoring Native Vegetation in an Agricultural Landscape: Spatial Optimization for Woodland Birds

In heavily cleared agricultural landscapes, decline of biodiversity could be prevented by restoring native habitat. In this paper, we develop a spatially explicit bioeconomic model that optimizes ecological restoration of habitat for woodland-dependent birds in the Australian state of Victoria. Spatial optimization identifies strategies that would generate substantially greater environmental benefits than are likely to be achieved in current programs. Greater biodiversity outcomes can be expected where restoration is optimized across multiple species rather than just individual species, and if the program does not require an even distribution of restoration effort among farmers. (JEL Q57, R14)