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Western Hemisphere

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  • Type: Journal Issue x
  • Trade Policy; International Trade Organizations x
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Cover IMF Working Papers
Economic and Environmental Benefits of Eliminating Log Export Bans—The Case of Costa Rica
Mr. Nalin M. Kishor, Mr. Muthukumara Mani, and Mr. Luis F. Constantino
An increasing number of tropical timber producing nations have enacted bans on export of logs. Proponents argue that a log export ban is a second-best policy tool for addressing environmental externalities; it also creates more jobs and improves scale efficiencies domestically. Theoretical arguments suggest that log export bans are largely incapable of achieving their objectives. However, little quantitative evidence exists. The authors maintain that eliminating log export bans in Costa Rica could generate economic gains as high as $14 million annually in addition to the environmental benefits.
Keywords:
WP; cost; export; LEB; processing industry; result; trade and environment; forestry; log export ban (LEB); sustainable management; Latin America; Costa Rica; export ban; timber export tax; efficiency gains; price rise; log price; Agroindustries; Trade barriers; Exports; Tariffs; Global