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Ecosystems -- burden or bounty ?

Author

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  • Damania, Richard
  • Scandizzo, Pasquale Lucio
  • Glauber, A.J

Abstract

This paper presents a somewhat novel approach to explore the economic contribution of ecosystems. It develops linked models to capture connections between resource stocks and flows and the resulting microeconomic and macroeconomic impacts. A bioeconomic model is developed that is imbedded into a computable general equilibrium (CGE) model. Incorporating imperfect regulation, the bioeconomic model characterizes optimal policies, while the CGE model explores the economy-wide consequences of possible changes to the ecosystem. The model is parameterized and calibrated to the case of the Serengeti ecosystem which is perhaps the most intensively researched biome with a relative abundance of data. This ecosystem is also undergoing rapid change from a host of factors related to developments within and around the protected area system. The analysis identifies the contribution of the ecosystem to the economy and finds that changes in tourism and bushmeat hunting have surprisingly diffuse economy-wide impacts, that are especially large in the rural sector. To guard against overstatement, ecosystem impacts are under-stated relative to other effects. The results suggest that linkages to the natural resource sector (backward and forward multipliers) are important and neglecting these may lead to biased estimates.

Suggested Citation

  • Damania, Richard & Scandizzo, Pasquale Lucio & Glauber, A.J, 2014. "Ecosystems -- burden or bounty ?," Policy Research Working Paper Series 6890, The World Bank.
    • Handle: RePEc:wbk:wbrwps:6890
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    References listed on IDEAS

    as
    1. Johannesen, Anne Borge, 2006. "Designing integrated conservation and development projects (ICDPs): illegal hunting, wildlife conservation, and the welfare of the local people," Environment and Development Economics, Cambridge University Press, vol. 11(2), pages 247-267, April.
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    4. Anne Johannesen & Anders Skonhoft, 2004. "Property Rights and Natural Resource Conservation. A Bio-Economic Model with Numerical Illustrations from the Serengeti-Mara Ecosystem," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 28(4), pages 469-488, August.
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    More about this item

    Keywords

    Wildlife Resources; Ecosystems and Natural Habitats; Biodiversity; Forestry; Economic Theory&Research;
    All these keywords.

    JEL classification:

    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • Q59 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Other
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q29 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Other

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