I grew up in Wyoming and my interest in environmental economics stems from three distinct tensions between the environment and the economy of Wyoming. The first was that many people in my town made their living from extracting coal. The second was controversy over the “let it burn” policy during the severe wildfire in Yellowstone in 1988. And the third was the controversy over reintroduction of the gray wolf into Yellowstone which is the focus of this week’s blog.
Reintroduction of the gray wolf began in 1995, but the original proposals date from the mid-1980s (when I was in high school and many of you weren’t born—yes, I’m that old). 66 gray wolves were reintroduced in 1995.[i] The Fish and Wildlife Service originally set a goal of 150 wolves with 15 breeding pairs.[ii] By 2007 the wolf population in the greater Yellowstone area had reached 1,513.[iii] The Fish and Wildlife service recommended that the wolf be delisted from the set of species protected under the Endangered Species Act (ESA) in Idaho and Montana, but retain federal protection in Wyoming. Conservationist balked and took to the courts, where Judge Donald Malloy (U.S. District Court, Missoula, MT) held that the species had to be listed under the ESA in all states or in none.[iv] In the end, Congress added a rider to a budget bill that delisted the wolf in Idaho and Montana and Judge Malloy upheld that congressional action.[v] Game-Set-Match.
A similar struggle is currently underway with respect to delisting the grizzly bear. Fish and Wildlife recommended the bear be delisted, and it was actually delisted from 2007-2009.[vi] But conservation groups again headed to court and won a partial victory. Judge Malloy (same judge) determined that Fish and Wildlife hadn’t adequately studied the potential effects of a decrease in white pine bark on the grizzly bear or established a sufficient recovery plan if the bear population should decline rapidly.[vii] On November 22, 2011, the appeals court upheld Judge Malloy’s ruling.[viii] So the grizzly bear is back on the endangered species list awaiting further review by Fish and Wildlife or further congressional shenanigans.
The striking similarity in these two cases suggests the debate is not over the science of endangerment; over whether the decrease in the white pine bark will really endanger the grizzly bear. This is a battle over control. As long as the gray wolf or the grizzly bear are listed under the ESA, their management is under federal control. If they are delisted, management returns to the states. And these are RED states. Conservationists feel as though state management plans will not reflect their values and will lean to heavily toward ranchers’ preferences. Indeed, since delisting the wolf, Montana and Idaho have introduced hunting licenses for wolves, which sold out quickly.[ix]
Economics can help here because it presents an alternative mechanism for the conservationists and the ranchers to reach mutually beneficial agreements. Ranchers have always been compensated for cattle whose death can be linked to wolves. Some ranchers argue that the value of the lost cattle doesn’t capture the full cost of the wolves on cattle populations.[x] But a market-based solution to this problem could go much further than compensation for cattle losses.
Imagine you give hunting permits for wolves to ranchers as a function of the historical number of cattle lost to wolves. Then ranchers can sell or buy additional “kill licenses,” they can even sell them to (gasp) conservationists. The rancher places some value on that kill license, based on the expected damages from one wolf. Conservationists place a value on the license too which is based on the value they have for one additional wolf surviving. Let the market sort out who values the wolf more. Could it be any worse than Congress?
[i] Kaufman, Leslie November 4, 2011.“After Years of Conflict, a New Dynamic in Wolf Country,” New York Times. Available at: http://nyti.ms/tYsGWW. Last accessed November 29, 2011.
[ii] ibid
[iii] ibid
[iv] Remillard, Ashley J. March 22, 2011. “Settlement Reached to Delist the Gray Wolf.” Endangered Species Law and Policy. Available at: http://bit.ly/sBrqrl. Last accessed: November 28, 2011.
[v] Remillard, Ashley J. August 5. 2011. “Federal Judge Upholds Legislation Delisting the Gray Wolf.” Endangered Species Law and Policy. Available at: http://bit.ly/sQYLmo. Last Accessed: November 28, 2011.
[vi] Kaufman, Leslie. November 8, 2011. “How is a Grizzly Bear Like a Wolf?” New York Times Green Blog. Available at: http://nyti.ms/uH4BXt. Last accessed: November 28, 2011.
[vii] ibid
[viii] Huang, Audrey. November 22, 2011. “Ninth Circuit Affirms Lower Court Decision for Strike Rule Delisting Grizzly Bears” Endangered Species Law and Policy. Available at: http://bit.ly/utNmAO. Last accessed: November 28, 2011.
[ix] Kaufman, Leslie November 4, 2011.“After Years of Conflict, a New Dynamic in Wolf Country,” New York Times. Available at: http://nyti.ms/tYsGWW. Last accessed: November 28, 2011.
[x] Lutey, Tom May 23, 2011. “Wolves killing fewer cattle in Wyoming than in Montana, Idaho” Billings Gazette. Available at: http://bit.ly/lafo2f. Last accessed: November 28, 2011.