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Trade, tropical deforestation and policy interventions

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  • Edward Barbier
  • Michael Rauscher

Abstract

Trade interventions are increasingly advocated as a means for controlling timber-related tropical deforestation. This paper analyzes the impact on deforestation of such policy instruments in a dynamic framework. The forest is modelled as a potentially renewable resource, and timber is extracted for purposes of export and domestic consumption. Optimality conditions for a variety of model specifications are derived, and the impacts of changes in the terms of trade and market structure on long-run deforestation are analyzed. The results of this analysis suggest that trade interventions that seek to affect the terms of trade against the export of tropical timber products are in the long run a second-best policy option for influencing the deforestation process. Copyright Kluwer Academic Publishers 1994

Suggested Citation

  • Edward Barbier & Michael Rauscher, 1994. "Trade, tropical deforestation and policy interventions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 4(1), pages 75-90, February.
    • Handle: RePEc:kap:enreec:v:4:y:1994:i:1:p:75-90
    DOI: 10.1007/BF00691933
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    References listed on IDEAS

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    1. Hyde, W.F. & Newman, D.H. & Sedjo, R.A., 1991. "Forest Economics and Policy Analysis," World Bank - Discussion Papers 134, World Bank.
    2. Robert M. Solow, 1974. "The Economics of Resources or the Resources of Economics," Palgrave Macmillan Books, in: Chennat Gopalakrishnan (ed.), Classic Papers in Natural Resource Economics, chapter 12, pages 257-276, Palgrave Macmillan.
    3. Barbier, E B & Burgess, J C, 2001. "The Economics of Tropical Deforestation," Journal of Economic Surveys, Wiley Blackwell, vol. 15(3), pages 413-433, July.
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