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Structural Adjustment Programme, Deforestation and Biodiversity Loss in Ghana

Listed author(s):
  • James Benhin

    ()

  • Edward Barbier

An empirical investigation is undertaken into the impact of the Structural Adjustment Programme (SAP) on forest and biodiversity loss in Ghana between the period 1965–1995. In the first part of the analysis, a four-equation recursive model, consisting of forest loss, cocoa land, maize land and timber production equations, is employed to examine the impact of the SAP on forest loss. The first equation is a function of the last three, and the last three are functions of mainly prices. Piecewise linear and switching regression approaches are used to distinguish between the influence of the post from the pre-adjustment impacts. These results together with a specie-forest area relationship are used to investigate the impact of the SAP on biodiversity loss. The overall results indicate that cocoa land expansion and timber production, but not maize land expansion, are the significant causes of forest loss in Ghana. However, the impact on forest loss in the post-adjustment period was reduced. The rate of biodiversity loss also reduced in the post-adjustment period. Changes in relative output and input prices due to the SAP may have played a significant role in the reduced impact of agricultural and timber related deforestation and biodiversity loss in the post-adjustment period. Copyright Kluwer Academic Publishers 2004

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File URL: http://hdl.handle.net/10.1023/B:EARE.0000017653.15107.0f
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Article provided by Springer & European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 27 (2004)
Issue (Month): 3 (March)
Pages: 337-366

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Handle: RePEc:kap:enreec:v:27:y:2004:i:3:p:337-366
DOI: 10.1023/B:EARE.0000017653.15107.0f
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  1. Lopez, Ramon, 1997. "Environmental externalities in traditional agriculture and the impact of trade liberalization: the case of Ghana," Journal of Development Economics, Elsevier, vol. 53(1), pages 17-39, June.
  2. Benhin, James K.A. & Barbier, Edward B., 2001. "The Effects Of The Structural Adjustment Program On Deforestation In Ghana," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 30(1), April.
  3. Munasinghe, Mohan, 1999. "Special Topic I: Structural Adjustment Policies and the Environment," Environment and Development Economics, Cambridge University Press, vol. 4(01), pages 9-18, February.
  4. Barbier, E B & Burgess, J C, 2001. " The Economics of Tropical Deforestation," Journal of Economic Surveys, Wiley Blackwell, vol. 15(3), pages 413-433, July.
  5. 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.
  6. Cropper, Maureen & Griffiths, Charles, 1994. "The Interaction of Population Growth and Environmental Quality," American Economic Review, American Economic Association, vol. 84(2), pages 250-254, May.
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