A NOTE ON HIGH DISCOUNT RATES AND DEPLETION OF PRIMARY FORESTS

Erwin Bulte and Daan van Soest

Journal of Agricultural and Resource Economics, 1996, vol. 21, issue 2, 10

Abstract: Conventional wisdom implies that high discount rates accelerate depletion of tropical forests. As shown in this article, this result does not necessarily hold in a two-state variable model that distinguishes between primary and secondary forest stocks. In the context of a fixed concession period and imperfect government control, logging of primary forests may be both accelerated and depressed as discount rates increase.

Keywords: Resource/Energy; Economics; and; Policy (search for similar items in EconPapers)
Date: 1996
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:jlaare:31026

DOI: 10.22004/ag.econ.31026

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