Deforestation and the Real Exchange Rate

Jean-Louis Arcand, Sylviane Guillaumont Jeanneney and Patrick Guillaumont ()
Additional contact information
Sylviane Guillaumont Jeanneney: CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique
Patrick Guillaumont: CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique

Post-Print from HAL

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) a depreciation in the real exchange rate increases deforestation in developing countries whereas the opposite obtains in developed countries; (iii) paradoxically, better institutions may exacerbate the deleterious impact of a depreciation 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.

Date: 2008
References: Add references at CitEc
Citations: View citations in EconPapers (74)

Published in Journal of Development Economics, 2008, 86 (2), pp.242-262

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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 (2005)
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:hal:journl:hal-00274384

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().