Location theory and the preservation of nature
1995
Alvensleben, R. von (Kiel Univ. (Germany). Inst.fuer Agraroekonomie, Lehrstuhl fuer Agrarmarketing)
The article analyses the contribution of location theory to the solution of the problem of the optimal allocation of land for nature preservation purposes. The theoretical analysis is leading to the following conclusions: 1. The optimal allocation of land for nature preservation is determined by the land rent function (= opportunity costs of agricultural land use) and the utility function of nature preservation. 2. Given equal utility functions of nature preservation on each location the optimal share of land allocated for nature preservation is lower on land high productivity than on less productive land. 3. An equal share of land allocated for nature preservation or an equal degree of low input production on each location will be a sub-optimal allocation. The share of land allocated preservation should be differentiated according to the land rent and the utility functions of nature preservation on each location. 4. In the long run the optimal share of land allocated for nature preservation is increasing because the land rents are decreasing and the social preferences for nature preservation are increasing. 5. To improve the allocation mechanism of land for nature preservation, the methods for evalutation of social preferences for nature preservation should be further developed. 6. Landscape planning, which takes account of the ecological value of land only and neglects the land rents, is a deficient metod of allocation of land nature preservation.
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