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Roads and deforestation: do local institutions matter?

Francisco Galarza (), Kámiche Zegarra, Joanna and Gómez de Zea, Rosario
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Kámiche Zegarra, Joanna: Universidad del Pacífico
Gómez de Zea, Rosario: Universidad del Pacífico

No 23-03, Working Papers from Centro de Investigación, Universidad del Pacífico

Abstract: We study the role of subnational institutions in forest conservation in a context in which areas near roads are prone to deforestation. We develop an index of institutionalism to examine the extent to which local institutions can contribute to mitigate the road infrastructure’s adverse effect on deforestation. Using a large dataset from Peru, home to the second largest portion of the Amazon rainforest, we find that a higher value of our index of local institutions is significantly correlated with lower deforestation. However, the effect of our institutions index is not sufficiently large to offset the deforesting effect that closeness to roads has, at least not for relatively short distances to road. These results are robust to different specifications of our institutions index and to the inclusión of a large set of control variables.

Keywords: Environment and development; deforestation; infrastructure; institutions. (search for similar items in EconPapers)
JEL-codes: D02 O18 Q56 (search for similar items in EconPapers)
Date: 2023-06
New Economics Papers: this item is included in nep-agr, nep-dev, nep-env and nep-ure
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