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Debt and Deforestation

Author

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  • Richard J. Culas

    (Charles Sturt University, Australia)

Abstract

The debt crisis of developing countries led to the widespread adoption of Structural Adjustment Programs (SAPs) during the 1980s. This article examines the hypothesis that heavy foreign debt causes a high rate of tropical deforestation mainly through the clearing of forestland for agricultural expansion. The article also reviews the possible causal links between debt, agricultural expansion and deforestation. Empirical evidence from tropical developing countries indicates that debt and deforestation are positively linked. The article concludes by suggesting that reducing the debt burden of developing countries can widen the opportunities for better environmental policies.

Suggested Citation

  • Richard J. Culas, 2006. "Debt and Deforestation," Journal of Developing Societies, , vol. 22(4), pages 347-358, December.
    • Handle: RePEc:sae:jodeso:v:22:y:2006:i:4:p:347-358
    DOI: 10.1177/0169796X06071524
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    References listed on IDEAS

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    1. World Commission on Environment and Development,, 1987. "Our Common Future," OUP Catalogue, Oxford University Press, number 9780192820808.
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    6. Kahn, James R. & McDonald, Judith A., 1995. "Third-world debt and tropical deforestation," Ecological Economics, Elsevier, vol. 12(2), pages 107-123, February.
    7. Angelsen, Arild & Shitindi, Eric F. Katemansimba & Aarrestad, Jostein, 1999. "Why do farmers expand their land into forests? Theories and evidence from Tanzania," Environment and Development Economics, Cambridge University Press, vol. 4(3), pages 313-331, July.
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    Cited by:

    1. Samuel GUERINEAU & Pascale COMBES MOTEL & Jean-Louis COMBES, 2008. "Deforestation and credit cycles in Latin American countries," Working Papers 200808, CERDI.
    2. Combes, J.-L. & Combes Motel, P. & Minea, A. & Villieu, P., 2015. "Deforestation and seigniorage in developing countries: A tradeoff?," Ecological Economics, Elsevier, vol. 116(C), pages 220-230.

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