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On Sustainable Use of Renewable Resources in Protected Areas as an Instrument of Biodiversity Conservation: A Bioeconomic Analysis INAUGURAL-DISSERTATION zur Erlangung der Doktorwürde der Wirtschaftswissenschaftlichen Fakultät der Ruprecht-Karls-Universität Heidelberg vorgelegt von Hsing-Sheng Tai aus Taiwan Mai 2002 Eidesstattliche Erklärung Hiermit erkläre ich, Hsing-Sheng Tai, daß meine bei dem Promotionsausschuß der Wirtschaftswissenshaftlichen Fakultät der Ruprecht-Karls-Universität Heidelberg eingereichte Dissertation mit dem Thema: „On sustainable use of renewable resources in protected areas as an instrument of biodiversity conservation: a bioeconomic analysis“: 1. von mir selbständig angefertigt wurde und andere Quellen und Hilfsmittel als die angegebenen nicht benutzt wurden, 2. daß die Dissertation weder in dieser noch in einer anderen Form einer anderen Fakultät vorgelegt worden ist, 3. daß die Dissertation weder als Ganzes noch Teile daraus anderweitig als Prüfungsarbeit bei einer akademischen oder Staatsprüfung verwendet worden ist und 4. daß von mir keine, von einer anderen Prüfungsbehörde zurückgewiesene Dissertation oder in einem sonstigen Prüfungsverfahren als Prüfungsteil verwendete Arbeit vorgelegt worden ist. Hualien, Taiwan, im Mai 2002 Abstract The objective of this dissertation is to provide a theoretical framework for answering the question, whether and under which biological and socio-economic conditions the sustainable use of wild species in or around protected areas is an adequate strategy for biodiversity conservation. To do this, the dynamic interaction between the use of wild species, management of protected areas, population levels of the utilized species and poaching is investigated. A nonlinear bioeconomic model with two state variables (resource stock, management capital stock) and two control variables (harvest rate, investment rate) is developed on the basis of the traditional bioeconomic model and optimal control theory. The model identifies eight fundamental factors that influence the equilibrium population levels of the utilized species. In sum, the lower the discount rate, the depreciation rate of management capital, the poaching coefficient and the cost coefficient of investment are, and the higher the intrinsic growth rate of species, the non-consumptive value coefficient of species, the efficiency coefficient of management capital and the gross profit coefficient of harvest are, the higher the equilibrium population levels of harvested species will be. At the theoretical level, our model suggests that, apart from the usually discussed intrinsic growth rate, discount rate and price/harvest cost ratio, more factors should be taken into account when considering the impact of harvest on resource stock. Moreover, contrary to the conclusion of the Clark model and to the popular belief, our model demonstrates that, other things being equal, the higher the gross profit coefficient of harvest (termed as price/harvest cost ratio in the context of the Clark model) is, the greater the equilibrium resource stock will be. This conclusion is consistent with that drawn by the Swanson model, which first considered the important I role of management in resource harvest problem. However, compared to the Swanson model, our model provides a more deliberate and extensive modeling for investigating the resource harvest and management problem. According to the model results, the eight parameters can be evaluated as indicators for assessing the feasibility of a sustainable use project as a conservation strategy before or when it is applied in specific sites. An assessment procedure is then developed and applied for the case study with reference to several conservation programs in the A-Li- Shan area of Taiwan. The results of the assessment procedure are in principle consistent with what happened in the reality. The case study shows that, some factors that are newly introduced in our model, namely the non-consumptive value coefficient of species, the efficiency coefficient of management capital and the cost coefficient of investment explain the differences of the performance of various conservation programs in the area concerned. II Contents 1 Introduction 1 1.1 The Problem concerned and the objective of dissertation……………………….. 1 1.2 Methods………………………………………………………………………….. 4 1.3 Contents of the dissertation……………………………………………………… 5 2 Biodiversity: Concept and its loss rate 7 2.1 Definition of biodiversity……………………………………………………….. 7 2.2 Measurement of biodiversity and some indicators……………………………… 9 2.3 The loss rate of biodiversity…………………………………………………….. 11 3 The nature of protected areas as an instrument of biodiversity conservation 15 3.1 Definition and classification of protected areas: The IUCN system……….…… 15 3.2 Economic theories justifying the existence of protected areas: theories with reference to nonrivalry and nonexcludability……………………………….…... 18 3.3 Economic theories with reference to uncertainty and irreversibility: option value, quasi-option value and the Safe Minimum Standard……………….……. 19 3.4 The Perrings and Pearce Model…………………………………………………. 21 3.5 Concluding remarks…………………………………………………………….. 27 4 State of protected areas and the debate on sustainable use of renewable resources in and around protected areas as an instrument of biodiversity conservation 28 4.1 Effectiveness of protected areas: a global perspective…………………………... 28 4.2 Current problems of protected areas……………………………………………... 31 4.3 Defining ‘sustainable use of renewable resources’……………………………… 35 4.4 The debate on sustainable use of renewable resources in and around protected areas as an instrument of biodiversity conservation…………………... 37 4.4.1 Background of the debate………………………………………………….. 37 4.4.2 Perspectives of the sustainable use approach……………………………… 38 4.4.3 The Community-Based Conservation (CBC)……………………………… 41 4.4.4 Perspectives of the preservation approach………………………………… 43 I 4.5 A case study: the national park system of Taiwan………………………………. 46 4.5.1 Introduction to the national park system of Taiwan……………………….. 46 4.5.2 Management issues………………………………………………………… 50 4.5.3 Effectiveness of the national park system…………………………….…… 52 4.5.4 Current problems of the national park system……………………………... 54 4.5.5 Prospects of the national park system……………………………………... 58 5 Economic models of species extinction and biodiversity loss 59 5.1 The Gordon model.……………………………………………………………… 59 5.2 The Clark model………………….. ………………..…………………………... 60 5.3 The Swanson model…………………………………………………………….. 62 5.4 Concluding remarks…………………………………………………………….. 69 6 Use of renewable resources, poaching and anti-poaching: a simple bioeconomic model with one state variable and two control variables 71 6.1 Introduction……………………………………………………………………... 71 6.2 The model………………………………………………………………...……... 72 6.3 Uniqueness of the steady state solution…………………………………………. 79 6.4 Stability of the steady state solution…………………………………………….. 80 6.5 Phase diagram analysis………………………………………………………….. 82 6.5.1 Phase diagram (X, h)………………………………………………………. 82 6.5.2 Phase diagram (X, E)………………………………………………………. 84 6.6 Comparative static analysis…………………………………………………….... 87 6.7 A special case of the simple model……………………………………………… 90 6.8 Concluding remarks and policy implications……………………………………. 94 Appendix 6.1………………………………………………………………………... 97 Appendix 6.2………………………………………………………………………... 98 7 Management capital, use of renewable resources, poaching and anti-poaching: a bioeconomic model with two state and two control variables 100 7.1 Introduction……………………………………………………………………… 100 7.2 Management capital……………………………………………………………... 101 7.3 The extended model……………………………………………………………... 103 7.4 Uniqueness of the steady state solution……….………………………………… 107 II 7.5 Stability of the steady state solution……………………………………………... 109 7.6 Comparative static analysis……………………………………………….……... 112 7.7 Concluding remarks and policy implications……………………………………. 115 Appendix 7.1. ………………………………………………………………………. 118 8 Management capital, use of renewable resources, poaching and anti-poaching: a general bioeconomic model 120 8.1 The general model……………………………………………………………….. 120 8.2 Existence of the steady state solution……………………………………………. 123 8.3 Phase diagram analysis: computer simulation…………………………………… 124 8.4 Comparative static analysis: computer simulation………………………………. 129 8.5 Policy implications of the comparative static analysis with regard to the gross profit coefficient of species and the poaching coefficient: two examples………… 133 8.5.1 Debate on conservation and consumptive use of the African elephant……. 133 8.5.2 Conservation and consumptive use of wildlife in Taiwan………………… 137 8.6 Concluding remarks and some implications for conservation policy…………... 140 8.6.1 Some remarks …………………………………………...…………………. 140 8.6.2 Policy implications with regard to the intrinsic growth rate……………….. 142 8.6.3 Policy implications with regard to some other parameters………………… 144 Appendix 8.1………………………………………………………………………... 148 9 Case study: sustainable use and conservation of renewable resources in Danayiku Nature Park at Shan-Mei, Taiwan 151 9.1 Background.………………………………………….……………………….…. 151 9.2 Project history and evolution…………………………………………………….. 155 9.3 Resource use……………………………………………………………………... 156 9.4 Performance of the Danayiku Nature Park………………………………………. 157 9.5 Ecological, economic and social benefits………………………………………... 166 9.5.1 Ecological benefits………………………………………………………… 166 9.5.2 Economic benefits…………………………………………………………. 166 9.5.3 Social benefits……………………………………………………………..

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