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Abstract The provision of many ecosystem services depends on the spatial pattern of land use across multiple landowners. Even holding land use constant, ecosystem service provision may change through time due to climate change. This paper develops an auction mechanism that implements an optimal solution for providing ecosystem services through time with multiple landowners who have private information about the net benefits of alternative uses of their land. Under the auction, each landowner has a dominant strategy to truthfully reveal their private information. With this information a regulator can then implement the optimal landscape pattern, which maximizes the present value of net benefits derived from the landscape, following the rules of the auction mechanism. The auction can be designed as a subsidy auction that pays landowners to conserve or a tax auction where landowners pay for the right to develop. Our mechanism optimizes social adaptation of ecosystem management to climate change. [ABSTRACT FROM AUTHOR]

Progress in ecosystem service science has been rapid, and there is now a healthy appetite among key public and private sector decision makers for this science. However, changing policy and management is a long-term project, one that raises a number of specific practical challenges. One impediment to broad adoption of ecosystem service information is the lack of standards that define terminology, acceptable data and methods, and reporting requirements. Ecosystem service standards should be tailored to specific use contexts, such as national income and wealth accounts, corporate sustainability reporting, land-use planning, and environmental impact assessments. Many standard-setting organizations already exist, and the research community will make the most headway toward rapid uptake of ecosystem service science by working directly with these organizations. Progress has been made in aligning with existing organizations in areas such as product certification and sustainability reporting, but a major challenge remains in mainstreaming ecosystem service information into core public and private use contexts, such as agricultural and energy subsidy design, national income accounts, and corporate accounts. [ABSTRACT FROM AUTHOR]

Many ecosystem services are public goods whose provision depends on the spatial pattern of land use. The pattern of land use is often determined by the decisions of multiple private landowners. Increasing the provision of ecosystem services, though beneficial for society as a whole, may be costly to private landowners. A regulator interested in providing incentives to landowners for increased provision of ecosystem services often lacks complete information on landowners' costs. The combination of spatially dependent benefits and asymmetric cost information means that the optimal provision of ecosystem services cannot be achieved using standard regulatory or payment for ecosystem services approaches. Here we show that an auction that sets payments between landowners and the regulator for the increased value of ecosystem services with conservation provides incentives for landowners to truthfully reveal cost information, and allows the regulator to implement the optimal provision of ecosystem services, even in the case with spatially dependent benefits and asymmetric information. [ABSTRACT FROM AUTHOR]

Expanding human population and economic growth have led to large-scale conversion of natural habitat to human-dominated landscapes with consequent large-scale declines in biodiversity. Conserving biodiversity, while at the same time meeting expanding human needs, is an issue of utmost importance. In this paper we develop a spatially explicit landscape-level model for analyzing the biological and economic consequences of alternative land-use patterns. The spatially explicit biological model incorporates habitat preferences, area requirements and dispersal ability between habitat patches for terrestrial vertebrate species to predict the likely number of species that will be sustained on the landscape. The spatially explicit economic model incorporates site characteristics and location to predict economic returns for a variety of potential land uses. We apply the model to search for efficient land-use patterns that maximize biodiversity conservation objectives for given levels of economic returns, and vice versa. We apply the model to the Willamette Basin, Oregon, USA. By thinking carefully about the arrangement of activities, we find land-use patterns that sustain high levels of biodiversity and economic returns. Compared to the 1990 land-use pattern, we show that both biodiversity conservation and the value of economic activity could be increased substantially. [Copyright &y& Elsevier]

Abstract: Agriculture produces more than just crops. Agricultural practices have environmental impacts that affect a wide range of ecosystem services, including water quality, pollination, nutrient cycling, soil retention, carbon sequestration, and biodiversity conservation. In turn, ecosystem services affect agricultural productivity. Understanding the contribution of various agricultural practices to the range of ecosystem services would help inform choices about the most beneficial agricultural practices. To accomplish this, however, we must overcome a big challenge in measuring the impact of alternative agricultural practices on ecosystem services and of ecosystem services on agricultural production. A framework is presented in which such indicators can be interpreted as well as the criteria for selection of indicators. The relationship between agricultural practices and land-use change and erosion impact on chemical use is also discussed. Together these ideas form the basis for identifying useful indicators for quantifying the costs and benefits of agricultural systems for the range of ecosystem services interrelated to agriculture. [Copyright &y& Elsevier]

Sustainable development requires jointly achieving economic development to raise standards of living and environmental sustainability to secure these gains for the long run. Here, we develop a local- to- global, and global- to- local, earth- economy model that integrates the Global Trade Analysis Project (GTAP)- computable general equilibrium model of the economy with the Integrated Valuation of Ecosystem Services and Tradeoffs (InVEST) model of fine- scale, spatially explicit ecosystem services. The integrated model, GTAP--InVEST, jointly determines land use, environmental conditions, ecosystem services, market prices, supply and demand across economic sectors, trade across regions, and aggregate performance metrics like GDP. We use the integrated model to analyze the contribution of investing in nature for economic prosperity, accounting for the impact of four important ecosystem services (pollination, timber provision, marine fisheries, and carbon sequestration). We show that investments in nature result in large improvements relative to a business- as- usual path, accruing annual gains of $100 to $350 billion (2014 USD) with the largest percentage gains in the lowest- income countries. Our estimates include only a small subset of ecosystem services and could be far higher with inclusion of more ecosystem services, incorporation of ecological tipping points, and reduction in substitutability that limits economic adjustments to declines in natural capital. Our analysis highlights the need for improved environmental--economic modeling and the vital importance of integrating environmental information firmly into economic analysis and policy. The benefits of doing so are potentially very large, with the greatest percentage benefits accruing to inhabitants of the poorest countries. [ABSTRACT FROM AUTHOR]

The article comments on a study by Armsworth and colleagues which shows how the unintended consequences of buying land for conservation lead to negative feedbacks on conservation objectives. The researchers combined economic analysis of land markets with conservation planning. They suggested that buying land for conservation can lead to increases in land prices and shift development.

Abstract: Numerous communities in the United States have been willing to use public funds to protect open space. The amount of money allocated for open space protection by local and state governments exceeds the budget of the largest federal land protection program in the U.S., the Conservation Reserve Program. This paper analyzes what types of municipalities hold open-space referenda and the level of support for these referenda. Factors that increased the probability of a municipality holding an open space referendum from 2000 to 2004 were large population, low population density, rapid growth of the surrounding area, and highly educated and environmentally-concerned residents. Increases in median household income up to $100,000 increased the likelihood of a vote, but further increases in income beyond $100,000 decreased the likelihood. For municipalities holding an open space referendum, factors that increased support for passage of the referendum were rapid growth, low unemployment rates, highly educated residents, and no new taxes. Given high levels of support for open space referenda (76% of municipal-level referenda held from 2000 through 2004 passed) the spatial pattern of locally-managed open space will be largely determined by the factors that affect referenda appearance on a municipal ballot. This conclusion suggests that locally-managed conservation hotspots will cluster around fast-growing affluent communities with highly educated residents. Such hotspots may or may not align with overall conservation priorities. Non-governmental and environmental organizations should focus efforts on helping communities in locally-managed conservation coldspots secure open space. [Copyright &y& Elsevier]

The magnitude and pace of global change demand rapid assessment of nature and its contributions to people. We present a fine-scale global modeling of current status and future scenarios for several contributions: water quality regulation, coastal risk reduction, and crop pollination. We find that where people’s needs for nature are now greatest, nature’s ability to meet those needs is declining. Up to 5 billion people face higher water pollution and insufficient pollination for nutrition under future scenarios of land use and climate change, particularly in Africa and South Asia. Hundreds of millions of people face heightened coastal risk across Africa, Eurasia, and the Americas. Continued loss of nature poses severe threats, yet these can be reduced 3- to 10-fold under a sustainable development scenario. [ABSTRACT FROM AUTHOR]

Management of public lands, and who should have access to them, is often contentious. Most ranches in the western US rely upon seasonal grazing access to public lands, and conflict over biodiversity management has led to proposals to restrict grazing access on public lands. We evaluate whether grazing restrictions on public rangelands could have the unintended effect of increasing the conversion of private rangeland to cropland, causing habitat loss for sage‐grouse, a species of conservation concern.Using a model parameterized with empirical observations of land use change and ranch versus cropland profitability, we explore how changes to public lands grazing policy could affect ranch profitability and consequently land use on private lands across the western US.We predict that restricting grazing of public lands by 50% would result in the loss of an additional 171,400 ha of sage‐grouse habitat on private lands by 2050, on top of the 842,000 ha predicted to be lost under business as usual. Most of this conversion would affect sage‐grouse mesic habitat, 75% of which occurs on private land and is vital to the species during brood rearing. Under such policy changes, we estimate that an additional 105,700 ha (3.24%) of sage‐grouse mesic habitat held on private land in the study region would be directly lost by 2050, and the cumulative area affected by fragmentation would be much higher.By considering the human and ecological links between public and private land, we show that attempts to improve habitat on public lands via grazing restrictions could result in greater system‐wide fragmentation of sage‐grouse habitat from unintended habitat loss on private lands.Synthesis and applications. Policy interventions on public lands can affect private landholders. Landholders' responses can result in unintended consequences, both for habitat on private land and community support for conservation. Restricting grazing on US public lands is likely to increase habitat loss on private lands and reduce community support for sage grouse conservation. Policy that manages resources on public lands while also supporting sustainable, economically viable ranching operations on private lands is a promising approach to maximizing sage grouse habitat. Policy interventions on public lands can affect private landholders. Landholders' responses can result in unintended consequences, both for habitat on private land and community support for conservation. Restricting grazing on US public lands is likely to increase habitat loss on private lands and reduce community support for sage grouse conservation. Policy that manages resources on public lands while also supporting sustainable, economically viable ranching operations on private lands is a promising approach to maximizing sage grouse habitat. [ABSTRACT FROM AUTHOR]

Designing landscapes that can meet human needs, while maintaining functioning ecosystems, is essential for long-term sustainability. To achieve this goal, we must better understand the trade-offs and thresholds in the provision of ecosystem services and economic returns. To this end, we integrate spatially explicit economic and biophysical models to jointly optimize agricultural profit (sugarcane production and cattle ranching), biodiversity (bird and mammal species), and freshwater quality (nitrogen, phosphorus, and sediment retention) in the Brazilian Cerrado. We generate efficiency frontiers to evaluate the economic and environmental trade-offs and map efficient combinations of agricultural land and natural habitat under varying service importance. To assess the potential impact of the Brazilian Forest Code (FC), a federal policy that aims to promote biodiversity and ecosystem services on private lands, we compare the frontiers with optimizations that mimic the habitat requirements in the region. We find significant opportunities to improve both economic and environmental outcomes relative to the current landscape. Substantial trade-offs between biodiversity and water quality exist when land use planning targets a single service, but these trade-offs can be minimized through multi-objective planning. We also detect non-linear profit-ecosystem services relationships that result in land use thresholds that coincide with the FC requirements. Further, we demonstrate that landscape-level planning can greatly improve the performance of the FC relative to traditional farm-level planning. These findings suggest that through joint planning for economic and environmental goals at a landscape-scale, Brazil's agricultural sector can expand production and meet regulatory requirements, while maintaining biodiversity and ecosystem service provision. [ABSTRACT FROM AUTHOR]

Providing food, timber, energy, housing, and other goods and services, while maintaining ecosystem functions and biodiversity that underpin their sustainable supply, is one of the great challenges of our time. Understanding the drivers of land-use change and how policies can alter land-use change will be critical to meeting this challenge. Here we project land-use change in the contiguous United States to 2051 under two plausible baseline trajectories of economic conditions to illustrate how differences in underlying market forces can have large impacts on land-use with cascading effects on ecosystem services and wildlife habitat. We project a large increase in croplands (28.2 million ha) under a scenario with high crop demand mirroring conditions starting in 2007, compared with a loss of cropland (11.2 million ha) mirroring conditions in the 1990s. Projected land-use changes result in increases in carbon storage, timber production, food production from increased yields, and >10% decreases in habitat for 25% of modeled species. We also analyze policy alternatives designed to encourage forest cover and natural landscapes and reduce urban expansion. Although these policy scenarios modify baseline land-use patterns, they do not reverse powerful underlying trends. Policy interventions need to be aggressive to significantly alter underlying land-use change trends and shift the trajectory of ecosystem service provision. [ABSTRACT FROM AUTHOR]

Despite broad interest in using payment for ecosystem services to promote changes in the use of natural capital, there are few expost assessments of impacts of payment for ecosystem services programs on ecosystem service provision, program cost, and changes in livelihoods resulting from program participation. In this paper, we evaluate the Paddy Land-to-Dry Land (PLDL) program in Beijing, China, and associated changes in service providers' livelihood activities. The PLDL is a land use conversion program that aims to protect water quality and quantity for the only surface water reservoir that serves Beijing, China's capital city with nearly 20 million residents. Our analysis integrates hydrologic data with household survey data and shows that the PLDL generates benefits of improved water quantity and quality that exceed the costs of reduced agricultural output. The PLDL has an overall benefit-cost ratio of 1.5, and both downstream beneficiaries and upstream providers gain from the program. Household data show that changes in livelihood activities may offset some of the desired effects of the program through increased expenditures on agricultural fertilizers. Overall, however, reductions in fertilizer leaching from land use change dominate so that the program still has a positive net impact on water quality. This program is a successful example of water users paying upstream landholders to improve water quantity and quality through land use change. Program evaluation also highlights the importance of considering behavioral changes by program participants. [ABSTRACT FROM AUTHOR]

Recent high-profile efforts have called for integrating ecosystem-service values into important societal decisions, but there are few demonstrations of this approach in practice. We quantified ecosystem-service values to help the largest private landowner in Hawaii, Kamehameha Schools, design a land-use development plan that balances multiple private and public values on its North Shore land holdings (Island of O'ahu) of ∼10,600 ha. We used the InVEST software tool to evaluate the environmental and financial implications of seven planning scenarios encompassing contrasting land-use combinations including biofuel feedstocks, food crops, forestry, livestock, and residential development. All scenarios had positive financial return relative to the status quo of negative return. However, tradeoffs existed between carbon storage and water quality as well as between environmental improvement and financial return. Based on this analysis and community input, Kamehameha Schools is implementing a plan to support diversified agriculture and forestry. This plan generates a positive financial return ($10.9 million) and improved carbon storage (0.5% increase relative to status quo) with negative relative effects on water quality (15.4% increase in potential nitrogen export relative to status quo). The effects on water quality could be mitigated partially (reduced to a 4.9% increase in potential nitrogen export) by establishing vegetation buffers on agricultural fields. This plan contributes to policy goals for climate change mitigation, food security, and diversifying rural economic opportunities. More broadly, our approach illustrates how information can help guide local land-use decisions that involve tradeoffs between private and public interests. [ABSTRACT FROM AUTHOR]

Background: As the global human population grows and its consumption patterns change, additional land will be needed for living space and agricultural production. A critical question facing global society is how to meet growing human demands for living space, food, fuel, and other materials while sustaining ecosystem services and biodiversity [1]. Methodology/Principal Findings: We spatially allocate two scenarios of 2000 to 2015 global areal change in urban land and cropland at the grid cell-level and measure the impact of this change on the provision of ecosystem services and biodiversity. The models and techniques used to spatially allocate land-use/land-cover (LULC) change and evaluate its impact on ecosystems are relatively simple and transparent [2]. The difference in the magnitude and pattern of cropland expansion across the two scenarios engenders different tradeoffs among crop production, provision of species habitat, and other important ecosystem services such as biomass carbon storage. For example, in one scenario, 5.2 grams of carbon stored in biomass is released for every additional calorie of crop produced across the globe; under the other scenario this tradeoff rate is 13.7. By comparing scenarios and their impacts we can begin to identify the global pattern of cropland and irrigation development that is significant enough to meet future food needs but has less of an impact on ecosystem service and habitat provision. Conclusions/Significance: Urban area and croplands will expand in the future to meet human needs for living space, livelihoods, and food. In order to jointly provide desired levels of urban land, food production, and ecosystem service and species habitat provision the global society will have to become much more strategic in its allocation of intensively managed land uses. Here we illustrate a method for quickly and transparently evaluating the performance of potential global futures. [ABSTRACT FROM AUTHOR]