Endangered Species and Timber Harvesting: The Case of Red‐Cockaded Woodpeckers

Abstract

This article presents a theoretical framework and empirical evidence on the relationship between regulatory uncertainty induced by the possible invasion of an endangered species—the red‐cockaded woodpecker (RCW)—and timber harvesting. The results indicate that landowners whose forests are close to a known or perceived RCW habitat have a high propensity to cut timber and use a clear‐cut method. These preemptive actions are apparently aimed at destroying potential RCW habitat so that the existing values of their property could be protected from the Endangered Species Act (ESA)–related land use limitations.