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Estimation Of A Discrete-Choice Model With Spatial Interactions The Case Of Deforestation In Western Attica Between 1990 And 2000

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  • Elpianna Emmanouilidi

    () (Athens University of Economics and Business, Dept. of Economic Science.)

Abstract

This paper presents an environmental application, investigating land use changes of forests and semi-natural areas in the Greek region of Western Attica. Its objective is to estimate the spatial equilibrium distribution of individual deforestation actions and determine the degree of coordination in individual behaviour. For this purpose, the paper starts by creating a virtual economic network of 156 agents, by laying an ad hoc square grid over the region. Next, the dominant forest land use changes have been determined for each land parcel, using CORINE land cover maps for the years 1990 and 2000. The economic model used is a discrete choice model, with endogenous spatial interactions. Even though spatial interactions produce multiple equilibria, the present research proposes a two-stage fixed point estimator, yielding a unique solution. Empirical findings suggest that equilibrium deforestation actions are strategic substitutes for the environment and complements for agriculture, and are characterized by a relative lack of coordination in individual behaviour.

Suggested Citation

  • Elpianna Emmanouilidi, 2012. "Estimation Of A Discrete-Choice Model With Spatial Interactions The Case Of Deforestation In Western Attica Between 1990 And 2000," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(3), pages 69-83, December.
    • Handle: RePEc:hrs:journl::y:2012:v:iv:i:3:p:69-83
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    References listed on IDEAS

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    1. Lawrence E. Blume & William A. Brock & Steven N. Durlauf & Yannis M. Ioannides, 2010. "Identification of Social Interactions," Discussion Papers Series, Department of Economics, Tufts University 0754, Department of Economics, Tufts University.
    2. Yannis Ioannides, 2006. "Topologies of social interactions," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 28(3), pages 559-584, August.
    3. Aguirregabiria, Victor, 2004. "Pseudo maximum likelihood estimation of structural models involving fixed-point problems," Economics Letters, Elsevier, vol. 84(3), pages 335-340, September.
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    More about this item

    Keywords

    land use change; spatial interaction; discrete choice modeling; deforestation;

    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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