Public spending, credit and natural capital: Does access to capital foster deforestation?

Abstract : Improving access to man-made capital through domestic credit and public spending is a step towards development. Developing countries rely also on natural capital, which may generate possible conflicts between environment and development targets. Taking the case of land-use and deforestation, this paper revisits the links between man-made and natural capital. Relying on a model of income maximization, we theoretically assess how better access to man-made capital through public spending and credit, influences forest cover loss. Econometric investigations, over the period 2001–2012, show that forest cover loss is positively influenced by credit and public spending. A better access to capital is thus detrimental to the forest. This can be interpreted as a Tinbergen rule: the development objective of facilitating access to man-made capital cannot be tackled without facing the objective of environmental protection.
Type de document :
Article dans une revue
Economic Modelling, Elsevier, 2018, 〈10.1016/j.econmod.2018.04.006〉
Liste complète des métadonnées
Contributeur : Cerdi Etudes & Documents - Publications <>
Soumis le : vendredi 1 juin 2018 - 14:47:40
Dernière modification le : mercredi 12 décembre 2018 - 12:04:01



Jean-Louis Combes, Philippe Delacote, Pascale Combes Motel, Thierry Urbain Yogo. Public spending, credit and natural capital: Does access to capital foster deforestation?. Economic Modelling, Elsevier, 2018, 〈10.1016/j.econmod.2018.04.006〉. 〈hal-01805161〉



Consultations de la notice