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Labor Market Impacts of Deforestation Caused by Invasive Species Spread

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  • Benjamin A. Jones

    (University of New Mexico, 1 University of New Mexico)

Abstract

Loss of tree cover caused by forest-attacking invasive species negatively affects environmental quality by impacting air quality, temperature, and recreational opportunities. Prior work has shown causal associations between these environmental quality metrics and labor market outcomes, however, never before due to invasive species spread. To address this gap, this paper explores the labor market effects of invasive species-induced deforestation using quasi-random detections of the invasive emerald ash borer (EAB) as a natural experiment. Using multiple sources of labor market data, it is shown that wage earnings are lower by an average of 1% in the years after EAB detection. Strongest impacts are observed in the manufacturing (4.3% decline) and accommodation and food service (4.2% decline) industries. Additional impacts are observed on the number of Social Security claimants and the number of people employed at firms in EAB counties. Lost labor market earnings due to EAB total $11.8 billion, or, $1.2 billion/year over the 10-year period investigated. Many robustness and falsification tests are performed.

Suggested Citation

  • Benjamin A. Jones, 2020. "Labor Market Impacts of Deforestation Caused by Invasive Species Spread," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 77(1), pages 159-190, September.
    • Handle: RePEc:kap:enreec:v:77:y:2020:i:1:d:10.1007_s10640-020-00469-2
    DOI: 10.1007/s10640-020-00469-2
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    Cited by:

    1. Jones, Benjamin A., 2023. "Can invasive species lead to sedentary behavior? The time use and obesity impacts of a forest-attacking pest," Journal of Environmental Economics and Management, Elsevier, vol. 119(C).

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    More about this item

    Keywords

    Invasive species; Deforestation; Labor market; Wages; Employment effects; EAB;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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