IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Oil, Macroeconomics, and Forests: Assessing the Linkages

  • Sven Wunder
  • William D. Sunderlin
Registered author(s):

    How does an oil boom affect the forest cover of tropical oil-exporting countries? What macroeconomic linkages and policies are decisive? A comparison of research findings on long-run land-use changes in eight tropical developing economies reveals that the direct physical impacts of the oil industry on forests are unquestionably less than its derived macroeconomic impact. In most cases oil wealth indirectly but significantly protects tropical forests. The core mechanism is that oil rents cause macroeconomic "Dutch disease" decreasing the price competitiveness of agriculture and logging, strongly diminishing pressures for forest degradation and deforestation. But domestic policy responses to oil wealth are also vital determinants of the forest outcome. When governments use oil wealth for urban spending sprees, this reinforces the core effect by pulling more labor out of land-using and forest-degrading activities. When oil revenues finance road construction or frontier colonization, however, the core forest-protective effect can be reversed. Repeated currency devaluation and import protection of land-using domestic sectors also increase pressures on forests. Other international capital transfers, like bilateral credits, aid, or debt relief, can have impacts similar to those of oil wealth, either alleviating pressures on forests or aggravating specific forest-detrimental policies. These insights point to forest-friendly safeguards that can realistically be made in the design of structural adjustment programs, considering the important tradeoffs between development and conservation objectives. Copyright 2004, Oxford University Press.

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below under "Related research" whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Article provided by World Bank Group in its journal The World Bank Research Observer.

    Volume (Year): 19 (2004)
    Issue (Month): 2 ()
    Pages: 231-257

    as
    in new window

    Handle: RePEc:oup:wbrobs:v:19:y:2004:i:2:p:231-257
    Contact details of provider: Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
    Phone: (202) 477-1234
    Fax: 01865 267 985
    Web page: http://wbro.oxfordjournals.org/Email:


    More information through EDIRC

    Order Information: Web: http://www.oup.co.uk/journals

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:oup:wbrobs:v:19:y:2004:i:2:p:231-257. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press)

    or (Christopher F. Baum)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.