On the Economics of Extinction and Possible Mass Extinctions

Abstract

Human beings’ domination of the planet has not been kind to many species. This is to be expected. Humans have radically altered natural landscapes, harvested heavily from the ocean, and altered the climate in an unprecedented way. Recent concerns over the extent and rate of biodiversity loss have led to renewed interest in extinction outcomes and speculation concerning humans’ potential role in any future mass extinction. In this paper, we discuss the economic causes of extinction in two high-profile cases—Sharks and the North American Buffalo—and then extend our analysis to multiple species and discuss the possibility of mass extinction. Throughout, we present evidence drawn from authoritative data sources with a focus on shark populations to ground our analysis. Despite large gaps in our data, the available evidence reveals a worrisome trend: extinction risks are rising for many species and policymakers have been very slow to react.