Biodiversity Tradeoffs
Paper Session
Monday, Jan. 5, 2026 8:00 AM - 10:00 AM (EST)
- Chair: Frederik Noack, University of British Columbia
How Biodiversity Protections Affect Housing Markets
Abstract
Biodiversity protections increasingly shape land use in developed areas, but their effects on housing markets remain poorly understood. This paper investigates how land use restrictions aimed at conservation influence housing market outcomes across the U.S. We compile a parcel-level panel combining geospatial data on biodiversity protections with housing transactions, property values, and characteristics over the past two decades. Using a combination of regression discontinuity and difference-in-differences designs, we estimate the causal effects of biodiversity protections on property values, characteristics, and liquidity. This analysis aims to inform the evaluation of conservation policies by quantifying their local economic impacts in the housing market.Cows and Trees
Abstract
The Brazilian Amazon plays a crucial role in regulating global climate and preserving biodiversity, yet it faces mounting pressures from deforestation driven by cattle ranching. The expansion of pastures, fueled by global beef demand, is shaped by the dual role of cattle as both consumption good and capital stock. This duality leads to nontrivial dynamic responses. To address this, we develop a structural model to examine how ranchers' land use decisions respond to short- and long-term beef price changes, accounting for deforestation costs, herd dynamics, and price expectations. Using panel data from 2000--2020, the model estimates reveal that deforestation is inelastic to temporary shocks on beef prices but highly elastic to permanent price changes. We also show how conventional reduced-form regressions fail to distinguish between short- and long-run effects. Our findings highlight the importance of accounting for long-term dynamics in policy evaluations, particularly for interventions targeting deforestation and carbon emissions.Biodiversity Conservation Policy Unintentionally Boosted Science Research
Abstract
The implementation of the seasonal fishing ban along the Yangtze River since 2003 has successfully preserved fishery resources as originally intended, yet their broader implications remain poorly understood. Using a difference-in-differences design, we provide the earliest causal evidence of how local biodiversity conservation policies affect science and innovation, in unintended and serendipitous ways. The analysis reveals that the ban spurred more quality research inquiries about Yangtze River fish: Funded programs doubled and funding amounts more than tripled. Scientific output grew dramatically, with publications more than tripled, citations augmented more than five-fold, and related books, patents, awards, and public influence significantly increased. We attribute these increases to the enhanced availability of biological research materials (in both quantity and diversity), rather than other attention-based or policy-based channels. We conclude that preserving nature is not only an ecological duty but also potentially a strategic investment in the future of science and innovation.Discussant(s)
Christopher Timmins
,
University of Wisconsin-Madison
Yuanning Liang
,
Peking University
Allan Hsiao
,
Stanford University
Eric Zou
,
University of Michigan
JEL Classifications
- Q0 - General
- G0 - General