Deforestation and Seigniorage in Developing Countries: A Tradeoff?
Pascale Combes Motel (),
Alexandru Minea () and
Patrick Villieu ()
Additional contact information
Pascale Combes Motel: 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
Authors registered in the RePEc Author Service: Pascale Combes Motel ()
Working Papers from HAL
Most of countries covered by natural forests are developing countries, with limited ability to levy taxes and restrained access to international credit markets; consequently, they are amenable to draw heavily on two sources of government financing, namely seigniorage and deforestation revenues. First, we develop a theoretical model emphasizing a substitution effect between seigniorage and deforestation revenues. Second, a panel-data econometric analysis over the 1990-2010 period confirms our findings. Consequently, a tighter monetary policy hastens deforestation. Third, we extend the theoretical model and show that international transfers dedicated to forest protection can upturn the positive link between tighter monetary policies and deforestation, and then discuss the relevance of this finding with respect to recent institutional arrangements.
Keywords: seigniorage; deforestation; inflation; developing countries; Panel Data Analysis (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr and nep-env
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00939273v2
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
Journal Article: Deforestation and seigniorage in developing countries: A tradeoff? (2015)
Working Paper: Deforestation and Seigniorage in Developing Countries: A Tradeoff? (2015)
Working Paper: Deforestation and Seigniorage in Developing Countries: A Tradeoff? (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:halshs-00939273
Access Statistics for this paper
More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().