In this research the relationship between productivity of land conservation is analyzed using panel data of the GDP and acres conserved of all 50 U.S. states from 1998-2005. Two main theories of the conservation productivity relationship exist. The first maintains that conservation impedes productivity because it does not allow land cultivation. Conversely, the second theory maintains that land conservation has a positive effect on GDP due to the recreation and tourism it creates. Through the use of fixed effects and random effects regressions, the amount of land conserved per state is not a significant predictor of state GDP The GDP of different industries were then used to analyze the influence of conservation on certain industry GDPs. Conservation was not a significant predictor of all industry GDPs either. While these findings suggest that conservation does not a have a significant effect on GDP, they also lead us to believe that the relationship between conservation and GDP is non-linear.
McCormick, Robert and Fuwa, Carolyn
"The Effects of Land Conservation on Productivity,"
Journal of Environmental and Resource Economics at Colby: Vol. 2
, Article 5.
Available at: http://digitalcommons.colby.edu/jerec/vol2/iss1/5