Cotton and environmental externalities in Nicaragua

Abstract

This paper presents partial results of the research "Externalities, environmental and economic policy in Nicaragua". Part of the issue referred to cotton was presented at the II International Colloquium Doctoral and Postdoctoral Geopolitics, Society, New Economy and Management (Caracas, 2012) and during the II International Seminar History, Culture and Environment (Managua, 2013). The research is part of the Doctoral Program in Economics, of the Faculty of Economics and Social Science University of Zulia (Venezuela), and allowed to determine the possible relationship between the market´s externalities associated to the four major export historical items of Nicaragua, their impacts on the environment and potential risks for the emerging economic activities. The results revealed that the agro-export model has not only generated great negative externalities but also it has been strengthened by severe environmental impacts that led to the collapse of the own cotton item.