Abstract

Rising incomes in the developing world has led to increased consumption of bushmeat as a luxury good with a mounting risk of species extirpation. In a two-period model with stochastic supply, this article shows that the simple expedient of introducing refrigeration to the bushmeat markets can lead to the reduction of harvest rates. In the absence of refrigeration, all bushmeat brought to the market must be sold immediately, putting downward pressure on price and sending the incorrect signal to hunters that everything they kill can and will be sold. With refrigeration, it is possible to carry over inventory from one period to the next, which in turn limits harvests. Although harvest rates fall unequivocally, there may be no incentive for market participants to introduce refrigeration. This last result is explained through the use of the economists’ notion of economic welfare as measured by consumer and producer surplus. Achieving the socially desirable goal of lower harvest rates may require third-party intervention in the market.

Highlights

  • The model presented in this article demonstrates that the simple expedient of adopting a technical innovation (TI) such as refrigeration may reduce the consumption pressure on a sustainable wildlife resource.1 This occurs because the ability to carry over inventory from one period to the permits retailers to gain some control over hunters’ harvest rates in the rain forest

  • From Equations 17 and 19, we find that the expected total economic welfare that can be achieved when only fresh bushmeat is available in the market, and under supply fluctuation, is as follows: ( ) WtNF = ΠtNF + CStNF = 2 A − q f,t q f,t + 3A2 . (20)

  • It was found that the weak bargaining position of the sellers of bushmeat, at least in part due to the lack of refrigeration, resulted in low prices and little control of the supply chain

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Summary

Introduction

The model presented in this article demonstrates that the simple expedient of adopting a technical innovation (TI) such as refrigeration may reduce the consumption pressure on a sustainable wildlife resource. This occurs because the ability to carry over inventory from one period to the permits retailers to gain some control over hunters’ harvest rates in the rain forest. The model presented in this article demonstrates that the simple expedient of adopting a technical innovation (TI) such as refrigeration may reduce the consumption pressure on a sustainable wildlife resource.. The model presented in this article demonstrates that the simple expedient of adopting a technical innovation (TI) such as refrigeration may reduce the consumption pressure on a sustainable wildlife resource.1 This occurs because the ability to carry over inventory from one period to the permits retailers to gain some control over hunters’ harvest rates in the rain forest. In spite of this positive impact on harvest rates, refrigeration is slow to be adopted in developing economies, resulting in the possible extirpation of certain species.. We explore the role that the TI of refrigeration can play in coordinating the activities of producers and consumers with the consequence that markets clear without sellers resorting to drastic price reductions that would otherwise be needed to dispose of perishable goods (see, for example, Herbon, Spiegel, & Templeman, 2012)

Background for the Bushmeat Trade
Findings
Conclusion
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