Deforestation and national accounting

John Hartwick

Environmental & Resource Economics, 1992, vol. 2, issue 5, 513-521

Abstract: We construct a first best growing economy in which land is being switched continuously from use in forestry to an alternative use. We find that implicitly for such activity to take place there must be no net loss to land owners. This implies no deduction in the national accounts for deforestation. With soil erosion on deforested land, Pigovian taxes must be levied to sustain a first best. We also observe an optimal tax on households for their implicit use of forests as oxygenation sinks. Copyright Kluwer Academic Publishers 1992

Keywords: Deforestation; national accounting; soil degradation (search for similar items in EconPapers)
Date: 1992
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Citations: View citations in EconPapers (13)

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DOI: 10.1007/BF00376832

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