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Revisiting the historical state: Long-term effects of institutional history on deforestation

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  • Schündeln, Matthias
  • Van Vlodrop, Johannes

Abstract

Existing work has shown long-run effects of historical institutions on economic development. However, few studies examine long-run effects of institutions on the environment. In this paper, we build on work by Dell et al. (2018) to demonstrate the effect of historical institutions in southern Vietnam on forest cover. Using a spatial regression discontinuity design, we find a larger coverage of forest and a lower rate of deforestation in a region that historically delegated administrative tasks from the central state to the village, fostering local cooperation. Thus, our findings are in line with previous work suggesting a connection between local cooperation and the preservation of common pool resources. Further, the results suggest that historical institutional differences should be considered for a better understanding of determinants and possible remedies of forest loss.

Suggested Citation

  • Schündeln, Matthias & Van Vlodrop, Johannes, 2023. "Revisiting the historical state: Long-term effects of institutional history on deforestation," Economics Letters, Elsevier, vol. 233(C).
    • Handle: RePEc:eee:ecolet:v:233:y:2023:i:c:s0165176523004275
    DOI: 10.1016/j.econlet.2023.111401
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    Keywords

    Deforestation; Governance; Institutions; Vietnam;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • N55 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Asia including Middle East
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry

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