The debt-resource-hypothesis suggests that high indebtedness leads to increased natural resource exploitation as well as more unsustainable patterns of resource use. Countries with high debt burdens supposedly increase their extraction of fossil fuels and mineral resources as well as their production of so-called cash crops in order to service their debt obligations. In spite of its popularity, there have been few attempts to systematically test the hypothesis. Existing analyses refer to deforestation only and come to mixed results. This study fills a gap in testing the hypothesis more comprehensively for 23 natural resources and cash crops. It uses first differencing, period-specific time dummies, and a lagged dependent variable to mitigate omitted variable bias. No evidence is found that would support the debt-resource-hypothesis.

A diverse body of empirical literature recognizes that investment can influence tenure security, yet this phenomenon has rarely been examined analytically. This paper develops a theoretical model that demonstrates explicitly conditions under which the probability of eviction is endogenous to investment undertaken on illegally encroached land. By accommodating explicitly the government's objective function and its ability to commit credibly to an eviction policy, the model reveals why both those farmers who under-invest, and those who raise their investment levels to improve tenure security, may be behaving rationally. Indeed, both types of behaviour are accommodated within a single model.

The benefits of nature-based tourism to biodiversity conservation are often presumed but rarely quantified. The relative value placed on attributes of nature parks is unknown, as is the contribution of biodiversity to tourists' willingness to visit a particular protected area. We surveyed tourists and foreign residents in Uganda to determine how preferences for particular protected areas are formed. We evaluated tourists' demand for elevated biodiversity levels (increased numbers of bird species seen), relative to other protected areas attributes. As the number of bird species increased, tourists demonstrated increased willingness to visit a protected area, independently of all other factors. We used these results to evaluate a revenue-maximizing park management strategy, and consider how revenues from nature-based tourism compare with those from local agricultural land-uses.

This article analyzes effects of insect-resistant Bt cotton on pesticide use and agricultural productivity in Argentina. Based on farm survey data, it is shown that the technology reduces application rates of toxic chemicals by 50 per cent, while significantly increasing yields. Using a damage control framework, the effectiveness of Bt versus chemical pesticides is estimated, and technological impacts are predicted for different farm types. Gross benefits could be highest for smallholder farmers, who are not currently using the technology. The durability of the advantages is analyzed by using biological models to simulate resistance development in pest populations. Rapid resistance buildup and associated pest outbreaks appear to be unlikely if minimum non-Bt refuge areas are maintained. Thus, promoting a more widespread diffusion of Bt cotton could amplify the efficiency, equity, and environmental gains. Conclusive statements about the technology's sustainability, however, require longer-term monitoring of possible secondary effects and farmers' behavior in maintaining refuges.

Global climate change is expected to cause sea level rise, which will have major effects on Singapore because it is a small, low-lying island state. With the high degree of urbanization and industrialization on the island, land is scarce and very valuable. Examining three sea level rise scenarios for the next century, we explore whether Singapore should defend their coast or allow it to be inundated. Across ten coastal sites representing all market land in Singapore, we found that protection was the lowest cost strategy. The annual cost of protecting the coasts of Singapore will rise over time as the sea level rises and will range from 0.3 to 5.7 million US$ by 2050 to 0.9 to 16.8 million US$ by 2100. The present value of these costs ranges from 0.17 to 3.08 million US$ depending on the sea level rise scenario.

People have a marginal role in managing forests located in the vicinity of their villages in Northern India. This situation is scrutinized in this paper by studying strategic play of forest users. Thereto, a 1 versus n−1 game of people's participation in forest management is estimated for three institutional and historical distinct cases at the State and village level. Critical discount factors are derived to verify whether incentives exist for villagers to mutually participate in managing commonly used forests. This paper finds such incentives in varying degrees for games at the State level and for games in 23 of the 32 considered villages.