Economic Compensations in the Presence of Conflicts Over Land Use

Attenuation of existing land use conflicts is often approached by means of economic compensations. We estimate conflicts in the High-Andean Plains System of the Antioquia Department, comparing land use restrictions with the dynamic of the agricultural frontier. Compensations are calculated as a function of land rent, and its financing with public and private funds is assessed considering municipal investments and the solvency of the productive sector. Results indicate that land use conflicts are stronger where crop border movement is active. Compensations are able to be undertaken by small municipalities with low profitability of land, while economic groups can finance them depending on governance