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1 Classification: SOCIAL SCIENCES: Sustainability Science Projected land-use change impacts on ecosystem services in the U.S. Joshua Lawler, University of Washington David Lewis, Oregon State University Erik Nelson, Bowdoin College Andrew J. Plantinga, University of California, Santa Barbara Stephen Polasky, University of Minnesota John Withey, Florida International University Dave Helmers, University of Wisconsin Sebastián Martinuzzi, University of Wisconsin Derric Pennington, World Wildlife Fund Volker Radeloff, University of Wisconsin Key words: land-use change, ecosystem services, carbon, food production, timber, biodiversity, econometric model Author contributions: J.L, D.L., E.N., A.P., S.P., J.W., and V.R. designed research; E.N., A.P., J.W., D.P., D.H., and S.M. performed research; J.L, D.L., E.N., A.P., S.P., J.W., and V.R. analyzed data; and J.L, D.L., E.N., A.P., S.P., J.W., S.M., and V.R. wrote the paper. The authors declare no conflict of interest. 2 Abstract Providing food, timber, biofuels, housing, and other goods and services, while maintaining ecosystem functions and biodiversity that underpin their sustainable supply, is among the most important challenges facing humanity. Because land-use change can greatly alter the provision of ecosystem services, understanding the drivers of land-use change and how policies can alter land-use change will be critical to meeting this challenge. Here, we show that differences in the underlying drivers of land-use change can have large impacts on projected land-use with cascading effects on the provision of ecosystem services. We explore the potential effects of projected land-use trends on carbon storage, food and timber production, and wildlife habitat across the contiguous U.S. We forecast land-use trends for two baseline economic scenarios and three policy alternatives designed to encourage forest cover, natural landscapes, and reduce urban expansion. Projected land-use changes for 2051 result in increases in urban land, losses of pasture and rangelands, and depending on the baseline scenario, either large increases or decreases in croplands. In turn, these land-use changes result in increases in carbon storage, timber production, food production (from increased yields), and >10% decreases in habitat for many species. The three policy scenarios modify land-use changes but could not reverse these powerful underlying trends. For example, even with strict policy to contain urban expansion, urban land expands by 29%. Policy interventions need to be aggressive to significantly alter underlying land-use change trends and shift the trajectory of ecosystem service provision. 3 Introduction Land-use change can greatly alter the provision of ecosystem services. Globally, the conversion of native grasslands, forests, and wetlands into croplands, tree plantations, and developed areas has led to vast increases in production of food, timber, housing, and other commodities but has come at a cost of reductions in the majority of ecosystem services and declining biodiversity (MA 2005). How to meet the demand for food, timber, biofuels, housing, and other goods while maintaining ecosystem functions and biodiversity that underpin the sustainable supply of ecosystem services is one of the great challenges of our time. Although recent land-use change in the U.S. has not been as rapid as in the tropics, it has been significant. In general, the area of croplands has decreased and forests and urban areas have expanded since World War II (Nickerson et al. 2011). For example, forest lands in the contiguous U.S. expanded by 5.7 million acres between 1982 and 2007. However, basic estimates of net land-use change often hide more complex dynamics. More than 30 million acres transitioned into or out of forest (USDA 2009) during the period when net expansion was 5.7 million acres. Such transitions alter landscape patterns and ecosystem functions, both of which affect the provision of ecosystem services. We use an econometric model to predict spatially explicit land-use change across the contiguous U.S. from 2001 to 2051. The model estimates the probability of conversion among major land-use categories (cropland, pasture, forest, range, and urban) based on observations of past land-use change, characteristics of land parcels, and economic returns, while accounting for endogenous feedbacks from the policies into commodity prices. See the SI Text for definitions of the land-use categories used in this study. A key advantage of this approach is that it allows us to simulate the effects of future policies that modify the relative returns to different land uses. We integrate land-use change analysis with models of provision of specific ecosystem services: carbon storage, food production, timber production, and the habitats of 194 terrestrial vertebrate species selected for their ecological and cultural importance or sensitivity, including amphibians, influential species (e.g., top predators, keystone species, and ecosystem engineers), game species, and at-risk birds. We use a broad definition of ecosystem services (the goods and services provided by nature that are of value to people) to include both agricultural production, 4 which includes both natural and human-made inputs, and habitat provision for wildlife, which may or may not be directly valued by people. We use the coupled econometric land-use and ecosystem service models to explore the effects of incentive and land-use regulation policies that affect land-use patterns and ecosystem service provision. We explore the potential impacts of land-use change under two alternative reference scenarios and three alternative land-use policy scenarios (Table 1). The first reference scenario (1990s Trend) assumes continuation of exogenous factors driving land use (e.g., high development pressures) during a five-year period from 1992 to 1997. The second reference scenario (High Crop Demand) increases the price of agricultural commodities relative to the 1990s Trend with concomitant pressures to expand agricultural lands, which more closely resembles the five-year period from 2007 to 2012. The two scenarios allow us to gauge the sensitivity of our results to different assumptions about the underlying drivers of land-use change. Scenarios are used in place of a formal treatment of parameter and data uncertainty because of the wide range of potential outcomes given the large spatial and temporal scale of the modeling exercise. We also analyze how three alternative land-use policy scenarios would shift land use and the provision of ecosystem services relative to the reference scenarios: i) Forest Incentives - incentives for afforestation and reduced deforestation similar to carbon sequestration incentives (e.g., Lubowski et al. 2006), ii) Natural Habitats - incentives for conservation of forest and range to prevent conversion to crop land, pasture, or urban, and iii) Urban Containment prohibition on urban land expansion in all non-metropolitan counties to concentrate urban expansion in existing metropolitan areas. For all scenarios, land-use changes were only simulated for privately-owned land from 2001 to 2051; land use on public land was kept constant over this period. Clearly, we cannot anticipate all of the market forces that will influence land use over the next four decades, such as the emergence of new technologies and shifts in societal preferences. Our primary goal is to explore the effects of land-use policies relative to a given reference case rather than to predict future land use. Unanticipated events that affect relative returns will influence future land use under both the reference and policy scenarios, making predictions about the difference between scenarios less uncertain than prediction of future land use itself, reducing concerns about the long time horizon used in this study. Results 5 Our model projects substantial land-use change between 2001 and 2051 under both the 1990s Trend and the High Crop Demand scenarios (Fig. 1 and 2) with rapid urban growth (Fig. 1d, 2a) and loss of rangelands and pasture (Fig. 1b, 1e, 2a). Urban growth is projected to be greatest near existing major metropolitan areas. The losses in rangeland and pasture match location of these systems with pasture loss primarily in the eastern half of the country and rangeland loss primarily in the western US. Forest land showed modest increases overall but had a complex pattern of gains and losses (Fig. 1c, 2a). Comparing the projections for the two reference scenarios clearly demonstrates the importance of underlying drivers of land-use change (Fig 1a, 2a). In the High Crop Demand scenario cropland is projected to have a large increase (28.2 million ha) compared to a loss of cropland under the 1990s Trend scenario (-11.2 million ha). The increase in cropland in the High Crop Demand scenario comes at the expense of larger declines in pasture (30.5 million ha versus 15.0 million ha) and range (31.2 million ha versus 19.6 million ha) and smaller increases in forest (7.3 million ha versus 16.3 million ha) and urban (26.2 million ha versus 29.5 million ha) relative to the 1990s Trend scenario. We project a large increase in food production under both scenarios—a 50% increase in kilocalories under the 1990s Trend, and a doubling under the High Crop Demand scenario (Fig. 2b). These increases are roughly in line with estimated increases in global food demand between 2000 and 2050 of 70% (Alexandratos and Bruinsma 2012) or doubling (Tilman et al. 2011). Increases in food production are driven by increases in crop yield (which we assume increase by 6% every five years) and changes in agriculture area. Taking out the increase due to yield improvements, we predict a 12% increase in food production due to land-use change alone under the High Crop Demand scenario and a 16% decline in food production due to land-use change alone under the 1990s Trend scenario. Both land-use change scenarios result in overall increases in carbon storage and timber production (Fig. 2c, 2d). Carbon stored in biomass increases by 1.1 billion Mg (6%) under the 1990s Trend scenario. The gain in carbon stored is only half as large under the High Crop Demand scenario (556 million Mg, 3%). Carbon stored in soil increases slightly under the 1990s Trend (121 million Mg) but decreases under the High Crop Demand scenario (-306 million Mg). Both changes are small relative to the total stock of soil carbon (Fig. 2c). 6 Habitat for the four groups of species we modeled showed overall declines under both land-use change scenarios. Overall, 47 out of 194 species are projected to lose more than 10% of their habitat under the 1990s Trend scenario, 137 experience little change, and only 10 experience gains of more than 10%. We see a similar pattern in the High Crop Demand scenario (43 species lose more than 10%, 146 experience little change, 5 gain more than 10%). On average, species do somewhat better in the High Crop Demand scenario compared to the 1990s Trend (Wilcoxon signed-rank test, V = 5337, N = 194, P < 0.001, median difference = 1.6%). The four groups of species (amphibians, influential species, game species, and at-risk birds) responded in broadly similar ways to the two future scenarios with some minor differences across groups (Fig. 2e, 2f, 2g, 2h). Of the four groups, the at-risk birds are projected to be the most sensitive to land-use change. Roughly 1/3 of these species are projected to lose more than 10% of their habitat (median habitat loss for at-risk birds = -6.8% for 1990s Trend and -8.8% for High Crop Demand scenarios, Fig. 2h). Even in this group, however, a few species are projected to gain more than 10% of their habitat area under the two scenarios. We also consider how alternative policy scenarios affect the underlying trends in land-use change and the resulting provision of ecosystem services. We find that policy scenarios produce similar changes relative to baseline regardless of which of the two reference scenarios (1990s Trend or High Crop Demand) used. Therefore, we only present policy results relative to the 1990s Trend scenario (see SI Text for the comparison with the High Crop Demand scenario). Each of the three policy alternatives (Forest Incentives, Natural Habitats, and Urban Containment) predict substantial land-use change relative to the 1990s Trend scenario (Fig. 3 and 4). The Forest Incentives policy produces an additional 30.6 million ha of forest land (a 14% increase relative to baseline), which occurs largely at the expense of rangeland and cropland and to a lesser degree pasture (Fig. 3a, 4a). The largest increases in forest land are east of the 100th meridian in areas with large amounts of land currently in agriculture. Most of the increase in forest area is the result of afforestation and, thus, would require large government expenditures on subsidies to landowners (approximately $7.5 billion per year). The Natural Habitats policy results in an increase in rangeland (12.4 million ha, a 5% increase relative to baseline) at the expense of crops and pasture, but virtually no change in forest land despite there being a tax on land leaving forest (Fig. 3b, 4a). In contrast to the Forest Incentives policy, the Natural Habitats policy generate tax receipts for the government of approximately $1.8 billion per year. The 7 Urban Containment policy reduces the amount of urban growth (17.3 million ha, a 24% reduction relative to baseline) and results in slight increases in the other land-use types (Fig 3c, 4a). The Urban Containment policy is the only one of the three policies that alters the expansion of urban land in a meaningful way. Relative to changes under the 1990s Trend scenario, the three policies result in modest changes in food production, and more substantial changes in carbon storage, timber production, and habitat. The Forest Incentives policy has the largest positive effect on biomass carbon (1.7 billion Mg increase relative to baseline, 8%), and timber production (235 million cf relative to baseline, 18%). The Forest Incentives policy reduces food production by 10% (1.93 x 1014 kcal) compared to the 1990s Trend scenario. The Urban Containment policy results in modest increases in biomass carbon storage (2%), timber production (5%), and food production (4%), relative to the 1990s Trend values. By contrast, the Natural Habitats policy has relatively small negative effects on all three of these services. The Natural Habitats policy has the greatest positive effect on habitat of any policy scenario with 31% of the species (61 of 194) gaining at least 10% in habitat area by 2051, compared to 13% of species under the Forest Incentives policy, and 16% under Urban Containment policy. Compared to the 1990s Trend scenario, the Natural Habitats policy produces gains of at least 10% in habitat area for 25% more amphibians, 36% more at-risk birds, 15% more game species, and 23% more influential species (Fig. 4e-h). Both Forest Incentives and Urban Containment policies also result in more species gaining than losing at least 10% in habitat area, but the positive changes were not as great as under the Natural Habitats scenario. Under all three policies, amphibians and at-risk birds have more species that gained 10% of habitat and fewer species that lost 10% of habitat relative to the baseline (Fig 4e, 4h). For influential species and game species, there is relatively little increase in species gaining at least 10% of habitat relative to the baseline under the Forest Incentives and Urban Containment scenarios (Fig 4f, 4g). Discussion Land-use change is a major driver of change in the spatial pattern and overall provision of ecosystem services. Our results demonstrate that differences in the underlying drivers of land- 8 use change, such as changes in future crop prices, can have large impacts on projected land-use change with cascading effects on the provision of ecosystem services. We find that projected land-use changes by 2051 will likely enhance the provision of some ecosystem services. For example, carbon sequestration and timber harvests are projected to increase due to expansion of forest land under our baseline scenarios. On the other hand, almost one-quarter of modeled species (47 out of 194 species in the 1990s Trend scenario) are projected to lose greater than 10% of their habitat by 2051; only a few species are projected to gain more than 10% of their habitat. During the 1990s, low agricultural prices generated low returns to agriculture relative to returns to other land uses driving land out of agriculture and into forest and urban land. The shift out of agricultural land toward forest land increases the amount of carbon storage in biomass and timber production, and generates a modest gain in carbon stored in soil. Despite land moving out of agriculture, food production increases under the 1990s Trend scenario due to increases in crop yields. We assume a 6% increase in yield every 5 years, which generates a 79% increase in yields between 2001 and 2051. This productivity gain is below the increase in major crops during the previous 50-year period (USDA-NASS 2012) but consistent with projections showing positive but declining growth in U.S. agricultural productivity (Alston et al. 2010, Nelson 2013). This predicted increase in yields could be overly optimistic if yield growth is linear rather than exponential (Baker et al. 2013) or if climate change has significantly negative impact on yields (Schlenker and Roberts 2009, Lobell et al. 2011). We find that assumptions regarding trends in yields have more impact on food production than do changes in cropland area. The High Crop Demand scenario assumes a dramatic exogenous increase in crop prices (160% by 2051 relative to 2001 prices), which generates a large increase in net returns to cropland. Under this scenario croplands are projected to expand 22% by 2051 relative to 2001. The relatively inelastic response of cropland area to crop-price increases (a 22% increase in cropland area versus 160% increase in crop prices) is due in part to endogenous changes in the returns to other land uses. As more land moves into crops land in the other uses becomes more scarce. Increased scarcity raises the value of land in other uses and reduces the incentive to shift land into crops. Incorporating changes in prices and relative returns across different sectors generates negative feedbacks that tend to dampen the effect of changes in demand in any one 9 sector on overall land use. These results illustrate the importance of including all major types of land use and accounting for market interactions among them. In both reference scenarios, the overall net change in land use hides important local landuse changes that can be important for determining the provision of ecosystem services. For example, even though forest land increased on net, there are areas where forests are projected to contract as well as areas projected to expand rather than there being uniform expansion across the country (SI Figs. 1-3). Local changes in land use are particularly important for determining habitat provision. Under both reference scenarios a significant proportion of species (approximately 25%) lose more than 10% of their habitat. At-risk bird species fare relatively poorly with approximately one-third of these species losing more than 10% of their habitat. Only a small number of species are projected to gain more than 10% of their habitat. The result that species overall fare slightly better under the High Crop Demand baseline compared to 1990s Trend is driven by influential species and game species (Fig. 2f, 2g), which are much more likely than amphibians and at-risk birds to use croplands as habitat. Overall, however, the majority of the 194 species we consider in this study are not projected to gain or lose more than 10% of their prime habitat area by 2051 (Fig. 2e-h) under either reference scenario. This result may be due in part to the fact that many species in our study are associated with forest or rangeland habitat types, and these habitat types do not suffer large percentage losses (Fig. 2a). In addition, our calculation of habitat area includes habitat on public lands, which we assume will not change, thereby moderating overall impacts on habitat. For the species in this study, the median percentage of habitat on public lands is 27%. There are few species in our analysis that are threatened or endangered: 170 out of the 194 species in this analysis ranked as species of “least concern” by IUCN standards. The species we analyzed generally have relatively large ranges and are less likely to experience large percentage changes in habitat area. Species with smaller ranges could be more heavily impacted by the land-use changes. In fact, we find that at-risk birds show greater vulnerability than other species groups―and even if median losses of -6.8% (1990s Trend) to -8.8% (High Crop Demand) over 50 years does not appear significant, that rate represents greater median losses than Breeding Bird Survey population trends from 1966-2009 (median of -2.2% for 29 of our 47 at-risk species with calculable trends, range = -5.0 to -0.7%) as well as 40-year Christmas Bird 10 Count trends (median of -3.4% for 17 of our 47 species, range = -10.1 to 15.8%), as compiled by the American Bird Conservancy (2012). Our results show that the adoption of policies can influence land-use changes and increase the expected provision of at least some ecosystem services relative to baseline scenarios. Forest land increases by over 30 million ha under the Forest Incentives policy, the largest change relative to the baseline under any of the three policies. This increase in forest land leads to significant increases in timber production (18%) and biomass carbon (8%), relative to the 1990s Trend scenario. As a result of endogenous price changes, however, the increases in forest land cause increased scarcity of other types of land, which drive up returns in other land uses. We find that the increased crop prices create financial incentive to crop areas that are in other land uses under the 1990s Trends reference scenario meaning that the gains in total carbon storage resulting from forest expansion are reduced by decreases in soil and biomass carbon from the conversion of pasture and range to cropland. The Forest Incentives policy also leads to some improvement in species conservation (26 species gained greater than 10% of habitat and 26 species lost greater than 10% of habitat) but a decline in food production relative to the 1990s Trend scenario. The Natural Habitats policy is the most successful policy for improving outcomes for provision of habitat but result in lower provision of other ecosystem services. The Natural Habitats policy has the greatest positive impact on rangelands and hence the group of at-risk birds, which has a larger proportion of range specialists (12 out of 47) than other species groups. This policy, however, reduces crop production and leads to small reductions in carbon storage and timber production relative to the 1990s Trend scenario. Though the aim of the Natural Habitats policy is to preserve forests and grasslands, it actually has a negligible effect on forest area. The Natural Habitats policy uses a tax to discourage deforestation. Such an approach has little impact when there is a limited amount of baseline deforestation as is the case for the 1990s Trend scenario. By contrast, the payments provided under the Forest Incentives policy for establishing new forests has a large effect because there is a large amount of land in agricultural uses that can be converted to forest. As a result, there are larger changes in ecosystem services under the Forest Incentives policy than under the Natural Habitats policy. Our finding that positive incentives are more effective than penalties on land-use change depends critically on 11 trends in baseline conditions and may not be applicable to other regions, such as tropical countries with high deforestation rates. The Urban Containment policy is the only policy to have an appreciable effect on urbanization; the total area of urban land is 24% lower compared to the 1990s Trend scenario. Increases in the net returns to non-urban uses are unlikely to slow the rate of urban development because returns to urban development in areas of high demand for development dwarf returns to agricultural and forest lands. Urban expansion is only slightly lower under the High Crop Demand scenario—which involves substantial increases in net returns to cropland —than in the 1990s Trend scenario. This finding suggests that aggressive price-based policies would be needed to significantly limit urbanization. In the absence of this, regulatory approaches, such as zoning and urban growth boundaries, may be the only feasible approach. Even so, the Urban Containment policy, which is a much more restrictive policy than is likely ever to be implemented, has only modest positive effects on the provision of ecosystem services relative to the baseline. Because urban land makes up a small percentage of overall land area even large percentage changes in urban land do not make significant contributions to the overall supply of ecosystem services at the national scale of our analysis. We find that policies designed to improve certain ecosystem service objectives are not necessarily beneficial for the provision of other services. The afforestation payments in the Forest Incentives policy have sizable positive effects on biomass carbon and timber production, but come at the expense of food production and fewer gains in habitat area for some species, especially influential species and game species. Likewise, penalties to preserve existing forest and rangeland in the Natural Habitats scenario increase habitat for some species, but come at the expense of food production, timber production, and carbon storage. The Urban Containment policy limits the growth of urban lands, but produces minimal positive effects on food, timber, carbon, and habitat for three of our four wildlife groups (influential species, game species, and at-risk birds). Although all policies generate relatively more habitat for most species, there are still species that lost >10% of their prime habitat under each of the three policy scenarios. No policy we examine is uniformly good for all ecosystem services and the conservation of all groups of species. There appear to be inevitable tradeoffs among services (Polasky et al. 2008). 12 Such tradeoffs can make it difficult to provide clear policy advice. Providing evidence on the change in overall net benefits when some ecosystem services increase and others decrease requires taking the analysis a step further by either pricing ecosystem services and applying benefit-cost analysis, or using some form of multi-objective decision analysis (NRC 2005, Bateman et al. 2011, Newton et al. 2012, Polasky and Binder 2012). Pricing ecosystem services would allow comparison of the value of changes to each ecosystem services in a common monetary metric and a summary statement of overall change in net value. While some ecosystem services are readily expressed in a common monetary metric of value (e.g., crop and timber production values), other ecosystem services are not (e.g., existence value of an endangered species). Approaches to valuation of ecosystem services have been outlined elsewhere (e.g., NRC 2005, Polasky and Segerson 2009) and applied to at least some services to illustrate how to rank alternatives (e.g., Nelson et al. 2009, Bateman et al. 2013). Given the controversial nature of some estimates and our primary focus on the links from policy to land-use change, and from land-use change to provision of services, we chose not to report all outcomes in monetary terms or use multi-objective decision analysis here. In addition, there are other benefits and costs not included in our analysis that should be considered in any ranking of alternative policies. For example, the Urban Containment policy restricts potentially valuable urban development and may thereby reduce net benefits from land use. In focusing on land-use change, we find that it is difficult for policies to overcome powerful trends originating from market fundamentals or the overall structure of government programs that shape land-use change. For example, urban land is projected to increase by 26.2 to 29.5 million ha (63-71%) from 2001 to 2051 under baseline conditions. Even under a policy of urban containment, one that is probably stronger than could ever realistically be put into practice, the contiguous U.S. still experiences a 12.2 million hectare expansion in urban area (i.e., the policy only prevents 58.5% of the baseline expansion in urban area). The modest effects of the urban containment policy largely reflect the fact that most of the urban growth occurs in metropolitan counties with or without the policy. Price feedbacks limit the effects of the other policies. A policy that subsidizes one use, such as the Forest Incentives policy, indirectly raises the returns to the other uses, thereby creating negative feedbacks that limit the effectiveness of the policy. In a few cases, we find that policies brought about larger changes in the provision of 13 ecosystem services and habitat for species relative to the baseline scenario than are caused by changes under the baseline scenario itself, but mostly the reverse was true. In this paper, we analyze the consequences of land-use change between major categories of land use (crop land, pasture, range, forest, urban development). We do not consider variation of land use within these major categories. An important restriction in our approach is that we do not include analysis of changes in land management. Land management is likely to respond to changes in relative prices and to biophysical restrictions. For example, we would expect more intensive farming practices that would raise yields in response to higher agricultural prices (Golub and Hertel 2012). Similarly, new cropland and pasture west of the Mississippi River would likely require irrigation. Inclusion of responses on the intensive margin would likely reduce land use conversions and resulting changes in ecosystem service provision between alternative scenarios. However, because there are also impacts on ecosystem services from changes in management intensity (e.g., more irrigation can impact water quality on the landscape), the overall impact of inclusion of changes in the intensive margin on ecosystem services is less clear. Our model produces results at a 1-ha resolution. However, it is important to note that these results are the product of land-cover data sampled at 1-ha resolution, county level returns data, and soils data at an intermediate resolution. Thus, the interpretation of our results is constrained by the coarser county level data. See SI text and Table S1 for details on the land-use change model. Our research contributes to a large existing literature on land-use change and ecosystem services (MA 2005, U.K. NEA 2011) in two significant ways. First, we predict land-use change and its impact on ecosystem service and habitat provision with illustrative tax, subsidy, and zoning policies that mimic the policy instruments that could be implemented by policy makers. We model how landowners will likely react to policy-driven changes that cause changes in relative prices and relative returns to different land uses. Our work builds from econometric analysis of landowner decisions based on relative returns (Lubowski et al. 2006). An advantage of the econometric approach is that it can capture actual landowner behavior (e.g., rigidities in land-use transitions) not represented in sectoral optimization models (e.g., the Forest and Agricultural Sector Model described in Alig et al., 1998). Recently, Radeloff et al. (2012) 14 applied this approach to the scale of the contiguous U.S. Here we extend the approach of Radeloff et al. (2012) to show how predicted land-use change under various polices translates into changes in ecosystem service provision. In similar work, Busch et al. (2012) use observed land-use change data to build an econometric model that relates relative prices to land-use change across a country, in this case Indonesia, at the grid-cell level. These authors use the model to look back in time to estimate how much deforestation would have been avoided in Indonesia from 2000 to 2005 if a REDD policy existed. Other simulations of grid cell-level land-use change over large landscapes have used a combination of basic economic theory, agent-based models, and ad hoc rules to predict overall expected land-use change and to spatially distribute the change to particular grid cells. For example, as an input into the Millennium Ecosystem Assessment, Alcamo et al. (1998) used a series of global energy-use policies, technological change rates, and economic and demographic growth assumptions to generate overall expected global land-use change in 2100, and an algorithm to spatially allocate this expected land-use change to specific places on the ground. Nelson et al. (2010), Polasky et al. (2011), Swetnam et al. (2012), among others, have used scenarios and ad hoc projections of land-use change to produce spatially explicit predictions of service provision. Bierwagen et al. (2010) use U.S. Census Bureau population projection methodologies, climate change scenarios, housing demand models, and gravity models to allocate housing development across the conterminous U.S. to 2100. In these papers, a mixture of expert opinion and observed trends in land-use change were used to create rules for future land-use changes. In other ecosystem service assessments, local landscape experts have been asked to predict or envision how land use on a landscape might change (e.g., Castella et al. 2005, Nelson et al. 2009, Goldstein et al. 2012). Finally, our model results can be compared to other relatively fine-grained model projections of regional land-use change scenarios (e.g. Sohl and Sayler 2008, Sohl et al. 2007, 2010) and agent-based modeling approaches and deterministic housing growth models to map urban, suburban, and exurban expansion (e.g., Theobald 2005, Bierwagen et al. 2010). Second, we combine an endogenous price modeling approach that represents major land uses (agriculture, forestry, urban development) with detailed local-scale analysis of land-use 15 change important for determining the provision of ecosystem services. Most endogenous price modeling approaches generate results at aggregate regional scales. For example, Hertel et al. (2010) use a general equilibrium model to explore global land-use impacts of an expansion in U.S. ethanol production. They model global land-use change and environmental impacts across 18 agro-ecological zones. Beach et al. (2012) and Baker et al. (2013) use the partial equilibrium model Forest and Agricultural Sector Optimization Model (Alig et al. 1998) to model regional land-use change across the U.S. in response to biofuel policy or growth in agricultural productivity. On the other hand, many detailed local-scale analyses suitable for analysis of provision of ecosystem service do not incorporate price feedbacks resulting from induced changes in land use (e.g., Goldstein et al. 2012, Nelson et al. 2013, Polasky et al. 2011). Localscale analyses, however, often are able to explicitly represent spatial processes affecting land-use decisions as well as the provision of ecosystem services (e.g., Irwin and Bockstael 2002, Polasky et al. 2008, Lewis et al. 2011). An important extension of our work is the development of a national land-use model that includes local spatial processes. In our analyses, changes in land use and productivity are not a function of expected climate change. Haim et al. (2011) found that land-use choices will not be greatly affected by climate change between 2001 and 2051 across the US. However, it is fairly clear that land-use productivity and vegetative cover will be affected by climate change (Schlenker and Roberts 2009, Lobell et al. 2011). There is also evidence to suggest that many tree species will migrate and forest productivity in the U.S. will change due to climate change. For example, Kirilenko and Sedjo (2007) suggest that productivity in many forests will increase as a result of CO2 fertilization. We do not account for the fertilization effect in our study, which would raise our estimates of timber production and carbon sequestration in forests. However, increases in productivity due to fertilization could be offset by climate change factors such as increasing frequency of forest fires (Westerling et al. 2006). Finally, species ranges will change as the climate changes with many species shifting their distributions to track suitable climates (Lawler et al. 2009). Incorporating climate-change impacts is an important next step in providing more realistic future projections. We have also simplified carbon sequestration dynamics by using a steady-state analysis. In the analysis of carbon storage (and timber production) we assume that the carbon stored in 16 vegetation and soil is in steady-state equilibrium on the landscape in 2001 and that the carbon storage between 2001 and 2051 only changes when land use changes. Therefore, increases in carbon stock on maturing forests, including public lands, are not included in this analysis. Further, we assume that carbon stocks in land that changes between 2001 and 2051 reaches its steady-state storage by 2051. This approach precludes examining the time path of the carbon stock over the period 2001 to 2051. To the extent that not all carbon adjustments to land-use change have been made by 2051, our carbon estimates may overestimate their actual 2051 values. Finally, not all carbon pools are accounted for in our model, including woody biomass in shrub land and root biomass in grasslands. Carbon losses from land use change from perennial grasses to annual crops may be substantial. Despite simplifying carbon sequestration dynamics, our estimate of future carbon storage in biomass and soil on private lands across the contiguous U.S. by 2051 is similar to a U.S. Forest Service estimate (Birdsey and Heath 1995). Our work combines county and sub-county-level data, which incorporate local heterogeneity and land-use patterns important for determining the provision of many ecosystem services, with national-scale analyses, which are important for determining market prices and for analysis of policies that are important drivers of land-use change. This combination of detailed local analyses with broad national coverage allows us to predict how ecosystem services will be impacted by changes in market prices or government policies. One can use such analyses to gain insight into how various policies or changes in underlying trends in drivers of land use are likely to affect the provision of ecosystem services. One of the main lessons that emerges from our analysis is that there are powerful underlying trends that will drive land-use change, as illustrated by the two baseline scenarios that we examined. Land-use patterns can be affected by policy interventions, but such interventions will need to be aggressive to significantly alter underlying land-use change trends. Materials and Methods Our analysis consists of two major parts: projections of future land use based on an econometric model, and an assessment of the implications of future land-use change on select 17 ecosystem services. We discuss both parts briefly here. Details of both analyses are provided in the SI Text. Econometric land use model and policy simulations The land-use change model was parameterized using observed land-use changes between 1992 and 1997 at 844,000 sample points of the USDA NRI National Resource Inventory (USDA 2009). Pixel-level land-use change is explained by county-specific net returns to each land use and each pixel’s soil type and starting land use (Lubowski et al. 2006). As such, our land-use model accounts for spatial heterogeneity in the factors driving land-use decisions (e.g., differences among pixels in soil type), but does not explicitly model spatial processes such as the effect that the land use of one parcel might have on land-use decisions made for neighboring parcels. From the estimated econometric model we generated a land-use transition probability matrix for the period 2001 to 2051 for each county-soil type combination. The transition matrices account for movements of land among five NRI categories: crops, pasture, forest, urban, and range (see Table SI 1), where range includes grasslands and shrublands, and urban includes developed open space and low- to high-intensity urban lands. The econometric model also includes endogenous feedbacks from land-use changes to net returns. By using endogenous price feedbacks in our model we control for the impact that changes in the supply of a good can have on market prices and net returns to land. For example, encouraging forest land at the expense of crop production will reduce the supply of crops, thereby increasing crop prices and the corresponding net returns to cropland, which will dampen the shift from cropland to forest. The econometric model represents changes among land uses (the extensive margin) but does not model changes in the intensity of uses (the intensive margin). As a way to partially remedy this shortcoming, we assume an exogenous 6% increase in crop yields every five years. Allowing land-use intensity to change endogenously would be an important extension of the current approach. The 2001 land-use map, the initial land-use map in our simulations, comes from the National Land Cover Database (NLCD) (Homer et al. 2007). We re-sampled the original 30-m resolution NLCD grid map to a 100-m resolution to give a more realistic size for average landuse change pixels (Radeloff et al., 2012). We then used the 50-year land-use transition matrices 18 with the re-sampled 2001 map to generate an expected pixel-level 2051 land-use map for the contiguous U.S. Ecosystem service models We modeled soil carbon storage for all land uses. Additionally, for forest and urban areas, we accounted for above- and below-ground biomass carbon storage, but not for other land use types. To estimate forest biomass carbon, we made several simplifying assumptions. We assumed that all privately-owned forests would be managed with even-aged rotations, that the rotation length was determined by the Faustmann formula, and that all age classes were evenly represented in the landscape. Forest biomass carbon was then assessed based on the Forest Inventory and Analysis (FIA) estimates for forest types in each county and allometric curves of tree growth (Smith et al. 2006). Soil carbon estimates to a soil depth of 30 cm for each land-use type in a county were based on carbon stock estimates from Bliss et al. (2009). See the SI Text for details on carbon modeling in biomass and soil. We estimated kilocalorie production on private croplands in 2051 as a function of observed 2001 yields and observed 2001 crop-planting patterns on the landscape (USDA-ARS 2011, Haim et al. 2011). We assumed a 6 % increase in yield every 5 years across the entire nation and all crops (Haim et al. 2011). Such technological improvement is consistent with past rates of yield increases (Haim et al. 2011). In addition, we modeled timber yield from private forests based on average yield data from FIA and the rotation length that was estimated as part of the biomass carbon assessment. We assumed no change in yield for timber. To assess species responses to land-use change, we quantified the amount of change in habitat area individually for 194 terrestrial vertebrate species, which were chosen for their ecological or social importance: amphibians (because of their sensitivity to environmental change), influential species (in terms of their ecological role, e.g. top predators, keystone species, and ecosystem engineers), game species (because of their importance to hunters and land managers), and at-risk birds (categorized by the American Bird Conservancy (2012) as ‘vulnerable’ or ‘potential concern’). We quantified habitat area for each species under current and future land-use conditions, based on known information about the species’ geographic range 19 and habitat associations. For our analysis, we assumed that species’ geographic ranges and habitat associations would be static despite the fact that climate change has the potential to alter both. For birds, we used only portions of the range that were used for breeding or year-round residency. Our species-habitat associations were based on a land-cover classification of ecological systems (Comer et al. 2003), cross-walked to the land-use categories used in the econometric model on a spatially explicit basis, in conjunction with expert opinion. Across the contiguous U.S., for each species a pixel of current (2001) land use/land cover (LULC) was scored a 1 if it was prime habitat and a 0 otherwise. For simulated future LULC we used the land-use transition probability matrices for the contiguous U.S. generated by the econometric land use model under each of our scenarios. The summation of the potential habitat values within a species’ range in 2051, compared to the summed habitat value of current land cover, quantified the impact of future land-use change on a given species. For each species, we compared the projected change in habitat area resulting from each policy scenario, and summarized results by four species groups (amphibians, influential species, game species, and at-risk birds). See SI text, Tables S2-S4, and Dataset S1 for more details on the ecosystem service models. Acknowledgements We gratefully acknowledge support for this research from the National Science Foundation’s Coupled Natural–Human Systems Program. We are also grateful for comments from three anonymous reviewers, which greatly improved our manuscript. References Alcamo J., R. Leemans, and E. 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Science 313: 940-943. 25 Scenario Description Targeted Services Alternative Reference Scenarios 1990s Trend Continuation of land-use change trends from 1992 to 1997 NA High Crop Demand Land-use changes accounting for 10% increase in crop prices every five years relative to the 1990s Trend scenario NA Alternative Policy Scenarios Forest Incentives $100/acre payment per year for land converted to forest; $100/acre tax per year for land taken out of forest Timber production, carbon storage, habitat Natural Habitats $100/acre tax per year on land converted from forest or range to crop land, pasture, or urban Habitat Urban Containment Prohibition on land conversion to urban in non-metropolitan counties. Habitat, timber production, carbon storage, food production Table 1: Description of Alternative Reference and Policy Scenarios 26 Figure Legends Figure 1. Spatial patterns in land cover in 2001 and in 2051 under the two baseline scenarios, 1990s Trends and High Crop Demand, and changes between 2001 and 2051 under the two baseline scenarios. Figure 2. Projected changes between 2001 and 2051 under the two baseline scenarios for: a) land cover, b) food production, c) carbon storage, d) timber production, and area of prime habitat for different groups of wildlife species (e-h). The bars in figures (a) through (d) display the difference between 2051 and 2001 with labels for changes greater than 1%. Bars in figures (e) through (h) show the number of species in each of three categories: lose >10% of prime habitat area, little/no change in prime habitat area (-10% to +10%), and gain >10% in prime habitat area. In addition the median % change across species in each group, by baseline scenario, is shown in figures (e) through (h). Figure 3. Spatial patterns in land cover changes under the three conservation policy scenarios (Forest Incentives, Natural Habitats, and Urban Containment) relative to projections based on the 1990s Trends baseline scenario. Figure 4. Projected changes under the three conservation policy scenarios (Forest Incentives, Natural Habitats, and Urban Containment) relative to projections based on the1990s Trends scenario for: a) land cover, b) food production, c) carbon storage, d) timber production, and area of prime habitat for different groups of wildlife species (e-h). The bars in figures (a) through (d) display the difference between the policy scenarios and 1990s Trends projection as of 2051, with labels for changes greater than 1%. Bars in figures (e) through (h) show the increase or decrease in the number of species in the categories (defined in Figure 2) under each policy scenario compared to 1990s Trends baseline scenario. 27 Figure 1 28 29 30 Figure 2 Figure 3 31 32 Figure 4