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Public Open Access and Private Timber Harvests: Theory and Application to the Effects of Trade Liberalization in Mexico

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  • Jeffrey Prestemon
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    Abstract

    A common popular assertion is that trade liberalization encourages deforestation. But whether this is true depends on how trade policies affect the allocation of land among competing uses and how they influence illegal cutting of public forests. A model is presented that allows for forests to be either public or private, and public forests are divided into protected (or managed) and threatened categories. Effects of price changes are shown on each part of the forest. An empirical version of the model is applied to the case of Mexico with NAFTA. Most scenarios considered show that NAFTA will have positive long-run effects on forest cover in Mexico but that this is net of losses on private lands. Copyright Kluwer Academic Publishers 2000

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    File URL: http://hdl.handle.net/10.1023/A:1026498222748
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    Bibliographic Info

    Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

    Volume (Year): 17 (2000)
    Issue (Month): 4 (December)
    Pages: 311-334

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    Handle: RePEc:kap:enreec:v:17:y:2000:i:4:p:311-334

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    Web page: http://www.springerlink.com/link.asp?id=100263

    Related research

    Keywords: deforestation; forests; land quality; land-use choice; NAFTA; ownership heterogeneity;

    References

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    1. Drusilla K. Brown & Alan V. Deardorff & Robert M. Stern, 1992. "A North American Free Trade Agreement: Analytical Issues and a Computational Assessment," The World Economy, Wiley Blackwell, vol. 15(1), pages 11-30, 01.
    2. Gary Clyde Hufbauer & Jeffrey J. Schott, 1992. "North American Free Trade: Issues and Recommendations," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 71.
    3. Barbier, Edward B. & Burgess, J.C., 1996. "Economic analysis of deforestation in Mexico," MPRA Paper 12089, University Library of Munich, Germany.
    4. Gerald C. Nelson & Daniel Hellerstein, 1997. "Do Roads Cause Deforestation? Using Satellite Images in Econometric Analysis of Land Use," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 80-88.
    5. Andrew J. Plantinga, 1996. "The Effect of Agricultural Policies on Land Use and Environmental Quality," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(4), pages 1082-1091.
    6. Deacon Robert T., 1995. "Assessing the Relationship between Government Policy and Deforestation," Journal of Environmental Economics and Management, Elsevier, vol. 28(1), pages 1-18, January.
    7. Strang, William J, 1983. "On the Optimal Forest Harvesting Decision," Economic Inquiry, Western Economic Association International, vol. 21(4), pages 576-83, October.
    8. Samuelson, Paul A, 1976. "Economics of Forestry in an Evolving Society," Economic Inquiry, Western Economic Association International, vol. 14(4), pages 466-92, December.
    9. Robert T. Deacon, 1994. "Deforestation and the Rule of Law in a Cross-Section of Countries," Land Economics, University of Wisconsin Press, vol. 70(4), pages 414-430.
    10. Swanson, Timothy M, 1994. "The Economics of Extinction Revisited and Revised: A Generalised Framework for the Analysis of the Problems of Endangered Species and Biodiversity Losses," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 800-821, Supplemen.
    11. Ian W. Hardie & Peter J. Parks, 1997. "Land Use with Heterogeneous Land Quality: An Application of an Area Base Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 299-310.
    12. Barbier, E B & Burgess, J C, 2001. " The Economics of Tropical Deforestation," Journal of Economic Surveys, Wiley Blackwell, vol. 15(3), pages 413-33, July.
    13. Hartman, Richard, 1976. "The Harvesting Decision When a Standing Forest Has Value," Economic Inquiry, Western Economic Association International, vol. 14(1), pages 52-58, March.
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    Cited by:
    1. Gregory S. Amacher & Erkki Koskela & Markku Ollikainen, 2004. "Socially Optimal Royalty Design and Illegal Logging under Alternative Penalty Schemes," CESifo Working Paper Series 1131, CESifo Group Munich.
    2. Shimamoto, Mihoko & Ubukata, Fumikazu & Seki, Yoshiki, 2004. "Forest sustainability and the free trade of forest products: cases from Southeast Asia," Ecological Economics, Elsevier, vol. 50(1-2), pages 23-34, September.

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