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Prohibition and the Supply of Brazilian Mahogany

Author

Listed:
  • Ariaster B. Chimeli
  • Roy G. Boyd

Abstract

We use a unique data set to investigate the economic consequences of banning the harvest and trade of Brazilian mahogany. Because we find strong evidence that mahogany is smuggled out of Brazil as "other tropical species" through formal export mechanisms, we are able to construct a time series of quantities and implicit export prices covering both the periods before and after prohibition. Our finding suggests that a trade ban increases supply and makes the illegal good more affordable. Our analysis can offer important insights into other illegal markets, such as those for narcotics and products manufactured from endangered animal species.

Suggested Citation

  • Ariaster B. Chimeli & Roy G. Boyd, 2010. "Prohibition and the Supply of Brazilian Mahogany," Land Economics, University of Wisconsin Press, vol. 86(1), pages 191-208.
  • Handle: RePEc:uwp:landec:v:86:y:2010:i:1:p:191-208
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    References listed on IDEAS

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    4. Poret, Sylvaine, 2002. "Paradoxical effects of law enforcement policies: the case of the illicit drug market," International Review of Law and Economics, Elsevier, vol. 22(4), pages 465-493, December.
    5. Rapach, David E & Wohar, Mark E, 2005. "Regime Changes in International Real Interest Rates: Are They a Monetary Phenomenon?," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 37(5), pages 887-906, October.
    6. Edward B. Barbier & Nancy Bockstael & Joanne C. Burgess & Ivar Strand, 1995. "The Linkages between the Timber Trade and Tropical Deforestation—Indonesia," The World Economy, Wiley Blackwell, vol. 18(3), pages 411-442, May.
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    Cited by:

    1. repec:aea:aejapp:v:9:y:2017:i:4:p:30-57 is not listed on IDEAS
    2. Ariaster B. Chimeli & Rodrigo R. Soares, 2017. "The Use of Violence in Illegal Markets: Evidence from Mahogany Trade in the Brazilian Amazon," American Economic Journal: Applied Economics, American Economic Association, vol. 9(4), pages 30-57, October.

    More about this item

    JEL classification:

    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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