Valuing alternative bundles of landscape attributes: Cost-benefit analysis for the selection of optimal landscapes

Abstract

The role of landscape valuation and extended cost-benefit analysis inlandscape conservation decision-making is first addressed. It is stressed that substantial research on how to value alternative conservation schemes is required, in order to cope with emerging policy needs. An analytical frame for the valuation of alternative landscape conservation schemes is then discussed. This frame enablesthe analyst to sequentially disaggregate values for whole landscape changes over attributes. This is an essential operation if the optimal bundle of landscape attributes is to be selected by cost-benefit analysis. The concept of substitution between landscape attributes plays an essential role within the whole analytical frame. The circumstances that lead to anticipate substitution between landscape attributes are explored. A brief review of the alternative empirical strategies for landscape valuation is then carried out, to check whether they permit sequential desegregation of landscape value over attributes. Next, an empirical application to the valuation of landscape attribute changes in the Pennine Dales Environmentally Sensitive Area is presented. The empirical results confirm the idea of the prevalence of substitution in valuation in most practical contexts. To illustrate the potential of the proposed approach, a sequential cost-benefit analysis of attribute changes along consistent paths of aggregation is then carried out – which eventually leads to the selection of optimal bundles of landscape attributes. Some problems and limitations of the approach are also discussed. Among them, the question of non-uniqueness, or path dependency of the optimum is given particular consideration.