Land-Policy

01/01/2023 -

31/12/2028

2024 – 2025 BiodivTransform

LAND-POLICY sheds light into the causal impacts of public policies on land conditions, comparing their cost-benefit ratios, and identifying factors influencing their performance.

Context

Land degradation, a multifaceted and urgent challenge, results in a chain reaction of catastrophic consequences. It drives climate change, biodiversity loss, water pollution, and diminishes global agricultural productivity.

To tackle this issue, the ERC-funded SHARE-CTD project develops a holistic approach. By combining global measurement, econometric research designs, and innovative machine learning, the project will provide valuable insights for academics, policymakers and the public.

Specifically, it will shed light into the causal impacts of public policies on land conditions, comparing their cost-benefit ratios, and identifying factors influencing their performance. This will improve policies and mitigate the damaging impacts of land degradation.

Main objectives

Land degradation is one of the major sustainability challenges of our time. It is a driver of climate change, biodiversity loss, and water pollution, and reduces global agricultural productivity.

This requires effective and economically efficient policies. Here, I outline a project that combines the global measurement and modelling of land degradation trends with econometric research designs to estimate policy effectiveness, their benefit cost ratios, and how design features and contextual factors explain policy performance.

This research builds on the unique expertise I have developed over the last 5 years.

The project consists of four work packages. In the first WP, global datasets will be build, including a new database of public policies relevant to land conditions, maps of different land degradation indicators, such as soil productivity trends, vegetation and agricultural yield changes, soil erosion and pollution, and land cover changes, such as cropland expansion and forest loss.

In the second WP, econometric research designs (such as difference-in-differences, difference-in discontinuities, and synthetic control) will be used to estimate the causal effect(s) of public policies on land conditions.

The comprehensiveness and global scope of the analysis means that for the first time, we will have the full picture, largely free of selection and publication biases, and methodologically unified.

In the third WP, all the policies costs and benefits will be compared to each other and we will quantify how much benefit each policy has been generating per its costs. In the fourth WP, we will use both conventional econometric techniques and novel machine learning approaches to systematically explain when and why some public policies perform better than others.

This research will generate new insights on how to improve public policies to mitigate and reverse land degradation. I expect it will generate high interest among academics, policy makers, and the public.

Main results

The Land-Policy project (ERC Starting Grant No. 101075824) produced five scientific publications, whose common focus is how much public policies — whether agri-environmental, soil-related, or forest-related — causally affect environmental sustainability outcomes, and what factors determine the effectiveness of these policies.

Global agri-environmental policy database (Wuepper et al., 2024, Nature Food)

One of the project’s main contributions was building a database of 6,124 agri-environmental policies implemented between 1960 and 2022 in roughly 200 countries, covering regulations, frameworks, and payment schemes. Based on this database, the project showed that the most common policy type is “command and control” (legislation and regulation), and that the number of such policies has steadily increased over time. The most common policy targets are fertilizer use and forest/biodiversity conservation. The analysis revealed a strong, positive relationship between economic development (GDP) and the number of agri-environmental policies implemented, while also showing that some high-income countries (e.g., Kuwait, Qatar, the United Arab Emirates) have implemented relatively few such policies. Using a spatial regression discontinuity design, the project also found that at least 43% of the border discontinuities in cropland soil erosion between countries can be explained by differences in countries’ soil-related policies.

Culture and agricultural biodiversity conservation (Wang et al., Ecological Economics)

Exploiting a natural experiment in Switzerland, this study examined how culture and policy incentives interact to shape farmers’ biodiversity conservation behavior. By comparing farmers on either side of the French–German language border, and leveraging a 2014 agricultural policy reform that substantially increased agri-environmental payments, the project found that before the reform, French-speaking farmers systematically enrolled less land into biodiversity conservation than their German-speaking counterparts. After the increase in monetary incentives, however, French-speaking farmers increased their participation relatively more, narrowing the culturally driven gap. The findings indicate that while cultural background significantly shapes farmers’ environmental behavior, well-designed monetary incentives can reduce these culturally rooted differences — an important lesson for agri-environmental policy design.

Economics of Ecosystem Restoration (Mirzabaev & Wuepper, Annual Review of Resource Economics)

This comprehensive literature review found that the social and economic benefits of investing in ecosystem restoration far exceed the costs, yet there remains a massive gap between the financing needed (well over $1 trillion) and actual investment (with an estimated annual shortfall of about $900 billion for biodiversity conservation alone). The project highlighted that restoration policies (e.g., payments for ecosystem services, protected areas, restoration campaigns) show highly heterogeneous effectiveness, and that long-term monitoring and counterfactual impact evaluations are often lacking. The review also emphasized that cultural norms and values — also examined in other studies from this project — are important but still underexplored factors shaping policy performance, and that future research should focus more on the political economy of policy implementation and on how environmentally harmful policies could be removed.

Public policies and global forest conservation (Wuepper et al., Global Environmental Change)

In this study, the project combined high-resolution (1 km²) global remote sensing data with two econometric designs (a spatial regression discontinuity design and a differences-in-discontinuities design) to identify causal effects. The results show that about a third of the risk of tree cover loss is determined at the national level (institutions, policies, markets), and that roughly two-thirds of this country-level effect — a reduction of nearly 4 percentage points in the global risk of tree cover loss — can specifically be attributed to public policies. The project also identified which country characteristics best predict whether a forest policy is effective: policy enforcement was the strongest predictor, followed by policy stringency, then property rights security and rule of law. The Human Development Index was positively but not statistically significantly associated with policy effectiveness. The study underscores the central role of national governments and the need for international cooperation to finance and strengthen the implementation capacity of forest conservation policies.

Satellite data in agricultural and environmental economics (methodological review)

The project also produced a methodological guide on how satellite data can be effectively used in agricultural and environmental economics research — for example, to test identifying assumptions, validate alternative (self-reported) measures, support insurance and credit applications, and enable descriptive analyses (such as global mapping of agricultural mechanization). The paper discusses common measurement errors in satellite data (spatial and temporal inconsistencies) and methods to correct for them (e.g., multiple imputation, adversarial debiasing). One of the project’s earlier studies — on the global effect of countries on soil erosion — is cited as an example of how satellite data can demonstrate that border discontinuities are caused by country-specific policies rather than by differences in natural conditions.

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