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Institutional Constraints and Deforestation: An Application to Mexico

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  • Edward B. Barbier

    () (Department of Economics and Finance, University of Wyoming, P.O. Box 3985, Laramie, WY 82071-3985.)

Abstract

Following North (1990), this article hypothesizes that effective rural institutions may impose additional costs on tropical deforestation through agricultural conversion. This allows a formal agricultural household analysis of institutional constraints on deforestation and therefore a method of empirically testing whether there is any significant difference in the actual level of forest land conversion under institutional constraints compared to the level of conversion under pure open access. A dynamic panel analysis for agricultural planted area in Mexico at state level and over the 1960--85 period confirms that institutional constraints on land clearing affected deforestation during the pre-NAFTA era. Copyright 2002, Oxford University Press.

Suggested Citation

  • Edward B. Barbier, 2002. "Institutional Constraints and Deforestation: An Application to Mexico," Economic Inquiry, Western Economic Association International, vol. 40(3), pages 508-519, July.
  • Handle: RePEc:oup:ecinqu:v:40:y:2002:i:3:p:508-519
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    References listed on IDEAS

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    1. Bernhardt, Dan & Scoones, David, 1994. "A Note on Sequential Auctions," American Economic Review, American Economic Association, vol. 84(3), pages 653-657, June.
    2. von der Fehr, N.-H. M. & Riis, C., 1998. "Option Values in Sequential Markets," Memorandum 07/1998, Oslo University, Department of Economics.
    3. Engelbrecht-Wiggans, Richard, 1994. "Sequential auctions of stochastically equivalent objects," Economics Letters, Elsevier, vol. 44(1-2), pages 87-90.
    4. Ashenfelter, Orley, 1989. "How Auctions Work for Wine and Art," Journal of Economic Perspectives, American Economic Association, vol. 3(3), pages 23-36, Summer.
    5. Milgrom, Paul R & Weber, Robert J, 1982. "A Theory of Auctions and Competitive Bidding," Econometrica, Econometric Society, vol. 50(5), pages 1089-1122, September.
    6. McAfee R. Preston & Vincent Daniel, 1993. "The Declining Price Anomaly," Journal of Economic Theory, Elsevier, vol. 60(1), pages 191-212, June.
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    Cited by:

    1. Edward B. Barbier, 2003. "The Role of Natural Resources in Economic Development," Australian Economic Papers, Wiley Blackwell, vol. 42(2), pages 253-272, June.
    2. Lopez-Feldman, Alejandro, 2012. "Deforestación en México: Un análisis preliminar
      [Deforestation in Mexico: A preliminary analysis]
      ," MPRA Paper 39082, University Library of Munich, Germany.
    3. Barbier,Edward B., 2007. "Natural Resources and Economic Development," Cambridge Books, Cambridge University Press, number 9780521706513, March.
    4. Brian R. Copeland & M. Scott Taylor, 2009. "Trade, Tragedy, and the Commons," American Economic Review, American Economic Association, vol. 99(3), pages 725-749, June.
    5. Barbier, Edward B., 2004. "Agricultural Expansion, Resource Booms and Growth in Latin America: Implications for Long-run Economic Development," World Development, Elsevier, vol. 32(1), pages 137-157, January.
    6. Edward B. Barbier, 2005. "Frontier Expansion and Economic Development," Contemporary Economic Policy, Western Economic Association International, vol. 23(2), pages 286-303, April.

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