Deforestation and the Real Exchange Rate

Jean-Louis Arcand, Patrick Guillaumont () and Sylviane Guillaumont Jeanneney ()

No 200533, Working Papers from CERDI

Abstract: Deforestation is a phenomenon that has largely been concentrated in the developing world. We construct a theoretical model of deforestation that focuses on the factors affecting the incentives to transform forested land into agricultural land. We show that: (i) lower discount rates and stronger institutions decrease deforestation; (ii) depreciations in the real exchange rate increase deforestation in developing countries whereas the opposite obtains in developed countries; (iii) paradoxically, better institutions may exacerbate the deleterious impact of depreciations in developing countries. These hypotheses are tested on an annual sample of 101 countries over the 1961-1988 period, and are not rejected by the data. Our results suggest that short-term macroeconomic policy, institutional factors, and the interaction between the two, are potentially important determinants of environmental outcomes.

Keywords: Deforestation; Real effective exchange rate; Institutions (search for similar items in EconPapers)
Pages: 40
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in , 2003, pages

Downloads: (external link)
http://publi.cerdi.org/ed/2005/2005.33.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://publi.cerdi.org/ed/2005/2005.33.pdf [301 Moved Permanently]--> https://publi.cerdi.org/ed/2005/2005.33.pdf)

Related works:
Working Paper: Deforestation and the Real Exchange Rate (2011)
Journal Article: Deforestation and the real exchange rate (2008)
Working Paper: Deforestation and the Real Exchange Rate (2008)
Working Paper: Deforestation and the Real Exchange Rate (2003)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cdi:wpaper:762

Access Statistics for this paper

More papers in Working Papers from CERDI Contact information at EDIRC.
Bibliographic data for series maintained by Vincent Mazenod ().