IDEAS home Printed from https://ideas.repec.org/a/bla/worlde/v27y2004i4p609-624.html
   My bibliography  Save this article

Economic and Environmental Benefits of Eliminating Log Export Bans – The Case of Costa Rica

Author

Listed:
  • Nalin Kishor
  • Muthukumara Mani
  • Luis Constantino

Abstract

An increasing number of tropical timber‐producing nations have enacted bans on export of logs arguing that this will reduce deforestation, expand downstream wood processing and improve the scale efficiency of domestic processing, create jobs and retain more value‐added nationally. The theoretical literature is clear that trade restrictions are generally welfare reducing (except in special cases such as when there is a potential for an optimal export tax). At best, a log export ban is a second‐best policy tool for reducing deforestation and addressing the associated environmental externalities. In overall terms, the suggestion that log export bans can achieve the objectives expected of them is dubious. However, very little quantitative evidence exists to demonstrate this claim and the paper attempts to address this gap by looking at the economic and environmental impacts of eliminating a log export ban in Costa Rica. The authors argue that eliminating the export ban is Pareto improving and could generate economic gains as high as $14 million per annum with the possibility of relatively modest environmental benefits.

Suggested Citation

  • Nalin Kishor & Muthukumara Mani & Luis Constantino, 2004. "Economic and Environmental Benefits of Eliminating Log Export Bans – The Case of Costa Rica," The World Economy, Wiley Blackwell, vol. 27(4), pages 609-624, April.
  • Handle: RePEc:bla:worlde:v:27:y:2004:i:4:p:609-624
    DOI: 10.1111/j.0378-5920.2004.00616.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.0378-5920.2004.00616.x
    Download Restriction: no

    File URL: https://libkey.io/10.1111/j.0378-5920.2004.00616.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Alexander J. Yeats, 1981. "Trade and Development Policies," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-16585-8, December.
    2. Marco Boscolo & Jeffrey R. Vincent, 2000. "Promoting Better Logging Practices in Tropical Forests: A Simulation Analysis of Alternative Regulations," Land Economics, University of Wisconsin Press, vol. 76(1), pages 1-14.
    3. Judith M. Dean & Shubhashis Gangopadhyay, 1997. "Export Bans, Environmental Protection, and Unemployment," Review of Development Economics, Wiley Blackwell, vol. 1(3), pages 324-336, October.
    4. Deacon Robert T., 1995. "Assessing the Relationship between Government Policy and Deforestation," Journal of Environmental Economics and Management, Elsevier, vol. 28(1), pages 1-18, January.
    5. Arvind Subramanian, 1992. "Trade Measures for Environment: A Nearly Empty Box?," The World Economy, Wiley Blackwell, vol. 15(1), pages 135-152, January.
    6. Alexander J. Yeats, 1981. "Trade and Development Issues for the 1980s," Palgrave Macmillan Books, in: Trade and Development Policies, chapter 1, pages 1-12, Palgrave Macmillan.
    7. Thomas, Vinod & Nash, John, 1991. "Reform of Trade Policy: Recent Evidence from Theory and Practice," The World Bank Research Observer, World Bank, vol. 6(2), pages 219-240, July.
    8. Radetzki, Marian, 1977. "Where should developing countries' minerals be processed? The country view versus the multinational company view," World Development, Elsevier, vol. 5(4), pages 325-334, April.
    9. Muthukumara Mani, 1996. "Environmental tariffs on polluting imports," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 7(4), pages 391-411, June.
    10. Alam, M. Shahid, 1983. "Efficiency differentials favouring resource-based industries," Journal of Development Economics, Elsevier, vol. 13(3), pages 361-366, December.
    11. repec:bla:rdevec:v:1:y:1997:i:3:p:324-36 is not listed on IDEAS
    12. Roemer, Michael, 1979. "Resource-based industrialization in the developing countries : A survey," Journal of Development Economics, Elsevier, vol. 6(2), pages 163-202, April.
    13. Devarajan, Shantayanan & Go, Delfin & Schiff, Maurice & Suthiwart-Narueput, Sethaput, 1996. "The whys and why nots of export taxation," Policy Research Working Paper Series 1684, The World Bank.
    14. A. Clark Wiseman & Roger A. Sedjo, 1981. "Effects of an Export Embargo on Related Goods: Logs and Lumber," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(3), pages 423-429.
    15. Edward B. Barbier, 1998. "The Economics of Environment and Development," Books, Edward Elgar Publishing, number 1363.
    16. Dean, Judith M, 1995. "Export Bans, Environment, and Developing Country Welfare," Review of International Economics, Wiley Blackwell, vol. 3(3), pages 319-329, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jacob R. Fooks & Steven J. Dundas & Titus O. Awokuse, 2013. "Are There Efficiency Gains from the Removal of Natural Resource Export Restrictions? Evidence from British Columbia," The World Economy, Wiley Blackwell, vol. 36(8), pages 1098-1114, August.
    2. Budy Resosudarmo & Arief Anshory Yusuf & Ditya A. Nurdianto, 2012. "Preliminary Analysis of REDD on Indonesian's Economy," Working Papers in Economics and Development Studies (WoPEDS) 201204, Department of Economics, Padjadjaran University, revised Dec 2012.
    3. Amoah, M. & Becker, G. & Nutto, L., 2009. "Effects of log export ban policy and dynamics of global tropical wood markets on the growth of timber industry in Ghana," Journal of Forest Economics, Elsevier, vol. 15(3), pages 167-185, August.
    4. Li, Yanshu & Mei, Bin & Linhares-Juvenal, Thaís, 2019. "The economic contribution of the world's forest sector," Forest Policy and Economics, Elsevier, vol. 100(C), pages 236-253.
    5. Sun, Changyou, 2017. "Competition of wood products with different fiber transformation and import sources," Forest Policy and Economics, Elsevier, vol. 74(C), pages 30-39.
    6. Sun, Changyou, 2014. "Recent growth in China's roundwood import and its global implications," Forest Policy and Economics, Elsevier, vol. 39(C), pages 43-53.
    7. Budy P. Resosudarmo & Arief Anshory Yusuf, 2006. "Is the Log Export Ban Effective? Revisiting the Issue through the Case of Indonesia," Economics and Environment Network Working Papers 0602, Australian National University, Economics and Environment Network.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Budy Resosudarmo & Arief Anshory Yusuf & Ditya A. Nurdianto, 2012. "Preliminary Analysis of REDD on Indonesian's Economy," Working Papers in Economics and Development Studies (WoPEDS) 201204, Department of Economics, Padjadjaran University, revised Dec 2012.
    2. Christopher Costello & Corbett A. Grainger, 2018. "Property Rights, Regulatory Capture, and Exploitation of Natural Resources," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 5(2), pages 441-479.
    3. Budy P. Resosudarmo & Arief Anshory Yusuf, 2006. "Is the Log Export Ban Effective? Revisiting the Issue through the Case of Indonesia," Economics and Environment Network Working Papers 0602, Australian National University, Economics and Environment Network.
    4. Jacob R. Fooks & Steven J. Dundas & Titus O. Awokuse, 2013. "Are There Efficiency Gains from the Removal of Natural Resource Export Restrictions? Evidence from British Columbia," The World Economy, Wiley Blackwell, vol. 36(8), pages 1098-1114, August.
    5. Arunanondchai, Jutamas May, 2003. "Applied general equilibrium analysis of trade liberalisation on land-based sectors in Malaysia and Indonesia," Journal of Policy Modeling, Elsevier, vol. 25(9), pages 947-961, December.
    6. Coxhead, Ian A. & Jayasuriya, Sisira, 2003. "Trade, Liberalization, Resource Degradation and Industrial Pollution in Developing Countries: An Integrated Analysis," Staff Papers 12691, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    7. Gregory S. Amacher & Erkki Koskela & Markku Ollikainen, 2004. "Deforestation, Production Intensity and Land Use under Insecure Property Rights," CESifo Working Paper Series 1128, CESifo.
    8. Noel Perceval Assogba & Daowei Zhang, 2020. "An Economic Analysis of Tropical Forest Resource Conservation in a Protected Area," Sustainability, MDPI, vol. 12(14), pages 1-12, July.
    9. Alice Issanchou & Karine Daniel & Pierre Dupraz & Carole Ropars-Collet, 2018. "Soil resource and the profitability and sustainability of farms: A soil quality investment model," Working Papers SMART 18-01, INRAE UMR SMART.
    10. Benhin, J.K.A. & Barbier, E.B., 2001. "The Effects of the Structural Adjustment Program on Deforestation in Ghana," Agricultural and Resource Economics Review, Cambridge University Press, vol. 30(1), pages 66-80, April.
    11. Gourdon, Julien & Monjon, Stéphanie & Poncet, Sandra, 2016. "Trade policy and industrial policy in China: What motivates public authorities to apply restrictions on exports?," China Economic Review, Elsevier, vol. 40(C), pages 105-120.
    12. Marco Boscolo, 2000. "Multiple Use Management of Tropical Forests: On the Superiority of Land Use Specialization," CID Working Papers 41, Center for International Development at Harvard University.
    13. Christopher Costello & Nicolas Querou & Agnès Tomini, 2014. "Spatial concessions with limited tenure," Post-Print hal-01123392, HAL.
    14. Hettige, Hemamala & Mani, Muthukumara & Wheeler, David, 2000. "Industrial pollution in economic development: the environmental Kuznets curve revisited," Journal of Development Economics, Elsevier, vol. 62(2), pages 445-476, August.
    15. Damette, Olivier & Delacote, Philippe, 2012. "On the economic factors of deforestation: What can we learn from quantile analysis?," Economic Modelling, Elsevier, vol. 29(6), pages 2427-2434.
    16. Unknown, 2012. "Journal of International Agricultural Trade and Development, Volume 08, Issue 2," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 8(2), pages 151-151.
    17. Lebdioui, Amir, 2022. "The political economy of moving up in global value chains: how Malaysia added value to its natural resources through industrial policy," LSE Research Online Documents on Economics 107523, London School of Economics and Political Science, LSE Library.
    18. Alexander J. Macpherson & Douglas R. Carter & Marco W. Lentini & Mark D. Schulze, 2010. "Following the Rules: Brazilian Logging Concessions under Imperfect Enforcement and Royalties," Land Economics, University of Wisconsin Press, vol. 86(3).
    19. Mani, Muthukumara & Jha, Shreyasi, 2006. "Trade liberalization and the environment in Vietnam," Policy Research Working Paper Series 3879, The World Bank.
    20. Zhang, Xufang & Sun, Changyou & Munn, Ian A. & Gordon, Jason, 2021. "How to protect the U.S. forest products industry from the perspective of trade? A comparison of policies within the forest supply chain," Forest Policy and Economics, Elsevier, vol. 133(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:worlde:v:27:y:2004:i:4:p:609-624. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0378-5920 .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.