The Cost of Conservation: A Comparison of ESA and SSSI Payment Rates

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Abstract
Government bodies in Britain encourage conservation management within designated Environmentally Sensitive Areas (ESAs) and Sites of Special Scientific Interest (SSSIs) through the conclusion of formal agreements with owners and occupiers. The nature of ESA and SSSI agreements and the procedures involved in concluding them are described and contrasted. Analysis of the available data indicates that the average payment rate (pounds per hectare per annum) for SSSI agreements concluded exceeds that for ESA agreements. In contrast, arguments from first principles suggest that the ESA payment rate would be the higher. That the reverse is the case may be explained if SSSI agreements impose substantially more stringent conditions. A distinction is drawn between expensive agreements (under which the annual payment exceeds £2000) and inexpensive agreements (the annual payment is less than £2000). The data suggest that payment rates for expensive SSSI agreements may be excessive and capable of being lowered; and payment rates for inexpensive ESA agreements may need to be raised to attract reasonable levels of entry to these schemes. Alternatively, it may be that ESA arrangements are more cost-effective for concluding large, expensive agreements; and SSSI arrangements for concluding small, inexpensive agreements.

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