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What Drives Biodiversity? An Empirical Assessment of the Relation between Biodiversity and the Economy

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Author Info

  • Andreas Freytag

    ()
    (School of Economics and Business Administration, Friedrich-Schiller-University Jena)

  • C. Vietze
  • W. Völkl

Abstract

The environmental discussion is increasingly extended to the question of how to preserve biodiversity. As sensible regulation of biodiversity utilization uses politically set incentive schemes, it is required to discus the monetary value of biodiversity. Consequently, the relation between economic incentives and biodiversity is in the focus of our paper. By using bird species as bio indicators we derive first empirical results. In sum, one still may conclude that indeed economic growth is harmful for biodiversity. This is at least in line with the first part of biodiversity Kuznets curve. However, the existence of good institutions (especially a high quality of regulation) can in part prevent this effect, which can be cautiously interpreted as a hint that economic growth is not necessarily related to losses of biodiversity. With good governmental institutions, these losses may be prevented or mitigated.

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Bibliographic Info

Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2009-025.

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Date of creation: 2009
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Handle: RePEc:jrp:jrpwrp:2009-025

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Keywords: economic growth; institutions; development; biodiversity; cross country analysis;

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Cited by:
  1. Ariane Manuela AMIN, 2012. "What Drives Biodiversity Conservation Effort in the Developing World? An analysis for Sub-Saharan Africa," Working Papers halshs-00722081, HAL.
  2. Andreas Freytag & Christoph Vietze, 2010. "Can nature promote development? The role of sustainable tourism for economic growth," Jena Economic Research Papers 2010-008, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  3. Angela Münch, 2010. "Agri-Environmental Schemes and Grassland Biodiversity: Another Side of the Coin," Jena Economic Research Papers 2010-026, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  4. Ariane Manuela AMIN & Johanna Choumert, 2013. "Development and biodiversity conservation in Sub-Saharan Africa: A spatial analysis," Working Papers halshs-00799175, HAL.

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