Integrating Biophysical and Economic Information to Guide Land Conservation Investments

Concerns over the effects of private land use on the supply of environmental amenities have led to an increasing global reliance on conservation contracting initiatives (Ferraro and Kiss 2002). The term “conservation contracting” describes the contractual transfer of payments from one party (e.g., government) to another (e.g., landowner) in exchange for land use practices that contribute to the supply of an environmental amenity. Such contracts include easements and short-term conservation leases. A key issue in the design of conservation contracting initiatives, as with any conservation policy, is how to integrate information about spatially variable biophysical and economic conditions into a cost-effective plan.