Wildlife Damage and Agriculture: A Dynamic Analysis of Compensation Schemes

Posted: 26 Jul 2007

See all articles by Daniel Rondeau

Daniel Rondeau

University of Victoria - Department of Economics

Erwin H. Bulte

Tilburg University - Department of Economics; Wageningen University

Abstract

We study the environmental and economic consequences of introducing a program to compensate peasants for damages 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. We identify the conditions leading to a reduction of the wildlife stock and discuss the implications for current and planned compensation programs in Africa and Asia.

Suggested Citation

Rondeau, Daniel and Bulte, Erwin H., Wildlife Damage and Agriculture: A Dynamic Analysis of Compensation Schemes. American Journal of Agricultural Economics, Vol. 89, No. 2, pp. 490-507, May 2007, Available at SSRN: https://ssrn.com/abstract=1002750 or http://dx.doi.org/10.1111/j.1467-8276.2007.00995.x

Daniel Rondeau (Contact Author)

University of Victoria - Department of Economics ( email )

Victoria V8W Y2Y, BC
Canada

HOME PAGE: http://web.uvic.ca/~rondeau

Erwin H. Bulte

Tilburg University - Department of Economics ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands
+31 13 466 9111 (Phone)

Wageningen University

Hollandseweg 1
6706 KN
Wageningen
Netherlands

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