Suitability of short or long conservation contracts under ecological and socio-economic uncertainty

Acquisition of land rights has become a primary tool used to protect terrestrial biodiversity. Fixed length contracts are often used when trying to secure conservation benefits on private land in agri-environment schemes and payment for environmental services schemes, but the duration of the conservation contracts used in different programmes varies. To date, very little research has been undertaken to determine the situations in which contracts of differing lengths are optimal or when conservation agencies or groups should use a portfolio of different contract lengths rather than relying on a single type. Using stochastic dynamic programming and related heuristic methods, we investigate how the choice between short or long conservation contracts is affected by uncertainty regarding the future availability of sites and their ecological condition. We also examine the benefits offered by using a portfolio of different contract lengths. Conservation agencies must pay private landowners a premium to secure longer agreements and because of this, shorter contracts are advantageous if sites are likely to remain available for conservation in the future. Long contracts are preferred when future site availability becomes more unlikely. In contrast to uncertainty over site availability, uncertainty over future ecological conditions has little effect on contract selection and only markedly influences the choice between short and long contracts when there is heterogeneity across sites in expected conservation outcomes and future availability of sites is also uncertain. Finally, when future site availability is unlikely, the use of a portfolio of short and long contracts would offer greater conservation gains than using either type in isolation, even though this option is not yet one that is commonly found in conservation practice.