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Economic analysis of deforestation in Mexico

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  • Barbier, Edward B.
  • Burgess, Joanne C.

Abstract

This paper uses panel analyses to estimate relationships for agricultural planted area and beef cattle numbers at the state level in Mexico during the period 1970–85, in order to determine the main factors affecting forest land conversion. Of the key policy variables, maize and fertilizer prices appear to be the main influences on the expansion of planted area, whereas beef prices and credit disbursement influence cattle numbers. Population growth also affects both livestock and agricultural activities, and income per capita is positively correlated with cattle expansion. These estimated relationships are used to examine the effects both of agricultural and livestock sectoral policy changes and of trade liberalization in Mexico resulting from the North American Free Trade Agreement (NAFTA). To avoid any unintended impacts of NAFTA on deforestation, it may be necessary for Mexico to make complementary investments in land improvements, especially for existing cultivation on rainfed land.

Suggested Citation

  • Barbier, Edward B. & Burgess, Joanne C., 1996. "Economic analysis of deforestation in Mexico," Environment and Development Economics, Cambridge University Press, vol. 1(2), pages 203-239, May.
    • Handle: RePEc:cup:endeec:v:1:y:1996:i:2:p:203-239_6
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    References listed on IDEAS

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    1. Levy, Santiago & van Wijnbergen, Sweder, 1992. "Transition problems in economic reform : agriculture in the Mexico - U.S. free trade agreement," Policy Research Working Paper Series 967, The World Bank.
    2. Southgate, Douglas, 1991. "Tropical Deforestation And Agricultural Development In Latin America," 1991 Annual Meeting, August 4-7, Manhattan, Kansas 271204, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Levy, Santiago & van Wijnbergen, Sweder, 1992. "Maize and the Free Trade Agreement between Mexico and the United States," The World Bank Economic Review, World Bank, vol. 6(3), pages 481-502, September.
    4. Hinojosa-Ojeda, Raul & Robinson, Sherman, 1991. "Alternative Scenarios of U.S.-Mexico Integration: A Computable General Equilibrium Approach," CUDARE Working Papers 198585, University of California, Berkeley, Department of Agricultural and Resource Economics.
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    More about this item

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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