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Relaxing Constraints as a Conservation Policy

Author

Listed:
  • Ben Groom

    (Senior Lecturer in Economics, Department of Economics, School of Oriental and African Studies, UK)

  • Charles Palmer

    (Lecturer in Environment and Development, Department of Geography and Environment, London School of Economics, UK)

Abstract

Eco-entrepreneurs in developing countries are often subject to market or institutional constraints, e.g. via credit rationing or missing markets. Conservation interventions which relax constraints may be both cost-effective and poverty reducing. A simulation using data from an intervention in Madagascar to relax the technological constraints of forest honey production investigates this possibility. Cost-effectively achieving dual environment-development goals is shown to depend on the severity of constraints, relative prices and, importantly, the nature of technology. Success is more likely for technologies exhibiting close to constant returns to scale or high input complementarity. Forest honey does not meet these requirements, whereas sustainable forest management may well do. Ultimately, where market or institutional constraints are present, knowledge of the recipient technology is required for more informed, efficient and perhaps, more politically-acceptable conservation policy.

Suggested Citation

  • Ben Groom & Charles Palmer, 2012. "Relaxing Constraints as a Conservation Policy," Working Papers 2012.63, Fondazione Eni Enrico Mattei.
  • Handle: RePEc:fem:femwpa:2012.63
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Lykke Andersen & Ugur Bilge & Ben Groom & David Gutierrez & Evan Killick & Juan Carlos Ledezma & Charles Palmer & Diana Weinhold, 2014. "Modelling land use, deforestation, and policy analysis: A hybrid optimization-ABM heterogeneous agent model with application to the Bolivian Amazon," GRI Working Papers 164, Grantham Research Institute on Climate Change and the Environment.
    2. Andersen, Lykke E. & Groom, Ben & Killick, Evan & Ledezma, Juan Carlos & Palmer, Charles & Weinhold, Diana, 2017. "Modelling Land Use, Deforestation, and Policy: A Hybrid Optimisation-Heterogeneous Agent Model with Application to the Bolivian Amazon," Ecological Economics, Elsevier, vol. 135(C), pages 76-90.
    3. Brusselaers, Jan & Van Huylenbroeck, Guido & Buysse, Jeroen, 2017. "Green Public Procurement of Certified Wood: Spatial Leverage Effect and Welfare Implications," Ecological Economics, Elsevier, vol. 135(C), pages 91-102.
    4. Carlson, Anna & Palmer, Charles, 2016. "A qualitative meta-synthesis of the benefits of eco-labeling in developing countries," Ecological Economics, Elsevier, vol. 127(C), pages 129-145.
    5. Cranford, Matthew & Mourato, Susana, 2014. "Credit-Based Payments for Ecosystem Services: Evidence from a Choice Experiment in Ecuador," World Development, Elsevier, vol. 64(C), pages 503-520.

    More about this item

    Keywords

    Payments for Environmental Services (PES); Market Constraints; Cost-Effectiveness; Efficiency;

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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