The paper analyses the conflict between wildlife conservation and the
costs and benefits obtained from it in an East African context. Tn the
model there are two agents: a park agency managing a national park of
fixed size and a group of agropastoralists living in the vicinity of
the park. The park authority produces tourism services and sells hunti
ng licences, whereas the agropastoralists produce livestock products.
Wildlife and livestock interact with each other and wildlife is a nuis
ance for livestock production. The conflict is analysed under differen
t market solutions as the agropastoralists, to various degrees, are gi
ven profit shares from the park activities. It is demonstrated that a
market solution where they are given property rights in the form of a
fixed share of the harvesting profit, will increase the nuisance on th
eir production and therefore generally give no clear welfare gain for
the local people. On the other hand, if they also receive a profit sha
re from the tourist activity above that of the hunting benefit, the nu
isance from the roaming wildlife will decrease as this scheme gives in
centives for the park manager to increase the offtake and thereby decr
ease the wildlife stock in the long term. There will therefore be more
livestock and a clear welfare gain for the agropastoralists compared
to the situation where they have no property rights. Under certain con
ditions, the stock sizes will also be closer to what is optimal from a
n overall point of view. (C) 1998 Elsevier Science B.V. All rights res
erved.