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What Drives Biodiversity? An Empirical Assessment of the Relation between Biodiversity and the Economy

Author

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  • Andreas Freytag

    () (School of Economics and Business Administration, Friedrich-Schiller-University Jena)

  • C. Vietze
  • W. Völkl

Abstract

The environmental discussion is increasingly extended to the question of how to preserve biodiversity. As sensible regulation of biodiversity utilization uses politically set incentive schemes, it is required to discus the monetary value of biodiversity. Consequently, the relation between economic incentives and biodiversity is in the focus of our paper. By using bird species as bio indicators we derive first empirical results. In sum, one still may conclude that indeed economic growth is harmful for biodiversity. This is at least in line with the first part of biodiversity Kuznets curve. However, the existence of good institutions (especially a high quality of regulation) can in part prevent this effect, which can be cautiously interpreted as a hint that economic growth is not necessarily related to losses of biodiversity. With good governmental institutions, these losses may be prevented or mitigated.

Suggested Citation

  • Andreas Freytag & C. Vietze & W. Völkl, 2009. "What Drives Biodiversity? An Empirical Assessment of the Relation between Biodiversity and the Economy," Jena Economic Research Papers 2009-025, Friedrich-Schiller-University Jena.
  • Handle: RePEc:jrp:jrpwrp:2009-025
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    Cited by:

    1. Angela Münch, 2010. "Agri-Environmental Schemes and Grassland Biodiversity: Another Side of the Coin," Jena Economic Research Papers 2010-026, Friedrich-Schiller-University Jena.
    2. Ariane Manuela Amin, 2012. "What Drives Biodiversity Conservation Effort in the Developing World? An analysis for Sub-Saharan Africa," Working Papers halshs-00722081, HAL.
    3. Andreas Freytag & Christoph Vietze, 2013. "Can nature promote development? The role of sustainable tourism for economic growth," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 2(1), pages 16-44, March.
    4. Ariane Amin & Johanna Choumert, 2015. "Development and biodiversity conservation in Sub-Saharan Africa: A spatial analysis," Economics Bulletin, AccessEcon, vol. 35(1), pages 729-744.

    More about this item

    Keywords

    economic growth; institutions; development; biodiversity; cross country analysis;

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q27 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Issues in International Trade

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