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Can Domestication of Wildlife Lead to Conservation? The Economics of Tiger Farming in China

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  • Brant Abbott
  • G. Cornelis van Kooten

Abstract

Tigers are a threatened species that might soon disappear in the wild. Not only are tigers threatened by deteriorating and declining habitat, but poachers continue to kill tigers for traditional medicine, decoration pieces and so on. Although international trade in tiger products has been banned since 1987 and domestic trade within China since 1993, tigers continue to be poached and Chinese entrepreneurs have established tiger farms in anticipation of their demise. While China desires to permit sale of tiger products from captive-bred tigers, this is opposed on the grounds that it likely encourages illegal killing. Instead, wildlife conservationists lobby for more spending on anti-poaching and trade-ban enforcement. In this study, a mathematical bioeconomic model is used to investigate the issue. Simulation results indicate that, unless range states are characterized by institutions (rule of law, low corruption) similar to those found in the richest countries, reliance on enforcement alone is insufficient to guarantee survival of wild tigers. Likewise, even though conservation payments could protect wild tigers, the inability to enforce contracts militates against this. Our model indicates that wild tigers can be protected by permitting sale of products from tiger farms, although this likely requires the granting of an exclusive license to sellers. Finally, it is possible to tradeoff enforcement effort and sale of products from captive-bred animals, but such tradeoffs are worsened by deteriorating tiger habitat.

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File URL: https://web.uvic.ca/~repa/publications/REPA%20working%20papers/WorkingPaper2009-01.pdf
File Function: Final version, 2009
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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 2009-01.

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Length: 37 pages
Date of creation: Dec 2008
Date of revision:
Handle: RePEc:rep:wpaper:2009-01

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Keywords: endangered species; extinction; wildlife farming and bioeconomics;

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References

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  1. Eiswerth, Mark E. & van Kooten, G. Cornelis, 2009. "The ghost of extinction: Preservation values and minimum viable population in wildlife models," Ecological Economics, Elsevier, vol. 68(7), pages 2129-2136, May.
  2. Damania, Richard & Bulte, Erwin H., 2007. "The economics of wildlife farming and endangered species conservation," Ecological Economics, Elsevier, vol. 62(3-4), pages 461-472, May.
  3. Nirvikar Singh & Xavier Vives, 1984. "Price and Quantity Competition in a Differentiated Duopoly," RAND Journal of Economics, The RAND Corporation, vol. 15(4), pages 546-554, Winter.
  4. Fischer, Carolyn, 2004. "The complex interactions of markets for endangered species products," Journal of Environmental Economics and Management, Elsevier, vol. 48(2), pages 926-953, September.
  5. Heltberg, Rasmus, 2001. "Impact of the ivory trade ban on poaching incentives: a numerical example," Ecological Economics, Elsevier, vol. 36(2), pages 189-195, February.
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Cited by:
  1. G. Cornelis van Kooten & Tim Bogle & Frans P. de Vries, 2012. "Rent Seeking and the Smoke and Mirrors Game in the Creation of Forest Sector Carbon Credits: An Example from British Columbia," Working Papers 2012-06, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.

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