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Deforestation and national accounting

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  • J. Hartwick

Abstract

We construct a first best growing economy in which land is being switched continuously from use in forestry to an alternative use. We find that implicitly for such activity to take place there must be no net loss to land owners. This implies no deduction in the national accounts for deforestation. With soil erosion on deforested land, Pigovian taxes must be levied to sustain a first best. We also observe an optimal tax on households for their implicit use of forests as oxygenation sinks. Copyright Kluwer Academic Publishers 1992

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  • J. Hartwick, 1992. "Deforestation and national accounting," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 2(5), pages 513-521, September.
    • Handle: RePEc:kap:enreec:v:2:y:1992:i:5:p:513-521
    DOI: 10.1007/BF00376832
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    References listed on IDEAS

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    1. Cass, David & Shell, Karl, 1976. "The structure and stability of competitive dynamical systems," Journal of Economic Theory, Elsevier, vol. 12(1), pages 31-70, February.
    2. Hartwick, John M., 1990. "Natural resources, national accounting and economic depreciation," Journal of Public Economics, Elsevier, vol. 43(3), pages 291-304, December.
    3. Solow, Robert M, 1986. " On the Intergenerational Allocation of Natural Resources," Scandinavian Journal of Economics, Wiley Blackwell, vol. 88(1), pages 141-149.
    4. Ernst Lutz, 1991. "Incentives, regulations, and sustainable land use in Costa Rica," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 1(2), pages 179-194, June.
    5. John W. Hartwick, 1991. "Notes on Economic Depreciation of Natural Resource Stocks and National Accounting," Working Paper 818, Economics Department, Queen's University.
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    Citations

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    Cited by:

    1. Lanoie, Paul & Laplante, Benoît & Tanguay, Georges A., 1994. "La firme et l’environnement," L'Actualité Economique, Société Canadienne de Science Economique, vol. 70(2), pages 97-111, juin.
    2. Edward B. Barbier, 2016. "The Protective Value of Estuarine and Coastal Ecosystem Services in a Wealth Accounting Framework," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(1), pages 37-58, May.
    3. Gökhan Uzel & Serkan Gürlük & Esma Aslak & Feza Karaer, 2022. "Land use preferences considering resource economics: case of organic versus conventional wheat production in Turkey," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(12), pages 14375-14392, December.
    4. Atkinson, Giles & Gundimeda, Haripriya, 2006. "Accounting for India's forest wealth," Ecological Economics, Elsevier, vol. 59(4), pages 462-476, October.
    5. Tsur, Yacov & Zemel, Amos, 1994. "Endangered Species and Natural Resource Exploitation: Extinction vs. Coexistence," Bulletins 7498, University of Minnesota, Economic Development Center.
    6. Mabugu, Ramos E. & Chitiga, Margaret, 2002. "Accounting For Forest Resources In Zimbabwe," Discussion Papers 18021, University of Pretoria, Center for Environmental Economics and Policy in Africa.
    7. Peter Park & Edward Barbier & Joanne Burgess, 1998. "The Economics of Forest Land Use in Temperate and Tropical Areas," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 11(3), pages 473-487, April.
    8. Giles Atkinson & Haripriya Gundimeda, 2006. "Accounting for India’s Forest Wealth," Development Economics Working Papers 22494, East Asian Bureau of Economic Research.
    9. Tsur, Yacov & Zemel, Amos, 1995. "ON EVENT UNCERTAINTY AND RENEWABLE RESOURCE MANAGEMENT; Proceedings of the 4th Minnesota Padova Conference on Food, Agriculture, and the Environment, September 4-10, 1994, Wayzata, MN," Working Papers 14434, University of Minnesota, Center for International Food and Agricultural Policy.
    10. Hartwick, John M. & Van Long, Ngo & Tian, Huilan, 2001. "Deforestation and Development in a Small Open Economy," Journal of Environmental Economics and Management, Elsevier, vol. 41(3), pages 235-251, May.
    11. Hartwick, John M., 1994. "Calcul de la valeur de différents types d’entreprises extractives," L'Actualité Economique, Société Canadienne de Science Economique, vol. 70(2), pages 191-197, juin.
    12. Tsur, Yacov & Zemel, Amos, 2005. "Resource Exploitation, Biodiversity Loss And Ecological Events," Discussion Papers 14981, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.

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