Eco-Currency and Sustainability: A Case of the Atlantic Forest

35 Pages Posted: 29 Jul 2023

See all articles by Danish Hasan Ansari

Danish Hasan Ansari

affiliation not provided to SSRN

Joshua Farley

University of Vermont

Joe Ament

University of Vermont

Abdon Luiz Schmitt Filho

Federal University of Santa Catarina (UFSC)

Abstract

Deforestation in the tropical Atlantic Forest of Brazil has reduced native forest cover in the biome to ~22%. Research suggests that restoration to at least 30% of native forest cover is required to avoid a potentially catastrophic ecological collapse. This paper presents a policy recommendation for the restoration of native forest cover in the Atlantic Forest, through an eco-currency called the Marc (Mata Atlantica Restoration Currency) based on heterodox monetary theories of Chartalism and Modern Monetary Theory (MMT). The Marc eco-currency would be issued by the Brazilian government to landowners in the Atlantic Forest in compensation for restoring forest cover. The government would then impose taxes in Marcs corresponding to the amount of forest cover it wishes to restore, and once backed by taxes the Marc would function as a parallel currency. We show that compared to the Brazilian Real, the Marc eco-currency would lead to a greater incentive for landowners to restore forest cover because the Marc would be resistant to currency speculation and inflation. The Brazilian government can simply print Marcs as per the restoration requirements, without significantly reducing their value. Moreover, taxes imposed in Marcs can be used to achieve other social and ecological goals.

Keywords: Eco-currency, Modern Monetary Theory (MMT), Chartalism, Deforestation, Forest restoration, Taxation

Suggested Citation

Ansari, Danish Hasan and Farley, Joshua and Ament, Joe and Schmitt Filho, Abdon Luiz, Eco-Currency and Sustainability: A Case of the Atlantic Forest. Available at SSRN: https://ssrn.com/abstract=4524897 or http://dx.doi.org/10.2139/ssrn.4524897

Danish Hasan Ansari (Contact Author)

affiliation not provided to SSRN ( email )

No Address Available

Joshua Farley

University of Vermont ( email )

212 Kalkin Hall
Burlington, VT 05405-0158
United States

Joe Ament

University of Vermont ( email )

Abdon Luiz Schmitt Filho

Federal University of Santa Catarina (UFSC) ( email )

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