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Environmental, developmental and financial risks of tropical timber plantation investment funds
Author(s) -
Scholtens L. J. R.
Publication year - 1998
Publication title -
natural resources forum
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.646
H-Index - 49
eISSN - 1477-8947
pISSN - 0165-0203
DOI - 10.1111/j.1477-8947.1998.tb00737.x
Subject(s) - investment (military) , business , finance , financial risk , carry (investment) , financial market , politics , political science , law
This paper examines economic development and the environment within a market‐based approach through financial instruments that incorporate a considerable array of risks. It investigates how financial markets combine finance and sustainable development by analyzing investment funds participating in tropical forest plantations. These funds project high expected returns and carry huge financial risks, especially country risk, price risk, and credit risk. Environmental and developmental risks do not appear to be very large, as most plantations are established on former farmland and as the quantitative impact of the plantations seems limited.