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Endangered Species and Timber Harvesting: The Case of Red-Cockaded Woodpeckers

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  • Daowei Zhang

Abstract

This article presents a theoretical framework and empirical evidence on the relationship between regulatory uncertainty induced by the possible invasion of an endangered species--the red-cockaded woodpecker (RCW)--and timber harvesting. The results indicate that landowners whose forests are close to a known or perceived RCW habitat have a high propensity to cut timber and use a clear-cut method. These preemptive actions are apparently aimed at destroying potential RCW habitat so that the existing values of their property could be protected from the Endangered Species Act (ESA)--related land use limitations. (JEL D23, K32, Q23, Q28) Copyright 2004, Oxford University Press.

Suggested Citation

  • Daowei Zhang, 2004. "Endangered Species and Timber Harvesting: The Case of Red-Cockaded Woodpeckers," Economic Inquiry, Western Economic Association International, vol. 42(1), pages 150-165, January.
    • Handle: RePEc:oup:ecinqu:v:42:y:2004:i:1:p:150-165
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    Citations

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    Cited by:

    1. Ferraro, Paul J. & McIntosh, Craig & Ospina, Monica, 2007. "The effectiveness of the US endangered species act: An econometric analysis using matching methods," Journal of Environmental Economics and Management, Elsevier, vol. 54(3), pages 245-261, November.
    2. Melstrom, Richard T., 2017. "The petroleum industry's response to an endangered species listing," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258281, Agricultural and Applied Economics Association.
    3. Di Maria, Corrado & Lange, Ian & van der Werf, Edwin, 2014. "Should we be worried about the green paradox? Announcement effects of the Acid Rain Program," European Economic Review, Elsevier, vol. 69(C), pages 143-162.
    4. Richard T. Melstrom, 2021. "The Effect of Land Use Restrictions Protecting Endangered Species on Agricultural Land Values," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(1), pages 162-184, January.
    5. Douglas S. Noonan, 2013. "Market effects of historic preservation," Chapters, in: Ilde Rizzo & Anna Mignosa (ed.), Handbook on the Economics of Cultural Heritage, chapter 17, pages i-i, Edward Elgar Publishing.
    6. Christian Langpap & Joe Kerkvliet & Jason F Shogren, 2018. "The Economics of the U.S. Endangered Species Act: A Review of Recent Developments," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 12(1), pages 69-91.
    7. Zhang, Daowei, 2016. "Payments for forest-based environmental services: A close look," Forest Policy and Economics, Elsevier, vol. 72(C), pages 78-84.
    8. Melstrom, Richard T., 2017. "Where to drill? The petroleum industry's response to an endangered species listing," Energy Economics, Elsevier, vol. 66(C), pages 320-327.
    9. Paul Pecorino, 2013. "Compensation for Regulatory Takings with a Redistributive Government," Southern Economic Journal, John Wiley & Sons, vol. 80(2), pages 488-501, October.
    10. Michael Brei & Agustín Pérez‐Barahona & Eric Strobl, 2020. "Protecting Species through Legislation: The Case of Sea Turtles," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(1), pages 300-328, January.
    11. Robert Innes & George Frisvold, 2009. "The Economics of Endangered Species," Annual Review of Resource Economics, Annual Reviews, vol. 1(1), pages 485-512, September.
    12. Malone, Trey & Melstrom, Richard T., 2020. "Where’s the beef? Cattle producers’ response to endangered species listings," Food Policy, Elsevier, vol. 91(C).
    13. Jagdish Poudel & Raju Pokharel, 2021. "Financial Analysis of Habitat Conservation Banking in California," Sustainability, MDPI, vol. 13(22), pages 1-12, November.
    14. Byl, Jacob P., 2019. "Perverse Incentives and Safe Harbors in the Endangered Species Act: Evidence From Timber Harvests Near Woodpeckers," Ecological Economics, Elsevier, vol. 157(C), pages 100-108.

    More about this item

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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