Conservation(2)

Conservation(2) - Conservation Elongated Elephant Bulte,...

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Conservation
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Elongated Elephant
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Bulte, Van Kooten CITES Bans TRADE in endangered species Reduces Demand Should be good for elephants, etc (Same argument for Viagra saving Rhinos)
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Poaching Poaching model is the fishing model, but adds enforcement. P price E effort (poaching B enforcement effort X stock F fine (punishment)
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kExp is revenue as in fishing C(B) E is cost of poaching and increases in B, enforcement. Costs of evading getting caught. T E (zkEx +p) expected value of punishment TE is likelihood of getting cauth Last element is the fine where z is a parameter Notice that this term has two E’s which drives everything
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Zero Profits for Long Run 0 = kExP – C(B) E – TE (zkEx +p) Zero long run profits Gives E(P, B, …) Point is that poaching increases in price and decreases in enforcement. h = kEx is harvest
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Look at the Table CITES goes Along with DECREASED enforcement Reminiscent of Kip Viscusi’s idea of a taste for danger. (Gov makes you wear seatbelts, so you drive faster to get in your danger quota.)
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Social Planner Problem 1 Elephant = 4.7 cows in terms of forage D(x) is foregone forage W(B) costs of enforcement R(x) are the existence values and tourism values zTh is the value of the gov’t seized ivory Q is total sold ivory including legal harvest and illegal
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Conservation(2) - Conservation Elongated Elephant Bulte,...

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