To Cut or not to Cut: Deforestation Policy under the Shadow of Foreign Influence

• Authors: Esther Hauk.
• industrial organization
• Environmental Economics
• Journal of Economic Behaviour & Organization

This article explores the complex interplay between deforestation policies and foreign influence, using a game theoretical model to analyze geopolitical factors influencing forest conservation decisions in countries with significant rainforests. The model highlights the conflicting interests of foreign powers – one aiming for economic benefits from agriculture and the other advocating for forest preservation to protect environmental services. The paper demonstrates how domestic political dynamics and economic shocks from the international economic influence regulatory decisions on deforestation in the shadow of foreign influence. This understanding is crucial for formulating strategies that balance developmental needs and global environmental concerns.