TY - JOUR
T1 - The efficiency of conservation banking schemes with inter-regionally tradable credits and the role of mediators
AU - Higashida, Keisaku
AU - Tanaka, Kenta
AU - Managi, Shunsuke
N1 - Funding Information:
The authors thank Akira Hibiki for helpful comments. We acknowledge financial support from the Ministry of the Environment, Japan, and Japan Society for the Promotion of Science under Grant-in-Aid for Scientific Research on Innovative Areas (15H01609) and B (15H03347).
Publisher Copyright:
© 2019 Economic Society of Australia, Queensland
PY - 2019/6
Y1 - 2019/6
N2 - The notion of tradable allowance schemes for biodiversity conservation (conservation banking) has been drawing attention and the number of such schemes has been increasing over the past few decades. An increase in the number of schemes increases the need for institutional designs that incorporate inter-regional or inter-scheme trading; however, this may be difficult because of the heterogeneity of biodiversity and the variation in evaluation methodologies. Focusing on the role of environmental traders as mediators, this study considers inter-scheme or inter-regional transactions of credits experimentally and explores the possibility that mediators simultaneously encourage efficiency and conservation. Experimental results suggest that environmental traders behave as theoretically predicted and enhance efficiency by exporting credits from areas with a higher environmental biodiversity value to those with a lower value. Our results highlight the importance of institutional frameworks in allowing market mechanisms to work effectively under conservation banking schemes.
AB - The notion of tradable allowance schemes for biodiversity conservation (conservation banking) has been drawing attention and the number of such schemes has been increasing over the past few decades. An increase in the number of schemes increases the need for institutional designs that incorporate inter-regional or inter-scheme trading; however, this may be difficult because of the heterogeneity of biodiversity and the variation in evaluation methodologies. Focusing on the role of environmental traders as mediators, this study considers inter-scheme or inter-regional transactions of credits experimentally and explores the possibility that mediators simultaneously encourage efficiency and conservation. Experimental results suggest that environmental traders behave as theoretically predicted and enhance efficiency by exporting credits from areas with a higher environmental biodiversity value to those with a lower value. Our results highlight the importance of institutional frameworks in allowing market mechanisms to work effectively under conservation banking schemes.
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U2 - 10.1016/j.eap.2019.02.002
DO - 10.1016/j.eap.2019.02.002
M3 - Article
AN - SCOPUS:85062825758
VL - 62
SP - 175
EP - 186
JO - Economic Analysis and Policy
JF - Economic Analysis and Policy
SN - 0313-5926
ER -