Grassland Easement Acquisition: Conversion Hazard Rate, Additionality, Spatial Spillover, and Heuristics

This study investigates optimal grassland easement acquisition strategies with a focus on the roles of environmental benefit additionality and spatial spillover effect of grassland conversion. Numerical analysis shows that the optimal solution under a targeting strategy that does not consider any spatial spillover effect may secure less environmental benefit additionality than does a heuristic algorithm that considers spatial spillover. Moreover, heuristic algorithms that consider either conversion probability or spatial spillover can generally achieve more than 97% of environmental benefit additionality obtained under the optimal solution of a targeting strategy that considers both additionality and spatial spillover.