Suliman Almojel *
Department of Agricultural Economics, College of Food and Agriculture Sciences, King Saud University, Riyadh, Kingdom of Saudi Arabia
*Corresponding author: salmojel@ksu.edu.sa
Accurately assessing the spatial and economic efficiency of conservation investments is essential for achieving biodiversity protection goals under limited budgets. Despite growing recognition of the importance of spatially heterogeneous land costs, empirical evidence from tropical biodiversity hotspots remains scarce. Using a comprehensive, high-resolution dataset of over 2,000 land acquisitions for conservation purposes in the Colombian Andes between 1993 and 2019, this study evaluates how acquisition costs per hectare vary across urban, peri-urban, and rural contexts. Descriptive statistics and inferential tests reveal stark differences: urban parcels are the most expensive, averaging 126.7 million COP per hectare, while rural parcels average just 4.1 million COP per hectare. One-way ANOVA and Tukey post-hoc tests confirm that all three categories differ significantly (P<0.001). Multivariate regression models with department-clustered standard errors, controlling for topographic, demographic, and economic variables, show that urban parcels are approximately 224% more costly than peri-urban parcels, whereas rural parcels are 29% cheaper (R² = 0.53). Slope, population density, and agricultural rent also significantly influence costs, while elevation and road access do not. These findings highlight the critical role of urban proximity and demographic pressures in shaping land values and demonstrate that prioritizing rural areas can greatly enhance the cost-effectiveness of conservation budgets. By integrating spatial cost heterogeneity into systematic conservation planning, policymakers can ensure that scarce resources achieve the maximum ecological return per unit of investment, thereby advancing more efficient and equitable biodiversity protection strategies. The results carry direct implications for the design of conservation finance mechanisms, including payments for ecosystem services and biodiversity offset programs, in data-scarce tropical regions.