Reconciling Conservation and Development: A Dynamic Hotelling Model of Extractive Reserves
Land Economics, Vol. 80, No. 3, pp. 340-354, August 2004
Posted: 14 Dec 2004
The instrument of extractive reserves has been advertised as a novel approach to reconciling biodiversity conservation and economic development. The empirical literature analysing extractive reserves, however, delivers an ambiguous assessment of its success. This paper asks whether extractive reserves are capable of delivering long-term development benefits even in theory. The analysis is carried out by assessing the long-run viability of an extractive reserve under a set of favourable conditions, through a dynamic model of spatial competition. We show that for extractive reserves to be even theoretically viable a number of restrictive conditions have to be fulfilled.
Keywords: Environmental Conservation, Regional Development, Extractive Reserves, Hotelling
JEL Classification: Q32
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