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Compensation for Wildlife Damage: Habitat Conversion, Species Preservation and Local Welfare

Author

Listed:
  • Daniel Rondeau
  • Erwin Bulte

Abstract

We study the environmental and economic consequences of introducing a program to compensate peasants of a small economy for the damage 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. The conditions leading to a reduction of the wildlife stock are identified and the implications for current and planned compensation programs are discussed.

Suggested Citation

  • Daniel Rondeau & Erwin Bulte, 2003. "Compensation for Wildlife Damage: Habitat Conversion, Species Preservation and Local Welfare," Working Papers 2003-01, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.
    • Handle: RePEc:rep:wpaper:2003-01
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    File URL: http://web.uvic.ca/~repa/publications/REPA%20working%20papers/WorkingPaper2003-01.pdf
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    2. 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.
    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. Ainsley, Matthew & Kosoy, Nicolas, 2015. "The tragedy of bird scaring," Ecological Economics, Elsevier, vol. 116(C), pages 122-131.
    5. 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.
    6. James McNamara & Elizabeth J. Z. Robinson & Katharine Abernethy & Donald Midoko Iponga & Hannah N. K. Sackey & Juliet H. Wright & EJ Milner-Gulland, 2020. "COVID-19, Systemic Crisis, and Possible Implications for the Wild Meat Trade in Sub-Saharan Africa," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 76(4), pages 1045-1066, August.
    7. Bhuwan Dhakal & Brijesh Thapa, 2019. "Residents’ perceptions of human–elephant conflict: case study in Bahundangi, Nepal," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 21(1), pages 461-481, February.
    8. Kaiwen Su & Jie Ren & Jie Yang & Yilei Hou & Yali Wen, 2020. "Human-Elephant Conflicts and Villagers’ Attitudes and Knowledge in the Xishuangbanna Nature Reserve, China," IJERPH, MDPI, vol. 17(23), pages 1-16, November.
    9. Esther Blanco & Javier Lozano, 2012. "Evolutionary success and failure of wildlife conservancy programs," Working Papers 2012-18, Faculty of Economics and Statistics, Universität Innsbruck.
    10. 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.
    11. Shang Xu & H. Allen Klaiber & Daniela A. Miteva, 2023. "Impacts of forest conservation on local agricultural labor supply: Evidence from the Indonesian forest moratorium," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(3), pages 940-965, May.
    12. Astrid Zabel & Karen Pittel & Göran Bostedt & Stefanie Engel, 2011. "Comparing Conventional and New Policy Approaches for Carnivore Conservation: Theoretical Results and Application to Tiger Conservation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 48(2), pages 287-301, February.
    13. 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.
    14. Heidi J. Albers & Katherine D. Lee & Jennifer R. Rushlow & Carlos Zambrana-Torrselio, 2020. "Disease Risk from Human–Environment Interactions: Environment and Development Economics for Joint Conservation-Health Policy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 76(4), pages 929-944, August.
    15. Adrian A. Lopes & Shady S. Atallah, 2021. "Correction to: Worshipping the Tiger: Modeling Non‑use Existence Values of Wildlife Spiritual Services," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 78(2), pages 375-379, February.
    16. 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.

    More about this item

    Keywords

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    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • F18 - International Economics - - Trade - - - Trade and Environment

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