Nick Hanley

• Professor at University of St Andrews

Plastic pollution in the world’s oceans threatens ecosystems and biodiversity. The connected nature of the marine environment suggests that coordinated actions by countries sharing an ocean border may provide more effective pollution control than unilateral actions by any one country. However, countries often fail to cooperate, even when joint econ...

Advocacy for a shift from an individual farm‐level to a landscape‐level approach in agri‐environmental policy is a focal point in the reform of the Common Agricultural Policy. Such a shift aims to address spatial mismatches between ecological processes and targeted environmental outcomes, and to harness potential ecological gains from spatial coord...

There has been widespread debate about whether the way in which we measure economic activity is fit for purpose in the twenty-first century. One aspect of this debate is to move away from measuring a nation’s income (GDP) towards monitoring a nation’s assets (their inclusive wealth), as a better indicator of sustainable economic development. We pro...

The agglomeration bonus (AB) has been advocated as an incentive mechanism to boost spatially coordinated conservation efforts, where such coordination is thought to be beneficial to achieving biodiversity or other ecological outcomes. Specifically, an AB is paid to individual landholders if their conserved habitats are spatially connected to the co...

There has been widespread debate about whether the way in which we measure economic activity is fit for purpose in the twenty-first century. One aspect of this debate is to move away from measuring a nation's income (GDP) towards monitoring a nation's assets (their inclusive wealth), as a better indicator of sustainable economic development. We pro...

Environmental markets are a rapidly emerging tool to mobilize private funding to incentivize landholders to undertake more sustainable land management. How units of biodiversity in these markets are measured and subsequently traded creates key challenges ecologically and economically because it determines whether environmental markets can deliver n...

How best to incentivize land managers to achieve conservation goals in an economically and ecologically effective manner is a key policy question that has gained increased relevance from the setting of ambitious new global targets for biodiversity conservation. Conservation (reverse) auctions are a policy tool for improving the environmental perfor...

A large literature in behavioral science suggests that people’s emotional condition can have an impact on their choices. We consider how people’s emotions affect their stated preferences and willingness to pay for changes in environmental quality, focusing on the effects of incidental emotions. We use videos to induce emotional states and test the...

Engaging with natural environments benefits human health by providing opportunities for social interactions, enhancing mental wellbeing and enabling outdoor spaces for physical exercise. Open water swimming has seen a rapid increase in popularity, partly due to the physical health benefits it can provide but also with the growing interest in (re)co...

Despite decades of global commitments, and increasingly urgent warning of environmental instability, the demand for land to support economic production is still increasing. Isolated and disorganized actions will not be enough to avert ecosystem failures. As many developers are already required to compensate for their ecological impacts through rest...

This paper examines empirically the importance of equity preferences for the formation of international environmental agreements (IEA) for transboundary pollution control. Although it has been shown theoretically that the existence of equity preferences among countries considering an IEA increases the chances for formation and stability of a coalit...

There is growing evidence that spending time in or around water bodies or ‘blue spaces’ can result in improved human health. To date, investigations of the health-promoting potential of blue space exposure have mostly focused on coastal environments. Despite their vital role in many urban landscapes, freshwater blue spaces have received less resear...

Policy tools are needed that allow reconciliation of human development pressures with conservation priorities. Biodiversity offsetting can be used to compensate for ecological losses caused by development activities. Landowners can choose to undertake conservation actions, including habitat restoration, to generate biodiversity offsets. Considerati...

Spending time in or around bodies of water or ‘blue spaces’ can benefit human health and well-being. A growing body of evidence suggests immersion in blue space, e.g., participating in ‘wild’ swimming, can be particularly beneficial for both physical and mental health. To date, wild swimming and health research has primarily focused on the experien...

Conventional agri-environmental schemes (AES) have been criticized for failing to exploit conservation synergies that could be obtained from spatial coordination of conservation efforts. Understanding the design and implementation of novel incentive mechanisms explicitly designed to boost spatial coordination of conservation efforts is, therefore,...

The environmental benefits from Payment for Ecosystem Services (PES) schemes can often be enhanced if private land managers are induced to enrol land in a spatially coordinated manner. One incentive mechanism which has been proposed to achieve such spatial coordination is the agglomeration bonus, a two-part payment scheme which offers a pecuniary (...

Biodiversity offset markets can incentivize private landowners to take actions that benefit biodiversity. A spatially explicit integrated ecological-economic model is developed and employed for a UK region where offset buyers (house developers) and sellers (farmers) interact through trading offset credits. We simulate how changes in the ecological...

As global populations age rapidly, older adult mental health is becoming an increasingly important public health issue. The consequences of poor mental health in later life are severe and include reduced physical and cognitive functioning and greater risk of morbidity and mortality. Neighbourhood characteristics, such as the presence of aquatic env...

Malignant Catarhal Fever (MCF), caused by a virus transmitted from asymptomatic wildebeest, is a lethal disease in cattle that threatens livestock-based livelihoods and food security in many areas of Africa. Many herd owners reduce transmission risks by moving cattle away from infection hot-spots, but this imposes considerable economic burdens on t...

Private land conservation (PLC) is an increasingly recognized strategy to help address the global biodiversity crisis. Understanding landowners' context-dependent preferences for different PLC policies is key to designing and implementing successful voluntary strategies aiming to foster participation and long-term engagement. However, funding short...

In this paper, we investigate the potential gains in cost-effectiveness from changing the spatial scale at which nutrient reduction targets are set for the Baltic Sea, with particular focus on nutrient loadings from agriculture. The costs of achieving loading reductions are compared across five levels of spatial scale, namely the entire Baltic Sea;...

Variations of willingness to pay (WTP) in geographical space have been characterised by the presence of localised patches of higher and lower values. However, to date, spatial valuation studies have not explored whether the distribution of hot (cold) spots of WTP is particular to each environmental good or if it follows similar patterns to other, c...

Most programmes which incentivise the supply of public goods such as biodiversity conservation on private land in Europe are financed through the public purse. However, new ideas for how to fund biodiversity conservation are urgently needed, given recent reviews of the poor state of global biodiversity. In this paper, we investigate the use of priv...

We examine tourism demand for an iconic ecological resource – the migration of ~1.3 million wildebeest (Connochaetes taurinus) in the Serengeti-Mara ecosystem. The wildebeest migration generates economic benefits through ecotourism, which we investigated by combining quantitative tools from spatial ecology and environmental economics with wildebees...

Physical inactivity is a global pandemic. The COVID-19 crisis has altered global patterns of physical activity in ways that were unimaginable before the outbreak. Enforced restrictions on mobility and the mass closure of indoor fitness centres has highlighted the limitations of many urban areas for enabling physical activity and reinforced inequali...

Growing evidence suggests that access and exposure to water bodies or blue spaces can provide a variety of health and well-being benefits. Attempts to quantify these ‘blue-health’ benefits have largely focused on coastal environments, with freshwater blue spaces receiving far less attention despite over 50% of the global population living within 3...

Invasive pathogens threaten the ability of forests globally to produce a range of valuable ecosystem services over time. However, the ability to detect such pathogen invasions—and thus to produce appropriate and timely management responses—is relatively low. We argue that a promising approach is to plan and manage forests in a way that increases th...

Water bodies, or blue spaces, offer a range of health and well-being benefits. Many of these benefits occur in waterside spaces and do not require direct water contact. For example, non-water based physical activity (e.g. walking and running) and reduced stress as a result of viewing water from a distance. However, research dedicated to understandi...

Understanding people's preferences for biodiversity offsetting activities can help to design offsets that achieve ‘no net loss’ (NNL) of biodiversity while incorporating the use and cultural values associated with this biodiversity. We use a stated preference choice experiment to solicit preferences for different proposed biodiversity offsets, link...

Previous research on pro-environmental behaviours has shown that nudges can be effective in changing behaviour in some settings. However, to be a useful policy tool, nudges should have stable, predictable impacts on targeted behaviours. In this paper, we use a randomized experiment to test one specific nudge, namely the communication of a descripti...

Stated preference surveys are more likely to be demand revealing if the respondent views their responses as consequential i.e. the respondent cares about the policy in question, believes their response will affect the provision of the good and that they will be required to pay the stated amount. In this paper, we contribute to the growing literatur...

https://www.amazon.com/Introduction-Environmental-Economics-Nick-Hanley/dp/0198737238/ref=sr_1_1?keywords=shogren+hanley&qid=1565056058&s=books&sr=1-1

Globally, governments and regulators face an ongoing trade‐off between meeting economic development needs and conserving biodiversity. Markets for biodiversity offsets are one tool which could secure biodiversity protection at lower costs to society whilst allowing some economic development to still take place. We provide a new perspective on biodi...

There has been a recent increase in efforts to develop broader models to assess the impact of climate change and climate change policies, both in terms of impact measures (beyond GDP) and in terms of modelling complexity (beyond DICE/RICE models). Climate policies aimed at reducing CO2 emissions can have impacts in multiple sectors of the economy,...

There is substantial variation in individual preferences for public goods, yet much of that variation remains poorly understood. However, simple measures of personality can help to explain economic values and choices in a systematic way. In this paper, we examine the effects of personality on individual economic choices over public environmental go...

This paper reports the results of a stated preference experiment designed to test how information about a good's attributes provided in a survey affects knowledge, and how knowledge affects preferences for that good. A novel experimental design allows us to elicit subjects’ ex ante knowledge levels about a public good's attributes, exogenously vary...

The arrival of novel pathogens and pests can have a devastating effect on the market values of forests. Calibrating management strategies/decisions to consider the effect of disease may help to reduce disease impacts on forests. Here, we use a novel generalisable, bioeconomic model framework, which combines an epidemiological compartmental model wi...

The nature of dispersal of many invasive pests and pathogens in agricultural and forestry makes it necessary to consider how the actions of one manager affect neighbouring properties. In addition to the direct effects of a potential spread of a pest and the resulting economic loss, there are also indirect consequences that affect whole regions and...

This paper considers the problem of designing PES-type contracts to encourage participation and spatial coordination amongst private forest owners in Finland. The aim of the policy is to increase efforts to mitigate risks from invasive forest pests and diseases. Such control actions yield spill-over benefits to other landowners and to wider society...

A substantial literature in behavioural science and psychology shows that emotions affect human choices and values. This paper investigates whether such emotional impacts are also present in stated choice experiments for environmental goods. If this were so, it would introduce an additional element of context dependence to the welfare measures deri...

Electricity costs are partly driven by environmental policy choices. In this paper, the effects of variations in electricity costs—as measured by end-user electricity prices–on firm relocation decisions are investigated. Using a discrete choice model and a data base that has not previously been exploited to study this problem, we investigate the ef...

How willingness to pay for environmental quality changes as incomes rise is a central question in several areas of environmental economics. This paper explores both theoretically and empirically whether or not the willingness to pay (WTP) for pollution control varies with income. Our model indicates that the income elasticity of the marginal WTP fo...

The paper investigates the spatial heterogeneity of public’s preferences for the implementation of a new country-wide forest management and protection program in Poland. Spatial econometric methods and high resolution geographical information system data related to forest characteristics are used to explain the variation in individual-specific will...

Using choice modelling we explore willingness to pay (WTP) for rhino horn among existing and potential future consumers in Vietnam. We find that wild-sourced horn, harvested humanely from the least rare species, is the most highly valued product. Furthermore, consumers are willing to pay less for rhino horn products under a scenario where internati...

We construct long-run sustainability indicators based on changes in Comprehensive Wealth – which we refer to as Genuine Savings (GS) – for Germany over the period 1850–2000. We find that German sustainability indicators are positive for the most part, although they are negative during and after the two World Wars and also the Great Depression. We a...

Production of insect-pollinated crops typically relies on both pesticide use and pollination, leading to a potential conflict between these two inputs. In this paper we combine ecological modelling with economic analysis to investigate the effects of pesticide use on wild and commercial bees, whilst allowing farmers to partly offset the negative ef...

Comprehensive Investment (CI) may provide an indicator of future changes in a country's per capita consumption. The authors explore the utility of the CI indicator for Australia by constructing CI data since 1861 and by estimating their relationship with changes in future consumption over periods of 50 years ahead. The CI measures include changes i...

The EU's WFD requires cost-effective compliance with good ecological and chemical status across EU surface waters. Previous studies have modelled single catchments or been limited by their realism when investigating multiple catchments. We investigate whether the cost-effectiveness ranking of policy instruments to control agricultural nonpoint nitr...

Forests deliver multiple benefits both to their owners and to wider society. However, a wave of forest pests and pathogens is threatening this worldwide. In this paper we examine the effect of disease on the optimal rotation length of a single-aged, single rotation forest when a payment for non-timber benefits, which is offered to private forest ow...

Diversification of the tree species composition of production forests is a frequently advocated strategy to increase resilience to pests and pathogens; however, there is a lack of a general framework to analyse the impact of economic and biological conditions on the optimal planting strategy in the presence of tree disease. To meet this need we use...

This paper considers the role which selfish, moral and social incentives and pressures play in explaining the extent to which stated choices over pro-environment behaviours vary across individuals. The empirical context is choices over household waste contracts and recycling actions in Poland. A theoretical model is used to show how cost-based moti...

Invasive pests and diseases in trees impose a range of costs on society related to reductions in timber values, impacts on recreational opportunities and effects on forest biodiversity. These costs need to be considered when assessing control options and developing public policy. We investigate the preferences and willingness to pay of the UK gener...

Quantifying the monetary value of ecosystem services (ES) provided by coastal and marine resources can help policy makers assess the trade-offs and synergies inherent in ecosystem-based management of marine and coastal environments, thus increasing the social efficiency of decision-making processes. As shown by the valuation literature, the number...

The permanence of land management practices adopted under Agri-environmental schemes (AES) is often questioned. This paper investigates the drivers of farmers' decision to maintain or not the adopted practices beyond the duration of the contract, and especially the effect of social norms and framing on this decision. Our results, based on the state...

Understanding the relative contributions of wild and managed pollinators, and the functional contributions made by a diverse pollinator community, is essential to the maintenance of yields in the 75% of our crops that benefit from insect pollination. We describe a field study and pollinator exclusion experiments conducted on two soft-fruit crops in...

Agricultural producer participation and spatial coordination of land use decisions are key components for enhancing the effective delivery of ecosystem services from private land. However, inducing participation in Payment for Ecosystem Services schemes for coordinating land management choices is challenging from a policy design perspective owing t...

The permanence of land management practices adopted under agri-environmental schemes (AESs) is often questioned. This paper investigates the drivers of farmers’ decisions as to whether to maintain “proenvironment” practices beyond the duration of a contract, and in particular the effect of social norms. Our results, based on the stated intentions o...

We seek to disentangle the effect of knowledge about an environmental good on respondents' propensity to ignore one or more attributes on the choice cards in a discrete choice experiment eliciting people's preferences for increased protection of cold-water corals in Norway. We hypothesize that a respondent's level of knowledge influences the degree...

The assumption of the stability of preferences is fundamental to consumer theory and the use of cost-benefit analysis. Many papers within the stated preferences literature have tested this assumption, and have found mixed results. Individuals may become more sure of their preferences as they repeat a valuation task or purchase decision; they may al...

In this paper we investigate the prospects of using geographically weighted choice models for modelling of spatially clustered preferences. The data used in this study comes from a discrete choice experiment survey regarding public preferences for the implementation of a new country-wide forest management and protection program in Poland. We combin...

Many marine ecosystems are under increasing pressure from multiple stressors. In the Baltic Sea, these stressors include oil and chemical spills from shipping, nutrient run-off from land and the introduction of non-indigenous species. All of these pressures have been growing over recent years. Increasing pressures lead to reductions in environmenta...

Environmental cost-benefit analysis has traditionally assumed that the value of benefits is sensitive to their timing and that outcomes are valued higher, the sooner in time they occur following implementation of a project or policy. Though, this assumption might have important implications especially for the social desirability of interventions ai...

This paper provides a succinct review of the main developments in the literature on incentive-based policy mechanisms in the contexts of pollution control and biodiversity conservation, dating from the early beginnings of the science in the 1960s. A focal point in the review is on the design features of these policy mechanisms. Key developments in...

Procurement auctions are one of several policy tools available to incentivise the provision of ecosystem services and biodiversity conservation. Successful biodiversity conservation often requires a landscape-scale approach and the spatial coordination of participation, for example in the creation of wildlife corridors. In this paper, we use a labo...

Payments for ecosystem service outputs have recently become a popular policy prescription for a range of agri-environmental schemes. The focus of this paper is on the choice of contract instruments to incentivise the provision of ecosystem service outputs from farms. The farmer is better informed than the regulator in terms of hidden information ab...

Genuine Savings (GS) has emerged as the leading economic indicator of sustainable economic development at the country level. It derives from the literatures on weak sustainability, wealth accounting and national income accounting. We discuss the theoretical underpinnings of GS, focusingon the relationship between changes in a nation's extended capi...

This paper develops a reduced form method of controlling for differences in information sets of subjects in public good discrete choice models, using stated preference data. The main contribution of our method comes from accounting for the effect of information provided during a survey on the mean and the variance of individual-specific scale param...

tWe used a contingent valuation survey of a random sample of the general public living in Scotland to estimate how willingness to pay (WTP) for the conservation of historic sites (such as castles and stone circles) varies with how well-known these sites are and whether people have visited them. Each respondent was asked to state a maximum WTP in te...

Genuine Savings has emerged as a widely-used indicator of sustainable development. This approach to conceptualising what sustainability is about has strong links to work published by Anil Markandya and colleagues over 20 years ago. In this paper, we use long-term data stretching back to 1870 to undertake empirical tests of the relationship between...

This paper reports the results of a stated preference experiment designed to test for how information provided in a survey affects knowledge, and how knowledge affects preferences for a public good. A novel experimental design allows us to elicit subjects' ex ante knowledge levels about a good's attributes, exogenously vary how much new objective i...

This article shows that the introduction of a conditional collective bonus in an agri-environmental scheme (AES) can improve farmers' participation and increase land enrolment for lower overall budgetary costs. This monetary bonus is paid in addition to the usual AES payment if a given threshold is reached in terms of aggregate farmer participation...

Using a choice experiment, this paper shows that the introduction of a conditional collective bonus in an agri-environmental scheme (AES) can improve farmers’ participation and increase land enrolment for lower overall budgetary costs. This monetary bonus is paid per hectare of enrolled land in addition to the usual agri-environmental payment if a...

The permanence of land management practices adopted under Agri-environmental schemes (AES) is often questioned. This paper investigates the drivers of farmers’ decision to maintain or not the adopted practices beyond the duration of the contract, and especially the effect of social norms and framing on this decision. Our results, based on the state...

We used a contingent valuation survey of a random sample of the general public living in Scotland to estimate how willingness to pay (WTP) for the conservation of historic sites (such as castles and stone circles) varies with how well-known these sites are and whether people have visited them. Each respondent was asked to state a maximum WTP in ter...

In Europe, as in many other parts of the world, an increasing number of coastal and marine policies require or encourage the use of environmental valuation and cost-benefit analysis. This means that policy-makers and regulators are placing increasing demands on economists to supply such values for use in policy analysis and management. There has al...

The decline in extent of wild pollinators in recent years has been partly associated with changing farm practices and in particular with increasing pesticide use. In this paper we combine ecological modelling with economic analysis of a single farm output under the as- sumption that both pollination and pest control are essential inputs. We show th...