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The Biodiversity Bargaining Problem

Author

Listed:
  • Gatti, J.R.J.
  • Goeschl, T.
  • Groom, B.
  • Timothy Swanson
Abstract
This paper describes global biodiversity conservation as a co-operative bargaining problem. We model an interdependent ‘technology rich’ North and a ‘gene rich’ South who must co-operate in the biotechnology sector in order to combine their unique and essential resources and maximise global surplus. Chief among the ideas presented here is that, in a manner similar to the ‘rational threats’ idea posited by Nash (1953), and in line with observations of pre-contractual bargaining over biodiversity conservation in Latin America (World Bank 2003), destruction of biological resources represents a real source of bargaining power to the South in determining the bargaining outcome. Not only this, but current institutional arrangements relevant to the biodiversity bargaining problem, namely the incremental cost approach enshrined in the CBD and IPRs for innovation enshrined in TRIPS, can be shown to offer a second-best solution. These arrangements may induce the strategic incentives in the game of surplus division.

Suggested Citation

  • Gatti, J.R.J. & Goeschl, T. & Groom, B. & Timothy Swanson, 2004. "The Biodiversity Bargaining Problem," Cambridge Working Papers in Economics 0447, Faculty of Economics, University of Cambridge.
    • Handle: RePEc:cam:camdae:0447
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    References listed on IDEAS

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    1. Timo Goeschl & Timothy Swanson, 2002. "The Social Value of Biodiversity for R&D," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 22(4), pages 477-504, August.
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    6. Angelsen, Arild & Kaimowitz, David, 1999. "Rethinking the Causes of Deforestation: Lessons from Economic Models," The World Bank Research Observer, World Bank, vol. 14(1), pages 73-98, February.
    7. Lutz-Alexander Bush & Shouyong Shi & Quan Wen, 1998. "Bargaining with Surplus Destruction," Canadian Journal of Economics, Canadian Economics Association, vol. 31(4), pages 915-932, November.
    8. Krugman, Paul, 1979. "A Model of Innovation, Technology Transfer, and the World Distribution of Income," Journal of Political Economy, University of Chicago Press, vol. 87(2), pages 253-266, April.
    9. Scott Barrett, 1994. "The biodiversity supergame," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 4(1), pages 111-122, February.
    10. Timo Goeschl & Timothy Swanson, 2003. "Pests, Plagues, and Patents," Journal of the European Economic Association, MIT Press, vol. 1(2-3), pages 561-575, 04/05.
    11. King, K., 1994. "The Incremental Costs of Global Environmental Benefits," Papers 5, World Bank - Global Environment Facility.
    12. Polasky, Stephen & Costello, Christopher & McAusland, Carol, 2004. "On trade, land-use, and biodiversity," Journal of Environmental Economics and Management, Elsevier, vol. 48(2), pages 911-925, September.
    13. Timo Goeschl & Timothy Swanson, 2003. "On Biology and Technology: The Economics of Managing Biotechnologies," Working Papers 2003.42, Fondazione Eni Enrico Mattei.
    14. Susanne Droege & Birgit Soete, 2001. "Trade-Related Intellectual Property Rights, North-South Trade, and Biological Diversity," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 19(2), pages 149-163, June.
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    Citations

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    Cited by:

    1. Faust, Heiko & Schwarze, Stefan & Beckert, Barbara & Brümmer, Bernhard & Dittrich, Christoph & Euler, Michael & Gatto, Marcel & Hauser-Schäublin, Brigitta & Hein, J. & Holtkamp, Anna Mareike & Ibanez-, 2013. "Assessment of socio-economic functions of tropical lowland transformation systems in Indonesia - sampling framework and methodological approach," EFForTS Discussion Paper Series 1, University of Goettingen, Collaborative Research Centre 990 "EFForTS, Ecological and Socioeconomic Functions of Tropical Lowland Rainforest Transformation Systems (Sumatra, Indonesia)".
    2. Wenjuan Cheng & Alessio D’Amato & Giacomo Pallante, 2020. "Benefit sharing mechanisms for agricultural genetic diversity use and on-farm conservation," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(1), pages 337-355, April.
    3. Tim Swanson & Ben Groom, 2012. "Regulating global biodiversity: what is the problem?," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 28(1), pages 114-138, Spring.
    4. Ding, Helen & Nunes, Paulo A.L.D. & Onofri, Laura, 2007. "An Economic Model for Bioprospecting Contracts," Sustainability Indicators and Environmental Valuation Working Papers 7450, Fondazione Eni Enrico Mattei (FEEM).
    5. Tapio Palokangas, 2017. "Regulation versus subsidies in conservation with a self-interested policy maker," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 19(1), pages 183-196, January.
    6. Alejandro Caparrós, 2016. "Bargaining and International Environmental Agreements," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 65(1), pages 5-31, September.
    7. Lebdioui, Amir, 2022. "Nature-inspired innovation policy: Biomimicry as a pathway to leverage biodiversity for economic development," Ecological Economics, Elsevier, vol. 202(C).
    8. Dapeng Cai & Jie Li, 2018. "North–South Negotiations on Emission Reductions: A Bargaining Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 71(1), pages 157-177, September.
    9. Winands, Sarah & Holm-Müller, Karin & Weikard, Hans-Peter, 2013. "The biodiversity conservation game with heterogeneous countries," Ecological Economics, Elsevier, vol. 89(C), pages 14-23.
    10. Figuieres, Charles & Leplay, Solenn & Midler, Estelle & Thoyer, Sophie, 2012. "The REDD Scheme to Curb Deforestation: A Well-designed System of Incentives?," Strategic Behavior and the Environment, now publishers, vol. 2(3), pages 239-257, September.
    11. Deke, Oliver, 2004. "Financing National Protected Area Networks Internationally: The Global Environment Facility as a Multilateral Mechanism of Transfer," Kiel Working Papers 1227, Kiel Institute for the World Economy (IfW Kiel).
    12. Alban Thomas & Vera Zaporozhets, 2017. "Bargaining Over Environmental Budgets: A Political Economy Model with Application to French Water Policy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(2), pages 227-248, October.

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    More about this item

    Keywords

    North-South bargaining; biodiversity conservation; biotechnology; Convention on Biodiversity (CBD); contracts; Intellectual Property Rights (IPRs);
    All these keywords.

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts

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