Institutional Constraints and Deforestation: An Application to Mexico

Posted: 29 Jul 2002

See all articles by Edward B. Barbier

Edward B. Barbier

Colorado State University, Fort Collins - Department of Economics

Abstract

Following North (1990), this paper hypothesizes that effective rural institutions may impose additional costs on tropical deforestation through agricultural conversion. This allows a formal agricultural household analysis of institutional constraints on deforestation, and therefore a method of empirically testing whether there is any significant difference in the actual level of forest land conversion under institutional constraints compared to the level of conversion under pure open access. A dynamic panel analysis for agricultural planted area in Mexico at state level and over the 1960-85 period confirms that institutional constraints on land clearing affected deforestation during the pre-NAFTA era.

JEL Classification: O13, O17, Q240, Q150

Suggested Citation

Barbier, Edward B., Institutional Constraints and Deforestation: An Application to Mexico. Economic Inquiry, Vol. 40, No. 3, pp. 508-519, July 2002. Available at SSRN: https://ssrn.com/abstract=303566

Edward B. Barbier (Contact Author)

Colorado State University, Fort Collins - Department of Economics ( email )

Fort Collins, CO 80523-1771
United States

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