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Governance, economic policy, and the environmental Kuznets curve for natural tropical forests

Published online by Cambridge University Press:  19 May 2004

MADHUSUDAN BHATTARAI  and
MICHAEL HAMMIG
MADHUSUDAN BHATTARAI
Affiliation:
International Water Management Institute, P.O. Box 2075, Colombo, Sri Lanka. Tel.: 94-1-2867404. E-mail: [email protected]
MICHAEL HAMMIG
Affiliation:
Department of Agricultural and Applied Economics, Clemson University, Clemson, South Carolina 29634 USA. Tel.: 1-864-656-3225. E-mail: [email protected]
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Abstract

This paper reports the results of an empirical analysis of the relationship between income and the rate of deforestation of tropical natural forests. The inverted U-shaped relationship known as the environmental Kuznets curve is confirmed. The study focuses on the role of institutions and macroeconomic policy in the deforestation process. Results indicate that the quality of governance is an important determinant of forest resource preservation, and that rural population pressure is not as important as suggested by other studies. Agricultural technology improvement and enhanced educational attainment also lead to reductions of deforestation rates.

Type
Research Article
Information
Environment and Development Economics , Volume 9 , Issue 3 , July 2004 , pp. 367 - 382
Copyright
© 2004 Cambridge University Press

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