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Policy design for a multifunctional landscape
Uppsala University, Disciplinary Domain of Science and Technology, Earth Sciences, Department of Earth Sciences, LUVAL.
2010 (English)In: Regional Environmental Change, ISSN 1436-3798, E-ISSN 1436-378x, Vol. 10, no 4, 339-348 p.Article in journal (Refereed) Published
Abstract [en]

Landscapes consisting of several elements, such as wetlands and forests, are multifunctional in nature and produce both market and non-market goods. The need for policies arises from the existence of non-market ecosystem services that are not traded and thereby generally not subject to economic trade-offs in landowner decision making. An efficient incentive scheme for producing both types of goods would require policy designed for each non-market good. However, this may result in high transaction costs, possibly giving second-best solutions a comparative advantage when only one non-market good is regulated. This paper demonstrates that in the Hovran catchment area in mid Sweden, which produces the non-market goods water quality, biodiversity, and scenic beauty, compensation payments for biodiversity production alone provide almost maximum total net value of all market and non-market goods. On the other hand, payments for providing scenic beauty in the form of open landscape may result in lower total net value than no compensation payment at all, due to a negative impact on water quality.

Place, publisher, year, edition, pages
2010. Vol. 10, no 4, 339-348 p.
National Category
Oceanography, Hydrology, Water Resources Environmental Sciences
Research subject
Earth Science with specialization in Environmental Analysis
URN: urn:nbn:se:uu:diva-164970DOI: 10.1007/s10113-009-0105-9OAI: oai:DiVA.org:uu-164970DiVA: diva2:471088

Times Cited: 1

Available from: 2011-12-31 Created: 2011-12-31 Last updated: 2013-01-15Bibliographically approved

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