Extracting Environmental Benefits from a New Canal in Nicaragua: Lessons from Panama

Biologists have raised objections to a new canal in Nicaragua, but in this Essay I argue that dire predictions of environmental catastrophe are exaggerated. I present an alternative view based on my research experience in Panama, where Canal operations foster forest conservation. Currently in Nicaragua, the rate of forest loss is so rapid that the canal cannot make it worse. Rather, I contend, adoption of international standards in canal construction could lead to net environmental and social benefits for the country.