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Implicit Prices of Habitat Conservation Easements
Perpetual conservation easements permanently remove the option to convert existing habitat to more intensive agricultural production. If existing habitat is at threat of conversion, removing the option to convert will reduce land values. In this paper, we estimate the land value discount due to perpetual habitat conservation easements using propensity score matching. We find that land values fall by $0.79/acre for every 1% increase in habitat protection by conservation easement. On average, our results suggest that landowners have been adequately compensated by conservation agencies, receiving roughly 25%. Further, our results suggest that conservation agencies have successfully secured habitat at risk of conversion.
Regions: Alberta, Saskatchewan, Manitoba, Canada
Submitted by: Neill Gilbride