Stephen K. Swallow

Demand-side Value for Ecosystem Services and Implications for Innovative Markets: Experimental Perspectives on the Possibility of Private Markets for Public Goods

Environmental economists invest in measuring the value of the environment but put less effort toward integrating that value directly into the economy. Experimental economists evaluate the performance of mechanisms to fund public goods but in some cases offer limited insight into practical implications for developing markets. This discussion presents initial insights into applying mechanisms for private provision of public goods based on demand-side values rather than regulatory-based market incentives such as cap-and-trade policies. Consideration of mechanisms to generate revenue inspires field tests that could direct experiments using threshold public goods and Lindahls framework toward applications that transform value into revenue.

Providing an ecologically sound community landscape at the urban–rural fringe: a conceptual, integrated model

The United States has been experiencing extensive rural land conversion associated with suburbanization and urban sprawl in many local areas. Among the social and economic issues associated with urban sprawl is the potential negative impact of rural land conversion and low-density development on local environmental amenities. With effectively irreversible residential growth, how could land managers maintain local ecosystem health while accommodating residential development? In this paper, we propose a landscape planning framework that integrates market-based land conservation programs, conservation subdivision, and landscape-level ecosystem management. We use an empirical example to illustrate the possibility of organization and application of conservation biology, urban planning, and market-based approaches to provide an ecologically sound community landscape at the urban–rural fringe.

Integrating Watershed Hydrology and Economics to Establish a Local Market for Water Quality Improvement: A Field Experiment

Innovative market mechanisms are being increasingly recognized as effective decision-making institutions to incorporate the value of ecosystem services into the economy. We present a field experiment that integrates an economic auction and a biophysical water flux model to develop a local market process consisting of both the supply and demand sides. On the supply side, we operate an auction with small-scale livestock owners who bid for contracts to implement site-specific manure management practices that reduce phosphorus loadings to a major reservoir. On the demand side, we implement a real money, multi-unit public good auction for these contracts with residents who potentially benefit from reduced water quality risks. The experiments allow us to construct supply and demand curves to find an equilibrium price for water quality improvement. The field experiments provide a proof-of-concept for practical implementation of a local market for environmental improvements, even for the challenging context of nonpoint pollution.

Do Exurban Communities Want More Development

ABSTRACT Most land-use surveys of exurban residents focus on eliciting preferences for residential development and open space conservation. This article, in contrast, reports on a stated preference study of exurban residents that assesses the relative attractiveness of a variety of commercial and recreational land uses. Focus group participants and town planners proclaimed a demand for certain commercial services such as modern grocery stores and fine-dining restaurants, but survey respondents generally exhibit a strong preference for no additional development beyond the current rate of development. Results show that if additional development is to occur, then recreational services are generally preferred over more traditional commercial development. Combining two commercial services in a single development project are strongly preferred to stand-alone developments. Our approach illustrates how planners may uncover misconceptions about and priorities for land conversion through examining residents’ preferences.