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Factors that affect the management of common pool resources: the case of community forest management in Michoac n, Mexico

Author

Listed:
  • Ordonez, P.
  • Balis, K.
  • Ramirez, I.

Abstract

The purpose of this study is to evaluate the factors that lead to the adoption of legal harvesting of the forest by the communities in the state of Michoac n in Mexico. We construct a theoretical model, where the adoption decision is based on the expected benefits and costs of adoption versus the net benefit of expanding the agricultural frontier or of not controlling access to the forest and allow for it to harvested illegally. Using a panel data set of 1785 communities from 1993 to 2013, we estimate a probit model, where we control for the unobserved time-invariant heterogeneity by using Mundlak s device. We find that the relative distribution of land use between forest and agriculture as well as the elevation and ruggedness of the terrain, have a significant effect, together with a positive effect of the price of pinewood. Furthermore, we find evidence of spatial spillovers for the adoption decision, as a community whose neighbors have previously adopted a forest management plan, is also more likely to adopt. Acknowledgement :

Suggested Citation

  • Ordonez, P. & Balis, K. & Ramirez, I., 2018. "Factors that affect the management of common pool resources: the case of community forest management in Michoac n, Mexico," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277351, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae18:277351
    DOI: 10.22004/ag.econ.277351
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    References listed on IDEAS

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    1. “Ban” Banerjee, Swagata & Martin, Steven W. & Roberts, Roland K. & Larkin, Sherry L. & Larson, James A. & Paxton, Kenneth W. & English, Burton C. & Marra, Michele C. & Reeves, Jeanne M., 2008. "A Binary Logit Estimation of Factors Affecting Adoption of GPS Guidance Systems by Cotton Producers," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 40(1), pages 345-355, April.
    2. Alix-Garcia, Jennifer & Janvry, Alain de & Sadoulet, Elisabeth, 2005. "A Tale of Two Communities: Explaining Deforestation in Mexico," World Development, Elsevier, vol. 33(2), pages 219-235, February.
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    4. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
    5. Alix-Garcia, Jennifer, 2007. "A spatial analysis of common property deforestation," Journal of Environmental Economics and Management, Elsevier, vol. 53(2), pages 141-157, March.
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