Trade and Deforestation: A literature review

Discussion Paper
1 January 2009

In this paper, we investigate what the literature has found by analyzing the relationship between trade liberalization and deforestation

Our goals are to identify the areas where the literature has reached agreements, where it still has not, and the areas where more research is required.

We found opposing positions in relation to the effects of timber extraction as a consequence of trade on deforestation. Researchers have found that for some countries, increase in prices of timber will lead to increases in deforestation. However, others have argued that the effect depends on different conditions. Other drivers of deforestation should be jointly relevant. Additionally, some researchers argue that high prices of timber might actually lead to increases in forest plantations. Finally, accessibility of standing natural forest plays a key role when discussing the effects of higher timber prices.

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Publication | 24 February 2010