IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

The Economics of Endangered Species

  • Robert Innes
  • George Frisvold

    ()

    (Department of Agricultural and Resource Economics, University of Arizona, Tucson, Arizona 85721
    School of Social Sciences, Humanities and Arts, University of California, Merced, California 95344)

Registered author(s):

    Because habitat conversion is the greatest threat to species, this article focuses on economic incentives for private land users to protect habitat. Habitat protection policies that fail to account for private incentives often have unintended negative consequences. Private incentives for habitat protection depend on many factors: whether landowners are compensated for the costs of habitat protection, the design of compensation mechanisms, underlying property rights and security of tenure, the structure of conservation contracts, and whether markets can be created that internalize external benefits of habitat protection. In developing countries, agricultural price, credit, tax, and land tenure policies have important effects on the demand for habitat conversion. Private landowners often can provide crucial information about costs of habitat protection and species or habitat values on their property. Policies that encourage self-reporting of this information can greatly improve the cost effectiveness of policies to identify and acquire sites for species protection.

    If 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.

    File URL: http://www.annualreviews.org/doi/abs/10.1146/annurev.resource.050708.144207
    Download Restriction: Full text downloads are only available to subscribers. Visit the abstract page for more information.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Annual Reviews in its journal Annual Review of Resource Economics.

    Volume (Year): 1 (2009)
    Issue (Month): 1 (09)
    Pages: 485-512

    as
    in new window

    Handle: RePEc:anr:reseco:v:1:y:2009:p:485-512
    Contact details of provider: Postal: Annual Reviews 4139 El Camino Way Palo Alto, CA 94306, USA
    Web page: http://www.annualreviews.org

    Order Information: Web: http://www.annualreviews.org/action/ecommerce

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. repec:cup:cbooks:9780521477185 is not listed on IDEAS
    2. Clark, Colin W, 1973. "Profit Maximization and the Extinction of Animal Species," Journal of Political Economy, University of Chicago Press, vol. 81(4), pages 950-61, July-Aug..
    3. Kaplow, Louis & Shavell, Steven, 1994. "Optimal Law Enforcement with Self-Reporting of Behavior," Journal of Political Economy, University of Chicago Press, vol. 102(3), pages 583-606, June.
    4. Dayton-Johnson, Jeff, 2000. "Determinants of collective action on the local commons: a model with evidence from Mexico," Journal of Development Economics, Elsevier, vol. 62(1), pages 181-208, June.
    5. Langpap, Christian & Wu, JunJie, 2004. "Voluntary conservation of endangered species: when does no regulatory assurance mean no conservation?," Journal of Environmental Economics and Management, Elsevier, vol. 47(3), pages 435-457, May.
    6. Innes, Robert, 1997. "Takings, Compensation, and Equal Treatment for Owners of Developed and Undeveloped Property," Journal of Law and Economics, University of Chicago Press, vol. 40(2), pages 403-32, October.
    7. Alix-Garcia, Jennifer, 2007. "A spatial analysis of common property deforestation," Journal of Environmental Economics and Management, Elsevier, vol. 53(2), pages 141-157, March.
    8. Wunder, Sven, 2000. "Ecotourism and economic incentives -- an empirical approach," Ecological Economics, Elsevier, vol. 32(3), pages 465-479, March.
    9. Ando, Amy Whritenour, 1999. "Waiting to Be Protected under the Endangered Species Act: The Political Economy of Regulatory Delay," Journal of Law and Economics, University of Chicago Press, vol. 42(1), pages 29-60, April.
    10. Segerson, Kathleen & Miceli, Thomas J., 1998. "Voluntary Environmental Agreements: Good or Bad News for Environmental Protection?," Journal of Environmental Economics and Management, Elsevier, vol. 36(2), pages 109-130, September.
    11. Blume, Lawrence & Rubinfeld, Daniel L & Shapiro, Perry, 1984. "The Taking of Land: When Should Compensation Be Paid?," The Quarterly Journal of Economics, MIT Press, vol. 99(1), pages 71-92, February.
    12. Fisher, Anthony C & Hanemann, W Michael, 1990. "Option Value: Theory and Measurement," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 17(2), pages 167-80.
    13. Baron, David P., 2006. "A Positive Theory of Moral Management, Social Pressure, and Corporate Social Performance," Research Papers 1940, Stanford University, Graduate School of Business.
    14. Stephen K. Swallow & Roger A. Sedjo, 2000. "Eco-Labeling Consequences in General Equilibrium: A Graphical Assessment," Land Economics, University of Wisconsin Press, vol. 76(1), pages 28-36.
    15. Filmer, Deon & Pritchett, Lant H., 2002. "Environmental degradation and the demand for children: searching for the vicious circle in Pakistan," Environment and Development Economics, Cambridge University Press, vol. 7(01), pages 123-146, February.
    16. Rohan Pitchford, 2003. "Coming to the Nuisance: An Economic Analysis from an Incomplete Contracts Perspective," Journal of Law, Economics and Organization, Oxford University Press, vol. 19(2), pages 491-516, October.
    17. 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.
    18. Alston, Lee J. & Libecap, Gary D. & Mueller, Bernardo, 2000. "Land Reform Policies, the Sources of Violent Conflict, and Implications for Deforestation in the Brazilian Amazon," Journal of Environmental Economics and Management, Elsevier, vol. 39(2), pages 162-188, March.
    19. Caviglia-Harris, Jill L. & Chambers, Dustin & Kahn, James R., 2009. "Taking the "U" out of Kuznets: A comprehensive analysis of the EKC and environmental degradation," Ecological Economics, Elsevier, vol. 68(4), pages 1149-1159, February.
    20. Andrew D. Foster & Mark R. Rosenzweig, 2003. "Economic Growth And The Rise Of Forests," The Quarterly Journal of Economics, MIT Press, vol. 118(2), pages 601-637, May.
    21. Elnagheeb, Abdelmoneim H. & Bromley, Daniel W., 1994. "Extensification of agriculture and deforestation: Empirical evidence from Sudan," Agricultural Economics, Blackwell, vol. 10(2), pages 193-200, April.
    22. Haimanti Bhattacharya & Robert Innes, 2008. "An Empirical Exploration of the Population-Environment Nexus in India," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(4), pages 883-901.
    23. Innes, Robert, 2000. "Self-Reporting in Optimal Law Enforcement When Violators Have Heterogeneous Probabilities of Apprehension," The Journal of Legal Studies, University of Chicago Press, vol. 29(1), pages 287-300, January.
    24. Gordon C. Rausser & Arthur A. Small, 2000. "Valuing Research Leads: Bioprospecting and the Conservation of Genetic Resources," Journal of Political Economy, University of Chicago Press, vol. 108(1), pages 173-206, February.
    25. Missios, Paul C., 2004. "Wildlife trade and endangered species protection," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(4), December.
    26. Hermalin, Benjamin E, 1995. "An Economic Analysis of Takings," Journal of Law, Economics and Organization, Oxford University Press, vol. 11(1), pages 64-86, April.
    27. John A. List & Michael Margolis & Daniel E. Osgood, 2006. "Is the Endangered Species Act Endangering Species?," NBER Working Papers 12777, National Bureau of Economic Research, Inc.
    28. Barbier, Edward B. & Burgess, J.C., 1996. "Economic analysis of deforestation in Mexico," MPRA Paper 12089, University Library of Munich, Germany.
    29. Amacher, Gregory S. & Malik, Arun S., 1998. "Instrument Choice When Regulators and Firms Bargain," Journal of Environmental Economics and Management, Elsevier, vol. 35(3), pages 225-241, May.
    30. Barrett, Christopher B. & Lybbert, Travis J., 2000. "Is bioprospecting a viable strategy for conserving tropical ecosystems?," Ecological Economics, Elsevier, vol. 34(3), pages 293-300, September.
    31. Swanson, Timothy M, 1994. "The Economics of Extinction Revisited and Revised: A Generalised Framework for the Analysis of the Problems of Endangered Species and Biodiversity Losses," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 800-821, Supplemen.
    32. Elnagheeb, Abdelmoneim H. & Bromley, Daniel W., 1994. "Extensification of agriculture and deforestation: empirical evidence from Sudan," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 10(2), April.
    33. Theodore Panayotou, 2000. "Population and Environment," CID Working Papers 54, Center for International Development at Harvard University.
    34. Smith, Rodney B. W. & Shogren, Jason F., 2002. "Voluntary Incentive Design for Endangered Species Protection," Journal of Environmental Economics and Management, Elsevier, vol. 43(2), pages 169-187, March.
    35. Innes, Robert, 2001. "Violator Avoidance Activities and Self-Reporting in Optimal Law Enforcement," Journal of Law, Economics and Organization, Oxford University Press, vol. 17(1), pages 239-56, April.
    36. Robert Innes, 2006. "A Theory of Consumer Boycotts under Symmetric Information and Imperfect Competition," Economic Journal, Royal Economic Society, vol. 116(511), pages 355-381, 04.
    37. Langpap, Christian, 2006. "Conservation of endangered species: Can incentives work for private landowners?," Ecological Economics, Elsevier, vol. 57(4), pages 558-572, June.
    38. Timothy J. Brennan & James Boyd, 2006. "Political Economy And The Efficiency Of Compensation For Takings," Contemporary Economic Policy, Western Economic Association International, vol. 24(1), pages 188-202, 01.
    39. Polasky, Stephen & Doremus, Holly, 1998. "When the Truth Hurts: Endangered Species Policy on Private Land with Imperfect Information," Journal of Environmental Economics and Management, Elsevier, vol. 35(1), pages 22-47, January.
    40. Barbier, E B & Burgess, J C, 2001. " The Economics of Tropical Deforestation," Journal of Economic Surveys, Wiley Blackwell, vol. 15(3), pages 413-33, July.
    41. Edward B. Barbier, 2001. "The Economics of Tropical Deforestation and Land Use: An Introduction to the Special Issue," Land Economics, University of Wisconsin Press, vol. 77(2), pages 155-171.
    42. Holden, Stein T., 1993. "Peasant household modelling: Farming systems evolution and sustainability in northern Zambia," Agricultural Economics, Blackwell, vol. 9(3), pages 241-267, September.
    43. Wellisch Dietmar, 1995. "Locational Choices of Firms and Decentralized Environmental Policy with Various Instruments," Journal of Urban Economics, Elsevier, vol. 37(3), pages 290-310, May.
    44. Edward B. Barbier, 2000. "Biodiversity, trade and international agreements," Journal of Economic Studies, Emerald Group Publishing, vol. 27(1/2), pages 55-74, January.
    45. Fischer, Carolyn, 2002. "The Complex Interaction of Markets For Endangered Species Products," Discussion Papers dp-02-21, Resources For the Future.
    46. Bulte, Erwin H. & van Kooten, G. Cornelis, 1999. "Economic efficiency, resource conservation and the ivory trade ban," Ecological Economics, Elsevier, vol. 28(2), pages 171-181, February.
    47. Pichon, Francisco J, 1997. "Colonist Land-Allocation Decisions, Land Use, and Deforestation in the Ecuadorian Amazon Frontier," Economic Development and Cultural Change, University of Chicago Press, vol. 45(4), pages 707-44, July.
    48. Stefanie Kirchhoff, 2000. "Green Business and Blue Angels," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 15(4), pages 403-420, April.
    49. Fischer, Carolyn & Sedjo, Roger & Jawahar, Puja & Aguilar , Francisco, 2005. "Forest Certification: Toward Common Standards?," Discussion Papers dp-05-10, Resources For the Future.
    50. Angelsen, Arild, 1999. "Agricultural expansion and deforestation: modelling the impact of population, market forces and property rights," Journal of Development Economics, Elsevier, vol. 58(1), pages 185-218, February.
    51. Gardner M. Brown & Jason F. Shogren, 1998. "Economics of the Endangered Species Act," Journal of Economic Perspectives, American Economic Association, vol. 12(3), pages 3-20, Summer.
    52. H. Scott Gordon, 1954. "The Economic Theory of a Common-Property Resource: The Fishery," Journal of Political Economy, University of Chicago Press, vol. 62, pages 124.
    53. Burton, Michael, 1999. "An assessment of alternative methods of estimating the effect of the ivory trade ban on poaching effort," Ecological Economics, Elsevier, vol. 30(1), pages 93-106, July.
    54. Malik Arun S., 1993. "Self-Reporting and the Design of Policies for Regulating Stochastic Pollution," Journal of Environmental Economics and Management, Elsevier, vol. 24(3), pages 241-257, May.
    55. Fischel, William A. & Shapiro, Perry, 1989. "A constitutional choice model of compensation for takings," International Review of Law and Economics, Elsevier, vol. 9(2), pages 115-128, December.
    56. Amacher, Gregory S. & Malik, Arun S., 1996. "Bargaining in Environmental Regulation and the Ideal Regulator," Journal of Environmental Economics and Management, Elsevier, vol. 30(2), pages 233-253, March.
    57. Lueck, Dean & Michael, Jeffrey A, 2003. "Preemptive Habitat Destruction under the Endangered Species Act," Journal of Law and Economics, University of Chicago Press, vol. 46(1), pages 27-60, April.
    58. Costello, Christopher & Ward, Michael B., 2007. "Search, bioprospecting, and biodiversity conservation," MPRA Paper 26527, University Library of Munich, Germany.
    59. Farber, Daniel A., 1992. "Economic analysis and just compensation," International Review of Law and Economics, Elsevier, vol. 12(2), pages 125-138, June.
    60. Clark, Colin W & Clarke, Frank H & Munro, Gordon R, 1979. "The Optimal Exploitation of Renewable Resource Stocks: Problems of Irreversible Investment," Econometrica, Econometric Society, vol. 47(1), pages 25-47, January.
    61. Smith, Vernon L, 1975. "The Primitive Hunter Culture, Pleistocene Extinction, and the Rise of Agriculture," Journal of Political Economy, University of Chicago Press, vol. 83(4), pages 727-55, August.
    62. Bluffstone Randall A., 1995. "The Effect of Labor Market Performance on Deforestation in Developing Countries under Open Access: An Example from Rural Nepal," Journal of Environmental Economics and Management, Elsevier, vol. 29(1), pages 42-63, July.
    63. Taylor, J Edward & et al, 2003. "The Economics of Ecotourism: A Galapagos Islands Economy-Wide Perspective," Economic Development and Cultural Change, University of Chicago Press, vol. 51(4), pages 977-97, July.
    64. Binswanger, Hans & Yang, Maw-Cheng & Bowers, Alan & Mundlak, Yair, 1987. "On the determinants of cross-country aggregate agricultural supply," Journal of Econometrics, Elsevier, vol. 36(1-2), pages 111-131.
    65. Aggarwal, Rimjhim & Netanyahu, Sinaia & Romano, Claudia, 2001. "Access to natural resources and the fertility decision of women: the case of South Africa," Environment and Development Economics, Cambridge University Press, vol. 6(02), pages 209-236, May.
    66. Partha Dasgupta, 1995. "The Population Problem: Theory and Evidence," Journal of Economic Literature, American Economic Association, vol. 33(4), pages 1879-1902, December.
    67. Mendelsohn, Robert, 1994. "Property Rights and Tropical Deforestation," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 750-56, Supplemen.
    68. Barnes, J. I., 1996. "Changes in the economic use value of elephant in Botswana: the effect of international trade prohibition," Ecological Economics, Elsevier, vol. 18(3), pages 215-230, September.
    69. Robert Innes & Stephen Polasky & John Tschirhart, 1998. "Takings, Compensation and Endangered Species Protection on Private Lands," Journal of Economic Perspectives, American Economic Association, vol. 12(3), pages 35-52, Summer.
    70. Berck, Peter, 1979. "Open Access and Extinction," Econometrica, Econometric Society, vol. 47(4), pages 877-82, July.
    71. Innes, Robert, 1999. "Remediation and self-reporting in optimal law enforcement," Journal of Public Economics, Elsevier, vol. 72(3), pages 379-393, June.
    72. Robert Innes, 2009. "Coming to the Nuisance: Revisiting Spur in a Model of Location Choice," Journal of Law, Economics and Organization, Oxford University Press, vol. 25(2), pages 286-310, October.
    73. Deininger, Klaus W & Minten, Bart, 1999. "Poverty, Policies, and Deforestation: The Case of Mexico," Economic Development and Cultural Change, University of Chicago Press, vol. 47(2), pages 313-44, January.
    74. Klaus Deininger & Bart Minten, 2002. "Determinants of Deforestation and the Economics of Protection: An Application to Mexico," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(4), pages 943-960.
    75. Bulte, Erwin H. & van Kooten, G. Cornelis, 1996. "A note on ivory trade and elephant conservation," Environment and Development Economics, Cambridge University Press, vol. 1(04), pages 433-443, October.
    76. Oran R. Young, 2003. "Environment and Statecraft: The Strategy of Environmental Treaty-Making," Global Environmental Politics, MIT Press, vol. 3(1), pages 145-147, 02.
    77. Kanchan Chopra & S. Gulati, 1997. "Environmental degradation and population movements: The role of property rights," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 9(4), pages 383-408, June.
    78. Damania, Richard & Fredriksson, Per G. & List, John A., 2003. "Trade liberalization, corruption, and environmental policy formation: theory and evidence," Journal of Environmental Economics and Management, Elsevier, vol. 46(3), pages 490-512, November.
    79. Oates, Wallace E. & Schwab, Robert M., 1988. "Economic competition among jurisdictions: efficiency enhancing or distortion inducing?," Journal of Public Economics, Elsevier, vol. 35(3), pages 333-354, April.
    80. Costello, Christopher & Polasky, Stephen, 2004. "Dynamic reserve site selection," Resource and Energy Economics, Elsevier, vol. 26(2), pages 157-174, June.
    81. Kunce, Mitch & Shogren, Jason F., 2005. "On interjurisdictional competition and environmental federalism," Journal of Environmental Economics and Management, Elsevier, vol. 50(1), pages 212-224, July.
    82. Robert A. Collinge & Wallace E. Oates, 1982. "Efficiency in Pollution Control in the Short and Long Runs: A System of Rental Emission Permits," Canadian Journal of Economics, Canadian Economics Association, vol. 15(2), pages 347-54, May.
    83. Simpson, R David & Sedjo, Roger A & Reid, John W, 1996. "Valuing Biodiversity for Use in Pharmaceutical Research," Journal of Political Economy, University of Chicago Press, vol. 104(1), pages 163-85, February.
    84. Arrow, Kenneth J & Fisher, Anthony C, 1974. "Environmental Preservation, Uncertainty, and Irreversibility," The Quarterly Journal of Economics, MIT Press, vol. 88(2), pages 312-19, May.
    85. Fullerton, Don, 1991. "Reconciling Recent Estimates of the Marginal Welfare Cost of Taxation," American Economic Review, American Economic Association, vol. 81(1), pages 302-08, March.
    86. George B. Frisvold & Peter Condon, 1994. "Biodiversity Conservation And Biotechnology Development Agreements," Contemporary Economic Policy, Western Economic Association International, vol. 12(3), pages 1-9, 07.
    87. Paul Ferraro & Toshihiro Uchida & Jon Conrad, 2005. "Price Premiums for Eco-friendly Commodities: Are ‘Green’ Markets the Best Way to Protect Endangered Ecosystems?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 32(3), pages 419-438, November.
    88. Pfaff, Alexander S. P., 1999. "What Drives Deforestation in the Brazilian Amazon?: Evidence from Satellite and Socioeconomic Data," Journal of Environmental Economics and Management, Elsevier, vol. 37(1), pages 26-43, January.
    89. Miceli, Thomas J & Segerson, Kathleen, 1994. "Regulatory Takings: When Should Compensation Be Paid?," The Journal of Legal Studies, University of Chicago Press, vol. 23(2), pages 749-76, June.
    90. Carbone, Jared C. & Smith, V. Kerry, 2008. "Evaluating policy interventions with general equilibrium externalities," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1254-1274, June.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:anr:reseco:v:1:y:2009:p:485-512. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (http://www.annualreviews.org)

    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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.