IDEAS home Printed from https://ideas.repec.org/p/rep/wpaper/2003-01.html
   My bibliography  Save this paper

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

    Download full text from publisher

    File URL: http://web.uvic.ca/~repa/publications/REPA%20working%20papers/WorkingPaper2003-01.pdf
    File Function: Final version, 2003
    Download Restriction: no
    ---><---

    Other versions of this item:

    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, September.
    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

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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. Abildtrup, Jens & Jensen, Frank, 2014. "The regulation of hunting: A game population based tax on hunters," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 95(3).
    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. 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.
    14. Adrian A. Lopes & Shady S. Atallah, 2020. "Worshipping the Tiger: Modeling Non-use Existence Values of Wildlife Spiritual Services," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 76(1), pages 69-90, May.
    15. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jensen, Frank & Jacobsen, Jette Bredahl & Thorsen, Bo Jellesmark, 2016. "Designing hunting regulation under population uncertainty and self-reporting," Journal of Forest Economics, Elsevier, vol. 24(C), pages 157-171.
    2. Ainsley, Matthew & Kosoy, Nicolas, 2015. "The tragedy of bird scaring," Ecological Economics, Elsevier, vol. 116(C), pages 122-131.
    3. Kotchen, Matthew J. & Salant, Stephen W., 2011. "A free lunch in the commons," Journal of Environmental Economics and Management, Elsevier, vol. 61(3), pages 245-253, May.
    4. Frans P. Vries & Nick Hanley, 2016. "Incentive-Based Policy Design for Pollution Control and Biodiversity Conservation: A Review," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(4), pages 687-702, April.
    5. Yu-Bong Lai, 2004. "Trade liberalization, consumption externalities and the environment," Economics Bulletin, AccessEcon, vol. 17(5), pages 1-9.
    6. Ni, Jinlan & Wei, Chu & Du, Limin, 2015. "Revealing the political decision toward Chinese carbon abatement: Based on equity and efficiency criteria," Energy Economics, Elsevier, vol. 51(C), pages 609-621.
    7. Giancarlo Giudici & Massimiliano Guerini & Cristina Rossi-Lamastra, 2019. "The creation of cleantech startups at the local level: the role of knowledge availability and environmental awareness," Small Business Economics, Springer, vol. 52(4), pages 815-830, April.
    8. Grüll, Georg & Taschini, Luca, 2011. "Cap-and-trade properties under different hybrid scheme designs," Journal of Environmental Economics and Management, Elsevier, vol. 61(1), pages 107-118, January.
    9. Na Li Dawson & Kathleen Segerson, 2008. "Voluntary Agreements with Industries: Participation Incentives with Industry-Wide Targets," Land Economics, University of Wisconsin Press, vol. 84(1), pages 97-114.
    10. Sam Fankhauser & Cameron Hepburn, 2009. "Carbon markets in space and time," GRI Working Papers 3, Grantham Research Institute on Climate Change and the Environment.
    11. Ehigiamusoe, Kizito Uyi & Lean, Hooi Hooi & Smyth, Russell, 2020. "The moderating role of energy consumption in the carbon emissions-income nexus in middle-income countries," Applied Energy, Elsevier, vol. 261(C).
    12. Joseph E. Aldy & William A. Pizer, 2009. "Issues in Designing U.S. Climate Change Policy," The Energy Journal, , vol. 30(3), pages 179-210, July.
    13. Thomas Akpan Harry & Ekemini John Peter & Nsidibe Akpan Udoduk, 2022. "Environmental Impact Assessment Of Oil Producing Communities In Part Of The Niger Delta. A Case Study Of Ibeno, Ikot Abasi, Onna And Esit-Eket Local Government Area In Akwa Ibom State, Nigeria," Environmental Contaminants Reviews (ECR), Zibeline International Publishing, vol. 5(2), pages 49-56, April.
    14. Stavins, Robert, 2001. "Lessons From the American Experiment With Market-Based Environmental Policies," RFF Working Paper Series dp-01-53, Resources for the Future.
    15. Wu, JunJie & Zilberman, David & Babcock, Bruce A., 2001. "Environmental and Distributional Impacts of Conservation Targeting Strategies," Journal of Environmental Economics and Management, Elsevier, vol. 41(3), pages 333-350, May.
    16. Boisvert, Richard N. & Peterson, Jeffrey M., 1996. "Conditions for Requiring Separate Green Payments Policies Under Asymmetric Information," Working Papers 127934, Cornell University, Department of Applied Economics and Management.
    17. Janusch, Nicholas, 2016. "A note on the distortionary effects of revenue-neutral tolls in a bottleneck congestion game," Transportation Research Part A: Policy and Practice, Elsevier, vol. 92(C), pages 95-103.
    18. Berta, Nathalie, 2015. "Prix versus quantités : les contorsions du marché du carbone européen," Revue de la Régulation - Capitalisme, institutions, pouvoirs, Association Recherche et Régulation, vol. 18.
    19. Managi, Shunsuke & Opaluch, James J. & Jin, Di & Grigalunas, Thomas A., 2006. "Stochastic frontier analysis of total factor productivity in the offshore oil and gas industry," Ecological Economics, Elsevier, vol. 60(1), pages 204-215, November.
    20. Jeffrey P. Cohen & Cletus C. Coughlin, 2003. "Congestion at airports: the economics of airport expansions," Review, Federal Reserve Bank of St. Louis, vol. 85(May), pages 9-26.

    More about this item

    Keywords

    compensation; crop damage; wildlife; endangered species preservation; bushmeat trade;
    All these keywords.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rep:wpaper:2003-01. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: G.C. van Kooten (email available below). General contact details of provider: https://edirc.repec.org/data/devicca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.