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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
    as

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    File URL: http://web.uvic.ca/~repa/publications/REPA%20working%20papers/WorkingPaper2003-01.pdf
    File Function: Final version, 2003
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    References listed on IDEAS

    as
    1. Bulte, Erwin H. & Horan, Richard D., 2003. "Habitat conservation, wildlife extraction and agricultural expansion," Journal of Environmental Economics and Management, Elsevier, vol. 45(1), pages 109-127, January.
    2. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249, March.
    3. Jonathan Yoder, 2002. "Estimation of Wildlife-Inflicted Property Damage and Abatement Based on Compensation Program Claims Data," Land Economics, University of Wisconsin Press, vol. 78(1), pages 45-59.
    4. Rollins, Kimberly & Briggs, Hugh III, 1996. "Moral Hazard, Externalities, and Compensation for Crop Damages from Wildlife," Journal of Environmental Economics and Management, Elsevier, vol. 31(3), pages 368-386, November.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. 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.
    2. 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.
    3. Ainsley, Matthew & Kosoy, Nicolas, 2015. "The tragedy of bird scaring," Ecological Economics, Elsevier, vol. 116(C), pages 122-131.
    4. 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.
    5. Esther Blanco & Javier Lozano, 2012. "Evolutionary success and failure of wildlife conservancy programs," Working Papers 2012-18, Faculty of Economics and Statistics, University of Innsbruck.
    6. repec:kap:enreec:v:67:y:2017:i:4:d:10.1007_s10640-016-0011-9 is not listed on IDEAS
    7. 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.
    8. 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

    compensation; crop damage; wildlife; endangered species preservation; bushmeat trade;

    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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