The Economics of Captive Breeding and Endangered Species Conservation

CIES Working Paper No. 0139

44 Pages Posted: 8 Jan 2002

See all articles by Richard Damania

Richard Damania

World Bank; University of Adelaide - School of Economics

Erwin H. Bulte

Tilburg University - Department of Economics; Wageningen University

Date Written: October 2001

Abstract

There is growing concern that the traditional "protectionist" approach to conservation is expensive and fails to deliver the desired environmental outcomes. Encouraged by economists, "supply side" policies to conserve endangered species have drawn support. By generating supplies from captive-bred animals, wildlife commodity prices are expected to fall, thereby lowering the incentive to poach species in the wild. Supply side policies, however, are based on a naive representation of the institutional framework within which the wildlife trade takes place, and neglect the potential strategic responses of economic agents. Adopting a richer model, we analyze the effect of supply side policies and conclude that under a wide range of circumstances these policies may contribute to further devastation of wild stocks. We derive conditions under which captive breeding contributes to conservation, and discuss implications for policy makers.

Keywords: poaching, preservation, storage, trade ban, laundering, smuggling, price competition, quantity competition, tiger farms, bear farms

Suggested Citation

Damania, Richard and Bulte, Erwin H., The Economics of Captive Breeding and Endangered Species Conservation (October 2001). CIES Working Paper No. 0139. Available at SSRN: https://ssrn.com/abstract=295496 or http://dx.doi.org/10.2139/ssrn.295496

Richard Damania (Contact Author)

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

University of Adelaide - School of Economics ( email )

Adelaide SA, 5005
Australia
+61 8 8303 4933 (Phone)
+61 8 8223 1460 (Fax)

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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