Deforestation and Seigniorage in Developing Countries: A Tradeoff?

Abstract : 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.
Document type :
Preprints, Working Papers, ...
Complete list of metadatas

Cited literature [53 references]  Display  Hide  Download

https://halshs.archives-ouvertes.fr/halshs-00939273
Contributor : Cerdi Etudes & Documents - Publications <>
Submitted on : Monday, June 8, 2015 - 10:03:25 AM
Last modification on : Thursday, September 26, 2019 - 4:49:12 PM
Long-term archiving on : Tuesday, September 15, 2015 - 12:05:33 PM

File

2013.22.pdf
Files produced by the author(s)

Identifiers

  • HAL Id : halshs-00939273, version 2

Citation

Jean-Louis Combes, Pascale Combes Motel, Alexandru Minea, Patrick Villieu. Deforestation and Seigniorage in Developing Countries: A Tradeoff?. 2015. ⟨halshs-00939273v2⟩

Share

Metrics

Record views

216

Files downloads

651