Deforestation and Agricultural Productivity in the Côte d'Ivoire

Abstract

Abstract An optimal control model is used to determine the optimal steady‐state forest stock in the Côte d'Ivoire. This stock is shown to increase with increases in the forestry returns relative to those in agriculture. Technological progress in agriculture and increases in the social discount rate serve to lower the optimal steady‐state forest stock. Based on an estimated aggregate yield function, the optimal forest stock is shown to be most sensitive to changes in the social rate of discount. Assuming current (1985) technology, deforestation appears socially optimal only for values of the discount rate greater than 8%.