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The Journal of Environment & Development
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Deforestation and Forest-Induced Carbon Dioxide Emissions in Tropical Countries: How Do Governance and Trade Openness Affect the Forest-Income Relationship?

Ramón López

Department of Agricultural and Resource Economics, University of Maryland

Gregmar I. Galinato

Department of Agricultural and Resource Economics, University of Maryland

The objective of this article is to study the implications of changes in land use induced by economic growth, economy-wide policies, and governance on deforestation and forest-induced atmospheric carbon dioxide emissions. Economic growth, democracy, and trade policy explain an important share of the variation in two key determinants of deforestation: agricultural expansion and road building. The resulting shape of the Environmental Kuznets Curve for forests is influenced by governance as well as trade openness. Trade shifts the forest-income curve up (down) for countries that have a comparative disadvantage (advantage) in the production of crops encroaching on forest areas, such as Brazil and the Philippines (Indonesia and Malaysia). Amore democratic country will have a farther turning point than a less democratic country, but whether the Environmental Kuznets Curve shifts up or down is country specific.

Key Words: Environmental Kuznets Curve • deforestation • governance • trade policy • carbon dioxide emissions

The Journal of Environment & Development, Vol. 14, No. 1, 73-100 (2005)
DOI: 10.1177/1070496504273878
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