The effect of trade openness on deforestation: empirical analysis for 142 countries

Tetsuya Tsurumi, Shunsuke Managi

Research output: Contribution to journalArticle

19 Citations (Scopus)

Abstract

This study explores the effect of trade openness on deforestation. Previous studies do not find a clear effect of trade openness on deforestation. We use updated data on the annual rate of deforestation for 142 countries from 1990 to 2003, treat trade and income as endogenous, and take into consideration an adjustment process by applying a dynamic model. We find that an increase in trade openness increases deforestation for non-OECD countries while slowing down deforestation for OECD countries. There is a possibility that both capital–labor and environmental-regulation effects have a negative impact on deforestation in developing countries, whereas the opposite holds in developed countries.

Original languageEnglish
Pages (from-to)305-324
Number of pages20
JournalEnvironmental Economics and Policy Studies
Volume16
Issue number4
DOIs
Publication statusPublished - Oct 4 2014

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics
  • Management, Monitoring, Policy and Law

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