LAUSR

Anthropogenic land use change is the leading threat to biodiversity. This paper studies how infrastructure expansion degrades biodiversity and the role of local institutions in mitigating species loss. Combining new data from India on infrastructure-driven deforestation with one million birdwatching diaries, I document a sizeable infrastructure-biodiversity tradeoff. Forest encroachment by transport, irrigation, re-settlement camps, and mining projects account for 20% of total species loss. The tradeoff is especially acute in already-fragmented landscapes, and species diversity does not recover in the medium run. Yet the extent of species loss is more than halved when local institutions enable marginalized communities, who are often excluded from project planning, to mobilize around their interests. Informed consent between developers and tribal communities is a key mechanism, underscoring the importance of inclusive institutions for balancing development and conservation.