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The Political Economy of Deforestation in the Tropics
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The Political Economy of Deforestation in the Tropics

Author

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

Abstract

Tropical deforestation accounts for almost one-fifth 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. Support for this thesis is found 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. [BREAD working paper No. 339]. URL:[http://ipl.econ.duke.edu/bread/papers/working/339.pdf].

Suggested Citation

  • Robin Burgess & Matthew Hansen & Benjamin Olken & Peter Potapov & Stefanie Sieber, 2012. "The Political Economy of Deforestation in the Tropics," Working Papers id:4963, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:4963
    Note: Institutional Papers
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    References listed on IDEAS

    as
    1. Akhmed Akhmedov & Ekaterina Zhuravskaya, 2004. "Opportunistic Political Cycles: Test in a Young Democracy Setting," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(4), pages 1301-1338.
    2. Baland, Jean-Marie & Bardhan, Pranab & Das, Sanghamitra & Mookherjee, Dilip, 2010. "Forests to the People: Decentralization and Forest Degradation in the Indian Himalayas," World Development, Elsevier, vol. 38(11), pages 1642-1656, November.
    3. Alberto Alesina, 1987. "Macroeconomic Policy in a Two-Party System as a Repeated Game," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 102(3), pages 651-678.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Tropical deforestation; greenhouse gas emissions; diverse ecosystems; post-Soeharto Indonesia; forest policy; local wood markets; bureaucrats; politicians; climate changes; land use zones; legal logging; rent-extraction; political coalitions; oil; gas rents;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • L73 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Forest Products

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