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The impact of economic returns to land uses on tropical forest conservation and conversion: Evidence from Mexico 2002-2011

Author

Listed:
  • David R. Heres

    (Universidad Iberoamericana Mexico City)

  • Alejandro Lopez-Feldman

    (Universidad Iberoamericana Mexico City - Environment for Development Initiative, University of Gothenburg, School of Business, Economics and Law)

  • Juan M. Torres-Rojo

    (Universidad Iberoamericana Mexico City)

Abstract

The opportunity cost of forested land is one of the key elements that determines the success of any forest conservation strategy. In this paper, we explore how sensitive tropical forest conservation is to competing economic incentives in Mexico from 2002 to 2011, both within and outside protected areas. Our results show that forest revenues have a statistically significant positive effect on the conservation of most forest categories. This is a promising finding for the potential success of programs that provide economic compensation to landowners in exchange for conserving forests since the effect is also economically significant. Somehow reassuringly, economic revenues have a smaller effect on the lower levels of deforestation observed within the boundaries of protected areas.

Suggested Citation

  • David R. Heres & Alejandro Lopez-Feldman & Juan M. Torres-Rojo, 2025. "The impact of economic returns to land uses on tropical forest conservation and conversion: Evidence from Mexico 2002-2011," Working Paper Series Sobre México 2025001, Sobre México. Temas en economía.
    • Handle: RePEc:smx:wpaper:2025001
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    File URL: https://sobremexico.ibero.mx/uploads/working_papers/wp-sm-2025-01-heres-et-alpdf.pdf
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    More about this item

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry

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