PERC reposted this
Really excited to contribute to the economic understanding of conservation leasing as part of this effort by PERC. State trust lands make up 40 million acres here in the American West, and state government agencies have a constitutionally mandated requirement to maximize long-run sustainable revenue from those lands - historically, this has meant extractive leases for uses like timber, grazing and oil and gas. Recently, conservation groups have tried to acquire conservation leases to NOT use the land for extractive purposes, to promote wildlife health or recreation opportunities, but have been stymied by regulatory and economic policy barriers. My policy brief https://lnkd.in/eFR2NM6y lays out the economic principles that should guide state agencies when considering conservation vs extractive bids for leasing state trust land. In particular, because conservation leasing preserves an “option value” for the land to generate future sustainable revenue for the state after the lease expires, a “credit” applied to conservation bids is economically justified.
🌿 Conservation leasing is emerging as a new way to conserve public lands. As federal and state agencies explore this idea, PERC's newest research offers valuable insights into how conservation leasing can be implemented on the ground. 💡 How should conservation leases be priced? What would federal lease auctions look like with conservation participants? Can state trust lands better maximize revenue by including conservation as a valid use of state lands? 👉 All of these questions and more are addressed in our two newest reports - LINKED HERE:https://lnkd.in/gsQHzmkn #CreativeConservation #PERCReports #ConservationLeasing
Retired professor specializing in urban/regional and environmental economics
1moThis is particularly important for high-amenity, readily accessible public areas. This is a land analog to the example provided by allowing non-consumptive water use in Boulder Creek--the value of the water to view, recreate in, and for ecosystem sustenance was seen (correctly) as more valuable than the historical consumptive uses in agriculture.