The impact of economic returns to land uses on tropical forest conservation and conversion: Evidence from Mexico 2002-2011

David R. Heres, Alejandro Lopez-Feldman and Juan M. Torres-Rojo
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David R. Heres: Universidad Iberoamericana Mexico City
Juan M. Torres-Rojo: Universidad Iberoamericana Mexico City

Working Paper Series Sobre México from Sobre México. Temas en economía

Abstract: The opportunity cost of forested land is one of the key elements that determines the success of any forest conservation strategy. In this paper, we explore how sensitive tropical forest conservation is to competing economic incentives in Mexico from 2002 to 2011, both within and outside protected areas. Our results show that forest revenues have a statistically significant positive effect on the conservation of most forest categories. This is a promising finding for the potential success of programs that provide economic compensation to landowners in exchange for conserving forests since the effect is also economically significant. Somehow reassuringly, economic revenues have a smaller effect on the lower levels of deforestation observed within the boundaries of protected areas.

JEL-codes: H23 Q15 Q23 (search for similar items in EconPapers)
Date: 2025-08-31
New Economics Papers: this item is included in nep-agr, nep-dev, nep-env and nep-inv
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