Contagious development: Neighbor interactions in deforestation

Juan Robalino () and Alexander Pfaff

Journal of Development Economics, 2012, vol. 97, issue 2, 427-436

Abstract: We estimate neighbor interactions in deforestation in Costa Rica. To address simultaneity and the presence of spatially correlated unobservables, we measure for neighbors' deforestation using the slopes of neighbors' and neighbors' neighbors' parcels. We find that neighboring deforestation significantly raises the probability of deforestation. Policies for agricultural development or forest conservation in one area will affect deforestation rates in non-targeted neighboring areas. Correct estimation of the interaction reverses the naive estimate's prediction of multiple equilibria.

Keywords: Instrumental variable; Neighbors' interactions; Local interactions; Social interactions; Land use patterns; Environmental policies (search for similar items in EconPapers)
JEL-codes: O13 Q24 R12 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (56)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:deveco:v:97:y:2012:i:2:p:427-436

DOI: 10.1016/j.jdeveco.2011.06.003

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