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Ecological compensation of stochastic wetland biodiversity: national or regional policy schemes?

Welcome to a higher seminar arranged by the Department of Economics, at the School of Social Sciences, where Katarina Elofsson professor of Economics will present a paper "Ecological compensation of stochastic wetland biodiversity: national or regional policy schemes?"

The aim of this study is to compare policy schemes for ecological compensation of exploited wetlands, applied at national and regional levels. We study whether uncertainty, due to natural variability and measurement difficulties, motivates compensation that is carried out in the same region as that of the exploited site, or whether it rather motivates nationwide compensation schemes. For this purpose, we develop an empirical, chance-constrained programming model of cost-effective wetland management. The model is spatially differentiated and accounts for heterogeneity in habitat quality across wetland types and regions. Habitat quality is measured by three alternative indices: species richness, population weighted species richness, and red-listed species richness, estimated from voluntarily reported data on breeding bird species observations. Results show that regional schemes are more expensive, in particular if the policy maker dislikes uncertainty and wants to prioritize uncommon species. Contrary to expectations from the theoretical analysis, regional schemes would lead to a higher risk-adjusted habitat quality at the national level. However, regionalization also implies that targets cannot be achieved if a high safety margin is imposed. Trading ratios are robust to the choice of habitat quality index under a national target, but not under regional targets.

The seminar will take place via Zoom, please contact Mats Bergman (details below) for link.

Time and place

02 June 13:00-14:15

Higher seminar

On Zoom (please contact Mats Bergman for link), find us


Arranged by

The Department of Economics at the School of Social Sciences, Södertörns University.


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