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Econometric Evidence on Forest Ecosystem Services: Deforestation and Flooding in Malaysia

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  • Jie-Sheng Tan-Soo
  • Norliyana Adnan
  • Ismariah Ahmad
  • Subhrendu Pattanayak
  • Jeffrey Vincent

Abstract

Governments around the world are increasingly invoking hydrological services, such as flood mitigation and water purification, as a justification for forest conservation programs in upstream areas. Yet, rigorous empirical evidence that these programs are actually delivering the intended services remains scant. We investigate the effect of deforestation on flood-mitigation services in Peninsular Malaysia during 1984–2000, a period when detailed data on both flood events and land-use change are available for 31 river basins. Floods are the most common natural disaster in tropical regions, but the ability of tropical forests to mitigate large-scale floods associated with heavy rainfall events remains disputed. We find that the conversion of inland tropical forests to oil palm and rubber plantations significantly increased the number of days flooded during the wettest months of the year. Our results demonstrate the importance of using disaggregated land-use data, controlling for potentially confounding factors, and applying appropriate estimators in econometric studies on forest ecosystem services. Copyright Springer Science+Business Media Dordrecht 2016

Suggested Citation

  • Jie-Sheng Tan-Soo & Norliyana Adnan & Ismariah Ahmad & Subhrendu Pattanayak & Jeffrey Vincent, 2016. "Econometric Evidence on Forest Ecosystem Services: Deforestation and Flooding in Malaysia," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(1), pages 25-44, January.
    • Handle: RePEc:kap:enreec:v:63:y:2016:i:1:p:25-44
    DOI: 10.1007/s10640-014-9834-4
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    Citations

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    Cited by:

    1. Laura Villalobos & Juan Robalino & Catalina Sandoval & Francisco Alpízar, 2023. "Local Effects of Payments for Ecosystem Services on Rural Poverty," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 84(3), pages 753-774, March.
    2. Yoon, Jaehyun & Baak, Saang Joon & Seo, Min Young & Kim, Taejong, 2022. "Impacts of Reforestation on Stabilization of Riverine Water Levels in South Korea," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 44(4), pages 1-24.
    3. Petra Hýsková & Štěpán Hýsek & Vilém Jarský, 2020. "The Utilization of Crop Residues as Forest Protection: Predicting the Production of Wheat and Rapeseed Residues," Sustainability, MDPI, vol. 12(14), pages 1-10, July.
    4. Isabelle Chort & Berk Öktem, 2024. "Agricultural shocks, coping policies and deforestation: Evidence from the coffee leaf rust epidemic in Mexico," American Journal of Agricultural Economics, John Wiley & Sons, vol. 106(3), pages 1020-1057, May.
    5. Juan Robalino & Katrina Mullan & Matías Piaggio & Marisol Guzmán, 2023. "Does Green Infrastructure Work? Precipitation, Protected Areas, Floods and Landslides," Economics of Disasters and Climate Change, Springer, vol. 7(3), pages 457-482, November.

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