Cornhusker Economics

Increasing Ecosystem Services Benefits through Spatially Coordinated Land Management: Role of Transaction Costs and Communication in an Experimental Setting

The delivery of ecosystem services benefits from pro-environmental land use and land management activities on farmland can often be substantially enhanced if landowners are able to coordinate their decisions across space. For example, in the face of pollinator population collapse, greater crop pollination benefits will accrue if neighboring farmers commit to reducing pesticide usage, than if only a single farmer unilaterally curbs use, leaving bees vulnerable to pesticide drift from neighboring farms. Other examples which illustrate the importance of spatial coordination for generating environmental benefits across space are water quality improvement and biodiversity protection via reduction in habitat fragmentation.

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2015 Cornhusker Economics