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Kiel Institute for World Economics Kiel Working Papers, Kiel Institute for World Economics

No 1226:
Internalizing Global Externalities from Biodiversity ; Protected Areas and Multilateral Mechanisms of Transfer

Oliver Deke

Abstract: Biodiversity can sometimes only be preserved if natural habitats are excluded from human uses. Such protection measures generate positive externalities at the global scale. This holds especially for protection in developing countries that host great parts of global biodiversity. For internalization, financial resources are raised on a multilateral basis and transferred to the host countries. This paper reviews the rationale for protected areas and transfer payments and summarizes empirical data. The resources provided through multilateral mechanisms - even together with official bilateral aid and private spending - fall short of estimated needs for effective protected area systems in developing countries.

Keywords: Biodiversity, International Development Assistance, GEF, Land Use, Protected Areas; (follow links to similar papers)

JEL-Codes: N5,; O13,; Q2,; Q5,; Q56,; Q57; (follow links to similar papers)

57 pages, September 2004

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