Refrigeration and the reduction of the takeoff rate of bushmeat

Rising incomes in the developing world has led to increased consumption of bushmeat as a luxury good with a mounting risk of species extirpation. In a two-period model with stochastic supply, this article shows that the simple expedient of introducing refrigeration to the bushmeat markets can lead to the reduction of harvest rates. In the absence of refrigeration, all bushmeat brought to the market must be sold immediately, putting downward pressure on price and sending the incorrect signal to hunters that everything they kill can and will be sold. With refrigeration, it is possible to carry over inventory from one period to the next, which in turn limits harvests. Although harvest rates fall unequivocally, there may be no incentive for market participants to introduce refrigeration. This last result is explained through the use of the economists’ notion of economic welfare as measured by consumer and producer surplus. Achieving the socially desirable goal of lower harvest rates may require third-party intervention in the market.