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Public Open Access and Private Timber Harvests: Theory and Application to the Effects of Trade Liberalization in Mexico

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  • Jeffrey Prestemon

Abstract

A common popular assertion is that trade liberalization encourages deforestation. But whether this is true depends on how trade policies affect the allocation of land among competing uses and how they influence illegal cutting of public forests. A model is presented that allows for forests to be either public or private, and public forests are divided into protected (or managed) and threatened categories. Effects of price changes are shown on each part of the forest. An empirical version of the model is applied to the case of Mexico with NAFTA. Most scenarios considered show that NAFTA will have positive long-run effects on forest cover in Mexico but that this is net of losses on private lands. Copyright Kluwer Academic Publishers 2000

Suggested Citation

  • Jeffrey Prestemon, 2000. "Public Open Access and Private Timber Harvests: Theory and Application to the Effects of Trade Liberalization in Mexico," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 17(4), pages 311-334, December.
    • Handle: RePEc:kap:enreec:v:17:y:2000:i:4:p:311-334
    DOI: 10.1023/A:1026498222748
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    1. Shimamoto, Mihoko & Ubukata, Fumikazu & Seki, Yoshiki, 2004. "Forest sustainability and the free trade of forest products: cases from Southeast Asia," Ecological Economics, Elsevier, vol. 50(1-2), pages 23-34, September.
    2. Gregory S. Amacher & Erkki Koskela & Markku Ollikainen, 2004. "Socially Optimal Royalty Design and Illegal Logging under Alternative Penalty Schemes," CESifo Working Paper Series 1131, CESifo.

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