IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

The Political Economy of Deforestation in the Tropics

  • Robin Burgess
  • Matthew Hansen
  • Benjamin Olken
  • Peter Potapov
  • Stefanie Sieber

Tropical deforestation accounts for almost one-�fth of greenhouse gas emissions worldwide and threatens the world�s most diverse ecosystems. The prevalence of illegal forest extraction in the tropics suggests that understanding the incentives of local bureaucrats and politicians who enforce forest policy may be critical to combating tropical deforestation. We �nd support for this thesis using a novel satellite-based dataset that tracks annual changes in forest cover across eight years of institutional change in post-Soeharto Indonesia. Increases in the numbers of political jurisdictions are associated with increased deforestation and with lower prices in local wood markets, consistent with a model of Cournot competition between jurisdictions. We also show that illegal logging and rents from unevenly distributed oil and gas revenues are short run substitutes, but this e�ect disappears over time as political turnover occurs. The results illustrate how incentives faced by local government o� cials a�ect deforestation, and provide an example of how standard economic theories can explain illegal behavior.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.lse.ac.uk/GranthamInstitute/wp-content/uploads/2014/02/WP79-The-political-economy-of-deforestation-in-the-tropics.pdf
Download Restriction: no

Paper provided by Grantham Research Institute on Climate Change and the Environment in its series GRI Working Papers with number 79.

as
in new window

Length:
Date of creation: Apr 2012
Date of revision:
Handle: RePEc:lsg:lsgwps:wp79
Contact details of provider: Postal: Houghton Street, London WC2A 2AE
Phone: +44 (020) 7405 7686
Web page: http://www.lse.ac.uk/grantham.

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Jean-Marie Baland & Pranab Bardhan & Sanghamitra Das & Dilip Mookherjee, 2008. "Forests to the People: Decentralization and Forest Degradation in the Indian Himalayas," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-169, Boston University - Department of Economics.
  2. Akhmed Akhmedov & Ekaterina Zhuravskaya, 2003. "Opportunistic Political Cycles: Test in a Young Democracy Setting," Working Papers w0024, Center for Economic and Financial Research (CEFIR).
  3. Alesina, Alberto, 1987. "Macroeconomic Policy in a Two-party System as a Repeated Game," Scholarly Articles 4552531, Harvard University Department of Economics.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:lsg:lsgwps:wp79. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (The GRI Administration)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.