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Balancing conservation and commerce: A shadow value viability approach for governing bycatch

Author

Listed:
  • Donovan, Pierce
  • Springborn, Michael
Abstract
The losses from extinction events are not well-known, making an expected net benefits approach to conservation problems difficult to implement. A viable control strategy instead focuses on limiting the risk of extinction to some acceptably low level at the least possible cost. Here we describe a shadow value viability approach for solving conservation problems with irreversible thresholds with dynamic programming. A social planner calculates the minimal (virtual) level of loss from extinction that would trigger sufficient action to avoid extinction with the desired confidence. The cost-effective policy then arises from acting as if the resulting shadow value is real. We demonstrate the method in a numerical application to the conservation of the Pacific leatherback turtle population, which co-mingles with the Pacific swordfish fishery. We show how the cost-effective outcome can be achieved among decentralized fishers by using the planner’s shadow value to set market-based instruments for managing turtle bycatch. This approach translates the species viability objective into economic terms so conservation and commercial harvest can be rationally integrated.

Suggested Citation

  • Donovan, Pierce & Springborn, Michael, 2022. "Balancing conservation and commerce: A shadow value viability approach for governing bycatch," Journal of Environmental Economics and Management, Elsevier, vol. 114(C).
    • Handle: RePEc:eee:jeeman:v:114:y:2022:i:c:s0095069622000572
    DOI: 10.1016/j.jeem.2022.102689
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    References listed on IDEAS

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    More about this item

    Keywords

    Viable control; Dynamic programming methods; Shadow valuation; Catastrophes; Thresholds; Bioeconomics; Conservation; Bycatch; Market-based instruments; Multi-species fisheries management;
    All these keywords.

    JEL classification:

    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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