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Democracy and deforestation: The role of spillover effects

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  • Cary, Michael
  • Bekun, Festus Victor

Abstract

This paper is a replication and extension of Buitenzorgy and Mol (2011). We recreate the data and analyses from that paper on the impact of democracy on deforestation from 1990 through 2000 with great precision before extending the data set and analyses to include the period from 2000 through 2010. We find that the original results of Buitenzorgy and Mol (2011) were spurious and inconsistent in the replication once heteroskedasticity robust standard errors were employed. When combining the two time periods and running analyses on panel data and differenced data for robust outcomes and better policy inferences, we find different results for the effect of democracy on deforestation, indicating that model specification is critical to studying this relationship. The more econometrically sound method, the differenced models, reject the Environmental Kuznet's Curve (EKC) hypothesis for democracy and deforestation, instead indicating that democracy decreased deforestation rates. When adding democracy spillover effects to the model, i.e., the impact on deforestation rates due to changes in democracy levels in neighboring countries, we still find that democracy leads to decreased rates of deforestation. We also find that having more democratic neighbors leads to further decreases in democracy. These outcomes have far-reaching implications for the blocs examined, which are highlighted in this study.

Suggested Citation

  • Cary, Michael & Bekun, Festus Victor, 2021. "Democracy and deforestation: The role of spillover effects," Forest Policy and Economics, Elsevier, vol. 125(C).
    • Handle: RePEc:eee:forpol:v:125:y:2021:i:c:s1389934121000046
    DOI: 10.1016/j.forpol.2021.102398
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    Cited by:

    1. Farooq, Umar & Dar, Arif Billah, 2022. "Is there a Kuznets curve for forest product footprint? – empirical evidence from India," Forest Policy and Economics, Elsevier, vol. 144(C).
    2. Ajanaku, B.A. & Collins, A.R., 2021. "Economic growth and deforestation in African countries: Is the environmental Kuznets curve hypothesis applicable?," Forest Policy and Economics, Elsevier, vol. 129(C).
    3. Wang, Quan-Jing & Peng, Xin-Yu & Wang, Hai-Jie & Chang, Chun-Ping, 2023. "The diversity impact of democracy on forest protection: Global evidence," Land Use Policy, Elsevier, vol. 125(C).
    4. Deng, Dandan & Dong, Jiayun & Zhang, Yiwen & Liang, Wenyuan & Liu, Kun & Li, Lingchao, 2023. "Analysis of the environmental Kuznets curve for forest fragmentation: The case of Beijing-Tianjin-Hebei region in China," Forest Policy and Economics, Elsevier, vol. 151(C).
    5. Caravaggio, Nicola, 2022. "Economic growth and forest transition in Latin America," Forest Policy and Economics, Elsevier, vol. 135(C).
    6. Sohag, Kazi & Gainetdinova, Anna & Mariev, Oleg, 2023. "Economic growth, institutional quality and deforestation: Evidence from Russia," Forest Policy and Economics, Elsevier, vol. 150(C).
    7. Cary, Michael, 2023. "Climate policy boosts trade competitiveness: Evidence from timber trade networks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 188(C).
    8. Pablo-Romero, María P. & Sánchez-Braza, Antonio & Gil-Pérez, Jesús, 2023. "Is deforestation needed for growth? Testing the EKC hypothesis for Latin America," Forest Policy and Economics, Elsevier, vol. 148(C).

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    More about this item

    Keywords

    Deforestation; Democracy; Spillover effects; Forest cover; EKC;
    All these keywords.

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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