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Wildlife Conservation Payments to Address Habitat Fragmentation and Disease Risks

Author

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  • Horan, Richard D.
  • Shogren, Jason F.
  • Gramig, Benjamin M.
Abstract
We build a stylized model to gain insights into the application of conservation payments to protect endangered species in the face of wildlife-livestock disease risks and habitat fragmentation. Greater connectivity of habitat creates an endogenous trade-off. More connectedness ups the chance that populations of endangered species will grow more rapidly; however, greater connectivity also increases the likelihood that diseases will spread more quickly. We analyze subsidies for both habitat connectedness and livestock vaccination. We find the cost-effective policy is to initially subsidize habitat connectivity rather than vaccinations; this increases habitat contiguousness, which eventually also increases disease risks. Once habitat is sufficiently connected, disease risks increase to such a degree to make a vaccination subsidy worthwhile. Highly connected habitat requires nearly all the government budget be devoted to vaccination subsidies. The result of the conservation payments is significantly increased species abundance, for a wide range of initial levels of habitat connectedness.

Suggested Citation

  • Horan, Richard D. & Shogren, Jason F. & Gramig, Benjamin M., 2006. "Wildlife Conservation Payments to Address Habitat Fragmentation and Disease Risks," 2006 Annual meeting, July 23-26, Long Beach, CA 21076, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea06:21076
    DOI: 10.22004/ag.econ.21076
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    References listed on IDEAS

    as
    1. David Finnoff & Jason F. Shogren & Brian Leung & David Lodge, 2005. "Risk and Nonindigenous Species Management," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(3), pages 475-482.
    2. Julian M. Alston & Brian H. Hurd, 1990. "Some Neglected Social Costs of Government Spending in Farm Programs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(1), pages 149-156.
    3. Richard D. Horan & Christopher A. Wolf, 2005. "The Economics of Managing Infectious Wildlife Disease," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(3), pages 537-551.
    4. Shogren, Jason F. & Crocker, Thomas D., 1991. "Risk, self-protection, and ex ante economic value," Journal of Environmental Economics and Management, Elsevier, vol. 20(1), pages 1-15, January.
    5. Thomas Crocker & John Tschirhart, 1992. "Ecosystems, externalities, and economies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 2(6), pages 551-567, November.
    6. Horan, Richard D. & Lupi, Frank, 2005. "Economic Incentives for Controlling Trade-Related Biological Invasions in the Great Lakes," Agricultural and Resource Economics Review, Cambridge University Press, vol. 34(1), pages 75-89, April.
    7. Ehrlich, Isaac & Becker, Gary S, 1972. "Market Insurance, Self-Insurance, and Self-Protection," Journal of Political Economy, University of Chicago Press, vol. 80(4), pages 623-648, July-Aug..
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    Cited by:

    1. Horan, Richard D. & Melstrom, Richard T., 2011. "No sympathy for the devil," Journal of Environmental Economics and Management, Elsevier, vol. 62(3), pages 367-385.
    2. Richard T. Melstrom & David W. Shanafelt & Carson J. Reeling, 2022. "Coordinating investments in habitat management and economic development," Journal of Bioeconomics, Springer, vol. 24(1), pages 67-91, April.
    3. Philip M. Osano & Mohammed Y. Said & Jan de Leeuw & Nicholas Ndiwa & Dickson Kaelo & Sarah Schomers & Regina Birner & Joseph O. Ogutu, 2013. "Why keep lions instead of livestock? Assessing wildlife tourism‐based payment for ecosystem services involving herders in the Maasai Mara, Kenya," Natural Resources Forum, Blackwell Publishing, vol. 37(4), pages 242-256, November.
    4. Ando, Amy W. & Shah, Payal, 2010. "Demand-side factors in optimal land conservation choice," Resource and Energy Economics, Elsevier, vol. 32(2), pages 203-221, April.
    5. Torabi, Nooshin & Bekessy, Sarah A., 2015. "Bundling and stacking in bio-sequestration schemes: Opportunities and risks identified by Australian stakeholders," Ecosystem Services, Elsevier, vol. 15(C), pages 84-92.
    6. Katharine Sims, 2014. "Do Protected Areas Reduce Forest Fragmentation? A Microlandscapes Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 58(2), pages 303-333, June.
    7. Horan, Rick & Finnoff, David & Sims, Charles, 2024. "The Economics of Species' Migration When Space is the Thing that Moves: An Application to Wildlife Disease Management," 2024 Annual Meeting, July 28-30, New Orleans, LA 343973, Agricultural and Applied Economics Association.

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