Foreign Transfers and Tropical Deforestation: What Terms of Conditionality?

Posted: 6 Nov 2000

See all articles by Daan van Soest

Daan van Soest

Tilburg University - CentER & Department of Economics

Robert Lensink

University of Groningen - Department of Economics, Econometrics and Finance; Wageningen UR - Development Economics Group

Abstract

The international community considers the possibility of using aid as an instrument to improve natural resource conservation in developing countries. By making the amount of transfers dependent on the efforts of the recipient countries to improve conservation, appropriate incentives can be given. We propose a transfer function in which developing countries are linearly rewarded for having a positive stock of forest, and where the amount of donations is negatively related to the rate of deforestation. This transfer function enables the international community to improve long-term forest conservation as well as the rate of deforestation during the adjustment period.

JEL Classification: Q23, Q28

Suggested Citation

van Soest, Daan P. and Lensink, Robert, Foreign Transfers and Tropical Deforestation: What Terms of Conditionality?. American Journal of Agricultural Economics, Vol. 82, Iss. 2. Available at SSRN: https://ssrn.com/abstract=231481

Daan P. Van Soest (Contact Author)

Tilburg University - CentER & Department of Economics ( email )

P.O. Box 90153
5000 LE Tilburg
Netherlands
+31 13 466 2072 (Phone)

Robert Lensink

University of Groningen - Department of Economics, Econometrics and Finance ( email )

P.O. Box 800
9700 AH Groningen
Netherlands

Wageningen UR - Development Economics Group ( email )

Hollandseweg 1
WAGENINGEN, 6706 KN
Netherlands

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