Theoretical Economics Letters

Volume 3, Issue 5 (September 2013)

ISSN Print: 2162-2078   ISSN Online: 2162-2086

Google-based Impact Factor: 1.19  Citations  h5-index & Ranking

A Macroeconomic Model of Biodiversity Protection

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DOI: 10.4236/tel.2013.35A1006    7,357 Downloads   9,896 Views  Citations
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ABSTRACT

Many biodiversity researchers have responded to the financial constraints faced by policy makers to develop models based upon the “Noah’s Ark” metaphor, implying that society can save only a limited amount of biodiversity. Unfortunately, as Herman Daly (Land Economics, 1991) pointed out, such microeconomic rules can allow an ark to sink albeit in some optimal fashion. So, I step back to look at the macroeconomic question, how big should the ark be? I start with Norgaard’s (Ecological Economics, 2010) framework, which is based upon the concept of a production possibility frontier combined with a sustainability criterion. I develop a model from that starting point by shifting to an isoquant framework while maintaining the strong sustainability criterion. I demonstrate how this model allows for identifying and addressing the key biodiversity protection policy criteria at the macroeconomic level. One key conclusion from this modeling is that Daly’s analysis remains remarkably prescient.

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Martin, D. (2013) A Macroeconomic Model of Biodiversity Protection. Theoretical Economics Letters, 3, 39-44. doi: 10.4236/tel.2013.35A1006.

Cited by

[1] The Economics of Environmental Management
An Integrated Approach to Environmental Management, 2015

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