Can profits and lions co-exist?: The case of trophy-hunting in Tanzania

Concerns about the management of threatened species continue to grow as these populations face mounting pressures from many factors. Trophy hunting in particular plays a significant role in wildlife conservation, both economically and biologically. In this paper, we present a framework for analyzing the economic impacts of different management strategies in the context of legal lion hunting in Tanzania. We develop an economic model from the perspective of a profit-maximizing trophy hunting company managing a hunting block with lion hunting opportunities. Existing literature has not addressed either the economic ramifications of alternative practices or the influence of existing policies on the behavior of hunting companies. The analysis in this paper aims to understand if conservation is aligned with profit-maximizing objectives given the current economic and policy climate. Specifically, we investigate the conditions under which hunting companies can earn higher returns by exploiting the client’s willingness to pay for older, more mature males. The findings indicate that selective hunting can indeed generate larger profits by maintaining stable lion populations. We also find that existing government regulations could potentially reduce the efficacy of selective hunting practices. JEL codes: Q27, Q38, Q56, Q57