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Government intervention in wildlife damage management: a bioeconomic analysis of wildlife damage compensation and taxation policies

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  • Zijin Xie

    (Keio University)

Abstract

This paper develops a bioeconomic model to investigate the effects of wildlife damage compensation programs, and income taxes, on both wildlife population and social welfare. Wildlife damage compensation programs generally compensate local people after wildlife damage occurred. In our model, the compensation program is financed by government tax revenue. We clarify how the production and consumption behaviors of local people change after introducing income taxes for the compensation program. Based on the steady-state analysis and numerical simulation, we conclude that with appropriate taxation policy under certain conditions, a self-financing wildlife damage compensation programs can both increase wildlife population and improve local social welfare, even under the circumstance where compensation programs financed by external resources lower them, which is obtained in the previous studies.

Suggested Citation

  • Zijin Xie, 2022. "Government intervention in wildlife damage management: a bioeconomic analysis of wildlife damage compensation and taxation policies," Journal of Bioeconomics, Springer, vol. 24(1), pages 93-115, April.
    • Handle: RePEc:kap:jbioec:v:24:y:2022:i:1:d:10.1007_s10818-021-09314-y
    DOI: 10.1007/s10818-021-09314-y
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    References listed on IDEAS

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    More about this item

    Keywords

    Wildlife conservation; Wildlife damage compensation; Agricultural tax; Bioeconomic model;
    All these keywords.

    JEL classification:

    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium

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