Ecological Economics 28 (1999) 171 – 181 COMMENTARY Economic efficiency, resource conservation and the ivory trade ban Erwin H. Bulte a,b , G. Cornelis van Kooten c, * a Department of Economics, Tilburg Uniersity, Tilburg, The Netherlands b Department of Deelopment Economics, Wageningen Agricultural Uniersity, Wageningen, The Netherlands c Faculty of Agricultural Sciences, Uniersity of British Columbia, Rm. 248 MacMillan Building, 2357 Main Mall, Vancouer BC V6T 1Z4, Canada Received 14 August 1997; received in revised form 9 April 1998; accepted 14 April 1998 Abstract The Convention on International Trade in Endangered Species (CITES) trade ban on ivory remains controversial despite a recent decision to permit some exports by three African countries. In this paper, we examine arguments opposing and supporting the trade ban, concluding that the case for maintaining the ban is strong. We demonstrate that permitting some trade is not a panacea because of potential strategic behavior, and that resuming restricted trade gives an impetus to illegal poaching by enhancing the possibility to launder illegal ivory. Analysis of the pre-ban data, and using the approach dynamics for a steady state, indicates that, when trade in ivory is allowed, poaching could drive the African elephant to extinction. The trade ban arrests this path of decline. Thus, care should be taken before lifting the trade ban. © 1999 Elsevier Science B.V. All rights reserved. Keywords: Ivory trade ban; Bioeconomics; Elephant conservation; Dynamic optimization; Steady state 1. Introduction The trade ban on ivory, implemented in 1989 and the subject of controversy ever since, has attracted widespread academic attention (e.g. Bar- bier et al., 1990; Bulte and van Kooten, 1996; Khanna and Harford, 1996; Burton, 1997). In June 1997, signatories to the convention on inter- national trade in endangered species of wild fauna and flora (CITES) decided that the African ele- phant (Loxodonta africana ), as well as the Asian elephant (Elephas maximus ), would continue to be listed under Appendix A, implying no trade in * Corresponding author. Tel.: +1 604 8222193; fax: +1 604 8222184; e-mail: gerrit@unixg.ubc.ca 0921-8009/99/$ - see front matter © 1999 Elsevier Science B.V. All rights reserved. PII S0921-8009(98)00048-2