Wildlife Damage and Agriculture: A Dynamic Analysis of Compensation Schemes

E.H. Bulte, D. Rondeau

Research output: Contribution to journalArticleAcademicpeer-review

26 Citations (Scopus)


We study the environmental and economic consequences of introducing a program to compensate peasants for damages caused by wildlife. We show that the widely held belief that compensation induces wildlife conservation may be erroneous. In a partially open economy, compensation can lower the wildlife stock and result in a net welfare loss for local people. In an open economy, compensation can trigger wildlife extinction and also reduce welfare. We identify the conditions leading to a reduction of the wildlife stock and discuss the implications for current and planned compensation programs in Africa and Asia.
Original languageEnglish
Pages (from-to)490-507
JournalAmerican Journal of Agricultural Economics
Issue number2
Publication statusPublished - 2007


  • development-projects icdps
  • property-rights
  • integrated conservation
  • habitat conservation
  • economics
  • protection
  • ecosystem
  • payments
  • reserve
  • impact

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