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The dynamics of deforestation and reforestation in a developing economy

Published online by Cambridge University Press:  11 August 2021

Julien Wolfersberger Open the ORCID record for Julien Wolfersberger [Opens in a new window] ,
Gregory S. Amacher ,
Philippe Delacote  and
Arnaud Dragicevic
Julien Wolfersberger*
Affiliation:
Université Paris-Saclay, INRAE, AgroParisTech, Economie Publique, Thiverval-Grignon, France Climate Economics Chair, Palais Brongniart, Paris, France
Gregory S. Amacher
Affiliation:
Virginia Polytechnic Institute and State University, Blacksburg, VA, USA
Philippe Delacote
Affiliation:
Climate Economics Chair, Palais Brongniart, Paris, France BETA, Université Lorraine, INRAE, AgroParisTech, Nancy, France
Arnaud Dragicevic
Affiliation:
IRSTEA, Clermont-Ferrand, Aubiere, France
*
*Corresponding author. [email protected]
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Abstract

We develop a model of optimal land allocation in a developing economy that features three possible land uses: agriculture, primary and secondary forests. The distinction between those forest types reflects their different contributions in terms of public goods. In our model, reforestation is costly because it undermines land title security. Using the forest transition concept, we study long-term land-use change and explain important features of cumulative deforestation across countries. Our results shed light on the speed at which net deforestation ends, on the effect of tenure costs in this process, and on composition in steady state. We also present a policy analysis that emphasizes the critical role of institutional reforms addressing the costs of both deforestation and tenure in order to promote a transition. We find that focusing only on net forest losses can be misleading since late transitions may yield, upon given conditions, a higher level of environmental benefits.

Keywords

deforestationeconomic developmentforest transitiontenure costs

JEL classification

O13: Agriculture • Natural Resources • Energy • Environment • Other Primary Products Q23: Forestry Q56: Environment and Development • Environment and Trade • Sustainability • Environmental Accounts and Accounting • Environmental Equity • Population Growth
Type
Research Article
Information
Environment and Development Economics , Volume 27 , Issue 3 , June 2022 , pp. 272 - 293
Copyright
Copyright © The Author(s), 2021. Published by Cambridge University Press

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