UCLA economist Will Rafey is featured on the American Economic Association’s Research Highlights podcast discussing his research on environmental offset markets and wetland conservation.

In the episode, Rafey explains how contracts to remediate or restore Florida wetlands generated substantial private gains from trade while also increasing regional flood damage by shifting wetlands away from areas where they had helped protect existing homes. The conversation highlights broader lessons for the design of environmental markets, including how regulators can preserve the cost-saving benefits of offsets while better accounting for local environmental risks.

The podcast draws on the paper “Conservation Priorities and Environmental Offsets: Markets for Florida Wetlands,” coauthored with Daniel Aronoff and published in the American Economic Review. The study finds that wetland offsets generated roughly $2.4 billion in private gains from trade, while also contributing to a significant increase in overall flood damage.

Listen to the episode on the AEA website here