The Economics of Tropical Deforestation
Open accessAbstract
Two factors have elevated recent academic and policy interest in tropical deforestation: first, the realization that it is a major contributor to climate change; and second, a revolution in satellite-based measurement that has revealed that it is proceeding at a rapid rate. We begin by reviewing the methodological advances that have enabled measurement of forest loss at a fine spatial resolution across the globe. We then develop a simple benchmark model of deforestation based on classic models of natural resource extraction. Extending this approach to incorporate features that characterize deforestation in developing countries—pressure for land use change, significant local and global externalities, weak property rights, and political economy constraints—provides us with a framework for reviewing the fast-growing empirical literature on the economics of deforestation in the tropics. This combination of theory and empirics provides insights not only into the economic drivers and impacts of tropical deforestation but also into policies that may affect its progression. We conclude by identifying areas where more work is needed in this important body of research.
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Eisenbarth, S., Graham, L., & Rigterink, A. S. (2021) · Proceedings of the National Academy of Sciences · doi:10.1073/pnas.2015172118 · Cited by 28 · see citing works
Playing Politics with Environmental Protection: The Political Economy of Designating Protected Areas
Mangonnet, J., Kopas, J., & Urpelainen, J. (2022) · The Journal of Politics · doi:10.1086/718978 · Cited by 28 · see citing works
A test of the Hotelling rule using old‐growth timber data
Livernois, J., Thille, H., & Zhang, X. (2006) · Canadian Journal of Economics/Revue canadienne d économique · doi:10.1111/j.0008-4085.2006.00343.x · Cited by 27 · see citing works
Forest Management and the Theory of Capital
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Valuation and management of tropical forests
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Tarazona, Y., Zabala, A., Pons, X., Broquetas, A., Nowosad, J., & Zurqani, H. A. (2021) · Canadian Journal of Remote Sensing · doi:10.1080/07038992.2021.1941823 · Cited by 20 · see citing works
No aggregate deforestation reductions from rollout of community land titles in Indonesia yet
Kraus, S., Liu, J., Koch, N., et al. (2021) · Proceedings of the National Academy of Sciences · doi:10.1073/pnas.2100741118 · Cited by 19 · see citing works
The Deforestation Effects of Trade and Agricultural Productivity in BrazilPreprint
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Improving Estimates of Transitions from Satellite Data: A Hidden Markov Model Approach
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Efficient Conservation of the Brazilian Amazon: Estimates from a Dynamic ModelPreprint
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Flagged first, then by citations
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Cited by
Sorted by citations
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Environmental impacts of genetically modified crops
Noack, F., Engist, D., Gantois, J., Gaur, V., Hyjazie, B. F., Larsen, A., M’Gonigle, L. K., Missirian, A., Qaim, M., Sargent, R. D., et al. (2024) · Science · doi:10.1126/science.ado9340 · Cited by 70 · see citing works
The deforestation effects of trade and agricultural productivity in Brazil
Carreira, I., Costa, F., & Pessoa, J. P. (2024) · Journal of Development Economics · doi:10.1016/j.jdeveco.2023.103217 · Cited by 55 · see citing works
Crop prices and deforestation in the tropics
Berman, N., Couttenier, M., Leblois, A., & Soubeyran, R. (2023) · Journal of Environmental Economics and Management · doi:10.1016/j.jeem.2023.102819 · Cited by 30 · see citing works
- Authors
- Balboni, C., Berman, A., Burgess, R., & Olken, B. A.
- Affiliations
- London School of Economics and Political Science (GB)
- Massachusetts Institute of Technology (US)
- ORCID
- Olken, Benjamin A.
- Venue
- Annual Review of Economics
- Publisher
- Annual Reviews
- Published
- 2023-09-13
- Volume
- 15
- Issue
- 1
- Pages
- 723-754
- ISSN
- 1941-1383 (ISSN-L)
- 1941-1391
- OpenAlex
- W4386699921
- Cited by
- 111
- References
- 122
- Citations by year
- 2026: 23 · 2025: 23 · 2024: 31 · 2023: 14 · 2022: 3 · 2021: 1 · 2020: 1 · 2019: 1 · 2017: 1
- FWCI
- 2.24
- Type
- journal article
- Language
- en
- Open access
- hybrid
- doi.org
- Licence
- Locations
- Annual Review of Economics (publishedVersion, other-oa)
- London School of Economics and Political Science Theses Online (London School of Economics and Political Science) (submittedVersion, other-oa)
- Funders
- National Science Foundation (1745302)
- H2020 European Research Council (743278)
- Topics
- Physical Sciences › Environmental Science › Global and Planetary Change › Conservation, Biodiversity, and Resource Management
- Physical Sciences › Environmental Science › Global and Planetary Change › Forest Management and Policy
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Socioeconomics of Resources and Conservation
- Keywords
- tropical deforestation, satellite remote sensing, land use change, externalities, property rights, political economy, climate change, deforestation policy, developing countries
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.
What counts as a claim ›How we measure confidence ›How we check this ›
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