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Wildlife conservation payments to address habitat fragmentation and disease risks

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  • HORAN, RICHARD D.
  • SHOGREN, JASON F.
  • GRAMIG, BENJAMIN M.

Abstract

We build a stylized model to gain insights into the application of conservation payments to protect endangered species in the face of wildlife-livestock disease risks and habitat fragmentation. Greater connectivity of habitat creates an endogenous trade-off. More connectedness ups the chance that populations of endangered species will grow more rapidly; however, greater connectivity also increases the likelihood that diseases will spread more quickly. We analyze subsidies for both habitat connectedness and livestock vaccination. We find the cost-effective policy is to initially subsidize habitat connectivity rather than vaccinations; this increases habitat contiguousness, which eventually also increases disease risks. Once habitat is sufficiently connected, disease risks increase to such a degree to make a vaccination subsidy worthwhile. Highly connected habitat requires nearly all the government budget be devoted to vaccination subsidies. The result of the conservation payments is significantly increased species abundance, for a wide range of initial levels of habitat connectedness.

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Bibliographic Info

Article provided by Cambridge University Press in its journal Environment and Development Economics.

Volume (Year): 13 (2008)
Issue (Month): 03 (June)
Pages: 415-439

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Handle: RePEc:cup:endeec:v:13:y:2008:i:03:p:415-439_00

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  1. Shogren, Jason F. & Crocker, Thomas D., 1991. "Risk, Self-Protection, and Ex Ante Economic Value," Staff General Research Papers 334, Iowa State University, Department of Economics.
  2. Lupi, Frank & Horan, Richard D., 2005. "Economic Incentives for Controlling Trade-Related Biological Invasions in the Great Lakes," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 34(1), April.
  3. Thomas Crocker & John Tschirhart, 1992. "Ecosystems, externalities, and economies," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 2(6), pages 551-567, November.
  4. Ehrlich, Isaac & Becker, Gary S, 1972. "Market Insurance, Self-Insurance, and Self-Protection," Journal of Political Economy, University of Chicago Press, vol. 80(4), pages 623-48, July-Aug..
  5. David Finnoff & Jason F. Shogren & Brian Leung & David Lodge, 2005. "Risk and Nonindigenous Species Management ," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(3), pages 475-482.
  6. Richard D. Horan & Christopher A. Wolf, 2005. "The Economics of Managing Infectious Wildlife Disease," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(3), pages 537-551.
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Cited by:
  1. Ando, Amy Whritenour & Shah, Payal, 2009. "Demand-Side Factors in Optimal Land Conservation Choice," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49209, Agricultural and Applied Economics Association.
  2. Horan, Richard D. & Melstrom, Richard T., 2011. "No sympathy for the devil," Journal of Environmental Economics and Management, Elsevier, vol. 62(3), pages 367-385.
  3. Katharine Sims, 2014. "Do Protected Areas Reduce Forest Fragmentation? A Microlandscapes Approach," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 58(2), pages 303-333, June.

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