IDEAS home Printed from https://ideas.repec.org/a/cup/endeec/v4y1999i01p19-43_00.html
   My bibliography  Save this article

Structural adjustment and deforestation in Nicaragua

Author

Listed:
  • GLOMSRØD, SOLVEIG
  • MONGE, MARIA DOLORES
  • VENNEMO, HAAKON

Abstract

This paper investigates the impact of structural adjustment policies on deforestation taking place when the agricultural frontier advances into forest reserves in Nicaragua. A computable general equilibrium model incorporating deforestation by squatters is used for policy simulations. The opportunity cost of migrating to the frontier does not simply depend on wage income opportunity, but also on market prices of basic grain which determine the capacity to consume beyond subsistence food-level given a certain real wage. Reducing public expenditures both conserves forests and enhances economic growth, while showing positive distributional effects. On the other hand, a strong conservation trend following a sales tax increase is driven by increasing poverty in rural areas. Noticeably, there are policies which initially intensify deforestation, but turn out to ease the pressure on forests over time. Rapid economic growth does not ensure less pressure on forest reserves.

Suggested Citation

  • Glomsrød, Solveig & Monge, Maria Dolores & Vennemo, Haakon, 1999. "Structural adjustment and deforestation in Nicaragua," Environment and Development Economics, Cambridge University Press, vol. 4(1), pages 19-43, February.
    • Handle: RePEc:cup:endeec:v:4:y:1999:i:01:p:19-43_00
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S1355770X99000030/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Alfsen, Knut H. & Bye, Torstein & Glomsrød, Solveig & Wiig, Henrik, 1997. "Soil degradation and economic development in Ghana," Environment and Development Economics, Cambridge University Press, vol. 2(2), pages 119-143, May.
    2. 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.
    3. Ernst Lutz, 1991. "Incentives, regulations, and sustainable land use in Costa Rica," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 1(2), pages 179-194, June.
    4. Taylor, Lance, 1993. "The rocky road to reform: Trade, industrial, financial, and agricultural strategies," World Development, Elsevier, vol. 21(4), pages 577-590, April.
    5. Alfsen, Knut H. & De Franco, Mario A. & Glomsrod, Solveig & Johnsen, Torgeir, 1996. "The cost of soil erosion in Nicaragua," Ecological Economics, Elsevier, vol. 16(2), pages 129-145, February.
    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. Pandey, Kiran D. & Wheeler, David, 2001. "Structural adjustment and forest resources - the impact of World Bank operations," Policy Research Working Paper Series 2584, The World Bank.
    2. Sverre Grepperud & Henrik Wiig & Finn Roar Aune, 1999. "Maize Trade Liberalization vs. Fertilizer Subsidies in Tanzania: A CGE Model Analysis with Endogenous Soil Fertility," Discussion Papers 249, Statistics Norway, Research Department.

    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. Sverre Grepperud & Henrik Wiig & Finn Roar Aune, 1999. "Maize Trade Liberalization vs. Fertilizer Subsidies in Tanzania: A CGE Model Analysis with Endogenous Soil Fertility," Discussion Papers 249, Statistics Norway, Research Department.
    2. Scherr, Sara J., 1999. "Soil degradation: a threat to developing-country food security by 2020?," 2020 vision discussion papers 27, International Food Policy Research Institute (IFPRI).
    3. Wiig, Henrik & Aune, Jens B. & Glomsrod, Solveig & Iversen, Vegard, 2001. "Structural adjustment and soil degradation in Tanzania: A CGE model approach with endogenous soil productivity," Agricultural Economics, Blackwell, vol. 24(3), pages 263-287, March.
    4. Heerink, Nico & Bao, Xiaobin & Li, Rui & Lu, Kaiyu & Feng, Shuyi, 2009. "Soil and water conservation investments and rural development in China," China Economic Review, Elsevier, vol. 20(2), pages 288-302, June.
    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. Laura Schmitt, 2009. "Developing and applying a soil erosion model in a data-poor context to an island in the rural Philippines," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 11(1), pages 19-42, February.
    7. 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.
    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. 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.
    10. repec:ilo:ilowps:281143 is not listed on IDEAS
    11. Withey, P. & Lantz, V.A. & Ochuodho, T. & Patriquin, M.N. & Wilson, J. & Kennedy, M., 2018. "Economic impacts of conservation area strategies in Alberta, Canada: A CGE model analysis," Journal of Forest Economics, Elsevier, vol. 33(C), pages 33-40.
    12. 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.
    13. 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.
    14. Raghbendra Jha & John Whalley, 2001. "The Environmental Regime in Developing Countries," NBER Chapters, in: Behavioral and Distributional Effects of Environmental Policy, pages 217-250, National Bureau of Economic Research, Inc.
    15. Demeke, Bayou, 2004. "Is Globalization Bad For The Environment? International Trade And Land Degradation In Developing Countries:The Case Of Small Open Economy," 2004 Annual meeting, August 1-4, Denver, CO 20376, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. Patrice Rélouendé Zidouemba & Françoise Gerard, 2018. "Does Agricultural Productivity Actually Matter for Food Security in a Landlocked Sub†Saharan African Country? The Case of Burkina Faso," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 66(1), pages 103-142, March.
    17. Laing, Timothy & Palmer, Charles, 2015. "Economy-wide impacts of REDD when there is political influence," Resource and Energy Economics, Elsevier, vol. 40(C), pages 107-126.
    18. Naoto Jinji, 2006. "International trade and terrestrial open-access renewable resources in a small open economy," Canadian Journal of Economics, Canadian Economics Association, vol. 39(3), pages 790-808, August.
    19. J. Hartwick, 1992. "Deforestation and national accounting," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 2(5), pages 513-521, September.
    20. Wen, Xiaojie & Yao, Shunbo & Sauer, Johannes, 2022. "Shadow prices and abatement cost of soil erosion in Shaanxi Province, China: Convex expectile regression approach," Ecological Economics, Elsevier, vol. 201(C).
    21. Vondolia, Godwin Kofi & Eggert, HÃ¥kan & Stage, Jesper, "undated". "Nudging Boserup? The Impact of Fertilizer Subsidies on Investment in Soil and Water Conservation," RFF Working Paper Series dp-12-08-efd, Resources for the Future.

    More about this item

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

    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:cup:endeec:v:4:y:1999:i:01:p:19-43_00. 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: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/ede .

    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.