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Contagious development: Neighbor interactions in deforestation

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  • Robalino, Juan A.
  • Pfaff, Alexander

Abstract

We estimate neighbor interactions in deforestation in Costa Rica. To address simultaneity and the presence of spatially correlated unobservables, we measure for neighbors' deforestation using the slopes of neighbors' and neighbors' neighbors' parcels. We find that neighboring deforestation significantly raises the probability of deforestation. Policies for agricultural development or forest conservation in one area will affect deforestation rates in non-targeted neighboring areas. Correct estimation of the interaction reverses the naive estimate's prediction of multiple equilibria.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Development Economics.

Volume (Year): 97 (2012)
Issue (Month): 2 ()
Pages: 427-436

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Handle: RePEc:eee:deveco:v:97:y:2012:i:2:p:427-436

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Web page: http://www.elsevier.com/locate/devec

Related research

Keywords: Instrumental variable; Neighbors' interactions; Local interactions; Social interactions; Land use patterns; Environmental policies;

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References

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Citations

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Cited by:
  1. Pfaff, Alexander & Robalino, Juan & Lima, Eirivelthon & Sandoval, Catalina & Herrera, Luis Diego, 2014. "Governance, Location and Avoided Deforestation from Protected Areas: Greater Restrictions Can Have Lower Impact, Due to Differences in Location," World Development, Elsevier, vol. 55(C), pages 7-20.
  2. Huixia Zhao & Emi Uchida & Xiangzheng Deng & Scott Rozelle, 2011. "Do Trees Grow with the Economy? A Spatial Analysis of the Determinants of Forest Cover Change in Sichuan, China," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 50(1), pages 61-82, September.
  3. Alix-Garcia, Jennifer & Wolff, Hendrik, 2014. "Payment for Ecosystem Services from Forests," IZA Discussion Papers 8179, Institute for the Study of Labor (IZA).
  4. Kassie, Menale & Yesuf, Mahmud & Köhlin, Gunnar, 2008. "The Role of Production Risk in Sustainable Land-Management Technology Adoption in the Ethiopian Highlands," Discussion Papers dp-08-15-efd, Resources For the Future.
  5. Colin Vance & Christopher B. Busch, 2011. "The Diffusion of Cattle Ranching and Deforestation – Prospects for a Hollow Frontier in Mexico’s Yucatán," Ruhr Economic Papers 0242, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  6. Jorge Hargrave & Krisztina Kis-Katos, 2013. "Economic Causes of Deforestation in the Brazilian Amazon: A Panel Data Analysis for the 2000s," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 54(4), pages 471-494, April.
  7. Richter, Andries & van Soest, Daan & Grasman, Johan, 2013. "Contagious cooperation, temptation, and ecosystem collapse," Journal of Environmental Economics and Management, Elsevier, vol. 66(1), pages 141-158.
  8. Robalino, Juan & Pfaff, Alexander & Sanchez-Azofefia, G. Arturo & Alpizar, Francisco & Leon, Carlos & Rodriguez, Carlos Manuel, 2008. "Deforestation Impacts of Environmental Services Payments: Costa Rica’s PSA Program 2000–2005," Discussion Papers dp-08-24-efd, Resources For the Future.

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