Environmental & Natural Resource Economics 10th Edition by Thomas Tietenberg,Lynne Lewis

Exercise 3

approach to protecting ecosystem services involves dedicating specific habitat to wildlife (such as parks or reserves), a strategy that prohibits residential development in those areas. Other strategies (wetlands and conservation banking) accommodate residential development at a specific site, while attempting to offset the adverse effects on that site with requirements for preservation activities at other sites as a condition of allowing development at the original site. In your mind does one of these strategies always dominate the other? Is so, why? If not, does the context matter? How would an economist think about these questions?