ENE465 Seminar-The Economics of Deforestation
The course covers five main topics:
- Global trends and changes in forest cover: evidence from satellite data
- Drivers of deforestation:
- Agricultural productivity
- Infrastructural development (roads)
- Deforestation and sub-soil resource extraction, such as mining, oil and gas exploration
- Political economy of deforestation: quality of institutions, rent-seeking and forest loss
- Evaluation of anti-deforestation policies
This course examines the determinants and drivers of deforestation, including agricultural production, mining, and other resource extraction activities; as well as evaluation and consequences of various policies designed to reduce deforestation, such as zoning and the REDD+.
The course will make students familiar with applied methods in economics used to address topics surrounding deforestation in both developed and developing country contexts.
After completing the course, students can:
- have knowledge about policy implications on the research done on these topics
- use and understand various analytical approaches for uncovering causal relationships between policy designs and economic outcomes on these topics
- analyze the strengths and weaknesses of existing empirical approaches
- identify relevant sources of data and use statistical tools to produce descriptive statistics
- formulate a research proposal and describe the empirical strategy to be executed
- communicate their understanding and critical analysis of existing research designs and results
Monday: Lectures (introduction, global trends, agricultural productivity)
Tuesday: Lectures (roads, resource extraction)
Wednesday: Lectures (political economy, evaluation of anti-deforestation policies)
Thursday: Student group work and activity
Friday: Student presentations (critical analysis of existing research)
Students are recommended to have background in environmental and natural resource economics, for example, by having taken the following or similar courses: ECO439, ENE423, ENE426, ENE427, ENE429, and ECN420.
Students should have background knowledge in econometrics, microeconomics and statistics.
Requirements for course approval
Requirements for course approval
The course approval requires full attendance of lectures and student presentations.
- Group presentation in class (40%)
- Individual research proposal (60%), due 2 weeks after course end
Students are expected to work on the group presentations and research proposal during the week outside of lectures.
*Alix-Garcia, J., K. R.E. Sims, and Patricia Yañez-Pagans (2015). ``Only One Tree from Each Seed? Environmental Effectiveness and Poverty Alleviation in Mexico's Payments for Ecosystem Services Program,'' American Economic Journal: Economic Policy, 7(4): 1-40.
*Assunção, J., C. Gandour, and R. Rocha. (2015). ¿Deforestation Slowdown in the Brazilian Amazon: Prices or Policies?¿ Environment and Development Economics, 20(6): 697-722.
Barbier, E.B., and J. C. Burgess (2001). The Economics of Tropical Deforestation,¿ Journal of Economic Surveys, 15(3): 413-433.
*Brady, W. A., W. K. Smith, D. Twidwell, J. H. Haggerty, S. W. Running, D. E. Naugle, and S. D. Fuhlendorf. (2015). Ecosystem Services Lost to Oil and Gas in North America,¿ Science, 348(6233): 401-402.
*Burgess, R., M. Hansen, B. A. Olken, P. Potapov, and S. Sieber (2012). The Political Economy of Deforestation in the Tropics, Quarterly Journal of Economics, 127 (4): 1707-1754
*Butt, N., H. L. Beyer, J. R. Bennett, D. Biggs, R. Maggini, M. Mills, A. R. Renwick, L. M. Seabrook, H. P. Possingham. (2013). Biodiversity Risks from Fossil Fuel Extraction, Science, 342:425-426.
Chomitz, K.M., and D. A. Gray (1996). Roads, Land Use and Deforestation: A Spatial Model Applied to Belize,¿ World Bank Economic Review, 10(3): 487-512.
*Cropper, M., J. Puri, and C. Griffiths (2001). Predicting the Location of Deforestation: The Role of Roads and Protected Areas in North Thailand, Land Economics, 77(2): 172-186
*Hansen, M.C., P.V. Potapov, R. Moore, M. Hancher, S. A. Turubanova, A. Tyukavina, D. Thau, S V. Stehman, S. J. Goetz, T. R. Loveland, A. Kommareddy, A. Egorov, L. Chini, C. O. Justice, and J. R. G. Townshend (2013). High-Resolution Global Maps of 21st- Century Forest Cover Change, Science, 342(6160): 850-853.
Nepstad, D., D. McGrath, C. Stickler, A. Alencar, A. Azevedo, B. Swette, T. Bezerra, M. DiGiano, J. Shimada, R. Seroa da Motta, E. Armijo, L. Castello, P. Brando, M.C. Hansen, M. McGrathHorn, O. Carvalho, and L. Hess (2014). ``Slowing Amazon Deforestation through Public Policy and Interventions in Beef and Soy Supply Chains,'' Science, 110(13): 4956- 4961.
Pfaff, A., J. Robalino, E. Lima, C. Sandoval, and L.D. Herrera (2014). ``Governance, Location and Avoided Deforestation from Protected Areas: Greater Restrictions Can Have Lower Impact, Due to Differences in Location,'' World Development, 55:7-20.
*Skole, D.L., and C.J. Tucker (1993). ``Tropical Deforestation and Habitat Fragmentation in the Amazon: Satellite Data from 1978 to 1988,'' Science, 260:1905-1910.
*Note: Required readings for the course.
- ECTS Credits
- Teaching language
Po Yin Wong