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Biodiversity and GeographyMichael RauscherUniversity of Rostock - Department of Economics; University of Rostock - Faculty of Business Administration, Economics and Social Sciences; CESifo (Center for Economic Studies and Ifo Institute for Economic Research) Edward B. BarbierUniversity of Wyoming - College of Business - Department of Economics and Finance June 2007 CESifo Working Paper Series No. 2022 Abstract: The paper combines an economic-geography model of agglomeration and periphery with a model of species diversity and looks at optimal policies of biodiversity conservation. The subject of the paper is natural biodiversity, which is inevitably impaired by anthropogenic impact. Thus, the economic and the ecological system compete for space and the question arises as to how this conflict should be resolved. The decisive parameters of the model are related to biological diversity (endemism vs. redundancy of species) and the patterns of economic geography (centrifugal and centripetal forces). As regards the choice of environmental-policy instruments, it is shown that Pigouvian taxes do not always establish the optimal allocation.
Number of Pages in PDF File: 33 Keywords: biodiversity, new economic geography, agglomeration, species redundancy vs. endemism, environmental regulation JEL Classification: Q56, Q57, Q58, R12, R14, R23 working papers seriesDate posted: June 25, 2007Suggested CitationContact Information
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