A NOTE ON HIGH DISCOUNT RATES AND DEPLETION OF PRIMARY FORESTS
Conventional wisdom implies that high discount rates accelerate depletion of tropical forests. As shown in this article, this result does not necessarily hold in a two-state variable model that distinguishes between primary and secondary forest stocks. In the context of a fixed concession period and imperfect government control, logging of primary forests may be both accelerated and depressed as discount rates increase.
Bulte, Erwin H.; van Soest, Daan P., A NOTE ON HIGH DISCOUNT RATES AND DEPLETION OF PRIMARY FORESTS, Journal of Agricultural and Resource Economics, Volume 21, Issue 2, December 1996, Pages 341-350
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