Economic Journal of Emerging Markets
Volume 1 Issue 2, 2009

How Effective is Property Right to Deter Deforestation in Indonesia 2001-2005

Rokhedi Priyo Santoso (Unknown)



Article Info

Publish Date
23 Sep 2011

Abstract

The rate of deforestation in Indonesia is higher than the world average. The lack of propertyrights could potentially result in overexploitation on forest resources. This paper argues thatthe presence of assigned property rights (natural forest concession) would prevent furtherdeforestation in Indonesia. Using panel data estimation, the main result is that natural forestconcession is negatively significant in influencing deforestation in Indonesia. This effect isexplained by relatively high of the elasticity of deforestation rates with respect to area of assignednatural forest concession accounted for 0.33. This elasticity outweighs the positivesignificant effect of logs production in worsening deforestation in Indonesia.Keywords: deforestation, property right, natural forest concession, panel data

Copyrights © 2009






Journal Info

Abbrev

JEP

Publisher

Subject

Economics, Econometrics & Finance

Description

The Economic Journal of Emerging Markets (EJEM) is a peer-reviewed journal which provides a forum for scientific works pertaining to emerging market economies. Published every April and October, this journal welcomes original research papers on all aspects of economic development issues. The journal ...