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To cut or not to cut: Deforestation policy under the shadow of foreign influence

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  • Toke S Aidt
  • Facundo Albornoz
  • Esther Hauk

Abstract

This article explores the complex interplay between deforestation policies and foreign influence, using a game theoretical model to analyze geopolitical factors influencing forest conservation decisions in countries with significant rainforests. The model highlights the conflicting interests of foreign powers – one aiming for economic benefits from agriculture and the other advocating for forest preservation due to environmental services. The paper demonstrates how domestic political dynamics and economic shocks influence the regulatory decisions on deforestation. This understanding is crucial for formulating strategies that balance developmental needs and global environmental concerns.

Suggested Citation

  • Toke S Aidt & Facundo Albornoz & Esther Hauk, 2024. "To cut or not to cut: Deforestation policy under the shadow of foreign influence," Discussion Papers 2024-03, University of Nottingham, GEP.
    • Handle: RePEc:not:notgep:2024-03
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    References listed on IDEAS

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    More about this item

    Keywords

    Foreign influence; geopolitics; deforestation; food security; Brazil; China; rainforest.;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid

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