Banking for the environment


Table of contents


FAO AGRICULTURAL SERVICES BULLETIN 103

by
W. M. Gudger
and
D. C. Barker

The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.

M-08
ISBN 92-5-103286-6

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise, without the prior permission of the copyright owner. Applications for such permission, with a statement of the purpose and extent of the reproduction, should be addressed to the Director, Publications Division, Food and Agriculture Organization of the United Nations, Viale delle Terme di Caracalla, 00100 Rome, Italy.

© FAO 1993
FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS


Contents


Foreword

Chapter I - Introduction: the challenge of rational environmental management

The role of financial institutions
The heart of the problem - forest clearances and agricultural intensification

Chapter II - Sources of environmental degradation

Land clearance or land "reclamation"
The sources of land clearance
A case study in tropical deforestation: the "push-pull" effect in Dumoga Bone, Indonesia

Chapter III - The economics of environmental degradation

The theory of land degradation
Land degradation
Erosion
Flooding
Reduced economic viability
Intensification of farming practice
A case study: agricultural intensification in a banana export industry

Chapter IV - Methods for environmental cost-benefit analysis for agricultural lending

A contingent valuation model of environmental cost-benefit analysis

Chapter V - Banking economics and environmental accounting

Operational difficulties of environmental assessments
Sectoral objectives
Investment cycles
Tangible returns
Competitive financial markets

Chapter VI - Banking as environmentally constrained profit maximization

International capital flows
Domestic and international environmental law

Chapter VII - The environmental review process for banks: a model for sustainable agricultural lending

Environmental impact assessment for sustainable agricultural sector lending
A checklist for agricultural lenders of the elements for environmental impact assessment of sustainability

Chapter VIII - Institutionalizing environmental impact assessments in the agricultural lending process

Chapter IX - Non-institutional sources of agricultural finance and environmental degradation

Chapter X - Societal response to aggregate financial flows to environmentally degrading agricultural sector investments

Macro-economic accounting: incorporating the environment into national accounts
Resource accounting
Macro-environmental policy formulation
Micro-level policy formulation

Recommendations

Local level
State and regional level
National level

Bibliography

FAO technical papers