Prohibition and the Supply of Brazilian Mahogany
AbstractWe use a unique data set to investigate the economic consequences of banning the harvest and trade of Brazilian mahogany. Because we find strong evidence that mahogany is smuggled out of Brazil as "other tropical species" through formal export mechanisms, we are able to construct a time series of quantities and implicit export prices covering both the periods before and after prohibition. Our finding suggests that a trade ban increases supply and makes the illegal good more affordable. Our analysis can offer important insights into other illegal markets, such as those for narcotics and products manufactured from endangered animal species.
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Bibliographic InfoArticle provided by University of Wisconsin Press in its journal Land Economics.
Volume (Year): 86 (2010)
Issue (Month): 1 ()
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Web page: http://le.uwpress.org/
Find related papers by JEL classification:
- Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply (the Commons)
- Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
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