Florian Hartig Theoretical Ecology & Ecological Data Science

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Conserving biodiversity with tradable permits under changing conservation costs and habitat restoration time lags

Martin Drechsler, Florian Hartig

Ecological Economics, 70(3), 533–541 (2011)
Cite this
@article{drechsler2011conserving,
  author = {Martin Drechsler and Florian Hartig},
  title = {Conserving biodiversity with tradable permits under changing conservation costs and habitat restoration time lags},
  journal = {Ecological Economics},
  volume = {70},
  number = {3},
  pages = {533–541},
  year = {2011},
  doi = {10.1016/j.ecolecon.2010.10.004},
}

DOI: 10.1016/j.ecolecon.2010.10.004
Cited by 53 (Google Scholar) · 58 (OpenAlex), as of 07 September 2026

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Abstract

Tradable permits are a common environmental policy instrument that has recently been applied also to the conservation of biodiversity. Biodiversity conservation differs in many respects to the classical applications of tradable permits like emissions control. One particularity is that, even if the permit system maintains a constant total amount of species habitat, habitat turnover (the destruction of a habitat and restoration elsewhere) affects the ecosystem. Another particularity is that the restoration of habitats often takes much time, leading to time lags between the initiation of restoration activities and the time when restored habitat is available for trading. We use an agent-based model of a tradable permit market to study the influence of heterogeneous and dynamic conservation costs and habitat restoration time lags on key variables of the market, such as the costs incurred to the market participants and the amount of habitat turnover. Our results show that there may be trade-offs between these key variables. We also find that restoration time lags can lead to fluctuations in permit prices that reduce the efficiency of the permit market. We conclude that temporal lags deserve a careful analysis when implementing tradable permit systems for the preservation of natural habitats and biodiversity.

What the paper shows and why it matters (AI-generated)

Tradable conservation permits are usually modelled as if habitat restoration were instantaneous and costs stayed fixed — neither is true, and this paper works out what changes once both are allowed to vary over time. The finding that ignoring restoration time lags and shifting costs can make a permit market look better on paper than it performs in practice has kept the paper relevant to later work on biodiversity-offset design, spatial flexibility in land purchase, and generic ecological-economic modelling of conservation policy.