Abstract
Trade interventions are increasingly advocated as a means for controlling timber-related tropical deforestation. This paper analyzes the impact on deforestation of such policy instruments in a dynamic framework. The forest is modelled as a potentially renewable resource, and timber is extracted for purposes of export and domestic consumption. Optimality conditions for a variety of model specifications are derived, and the impacts of changes in the terms of trade and market structure on long-run deforestation are analyzed. The results of this analysis suggest that trade interventions that seek to affect the terms of trade against the export of tropical timber products are in the long run a second-best policy option for influencing the deforestation process.
Reprinted by permission of Kluwer Academic Publishers, Dordrecht, The Netherlands. Environmental and Resource Economics 4: 75–90, 1994.
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Barbier, E.B., Rauscher, M. (1994). Trade, Tropical Deforestation and Policy Interventions. In: Carraro, C. (eds) Trade, Innovation, Environment. Fondazione Eni Enrico Mattei (FEEM) Series on Economics, Energy and Environment, vol 2. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-0948-2_3
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DOI: https://doi.org/10.1007/978-94-011-0948-2_3
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