PropertyProf Blog

Editor: Stephen Clowney
Univ. of Kentucky College of Law

A Member of the Law Professor Blogs Network

Wednesday, July 24, 2013

Liscow on Property Rights and Deforestation

Zachary-liscowZachary Liscow (Berkeley - Ph.D.) has posted Do Property Rights Promote Investment But Cause Deforestation? Quasi-Experimental Evidence from Nicaragua (Journal of Environmental Economics) on SSRN.  Here's the abstract:

Many policymakers argue that property rights decrease deforestation. Some theoretical papers also make this prediction, arguing that property rights decrease discount rates applied to a long-term investment in forestry. However, the effect is theoretically ambiguous. The paper takes a novel instrumental variables approach based on Nicaragua's agrarian reform to test for the effect, using a new data-set — Nicaragua's 2001 agricultural census. It finds that property rights significantly increase deforestation. The model, supported by the data, suggests a likely mechanism for this relationship: property rights increase investment, increasing agricultural productivity and therefore the returns to deforestation.

Steve Clowney

http://lawprofessors.typepad.com/property/2013/07/liscow-on-property-rights-and-deforestation.html

| Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef01901e68d505970b

Listed below are links to weblogs that reference Liscow on Property Rights and Deforestation:

Comments

Post a comment