Protecting Species by Promoting Protected Areas and Human Development—A Panel Analysis

Abstract

We analyze a panel of 147 countries over a 21-year period. We used the Generalized Method of Moments First Differences panel estimation method and found that there is a statistically significant positive association between terrestrial protected areas and protected species. There is strong evidence of a positive statistical relationship between the Human Development Index and protected species under the condition of efficient nitrogen use as an instrumental variable. We support the revision of the Environmental Kuznets Curve hypothesis by claiming that in the 21st century it need not be strictly U-shaped, but that a rise in environmental protection measures is present across the board. The final contribution of the paper is the idea that protecting the habitat of endangered species is commensurate with increasing human welfare through income, health and education.