Abstract

AbstractChapter 10 addresses the relation between conservation, income, and wealth, focusing on the problem of biodiversity. It reconsiders the current consensus that poverty alleviation will reduce biodiversity loss. It addresses three dimensions of the problem: the role of income in the demand for natural resources; the empirical relation between income and biodiversity conservation; and the link between wealth, property rights, and the incentive to conserve. The first connects poverty, population growth, and the demand for natural resources. The second shows how biodiversity conservation and per capita income are related. The third connects poverty and property rights. It shows that for rural landholders to have an incentive to conserve their land, they also need to have secure rights. A necessary condition for land conservation to be optimal by the Hotelling principle is that the rights-holder can realize the gains to be had from conserving the resource.

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