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Foreign Transfers and Tropical Deforestation: What Terms of Conditionality?

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  • Daan van Soest
  • Robert Lensink

Abstract

The international community considers the possibility of using aid as an instrument to improve natural resource conservation in developing countries. By making the amount of transfers dependent on the efforts of the recipient countries to improve conservation, appropriate incentives can be given. We propose a transfer function in which developing countries are linearly rewarded for having a positive stock of forest, andwhere the amount of donations is negatively relatedto the rate of deforestation. This transfer function enables the international community to improve long-term forest conservation as well as the rate of deforestation during the adjustment period. Copyright 2000, Oxford University Press.

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  • Daan van Soest & Robert Lensink, 2000. "Foreign Transfers and Tropical Deforestation: What Terms of Conditionality?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 389-399.
    • Handle: RePEc:oup:ajagec:v:82:y:2000:i:2:p:389-399
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    File URL: http://hdl.handle.net/10.1111/0002-9092.00033
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    Cited by:

    1. Tim Swanson & Ben Groom, 2012. "Regulating global biodiversity: what is the problem?," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 28(1), pages 114-138, Spring.
    2. Ollivier, Hélène, 2012. "Growth, deforestation and the efficiency of the REDD mechanism," Journal of Environmental Economics and Management, Elsevier, vol. 64(3), pages 312-327.
    3. Chiroleu-Assouline, Mireille & Poudou, Jean-Christophe & Roussel, Sébastien, 2018. "Designing REDD+ contracts to resolve additionality issues," Resource and Energy Economics, Elsevier, vol. 51(C), pages 1-17.
    4. Quentin Grafton, R. & Jotzo, Frank & Wasson, Merrilyn, 2004. "Financing sustainable development: Country Undertakings and Rights for Environmental Sustainability CURES," Ecological Economics, Elsevier, vol. 51(1-2), pages 65-78, November.
    5. K. Erdlenbruch & M. Tidball, 2006. "Singular Optimal Control Model of Stock-Dependent Environmental Policies," Journal of Optimization Theory and Applications, Springer, vol. 131(1), pages 69-88, October.
    6. Altaghlibi, Moutaz & Wagener, Florian, 2019. "Unconditional aid and green growth," Journal of Economic Dynamics and Control, Elsevier, vol. 105(C), pages 158-181.
    7. Kristine Hermanrud & Indra de Soysa, 2017. "Lazy thinking, lazy giving? Examining the effects of Norwegian aid on forests in developing countries," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 20(1), pages 19-41, March.
    8. Deke, Oliver, 2004. "Financing National Protected Area Networks Internationally: The Global Environment Facility as a Multilateral Mechanism of Transfer," Kiel Working Papers 1227, Kiel Institute for the World Economy (IfW Kiel).
    9. Andrés-Domenech, Pablo & Martín-Herrán, Guiomar & Zaccour, Georges, 2015. "Cooperation for sustainable forest management: An empirical differential game approach," Ecological Economics, Elsevier, vol. 117(C), pages 118-128.
    10. Lafforgue, Gilles & Ollivier, Hélène, 2011. "Optimal policies to preserve tropical forests," LERNA Working Papers 11.14.348, LERNA, University of Toulouse.
    11. Fouad El Ouardighi & Eugene Khmelnitsky & Marc Leandri, 2020. "Production-based pollution versus deforestation: optimal policy with state-independent and-dependent environmental absorption efficiency restoration process," Annals of Operations Research, Springer, vol. 292(1), pages 1-26, September.

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