On the tragedy of the commons: When predation and livestock loss may improve the economic lot of herders.

This paper studies the practice of semi-domestic reindeer (Rangifer t. tarandus) herding in Finnmark county in northern Norway. In this area, the Saami reindeer herders compete for space and grazing areas and keep large herds, while at the same time, the reindeer population is heavily exposed to carnivore predation by the lynx (Lynx lynx), the wolverine (Gulo gulo), and the golden eagle (Aquila chrysaetos). It is demonstrated that predation actually may improve the economic lot of livestock holders in this unmanaged local common setting. There are ecological as well as economic reasons as to why this happens. The ecological reason is that predation compensates for natural mortality; that is, increased predation reduces natural mortality, indicating that the net loss due to predation actually may be quite small. When predation reduces livestock density, the feeding conditions of the animals will improve, resulting in increased livestock weight and higher per animal slaughter value. At the same time, a smaller stock reduces the operating costs of the herders.

Balancing income and cost in red deer management.

This paper presents a bioeconomic analysis of a red deer population within a Norwegian institutional context. This population is managed by a well-defined manager, typically consisting of many landowners operating in a cooperative manner, with the goal of maximizing the present-value hunting related income while taking browsing and grazing damages into account. The red deer population is structured in five categories of animals (calves, female and male yearlings, adult females and adult males). It is shown that differences in the per-animal meat values and survival rates ('biological discounted' values) are instrumental in determining the optimal harvest composition. Fertility plays no direct role. It is argued that this is a general result working in stage-structured models with harvest values. In the numerical illustration it is shown that the optimal harvest pattern stays quite stable under various parameter changes. It is revealed which parameters and harvest restrictions that is most important. We also show that the current harvest pattern involves too much yearling harvest compared with the economically efficient level.