Thursday, November 19, 2009

Norway to fund forest preservation in Guyana

From WorldWatch: "Norway to help protect Guyana's Forests".

This is a great example of econ principles in action.

Quotable line regarding land rent, discount rates and incentives: "If we don't start paying people for the ecosystem services that forests provide, they'll be used for other economic activities that result in deforestation and degradation." (Brendan Mackey, forest ecologist with the Australian National University)

1 comment:

Anonymous said...

This is like the debt for nature swap without a middle man. Instead of buying the debt one country is directly paying the other to preserve forest. This does have some of the same problems like enforcement of the agreement by the paying country.

Zach West