Low-cost electric fencing for peaceful coexistence: An analysis of human-wildlife conflict mitigation strategies in smallholder agriculture

Abstract

With a growing global population, human-wildlife conflicts (HWCs) are intensifying and cost-effective mitigation strategies to conserve biodiversity and support rural livelihoods become increasingly relevant. This article presents evidence on how low-cost electric fencing (EF) technology can contribute to a peaceful coexistence between farmers and wildlife. Applying an economic analysis, the effectiveness of smallholders' predominant HWC mitigation strategies in Bhutan are assessed. In Bhutan, HWCs are severe and investments in EF are expanding with about 10% of agricultural land already fenced. The analysis reveals high effectiveness and profitability of EF compared with labor-intensive crop guarding strategies despite smallholders' high time preference. EF profitability particularly depends on net labor savings from reduced time-use for crop guarding. Results emphasize the need for collective action at the community level, since due to small landholdings individually operated EF schemes are unprofitable in most cases. The findings are robust across ecological conditions and variations in key parameters, such as the discount rate (reflecting smallholders' time preference) and opportunity cost of labor. Particularly in contexts where hunting is banned, investments in EF technology could be a main ingredient of comprehensive policies for wildlife conservation and agricultural development. Further research is needed to investigate the biological implications of large-scale fencing policies, the relevance of spatial spillover effects and game-theoretic aspects of community-based EF schemes.