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Optimal and Open Access Harvesting of Multi-Use Species in a Second-Best World

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  • Richard Horan

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  • Erwin Bulte

Abstract

Expansion of human populations and activities has caused increased conflicts between wildlife and humans. As a result, the distinction between resource and pest species has become blurry. We propose an economically-based classification of species based on a multi-use bioeconomic model. The classification of the steady state population of a species is shown to depend on both species' density and economic factors. We extend earlier work on multi-use(resource-pest) species by applying the theoretical model to a developing country context where property rights to wildlife are imperfectly enforced, so that second-best trade measures are often applied by the international community to promote conservation. Upon calibrating the model using data for the African elephant, we derive three further results. First, when comparing the optimal stock of a multi-use species to the open access stock, we find that the ranking in terms of abundance is ambiguous. Second, and consistent with existing literature on resource management in a second-best world, our case study supports the idea that trade bans have ambiguous effectson wildlife abundance. Third, due to a bifurcation effect characterizing the multi-use model's solution, strategic and temporary subsidizing by the North may enable them to free ride on conservation efforts of the South henceforth. Copyright Kluwer Academic Publishers 2004

Suggested Citation

  • Richard Horan & Erwin Bulte, 2004. "Optimal and Open Access Harvesting of Multi-Use Species in a Second-Best World," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 28(3), pages 251-272, July.
  • Handle: RePEc:kap:enreec:v:28:y:2004:i:3:p:251-272
    DOI: 10.1023/B:EARE.0000031052.81245.cd
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    References listed on IDEAS

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    Cited by:

    1. Jensen, Frank & Jacobsen, Jette Bredahl & Thorsen, Bo Jellesmark, 2016. "Designing hunting regulation under population uncertainty and self-reporting," Journal of Forest Economics, Elsevier, vol. 24(C), pages 157-171.
    2. Birgit Bednar-Friedl & Doris Behrens & Michael Getzner, 2012. "Optimal Dynamic Control of Visitors and Endangered Species in a National Park," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 52(1), pages 1-22, May.
    3. 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.
    4. Yajie Liu & Jon Olaf Olaussen & Anders Skonhoft, 2011. "When a Fish is a Fish: The Economic Impacts of Escaped Farmed Fish," Working Paper Series 12011, Department of Economics, Norwegian University of Science and Technology.
    5. Berck, Peter & Levy, Amnon & Chowdhury, Khorshed, 2012. "An analysis of the world's environment and population dynamics with varying carrying capacity, concerns and skepticism," Ecological Economics, Elsevier, vol. 73(C), pages 103-112.
    6. Fenichel, Eli P. & Abbott, Joshua K., 2014. "Heterogeneity and the fragility of the first best: Putting the “micro” in bioeconomic models of recreational resources," Resource and Energy Economics, Elsevier, vol. 36(2), pages 351-369.
    7. Jens Abildtrup & Franck Jensen, 2014. "The regulation of hunting: A game population based tax on hunters," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 95(3), pages 281-298.
    8. Bertram, Christine, 2010. "Integrating biodiversity indices into a multi-species optimal control model," Kiel Working Papers 1662, Kiel Institute for the World Economy (IfW).
    9. Carole Ropars-Collet & Philippe Le Goffe, 2009. "Modèle bioéconomique appliqué à la gestion du sanglier, dégâts agricoles et prix des chasses en forêt domaniale," Post-Print hal-00730019, HAL.
    10. Fenichel, Eli P. & Horan, Richard D., 2016. "Tinbergen and tipping points: Could some thresholds be policy-induced?," Journal of Economic Behavior & Organization, Elsevier, vol. 132(PB), pages 137-152.
    11. Finnoff, David & Potapov, Alexei & Lewis, Mark A., 2010. "Control and the management of a spreading invader," Resource and Energy Economics, Elsevier, vol. 32(4), pages 534-550, November.
    12. Fenichel, Eli P. & Horan, Richard D. & Bence, James R., 2010. "Indirect management of invasive species through bio-controls: A bioeconomic model of salmon and alewife in Lake Michigan," Resource and Energy Economics, Elsevier, vol. 32(4), pages 500-518, November.
    13. Ropars-Collet, Carole, 2012. "Nuisible ou gibier? Une analyse économique de la chasse des grands animaux en France," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 92(02), pages 161-181, October.
    14. Xie, Fang & Horan, Richard D., 2008. "Disease and Behavioral Dynamics for Brucellosis in Elk and Cattle in the Greater Yellowstone Area," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6404, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. Chalak, Morteza, 2014. "Optimal Control for a Dispersing Biological Agent," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 39(2), August.
    16. Fischer, Carolyn & Sterner, Thomas & Muchapondwa, Edwin, 2005. "Bioeconomic Model of Community Incentives for Wildlife Management Before and After CAMPFIRE," Discussion Papers dp-05-06, Resources For the Future.
    17. Carole Ropars-Collet & Philippe Le Goffe, 2009. "La gestion du sanglier : modèle bioéconomique, dégâts agricoles et prix des chasses en forêt domaniale," Working Papers SMART - LERECO 09-11, INRA UMR SMART-LERECO.
    18. Carolyn Fischer & Edwin Muchapondwa & Thomas Sterner, 2011. "A Bio-Economic Model of Community Incentives for Wildlife Management Under CAMPFIRE," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 48(2), pages 303-319, February.
    19. Anders Skonhoft & Wenting Chen, 2011. "On the management of interconnected wildlife populations," Working Paper Series 12311, Department of Economics, Norwegian University of Science and Technology.
    20. Xie, Fang & Horan, Richard D., 2009. "Disease and Behavioral Dynamics for Brucellosis Control in Elk and Cattle in the Greater Yellowstone Area," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(1), April.
    21. Doris Behrens & Birgit Bednar-Friedl & Michael Getzner, 2009. "Sustainable management of an alpine national park: handling the two-edged effect of tourism," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 17(3), pages 233-253, September.
    22. repec:eee:ecomod:v:363:y:2017:i:c:p:57-67 is not listed on IDEAS
    23. Levy, Amnon & Berck, Peter, 2009. "Theoretical Implications of Endogenously Changing Carrying Capacity and Concern for the World’s Population and Environment," Economics Working Papers wp09-05, School of Economics, University of Wollongong, NSW, Australia.
    24. Susana Ferreira, 2007. "Trade Policy and Natural Resource Use: The Case for a Quantitative Restriction," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(2), pages 361-376, June.

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