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Compensation for Wildlife Damage: Habitat Conversion, Species Preservation and Local Welfare

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Author Info

  • Daniel Rondeau
  • Erwin Bulte

Abstract

We study the environmental and economic consequences of introducing a program to compensate peasants of a small economy for the damage caused by wildlife. We show that the widely held belief that compensation induces wildlife conservation may be erroneous. In a partially open economy, compensation can lower the wildlife stock and result in a net welfare loss for local people. In an open economy, compensation can trigger wildlife extinction and also reduce welfare. The conditions leading to a reduction of the wildlife stock are identified and the implications for current and planned compensation programs are discussed.

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File URL: http://web.uvic.ca/~repa/publications/REPA%20working%20papers/WorkingPaper2003-01.pdf
File Function: Final version, 2003
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Bibliographic Info

Paper provided by University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group in its series Working Papers with number 2003-01.

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Length: 36 pages
Date of creation: Nov 2003
Date of revision:
Handle: RePEc:rep:wpaper:2003-01

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Related research

Keywords: compensation; crop damage; wildlife; endangered species preservation; bushmeat trade;

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Cited by:
  1. Astrid Zabel & Karen Pittel & Göran Bostedt & Stefanie Engel, 2011. "Comparing Conventional and New Policy Approaches for Carnivore Conservation: Theoretical Results and Application to Tiger Conservation," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 48(2), pages 287-301, February.
  2. Esther Blanco & Javier Lozano, 2012. "Evolutionary success and failure of wildlife conservancy programs," Working Papers 2012-18, Faculty of Economics and Statistics, University of Innsbruck.
  3. Ralph Winkler, 2007. "Why do ICDPs fail? The relationship between subsistence farming, poaching and eco- tourism in wildlife and habitat conservation," CER-ETH Economics working paper series 07/76, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
  4. Jens Abildtrup & Frank Jensen, 2012. "The Regulation of Hunting: A Population Tax," IFRO Working Paper 2012/2, University of Copenhagen, Department of Food and Resource Economics.
  5. Winkler, Ralph, 2011. "Why do ICDPs fail?: The relationship between agriculture, hunting and ecotourism in wildlife conservation," Resource and Energy Economics, Elsevier, vol. 33(1), pages 55-78, January.

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