Economic Growth, Biodiversity Loss and Conservation Effort

Posted: 27 Aug 2010 Last revised: 4 Jul 2013

See all articles by Simon Dietz

Simon Dietz

London School of Economics - Grantham Research Institute on Climate Change and the Environment and Department of Geography and Environment

W. Neil Adger

University of East Anglia (UEA)

Date Written: 2003

Abstract

This paper investigates the relationship between economic growth, biodiversity loss and efforts to conserve biodiversity using a combination of panel and cross section data. If economic growth is a cause of biodiversity loss through habitat transformation and other means, then we would expect an inverse relationship. But if higher levels of income are associated with increasing real demand for biodiversity conservation, then investment to protect remaining diversity should grow and the rate of biodiversity loss should slow with growth. Initially, economic growth and biodiversity loss are examined within the framework of the environmental Kuznets hypothesis. Biodiversity is represented by predicted species richness, generated for tropical terrestrial biodiversity using a species-area relationship. The environmental Kuznets hypothesis is investigated with reference to comparison of fixed and random effects models to allow the relationship to vary for each country. It is concluded that an environmental Kuznets curve between income and rates of loss of habitat and species does not exist in this case. The role of conservation effort in addressing environmental problems is examined through state protection of land and the regulation of trade in endangered species, two important means of biodiversity conservation. This analysis shows that the extent of government environmental policy increases with economic development. We argue that, although the data are problematic, the implications of these models is that conservation effort can only ever result in a partial deceleration of biodiversity decline partly because protected areas serve multiple functions and are not necessarily designated to protect biodiversity. Nevertheless institutional and policy response components of the income biodiversity relationship are important but are not well captured through cross-country regression analysis.

Keywords: Environmental Kuznets curve, biodiversity, species-area relationship, conservation effort

JEL Classification: Q23, Q27, Q57

Suggested Citation

Dietz, Simon and Adger, Neil, Economic Growth, Biodiversity Loss and Conservation Effort (2003). Journal of Environmental Management, Vol. 68, No. 1, pp. 23-35, 2003, Available at SSRN: https://ssrn.com/abstract=1665042

Simon Dietz (Contact Author)

London School of Economics - Grantham Research Institute on Climate Change and the Environment and Department of Geography and Environment ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

HOME PAGE: http://personal.lse.ac.uk/dietzs

Neil Adger

University of East Anglia (UEA) ( email )

Norwich, Norfolk NR4 7TJ
United Kingdom

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