Infrastructure, Institutions, and the Conservation of Biodiversity in India

Raahil Madhok

Journal of the Association of Environmental and Resource Economists, 2025, vol. 12, issue 6, 1705 - 1745

Abstract: Anthropogenic land use change is the leading threat to biodiversity. This study examines how infrastructure expansion degrades biodiversity and what role local institutions play in mitigating species loss. Combining new data from India on infrastructure-driven deforestation with 1 million bird-watching diaries, I document a sizable infrastructure-biodiversity trade-off. Forest encroachment by transport, irrigation, resettlement camps, and mining projects accounts for 20% of total species loss. The trade-off is especially acute in already-fragmented landscapes, and species diversity does not recover in the medium run. Yet the extent of species loss is more than halved when local institutions enable marginalized communities, who are often excluded from project planning, to mobilize around their interests. Informed consent between developers and tribal communities is a key mechanism, underscoring the importance of inclusive institutions for balancing development and conservation.

Date: 2025
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