Why financial incentives can destroy economically valuable biodiversity in Ethiopia
AbstractEthiopian montane rainforests are economically valuable repositories of biodiversity, especially of wild Coffea arabica populations, and they are vanishing at accelerating rates. Our research results confirm theory which explains biodiversity loss by diverging private and social net benefits from land conversion. Poor farmers basically live from hand-to-mouth and manage resources with very short term planning horizons. In such circumstances they cannot afford to carry the cost burden of conservation from which the broader national and global society benefits. Society, on the other hand, highly values the biodiversity of Ethiopia's montane rainforests, but has not managed to put mechanisms in place which enable to pay for the conservation of these values and conservation policies are in place but are not implemented. While it is economically rational for the farmer to convert forests into agricultural land and thereby improve his income (the financial incentive we refer to here), it is economically irrational for national and global society not to pay for conservation. The core reasons for such divergence is that institutions for conservation and sustainable use are not in place. We identify the most important ones and recommend changes for the Ethiopian case.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Bonn, Center for Development Research (ZEF) in its series Discussion Papers with number 7119.
Date of creation: 2007
Date of revision:
Environmental Economics and Policy;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Macharia, Ibrahim & Orr, Alastair & Simtowe, Franklin & Asfaw, Solomon, 2012. "Potential Economic And Poverty Impact Of Improved Chickpea Technologies In Ethiopia," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 132553, International Association of Agricultural Economists.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.