Reconciling Conservation and Development: A Dynamic Hotelling Model of Extractive Reserves

Land Economics, Vol. 80, No. 3, pp. 340-354, August 2004

Posted: 14 Dec 2004

See all articles by Timo Goeschl

Timo Goeschl

University of Heidelberg - Alfred Weber Institute for Economics

Danilo Camargo Igliori

University of Cambridge - Department of Land Economy

Abstract

The instrument of extractive reserves has been advertised as a novel approach to reconciling biodiversity conservation and economic development. The empirical literature analysing extractive reserves, however, delivers an ambiguous assessment of its success. This paper asks whether extractive reserves are capable of delivering long-term development benefits even in theory. The analysis is carried out by assessing the long-run viability of an extractive reserve under a set of favourable conditions, through a dynamic model of spatial competition. We show that for extractive reserves to be even theoretically viable a number of restrictive conditions have to be fulfilled.

Keywords: Environmental Conservation, Regional Development, Extractive Reserves, Hotelling

JEL Classification: Q32

Suggested Citation

Goeschl, Timo and Igliori, Danilo Camargo, Reconciling Conservation and Development: A Dynamic Hotelling Model of Extractive Reserves. Land Economics, Vol. 80, No. 3, pp. 340-354, August 2004, Available at SSRN: https://ssrn.com/abstract=631562

Timo Goeschl

University of Heidelberg - Alfred Weber Institute for Economics ( email )

Bergheimer Str. 20
D-69115 Heidelberg
Germany

Danilo Camargo Igliori (Contact Author)

University of Cambridge - Department of Land Economy ( email )

19 Silver Street
Cambridge, CB3 9EP
United Kingdom

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