THE ECONOMICS OF EXTINCTION REVISITED AND REVISED - A GENERALIZED FRAMEWORK FOR THE ANALYSIS OF THE PROBLEMS OF ENDANGERED SPECIES AND BIODIVERSITY LOSSES

Several environmental problems linked to extinction (resource mining, biodiversity depletion, and over-exploitation) derive from the same fu ndamental source: the conversion between assets within the development process. The state selecting its optimal portfolio of assets will con sider the relative value and growth rates of assets. High-value/high-g rowth resources will be selected; resources with either low values or low growth rates will be channelled down one of the above routes towar ds extinction. Extinction policies must be based upon the more fundame ntal explanations of the problem, rather than the proximate causes. Th is implies the creation of alternative paths to development.