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Wildlife Damage and Agriculture: A Dynamic Analysis of Compensation Schemes

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  • Daniel Rondeau
  • Erwin Bulte

Abstract

We study the environmental and economic consequences of introducing a program to compensate peasants for damages 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. We identify the conditions leading to a reduction of the wildlife stock and discuss the implications for current and planned compensation programs in Africa and Asia. Copyright 2007, Oxford University Press.

Suggested Citation

  • Daniel Rondeau & Erwin Bulte, 2007. "Wildlife Damage and Agriculture: A Dynamic Analysis of Compensation Schemes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(2), pages 490-507.
    • Handle: RePEc:oup:ajagec:v:89:y:2007:i:2:p:490-507
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    File URL: http://hdl.handle.net/10.1111/j.1467-8276.2007.00995.x
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    Cited by:

    1. Zijin Xie, 2023. "Trophy Hunting Restrictions and Land Use in Private Land Conservation Areas:A Bioeconomic Analysis," Keio-IES Discussion Paper Series 2023-007, Institute for Economics Studies, Keio University.
    2. Häggmark-Svensson, Tobias & Elofsson, Katarina & Engelmann, Marc & Gren, Ing-Marie, 2015. "A review of the literature on benefits, costs, and policies for wildlife management," Working Paper Series 2015:1, Swedish University of Agricultural Sciences, Department Economics.
    3. Yasuhiro Nakamoto & Koichi Futagami, 2016. "Dynamic Analysis of a Renewable Resource in a Small Open Economy: The Role of Environmental Policies for the Environment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(3), pages 373-399, July.
    4. Barr, Abigail & Owens, Trudy & Perera, Ashira, 2020. "Risk taking and sharing when risk exposure is interdependent," Journal of Economic Behavior & Organization, Elsevier, vol. 176(C), pages 445-460.
    5. Esther Blanco & Javier Lozano, 2012. "Evolutionary success and failure of wildlife conservancy programs," Working Papers 2012-18, Faculty of Economics and Statistics, Universität Innsbruck.
    6. Zachary D Hughes & Eli P Fenichel & Leah R Gerber, 2011. "The Potential Impact of Labor Choices on the Efficacy of Marine Conservation Strategies," PLOS ONE, Public Library of Science, vol. 6(8), pages 1-10, August.
    7. Meyer, Kevin Michael, 2017. "Three essays on environmental and resource economics," ISU General Staff Papers 201701010800006585, Iowa State University, Department of Economics.
    8. Abildtrup, Jens & Jensen, Frank, 2014. "The regulation of hunting: A game population based tax on hunters," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 95(03), pages 281-298, September.
    9. Richardson, Robert B. & Fernandez, Ana & Tschirley, David & Tembo, Gelson, 2012. "Wildlife Conservation in Zambia: Impacts on Rural Household Welfare," World Development, Elsevier, vol. 40(5), pages 1068-1081.
    10. Lange, Andreas & Liu, Xiangping, 2014. "Land Development Restrictions and Preemptive Action - On the Benefits of Differentiated Regulation," Strategic Behavior and the Environment, now publishers, vol. 4(4), pages 393-414, December.
    11. Zijin Xie, 2022. "Government intervention in wildlife damage management: a bioeconomic analysis of wildlife damage compensation and taxation policies," Journal of Bioeconomics, Springer, vol. 24(1), pages 93-115, April.
    12. 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.
    13. Zijin Xie & Ayumi Onuma, 2021. "Biodiversity Conservation under ICDPs in a Bioeconomic Model: Nonprofit vs For-Profit National Parks," Keio-IES Discussion Paper Series 2021-001, Institute for Economics Studies, Keio University.
    14. 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.
    15. Mailu, Stephen & Kuloba, Bernard & Ruto, Eric & Nyangena, Wilfred, 2010. "Effect of cropping policy on landowner reactions towards wildlife: a case of Naivasha area, Kenya," MPRA Paper 21308, University Library of Munich, Germany.
    16. 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).
    17. Anders Skonhoft, 2017. "The Silence of the Lambs: Payment for Carnivore Conservation and Livestock Farming Under Strategic Behavior," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(4), pages 905-923, August.
    18. 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), pages 1-23.
    19. Koichi Futagami & Yasuhiro Nakamoto, 2019. "The impacts of pollution control policies on the pollution in small open economies," Discussion Papers in Economics and Business 19-08, Osaka University, Graduate School of Economics.
    20. Mensah, Justice Tei & Persson, Jens & Kjellander, Petter & Elofsson, Katarina, 2019. "Effects of carnivore presence on hunting lease pricing in South Sweden," Forest Policy and Economics, Elsevier, vol. 106(C), pages 1-1.
    21. Benjamin Meadows & Charles Sims, 2023. "Can We Love Invasive Species to Death? Creating Efficient Markets for Invasive Species Harvests," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 85(2), pages 443-477, June.
    22. 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.
    23. Zijin Xie & Ayumi Onuma, 2023. "A Bioeconomic Model of Non-profit and For-profit National Parks Integrating Locals in Biodiversity Conservation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 86(3), pages 509-532, November.

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