Journal of Forest Economics > Vol 39 > Issue

Biodiversity Conservation Tenders in Forests: Moving from Theory to Reality

Astrid Zabel, Centre for Development and Environment (CDE), University of Bern, Switzerland, astrid.zabel@unibe.ch , Göran Bostedt, CERE, Centre of Environmental and Resource Economics, Umeå School of Business, Economics and Statistics, Umeå University, Sweden AND Department of Forest Economics, Swedish University of Agricultural Sciences, Sweden
 
Suggested Citation
Astrid Zabel and Göran Bostedt (2025), "Biodiversity Conservation Tenders in Forests: Moving from Theory to Reality", Journal of Forest Economics: Vol. 39: No. . http://dx.doi.org/10.1561/112.00000583

Forthcoming: 28 Feb 2025
© 2025 A. Zabel and G. Bostedt
 
Subjects
 
Keywords
JEL Codes: Q23, Q57, Q58, D44
Environmental economicseuropean politicspublic policyforestry
 

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In this article:
1. Introduction 
2. Analytical Framework 
3. Forest Conservation Tender Case Studies 
4. Case Study Analysis 
5. Discussion and Conclusion 
References 

Abstract

The New EU Forest Strategy for 2030 encourages member states to implement Payment for Ecosystem Services policies and explicitly references the Finnish METSO program as an instructive example. The METSO program gained international attention as a pilot forest conservation tender. In conservation tenders, forest owners make bids for the compensation requested to voluntarily set aside their forest for a period of time. In this paper, we analyze three case studies of European forest conservation tender programs along the lines of a novel analytical framework. Although conservation tenders have many conceptual advantages, the three case studies demonstrate that the practical implementation may not work in a textbook-style manner. Our analysis reveals that rather than mistakes in policy design, the three forest conservation tenders ran into issues of deficient vertical and horizontal policy integration, policy layering, and overly optimistic expectations on the time needed to set up and run a tender program.

DOI:10.1561/112.00000583