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Bioprospecting and Market for Biodiversity Conservation

Luca Di Corato

Abstract


Since biological resources can be a valuable input to agricultural and pharmaceutical R and D, extracting rents from bioprospecting can generate income for funding the conservation of biodiversity hotspots. This raises the question of whether a market for biological resources can create sufficient incentive for private conservation. Here, a market framework is developed in order to derive some possible market equilibria. I discuss the different impact that each equilibrium has on the extent of conservation, and then show how industry structure on the supply side of the market can affect the private incentive to conserve. Based on these findings, some policy implications are proposed.

Keywords


biodiversity conservation, land-use, market structure

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