Tetsuya, Tsurumi and Shunsuke, Managi (2011): The Effect of Trade Openness on Deforestation: Empirical Analysis for 142 Countries.
Download (450kB) | Preview
This study explores the effect of trade openness on deforestation. Previous studies do not find a clear effect of trade openness on deforestation. We use updated data on the annual rate of deforestation for 142 countries from 1990 to 2003, treat trade and income as endogenous, and take into consideration an adjustment process by applying a dynamic model. We find that an increase in trade openness increases deforestation for non-OECD countries while slowing down deforestation for OECD countries. There is a possibility that both capital-labor and environmental-regulation effects have a negative impact on deforestation in developing countries, whereas the opposite holds in developed countries.
|Item Type:||MPRA Paper|
|Original Title:||The Effect of Trade Openness on Deforestation: Empirical Analysis for 142 Countries|
|Keywords:||Trade Openness; Environment; Comparative Advantage; Deforestation|
|Subjects:||Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q2 - Renewable Resources and Conservation > Q23 - Forestry
F - International Economics > F1 - Trade > F10 - General
|Depositing User:||Shunsuke MANAGI|
|Date Deposited:||08. Jan 2012 05:35|
|Last Modified:||17. Sep 2015 20:50|
Allen J-C, Barnes D-F (1985) The causes of deforestation in developing countries. Annals of the Association of American Geographers 75:163–184
Antweiler W, Copeland B, Taylor S (2001) Is free trade good for the environment? American Economic Review 91:877–908
Arcand J, Guillaumont P, Jeanneney S-G (2008) Deforestation and the Real Exchange Rate. Journal of Development Economics 86:242–262
Bhattarai M, Hammig M (2001) Institutions and the environmental Kuznets curve for deforestation: a cross-country analysis for Latin America, Africa and Asia. World Development 29:995–1010
Chen X., Nordhaus W (2011) Using luminosity data as a proxy for economic statistics. Proceeedings of the National Academy of Sciences (US), 108(21):8589–8594
Cropper M, Griffiths C (1994) The interaction of population growth and environmental quality. American Economic Review 82:250–254
Culas R-J (2007) Deforestation and the environmental Kuznets curve: an institutional perspective. Ecological Economics 61:429–437
Grainger A. (2008) Difficulties in tracking the long-term global trend in tropical forest area. Proc. Natl Acad. Sci. USA 105, 818–823.
FAO (2010) Global Forest Resources Assessment (2010) Food and Agriculture Organization of the United Nations.
Frankel J, Rose A (2005) Is trade good or bad for the environment? sorting out the causality. Review of Economics and Statistics 87:85–91
Hastie T-J, Tibshirani R-J (1990) Generalized Additive Models. Chapman and Hall, New York
Intergovernmental Panel on Climate Change (IPCC) (2007) Climate change 2007: synthesis report. contribution of working groups I, II and II to the fourth assessment report of the intergovernmental panel on climate change. IPCC, Geneva
Lopez R (1994) The environment as a factor of production: the effects of economic growth and trade liberalization. Journal of Environmental Economics and Management 27:163–184
Managi S, Hibiki A, Tsurumi T (2009) Does trade openness improve environmental quality? Journal of Environmental Economics and Management 58:346–363
Panayotou T (1997) Demystifying the environmental kuznets curve: turning a black box into a policy tool. Environment and Development Economics 2:465–484
Ridder R.H. (2007) Global forest resource assessment 2010 - Options and recommendations for a global remote sensing survey of forests. FRA Working Paper 141, FAO, Rome.
Rudel T.K, Coomes O.T, Moran E, Achard F, Angelsen A, Xu J, Lambin E (2005) Forest transitions: towards a global understanding of land use change. Global Environmental Change 15: 23–31
Tsurumi T, Managi S (2010) Decomposition of the environmental kuznets curve: scale, technique, and composition effects. Environmental Economics and Policy Studies 11:19–36
Van P-N, Azomahou T (2007) Nonlinearities and heterogeneity in environmental quality: an empirical analysis of deforestation. Journal of Development Economics 84:291–309
World Bank (2003) World development report 2003: sustainable development in a dynamic world. Oxford University Press, New York
World Bank (2010) World development report 2010: development and climate change. Oxford University Press, New York
Wood S-N (2004) Stable and efficient multiple smoothing parameter estimation for generalized additive models. Journal of the American Statistical Association 99:673–686
Wood S-N (2008) Fast stable direct fitting and smoothness selection for generalized additive models. Journal of the Royal Statistical Society: Series B 70:495–518