Third World Debt and Tropical Deforestation

  • Kahn J
  • McDonald J
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Debt can lead to deforestation, bc of short term advantages.
Debt leads countries to pursue myopic policies with respect to their tropical forests.
109 sustainable and non-sustainable forest uses.
Social, political and economic factors influence choice of no-yes sustainable p109

-Country studies
-microeconomics behavior (property rights and settler behavior)
-marcro p 109 zitat
Authors develop a general framework of individual country maximizing behavior under which governments might institute short sighted policies.

Looking for info as to how current rates of deforestation are related to the level of other economic variables.

Empirical results
1981 - 1985 deforestation rates and external debt increased dramatically.
Equations for deforestation using two-stage least square regressions ---showed that the relationship bw debt and deforestation was strong (Debt is strong factor, but study does not deny that there are other important microeconomics causes of deforestation, which may vary from country to country).
Dual nature of debt for nature swaps 122.
One billion dollar debt reduction may lead to 51km2 less deforestation.
Elasticity 0.17 - 0.31 therefore a 10% reduction in debt leads to 1.7 -3.1% less deforestation.

Author-supplied keywords

  • 342
  • Deforestation
  • Forest
  • Forests
  • LUCC
  • Nature
  • Policy

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  • James R Kahn

  • Judith A McDonald

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