Revisiting the historical state: Long-term effects of institutional history on deforestation

Matthias Schündeln and Johannes Van Vlodrop

Economics Letters, 2023, vol. 233, issue C

Abstract: Existing work has shown long-run effects of historical institutions on economic development. However, few studies examine long-run effects of institutions on the environment. In this paper, we build on work by Dell et al. (2018) to demonstrate the effect of historical institutions in southern Vietnam on forest cover. Using a spatial regression discontinuity design, we find a larger coverage of forest and a lower rate of deforestation in a region that historically delegated administrative tasks from the central state to the village, fostering local cooperation. Thus, our findings are in line with previous work suggesting a connection between local cooperation and the preservation of common pool resources. Further, the results suggest that historical institutional differences should be considered for a better understanding of determinants and possible remedies of forest loss.

Keywords: Deforestation; Governance; Institutions; Vietnam (search for similar items in EconPapers)
JEL-codes: D02 N55 O13 Q23 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:233:y:2023:i:c:s0165176523004275

DOI: 10.1016/j.econlet.2023.111401

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