IDEAS home Printed from https://ideas.repec.org/p/rep/wpaper/2007-01.html
   My bibliography  Save this paper

Linking Forests and Economic Well-being: A Four Quadrant Approach

Author

Listed:
  • Sen Wang
  • C. Tyler DesRoches
  • Lili Sun
  • Brad Stennes
  • Bill Wilson
  • G. Cornelis van Kooten

Abstract

This paper has three main objectives: (1) to investigate whether the four-quadrant approach introduced by Maini (2003) reveals a useful typology for grouping countries by GDP and forest cover per capita, (2) to determine if the framework can enhance our understanding of the relationship between forest cover and GDP per capita, and (3) to investigate why countries in the four-quadrant world occupy different quadrants, and to determine the principal factors affecting country-movement across and within the individual quadrants. The examination reveals that countries can be classified into four broad categories, and that GDP and forest cover per capita have a low but consistent level of negative association. After regressing economic, institutional, social capital and other variables on a country’s occupancy and movement in the four-quadrant world, the results suggest that countries in each quadrant share different characteristics and that factors underlying country-movement varies according to the quadrant being observed. Overall, countries with less corruption and higher education are likely to experience increases in both forest cover and GDP per capita, while countries exporting a significant proportion of forest products have a reduced probability of increasing both variables.

Suggested Citation

  • Sen Wang & C. Tyler DesRoches & Lili Sun & Brad Stennes & Bill Wilson & G. Cornelis van Kooten, 2007. "Linking Forests and Economic Well-being: A Four Quadrant Approach," Working Papers 2007-01, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.
  • Handle: RePEc:rep:wpaper:2007-01
    as

    Download full text from publisher

    File URL: https://web.uvic.ca/~repa/publications/REPA%20working%20papers/WorkingPaper2007-01.pdf
    File Function: Final version, 2007
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Stern, David I., 2004. "The Rise and Fall of the Environmental Kuznets Curve," World Development, Elsevier, vol. 32(8), pages 1419-1439, August.
    2. Dani Rodrik, 2006. "Institutions for High-Quality Growth: What They Are and How to Acquire Them," Chapters, in: Kartik Roy & Jörn Sideras (ed.), Institutions, Globalisation and Empowerment, chapter 2, Edward Elgar Publishing.
    3. Susana Ferreira, 2004. "Deforestation, Property Rights, and International Trade," Land Economics, University of Wisconsin Press, vol. 80(2), pages 174-193.
    4. G. Hodgson, 2007. "What Are Institutions?," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 8.
    5. Amacher, Gregory S., 2006. "Corruption: A challenge for economists interested in forest policy design," Journal of Forest Economics, Elsevier, vol. 12(2), pages 85-89, June.
    6. Bhattarai, Madhusudan & Hammig, Michael, 2001. "Institutions and the Environmental Kuznets Curve for Deforestation: A Crosscountry Analysis for Latin America, Africa and Asia," World Development, Elsevier, vol. 29(6), pages 995-1010, June.
    7. Henk Folmer & G. Cornelis van Kooten, 2006. "Deforestation," Working Papers 2006-06, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.
      • Folmer, Henk & van Kooten, G. Cornelis, 2006. "Deforestation," Working Papers 37035, University of Victoria, Resource Economics and Policy.
    8. Tjaša Redek & Andrej Sušjan, 2005. "The Impact of Institutions on Economic Growth: The Case of Transition Economies," Journal of Economic Issues, Taylor & Francis Journals, vol. 39(4), pages 995-1027, December.
    9. Barbier, Edward B. & Damania, Richard & Leonard, Daniel, 2005. "Corruption, trade and resource conversion," Journal of Environmental Economics and Management, Elsevier, vol. 50(2), pages 276-299, September.
    10. Angelsen, Arild & Kaimowitz, David, 1999. "Rethinking the Causes of Deforestation: Lessons from Economic Models," The World Bank Research Observer, World Bank, vol. 14(1), pages 73-98, February.
    11. Karen Ehrhardt‐Martinez & Edward M. Crenshaw & J. Craig Jenkins, 2002. "Deforestation and the Environmental Kuznets Curve: A Cross‐National Investigation of Intervening Mechanisms," Social Science Quarterly, Southwestern Social Science Association, vol. 83(1), pages 226-243, March.
    12. Robin Naidoo, 2004. "Economic Growth and Liquidation of Natural Capital: The Case of Forest Clearance," Land Economics, University of Wisconsin Press, vol. 80(2), pages 194-208.
    13. Bhattarai, Madhusudan & Hammig, Michael, 2004. "Governance, economic policy, and the environmental Kuznets curve for natural tropical forests," Environment and Development Economics, Cambridge University Press, vol. 9(3), pages 367-382, July.
    14. Dinda, Soumyananda, 2004. "Environmental Kuznets Curve Hypothesis: A Survey," Ecological Economics, Elsevier, vol. 49(4), pages 431-455, August.
    15. Cropper, Maureen & Griffiths, Charles, 1994. "The Interaction of Population Growth and Environmental Quality," American Economic Review, American Economic Association, vol. 84(2), pages 250-254, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ajanaku, B.A. & Collins, A.R., 2021. "Economic growth and deforestation in African countries: Is the environmental Kuznets curve hypothesis applicable?," Forest Policy and Economics, Elsevier, vol. 129(C).
    2. Ajanaku, Bolarinwa & Collins, Alan R., 2020. "Economic growth and deforestation in developing countries: Is the Environmental Kuznets Curve Hypothesis Still Applicable? Evidence from a Panel of Selected African Countries," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304271, Agricultural and Applied Economics Association.
    3. Culas, Richard J., 2012. "REDD and forest transition: Tunneling through the environmental Kuznets curve," Ecological Economics, Elsevier, vol. 79(C), pages 44-51.
    4. Caravaggio, Nicola, 2020. "Economic growth and the forest development path: A theoretical re-assessment of the environmental Kuznets curve for deforestation," Forest Policy and Economics, Elsevier, vol. 118(C).
    5. Zoubida Mahcane & Mayou Abdellah & Mohamed Zergoune & Miloud Lacheheb, 2019. "Land Degradation and Economic Development in Algeria," International Journal of Energy Economics and Policy, Econjournals, vol. 9(1), pages 137-142.
    6. Jean-Louis Combes & Pascale Combes Motel & Philippe Delacote, 2014. "Public expenses, credit and natural capital: Substitution or complementarity?," Working Papers halshs-00979191, HAL.
    7. Yi-Bin Chiu, 2012. "Deforestation and the Environmental Kuznets Curve in Developing Countries: A Panel Smooth Transition Regression Approach," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 60(2), pages 177-194, June.
    8. Anders Rydning Gaarder & Krishna C Vadlamannati, 2017. "Does democracy guarantee (de)forestation? An empirical analysis," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 20(2), pages 97-121, June.
    9. Wehkamp, Johanna & Koch, Nicolas & Lübbers, Sebastian & Fuss, Sabine, 2018. "Governance and deforestation — a meta-analysis in economics," Ecological Economics, Elsevier, vol. 144(C), pages 214-227.
    10. Combes, Jean-Louis & Delacote, Philippe & Combes Motel, Pascale & Yogo, Thierry Urbain, 2018. "Public spending, credit and natural capital: Does access to capital foster deforestation?," Economic Modelling, Elsevier, vol. 73(C), pages 306-316.
    11. Arcand, Jean-Louis & Guillaumont, Patrick & Jeanneney, Sylviane Guillaumont, 2008. "Deforestation and the real exchange rate," Journal of Development Economics, Elsevier, vol. 86(2), pages 242-262, June.
    12. Caravaggio, Nicola, 2020. "A global empirical re-assessment of the Environmental Kuznets curve for deforestation," Forest Policy and Economics, Elsevier, vol. 119(C).
    13. Marchand, Sébastien, 2016. "The colonial origins of deforestation: an institutional analysis," Environment and Development Economics, Cambridge University Press, vol. 21(3), pages 318-349, June.
    14. Meilanie Buitenzorgy & Arthur P. J. Mol, 2011. "Does Democracy Lead to a Better Environment? Deforestation and the Democratic Transition Peak," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 48(1), pages 59-70, January.
    15. Iftikhar Yasin & Nawaz Ahmad & M. Aslam Chaudhary, 2020. "Catechizing the Environmental-Impression of Urbanization, Financial Development, and Political Institutions: A Circumstance of Ecological Footprints in 110 Developed and Less-Developed Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 147(2), pages 621-649, January.
    16. Wolfersberger, Julien & Delacote, Philippe & Garcia, Serge, 2015. "An empirical analysis of forest transition and land-use change in developing countries," Ecological Economics, Elsevier, vol. 119(C), pages 241-251.
    17. Halkos, George E. & Tzeremes, Nickolaos G., 2013. "Carbon dioxide emissions and governance: A nonparametric analysis for the G-20," Energy Economics, Elsevier, vol. 40(C), pages 110-118.
    18. Elisa Toledo & Wilman Santiago Ochoa-Moreno & Rafael Alvarado & Lizeth Cuesta & Muntasir Murshed & Abdul Rehman, 2022. "Forest Area: Old and New Factors That Affect Its Dynamics," Sustainability, MDPI, vol. 14(7), pages 1-17, March.
    19. Castiglione, Concetta & Infante, Davide & Smirnova, Janna, 2012. "Rule of law and its implications for the environmental taxation-income path across European Countries," MPRA Paper 39433, University Library of Munich, Germany.
    20. Faria, Weslem & de Almeida, Alexandre, 2013. "Relationship between Openness to Trade and Deforestation: Empirical Evidence from the Brazilian Amazon," TD NEREUS 3-2013, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).

    More about this item

    Keywords

    Economic well-being; forest cover; institutions; corruption; education;
    All these keywords.

    JEL classification:

    • G00 - Financial Economics - - General - - - General
    • I20 - Health, Education, and Welfare - - Education - - - General
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rep:wpaper:2007-01. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: G.C. van Kooten (email available below). General contact details of provider: https://edirc.repec.org/data/devicca.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.