Regulating global biodiversity: what is the problem?
We distinguish between local problems of biodiversity loss and global ones, where international cooperation is required. Global biodiversity regulation involves choosing the optimal stopping rule regarding global land conversions, in order to ensure that some areas of unconverted natural reserves remain to support the production sector that exists on converted lands. The basic difficulty with implementing a solution to this global problem lies in the asymmetry in endowments between those states that have previously converted, and those that have not. We demonstrate that the fundamental problem of global biodiversity regulation is similar to the bargaining problem analysed by Nash, Rubinstein, and others. There are benefits from global land conversion, and there must be agreement on their distribution before the conversion process can be halted. Since the institutions addressing global biodiversity problems are either highly ineffectual (benefit-sharing agreements, prior informed-consent clauses) or very extreme (incremental cost contracts), the biodiversity bargaining problem remains unresolved. For this reason we anticipate that suboptimal conversions will continue to occur, as a way of protesting the ineffective and unfair approaches employed in addressing this problem to date. Copyright 2012, Oxford University Press.
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.:
- Jerrell Richer & John K. Stranlund, 1997. "Threat Positions and the Resolution of Environmental Conflicts," Land Economics, University of Wisconsin Press, vol. 73(1), pages 58-71.
- Elhanan Helpman, 1992.
"Innovation, Imitation, and Intellectual Property Rights,"
NBER Working Papers
4081, National Bureau of Economic Research, Inc.
- Helpman, Elhanan, 1993. "Innovation, Imitation, and Intellectual Property Rights," Econometrica, Econometric Society, vol. 61(6), pages 1247-1280, November.
- Helpman, E., 1992. "Innovation, Imitation and intellectual Property Rights," Harvard Institute of Economic Research Working Papers 1597, Harvard - Institute of Economic Research.
- Rupert Gatti & Timo Goeschl & Ben Groom & Timothy Swanson, 2011.
"The Biodiversity Bargaining Problem,"
Environmental & Resource Economics,
Springer;European Association of Environmental and Resource Economists, vol. 48(4), pages 609-628, April.
- Polasky, Stephen & Costello, Christopher & McAusland, Carol, 2004. "On trade, land-use, and biodiversity," Journal of Environmental Economics and Management, Elsevier, vol. 48(2), pages 911-925, September.
- Labbate, Gabriel, 2008. "The incremental cost principle and the conservation of globally important habitats: A critical examination," Ecological Economics, Elsevier, vol. 65(2), pages 216-224, April.
- Susanne Droege & Birgit Soete, 2001. "Trade-Related Intellectual Property Rights, North-South Trade, and Biological Diversity," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 19(2), pages 149-163, June.
- Southgate, Douglas & Salazar-Canelos, Pablo & Camacho-Saa, Carlos & Stewart, Rigoberto, 2000. "Markets, Institutions, and Forestry: The Consequences of Timber Trade Liberalization in Ecuador," World Development, Elsevier, vol. 28(11), pages 2005-2012, November.
- Nash, John, 1953. "Two-Person Cooperative Games," Econometrica, Econometric Society, vol. 21(1), pages 128-140, April.
- Swanson, Timothy, 1996. "The reliance of northern economies on southern biodiversity: biodiversity as information," Ecological Economics, Elsevier, vol. 17(1), pages 1-8, April.
- Copeland, Brian R., 1990. "Strategic enhancement and destruction of fisheries and the environment in the presence of international externalities," Journal of Environmental Economics and Management, Elsevier, vol. 19(3), pages 213-226, November.
- Timo Goeschl & Timothy Swanson, 2003. "On Biology and Technology: The Economics of Managing Biotechnologies," Working Papers 2003.42, Fondazione Eni Enrico Mattei.
- Soest, Daan van & Lensink, Robert, 1997.
"Foreign transfers and tropical deforestation: what terms of conditionality,"
97C26, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
- Daan van Soest & Robert Lensink, 2000. "Foreign Transfers and Tropical Deforestation: What Terms of Conditionality?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 389-399.
- Sarr, Mare & Goeschl, Timo & Swanson, Tim, 2008. "The value of conserving genetic resources for R&D: A survey," Ecological Economics, Elsevier, vol. 67(2), pages 184-193, September.
- Krugman, Paul, 1979. "A Model of Innovation, Technology Transfer, and the World Distribution of Income," Journal of Political Economy, University of Chicago Press, vol. 87(2), pages 253-266, April.
- John K. Stranlund, 1999. "Sunk Capital and Negotiated Resolutions of Environmental Conflicts," Land Economics, University of Wisconsin Press, vol. 75(1), pages 142-155.
- Timo Goeschl & Timothy Swanson, 2002. "The Social Value of Biodiversity for R&D," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 22(4), pages 477-504, August.
- Angelsen, Arild & Kaimowitz, David, 1999. "Rethinking the Causes of Deforestation: Lessons from Economic Models," World Bank Research Observer, World Bank Group, vol. 14(1), pages 73-98, February.
- Scott Barrett, 1994. "The biodiversity supergame," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 4(1), pages 111-122, February.
When requesting a correction, please mention this item's handle: RePEc:oup:oxford:v:28:y:2012:i:1:p:114-138. 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: (Oxford University Press)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.