On the Economics of Extinction and Mass Extinctions

Human beings' domination of the planet has not been kind to many species worldwide. 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 framework to allow for multiple species and 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 suggests extinction risks are rising for many species and policy is slow to react.