The Economics of Endangered Species Poaching

endangered species, poaching, International trade

CAN DOMESTICATION OF WILDLIFE LEAD TO CONSERVATION? THE ECONOMICS OF TIGER FARMING IN CHINA

Tigers are a threatened species that might soon disappear in the wild. Not only are tigers threatened by deteriorating and declining habitat, but poachers continue to kill tigers for traditional medicine, decoration pieces and so on. Although international trade in tiger products has been banned since 1987 and domestic trade within China since 1993, tigers continue to be poached and Chinese entrepreneurs have established tiger farms in anticipation of their demise. While China desires to permit sale of tiger products from captive-bred tigers, this is opposed on the grounds that it likely encourages illegal killing. Instead, wildlife conservationists lobby for more spending on anti-poaching and trade-ban enforcement. In this study, a mathematical bioeconomic model is used to investigate the issue. Simulation results indicate that, unless range states are characterized by institutions (rule of law, low corruption) similar to those found in the richest countries, reliance on enforcement alone is insufficient to guarantee survival of wild tigers. Likewise, even though conservation payments could protect wild tigers, the inability to enforce contracts militates against this. Our model indicates that wild tigers can be protected by permitting sale of products from tiger farms, although this likely requires the granting of an exclusive license to sellers. Finally, it is possible to tradeoff enforcement effort and sale of products from captive-bred animals, but such tradeoffs are worsened by deteriorating tiger habitat.endangered species and extinction, wildlife farming, economics of natural, mathematical bioeconomics, Environmental Economics and Policy, Q27, C61, Q57,

Can Domestication of Wildlife Lead to Conservation? The Economics of Tiger Farming in China

Tigers are a threatened species that might soon disappear in the wild. Not only are tigers threatened by deteriorating and declining habitat, but poachers continue to kill tigers for traditional medicine, decoration pieces and so on. Although international trade in tiger products has been banned since 1987 and domestic trade within China since 1993, tigers continue to be poached and Chinese entrepreneurs have established tiger farms in anticipation of their demise. While China desires to permit sale of tiger products from captive-bred tigers, this is opposed on the grounds that it likely encourages illegal killing. Instead, wildlife conservationists lobby for more spending on anti-poaching and trade-ban enforcement. In this study, a mathematical bioeconomic model is used to investigate the issue. Simulation results indicate that, unless range states are characterized by institutions (rule of law, low corruption) similar to those found in the richest countries, reliance on enforcement alone is insufficient to guarantee survival of wild tigers. Likewise, even though conservation payments could protect wild tigers, the inability to enforce contracts militates against this. Our model indicates that wild tigers can be protected by permitting sale of products from tiger farms, although this likely requires the granting of an exclusive license to sellers. Finally, it is possible to tradeoff enforcement effort and sale of products from captive-bred animals, but such tradeoffs are worsened by deteriorating tiger habitat.endangered species, extinction, wildlife farming and bioeconomics

On Optimal British Columbia Log Export Policy: An Application of Trade theory

The log export policy suggestion by Dumont and Wright (2006) is critically assessed in an effort to determine if it is based on economic efficiency. The optimal log export policy for British Columbia is derived using two different models. The first model assumes that B.C. is a small open economy, and the second is a two country model that provides B.C. the opportunity to improve its terms of trade. In both cases it is shown that an optimal log export tax when a fixed lumber export tax exists can be characterized as a problem of second best. In that scenario the optimal log export policy is a positive export tax in both models. In the second model a positive export tax is also optimal when there is no lumber export tax, but it is smaller than when the lumber export tax is levied. In comparison to the log export tax recommended by Dumont and Wright (2006), the optimal tax for a small economy is always lower, while it is lower only in certain circumstances for an economy with market power. These results suggest that the Dumont and Wright policy is not efficient.softwood lumber trade, lumber and log interaction, log export tax

An Economic Analysis of Mountain Pine Beetle Impacts in a Global Context

The economic effects of the mountain pine beetle outbreak in British Columbia are simulated using a multi-region spatial price equilibrium model coupled with a stochastic dynamic updating procedure. The simulation captures expected changes in the B.C. timber supply, growth of plantation forests in the southern hemisphere and an escalating Russian log export tax. The results indicate lumber and log prices will rise in B.C., offsetting some of the economic loss to timber producers. However, on net producers in the B.C. forest industry will experience a decrease in economic surplus.Mountain pine beetle; spatial price equilibirum; trade modeling

Education Policy and Intergenerational Transfers in Equilibrium

This paper compares partial and general equilibrium effects of alternative financial aid policies intended to promote college participation. We build an overlapping generations life-cycle, heterogeneous-agent, incomplete-markets model with education, labor supply, and consumption/saving decisions. Altruistic parents make inter vivos transfers to their children. Labor supply during college, government grants and loans, as well as private loans, complement parental transfers as sources of funding for college education. We find that the current financial aid system in the U.S. improves welfare, and removing it would reduce GDP by two percentage points in the long-run. Any further relaxation of government-sponsored loan limits would have no salient effects. The short-run partial equilibrium effects of expanding tuition grants (especially their need-based component) are sizeable. However, long-run general equilibrium effects are 3-4 times smaller. Every additional dollar of government grants crowds out 20-30 cents of parental transfers

Education Policy and Intergenerational Transfers in Equilibrium

This paper examines the equilibrium effects of alternative financial aid policies intended to promote college participation. We build an overlapping generations life cycle model with education, labor supply, and consumption/saving decisions. Cognitive and non-cognitive skills of children depend on the cognitive skills and education of parents, and affect education choice and labor market outcomes. Driven by both altruism and paternalism, parents make transfers to their children which can be used to fund education, supplementing grants, loans and the labor supply of the children themselves during college. The crowding out of parental transfers by government programs is sizable and thus cannot be ignored when designing policy. The current system of federal aid is valuable: removing either grants or loans would each reduce output by 2% and welfare by 3% in the long-run. An expansion of aid towards ability-tested grants would be markedly superior to either an expansion of student loans or a labor tax cut. This result is, in part, due to the complementarity between parental education and ability in the production of skills of future generations

Education Policy and Intergenerational Transfers in Equilibrium

This paper examines the equilibrium effects of alternative financial aid policies intended to promote college participation. We build an overlapping generations life-cycle, heterogeneous-agent, incomplete-markets model with education, labor supply, and consumption/saving decisions. Driven by both altruism and paternalism, parents make inter vivos transfers to their children. Both cognitive and non-cognitive skills determine the non-pecuniary cost of schooling. Labor supply during college, government grants and loans, as well as private loans, complement parental resources as means of funding college education. We find that the current financial aid system in the U.S. improves welfare, and removing it would reduce GDP by 4-5 percentage points in the long-run. Further expansions of government-sponsored loan limits or grants would have no salient aggregate effects because of substantial crowding-out: every additional dollar of government grants crowds out 30 cents of parental transfers plus an equivalent amount through a reduction in student’s labor supply. However, a small group of high-ability children from poor families, especially girls, would greatly benefit from more generous federal aid

Valuing initial teacher education at Master's level

The future of Master’s-level work in initial teacher education (ITE) in England seems uncertain. Whilst the coalition government has expressed support for Master’s-level work, its recent White Paper focuses on teaching skills as the dominant form of professional development. This training discourse is in tension with the view of professional learning advocated by ITE courses that offer Master’s credits. Following a survey of the changing perceptions of Master’s-level study during a Post Graduate Certificate in Education course by student teachers in four subject groups, this paper highlights how the process of professional learning can have the most impact on how they value studying at a higher level during their early professional development

Cigarette Smoke Extract (CSE) Delays NOD2 Expression and Affects NOD2/RIPK2 Interactions in Intestinal Epithelial Cells

Genetic and environmental factors influence susceptibility to Crohn's disease (CD): NOD2 is the strongest individual genetic determinant and smoking the best-characterised environmental factor. Carriage of NOD2 mutations predispose to small-intestinal, stricturing CD, a phenotype also associated with smoking. We hypothesised that cigarette smoke extract (CSE) altered NOD2 expression and function in intestinal epithelial cells.Intestinal epithelial cell-lines (SW480, HT29, HCT116) were stimulated with CSE and nicotine (to mimic smoking) ±TNFα (to mimic inflammation). NOD2 expression was measured by qRT-PCR and western blotting; NOD2-RIPK2 interactions by co-immunoprecipitation (CoIP); nuclear NFκB-p65 by ELISA; NFκB activity by luciferase reporter assays and chemokines (CCL20, IL8) in culture supernatants by ELISA. In SW480 and HT29 cells the TNFα-induced NOD2 expression at 4 hours was reduced by CSE (p = 0.0226), a response that was dose-dependent (p = 0.003) and time-dependent (p = 0.0004). Similar effects of CSE on NOD2 expression were seen in cultured ileal biopsies from healthy individuals. In SW480 cells CSE reduced TNFα-induced NFκB-p65 translocation at 15 minutes post-stimulation, upstream of NOD2. Levels of the NOD2-RIPK2 complex were no different at 8 hours post-stimulation with combinations of CSE, nicotine and TNFα, but at 18 hours it was increased in cells stimulated with TNFα+CSE but decreased with TNFα alone (p = 0.0330); CSE reduced TNFα-induced NFκB activity (p = 0.0014) at the same time-point. At 24 hours, basal CCL20 and IL8 (p<0.001 for both) and TNFα-induced CCL20 (p = 0.0330) production were decreased by CSE. CSE also reduced NOD2 expression, CCL20 and IL8 production seen with MDP-stimulation of SW480 cells pre-treated with combinations of TNFα and CSE.CSE delayed TNFα-induced NOD2 mRNA expression and was associated with abnormal NOD2/RIPK2 interaction, reduced NFκB activity and decreased chemokine production. These effects may be involved in the pathogenesis of small-intestinal CD and may have wider implications for the effects of smoking in NOD2-mediated responses