Wildlife Damage and Agriculture: A Dynamic Analysis of Compensation Schemes

Daniel Rondeau and Erwin Bulte

American Journal of Agricultural Economics, 2007, vol. 89, issue 2, 490-507

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. Copyright 2007, Oxford University Press.

Date: 2007
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