The Effects of the Structural Adjustment Program on Deforestation in Ghana

Agricultural and Resource Economics Review, Vol. 30, No. 1, pp. 66-80, April 2001

Posted: 19 Apr 2005

See all articles by Edward B. Barbier

Edward B. Barbier

Colorado State University, Fort Collins - Department of Economics

James K.A. Benhin

University of Pretoria - Centre for Environmental Economics and Policy for Africa (CEEPA)

Abstract

This paper is a theoretical and empirical investigation into the impact of the structural adjustment program (SAP) on forest loss in Ghana between the period 1965-95. An optimal control model is used to derive estimable reduced form equations for forest loss, cocoa land, maize land and timber production, which are in turn functions of mainly input and output prices. Piecewise linear and switching regression approaches are used to distinguish between the influence of the post from the pre-adjustment policy impacts on forest land use. The overall results show that cocoa land expansion and timber production, but not maize land expansion, are significant causes of forest loss in Ghana. However, the impact on forest loss in the post-adjustment period was reduced. Changes in the relative output and input prices, due to the SAP may have played a significant role in the reduced impact of agricultural and timber related deforestation in the post-adjustment period.

Suggested Citation

Barbier, Edward B. and Benhin, James K.A., The Effects of the Structural Adjustment Program on Deforestation in Ghana. Agricultural and Resource Economics Review, Vol. 30, No. 1, pp. 66-80, April 2001. Available at SSRN: https://ssrn.com/abstract=699321

Edward B. Barbier (Contact Author)

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

Fort Collins, CO 80523-1771
United States

James K.A. Benhin

University of Pretoria - Centre for Environmental Economics and Policy for Africa (CEEPA) ( email )

Pretoria 0002
South Africa

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