Andrew Mitchell

Climate change: can money stop deforestation?

Andrew Mitchell, Carlos Manuel Rodriguez, Tom Standage

Global deforestation continues to accelerate due to economic incentives that favor land clearance over conservation, as evidenced by the collapse of Costa Rica's forest coverage from 75% to 21% between 1940 and 1987. Costa Rica subsequently reversed this trend by implementing a Payments for Environmental Services (PES) scheme funded by fuel and water levies, which raised forest cover to over 50% while sustaining a 4.2% annual GDP growth. Despite these successes, the unregulated global carbon market and trillions in harmful agricultural subsidies remain major barriers, necessitating a fundamental economic shift that values standing forests higher than industrial profits to address the climate crisis.