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Effects of Poverty on Deforestation: Distinguishing behaviour from location

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Author Info
Suzi Kerr
Alexander Pfaff
Romina Cavatassi (Agricultural and Development Economics Division, Food and Agriculture Organization)
Benjamin Davis (Agricultural and Development Economics Division, Food and Agriculture Organization)
Leslie Lipper (Agricultural and Development Economics Division, Food and Agriculture Organization)
Arturo Sanchez
Jason Timmins

Additional information is available for the following registered author(s):

Abstract

We summarize existing theoretical claims linking poverty to rates of deforestation and then examine this linkage empirically for Costa Rica during the 20th century using an econometric approach that addresses the irreversibilities in deforestation. Our data facilitate an empirical analysis of the implications for deforestation of where the poor live. Without controlling for this, impacts of poverty per se are confounded by richer areas being different from the areas inhabited by the poor, who we expect to find on more marginal lands, for instance less profitable lands. Controlling for locations’ characteristics, we find that poorer areas are cleared more rapidly. This result suggests that poverty reduction aids forest conservation.

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Publisher Info
Paper provided by Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA) in its series Working Papers with number 04-19.

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Length: 28 pages
Date of creation: 2004
Date of revision:
Handle: RePEc:fao:wpaper:0419

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Related research
Keywords: Climate; Climate observations; Costa Rica; Deforestation; Forest management; Nature conservation; Poverty;

Find related papers by JEL classification:
I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounting

References listed on IDEAS
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  1. Mendelsohn, Robert, 1994. "Property Rights and Tropical Deforestation," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 750-56, Supplemen. [Downloadable!] (restricted)
  2. Deininger, Klaus W & Minten, Bart, 1999. "Poverty, Policies, and Deforestation: The Case of Mexico," Economic Development and Cultural Change, University of Chicago Press, vol. 47(2), pages 313-44, January.
  3. Reardon, Thomas & Vosti, Stephen A., 1995. "Links between rural poverty and the environment in developing countries: Asset categories and investment poverty," World Development, Elsevier, vol. 23(9), pages 1495-1506, September. [Downloadable!] (restricted)
  4. Angelsen, Arild & Kaimowitz, David, 1999. "Rethinking the Causes of Deforestation: Lessons from Economic Models," World Bank Research Observer, Oxford University Press, vol. 14(1), pages 73-98, February. [Downloadable!]
  5. Filmer, Deon & Pritchett, Lant, 1998. "Estimating wealth effects without expenditure data - or tears : with an application to educational enrollments in states of India," Policy Research Working Paper Series 1994, The World Bank. [Downloadable!]
  6. Anderson, Terry L & Hill, Peter J, 1990. "The Race for Property Rights," Journal of Law & Economics, University of Chicago Press, vol. 33(1), pages 177-97, April.
  7. Pfaff, Alexander S. P., 1999. "What Drives Deforestation in the Brazilian Amazon?: Evidence from Satellite and Socioeconomic Data," Journal of Environmental Economics and Management, Elsevier, vol. 37(1), pages 26-43, January. [Downloadable!] (restricted)
  8. Wunder, Sven, 2001. "Poverty Alleviation and Tropical Forests--What Scope for Synergies?," World Development, Elsevier, vol. 29(11), pages 1817-1833, November. [Downloadable!] (restricted)
  9. Stavins, Robert N & Jaffe, Adam B, 1990. "Unintended Impacts of Public Investments on Private Decisions: The Depletion of Forested Wetlands," American Economic Review, American Economic Association, vol. 80(3), pages 337-52, June.
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