ECONOMICS OF SPECIES EXTINCTION. “ Extinction is an economic problem precisely because it is a resource allocation problem”. Clark Model (1973). Takes into account: Extinction of individual well-recognised species Biodiversity loss Based on 3 factors: Open access to resource
“Extinction is an economic problem precisely because it is a resource allocation problem”
Slow growth rates relative to other assets in the economy is a route to species extinction.
EXTINCTION AS A HUMAN RESPONSIBILITY
Investment on resources for the survival of the species or competing uses for the resources????????????????????
H (x) = x(R-x)
H (x): flow from a stock
X: existing stock
R: available carrying capacity
- Niche to be filled: energy to fill it
- Niche is filled: energy to maintain it
“Growth rate is linked to the available niche”
“If a species is using some resources, it must be able to afford a competitive return of them”
Marginal rate of return
Deforestation of the tropical hardwood forests
African elephant, rhinoceros, wild birds
Unknown life forms such as plants and insects
Overexploitation is the main causefishing and hunting oceanic species at unsustainable levels.
Open access resource was likely to be unsustainable if two conditions occur:
It cannot be assumed that all existing resources are going to be protected.
The choice on how to allocate the resources determines which species will proliferate an which will perish.
(By Robert R. Alexander)
To come up with a bioeconomic model of species extinction
1º)The causes of why certain species don´t tend toward extinction based in tha Clark & Swanson theories
2º) The conceptual model based on non-consumptive values
3º) Implications for species extinction
Example: The African Elephant model
1. Stage of expanding harvest
2. Increase of the exploitation
3. Solutions are required
EXTINTION MAY RESULT FROM PRESENT VALUE MAXIMIZATION
adopt regulations to prevent
near complete extermination
of the blue whale.