Foreign Transfers and Tropical Deforestation: What Terms of Conditionality?

11 Pages Posted: 24 Mar 2020

See all articles by Daan van Soest

Daan van Soest

World Bank

Robert Lensink

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

Date Written: May 2000

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, andwhere the amount of donations is negatively relatedto 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.

Keywords: conditionality, deforestation, foreign transfers, land allocation model, O130, Q230

Suggested Citation

van Soest, Daan and Lensink, Robert, Foreign Transfers and Tropical Deforestation: What Terms of Conditionality? (May 2000). American Journal of Agricultural Economics, Vol. 82, Issue 2, pp. 389-399, 2000, Available at SSRN: https://ssrn.com/abstract=3557452 or http://dx.doi.org/10.1111/0002-9092.00033

Daan Van Soest (Contact Author)

World Bank

1818 H Street, NW
Washington, DC 20433
United States

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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