The Role of Scale in Mexican Community Forest Management

Juan Torres Rojo (), David B. Bray and Octavio S. Magaña

No DTE 451, Working Papers from CIDE, División de Economía

Abstract: Several studies around the globe show that Community Forest Management throughout an improved institutional design inside communities can help to reduce deforestation rate, improve forest management practices and produce a greater flow of goods and services for both communities and society. This study is an attempt to analyze the effect of scale in community forest management, defined as the quantity and quality of forest resources, in variables such as vertical integration of the forest enterprise, performance of the firm, intensity of forest extraction, sustainability of the firm and welfare of the entire forest community. The analysis is done from an inventory of characteristics of forest communities in the 10 most important forestry states in the country. Results show that Forest Community Enterprises indeed depend on the quantity and quality of resources to survive, to vertically integrate and to produce an inflow of benefits inside the community enough to improve welfare. Analysis also shows that Community Forest Management applied at low scale might provide incentives for a greater forest liquidation of surplus forest which might turn on higher land use change.

Keywords: Forest Management; Mexico; deforestation (search for similar items in EconPapers)
JEL-codes: Q23 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2008-10
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