ECOLOGICAL-ECONOMIC MODELING OF THE CONSERVATION OF THREATENED HABITATS - HEATHER MOORLAND IN THE NORTHERN ISLES OF SCOTLAND

This paper describes the results of an ecological-economic modelling e xercise of the management of a scarce habitat, namely heather moorland . The Orkney Islands of Scotland are used to illustrate a modelling ap proach which could be easily applied elsewhere, and to other habitats. We describe the evolution and present condition of heather moorland o n Orkney, then quantify the extent of over-grazing (leading to ecologi cal damage) on a spatial basis. This is accomplished using a model of heather utilization and heather productivity. Critical grazing limits are then used as constraints in an economic model of farm production d ecisions, which enables us to quantify the minimum necessary compensat ion payments which farmers should be offered to offset income losses d ue to grazing restrictions. Such a policy is in line with European Uni on and UK agri-environmental policy, which typically uses payments for income forgone as a means of persuading farmers to protect environmen tal quality.