Abstract
The first part of the chapter gives an overview of the extent of the problem of deforestation; the last two parts indicate which measures may contribute to a reduction of deforestation. In our search for model solutions to the deforestation problem we first summarise the causes of deforestation, special attention being paid to the situation in Brazil and Costa Rica, the two countries where Precious Woods operates. Secondly, the consequences of forest destruction are discussed, with a summary of estimates of the economic costs of deforestation. These figures also in fact give an indication of how the rate of deforestation could be reduced. If forest products can be produced on a sustainable basis and sold at a competitive price, perhaps, together with other services of the forest, the incentives to protect and conserve the forest may increase. Within this section, the emphasis is put on timber. Furthermore, carbon storage is stressed.
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Being aware that estimates of deforestation vary greatly and that a number of studies on the topic exist, we refer here mainly to FAO figures. This narrow source of data is justified by the purpose of this chapter: we simply want to demonstrate the approximate scale and rough trends of deforestation and do not attempt to draw an absolutely accurate picture of the current situation.
Deforestation in FAO sources is generally defined as change in vegetation which reduces the crown cover to 10% or less (see also Amelung and Diehl, 1992: 116).
Interviews with José Miguel Brenes, general manager of Precious Woods Costa Rica, March 1998 and interview with Luis Ugalde (CATIE, Costa Rica ), March 1998.
Interview with José Miguel Brenes (Precious Woods Costa Rica), Luis Ugalde (CATIE, Costa Rica) and author’s impression during fieldwork in Costa Rica.
The NPV is calculated as (1/r)a, where r is the interest rate and a the perpetual annual income stream derived from sustainable resource use.
See for example Schneider (1995).
Sustainability here refers to the timber yields and does not necessarily qualify for more stringent criteria of sustainability. See discussion in chapter below.
Pearce and Moran refer to a study of Peters, Gentry and Mendelsohn (1989) which has, however, frequently been criticised, because the study does not appreciate the problem of limited demand for non-wood forest products.
Also, any assessment of the economic viability of forestry projects to be financed via timber sales (as envisaged by Precious Woods) hinges on the future export price for tropical timber.
In this context see also Janssen and Mohr (1998).
Schneider, for example, deduces a carbon storage price of 4,950 $/ha on the assumption that tax rates are equivalent to the net costs of CO2 emission reductions (Schneider 1995: 57). Pearce, in contrast, estimates the damage per ha deforested rain forest to be $ 1300 in terms of carbon release (Pearce 1990:256); he takes this value to be a conservative estimate.
Nevertheless, people might not pay for existence values, but feel that they pay for option values (as they might wish to use the forest resources some time in the future) or they might see their contribution even as paying for use values as they benefit from the international environmental services of the rain forest (carbon storage). In order to understand which values people are really paying for, one would need to analyse the motivation of organisations (and their sponsors) engaging in debt for nature swaps.
This value appears not to take carbon storage into account, which alone, according to Pearce, constitutes a minimum value of $ 1300/ha ( Pearce 1990 ). Another explanation for the low value could be that it refers not to NPV but to annual benefits.
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© 2000 Springer Science+Business Media Dordrecht
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Kägi, W. (2000). Deforestation: Extent, Causes and Consequences. In: Economics of Climate Change: The Contribution of Forestry Projects. Environment & Policy, vol 21. Springer, Dordrecht. https://doi.org/10.1007/978-94-015-9600-8_3
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DOI: https://doi.org/10.1007/978-94-015-9600-8_3
Publisher Name: Springer, Dordrecht
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