Legal origin, colonial origin and deforestation

This paper investigates whether inherited legacies such as legal origin allow of explaining deforestation in 110 developed and developing countries. The hypothesis is that differences in deforestation between countries can be attributed to their legal systems. Also, since nearly all common law countries are former English colonies, and nearly all civil law countries were colonized by France, Spain or Portugal, legal origin and colonial history are strongly correlated, so that one can not attribute all the variance to the effect of the legal system. What is found overall is that (i) French civil law countries deforest less than English common law ones within the total sample, within the sample of colonized countries, and within the sample of tropical developing countries; (ii) Former French colonies deforest less than former English colonies. These results hold when geography features are controlled for since the process of colonization was not random and depended on initial geographic and climatic conditions.Deforestation; Colonial legacies; Legal origin

Technical Efficiency, Farm Size and Tropical Deforestation in the Brazilian Amazonian Forest

This paper analyses the impact of farm productivity as well as farm size on deforestation in Brazil. A two step econometric approach is adopted. A bootstrapped translog stochastic frontier that is a posteriori checked for functional consistency is used in order to estimate technical efficiency of which estimates are introduced in a land use model to assess the impact of productivity and farm size on deforestation. Analysis of agricultural census tract data suggests that technical efficiency has a nonlinear (convex) effect: less and more efficient farms use more land for agricultural activities and so they have a positive effect on deforestation. However, the majority of farms are on the ascendant slope so that efficiency implies more deforestation in Brazilian Legal Amazon. Moreover, farm size has a robust negative effect on deforestation. Contrary to many studies, this result suggests that small farms convert more natural (forested) land into agricultural land than large ones.Farm size, Stochastic frontier model, Brazil., Land use model

Technical Efficiency, Farm Size and Tropical Deforestation in the Brazilian Amazonian Forest

This paper analyses the impact of farm productivity as well as farm size on deforestation in Brazil. A two step econometric approach is adopted. A bootstrapped translog stochastic frontier that is a posteriori checked for functional consistency is used in order to estimate technical efficiency of which estimates are introduced in a land use model to assess the impact of productivity and farm size on deforestation. Analysis of agricultural census tract data suggests that technical efficiency has a nonlinear (convex) effect: less and more efficient farms use more land for agricultural activities and so they have a positive effect on deforestation. However, the majority of farms are on the ascendant slope so that efficiency implies more deforestation in Brazilian Legal Amazon. Moreover, farm size has a robust negative effect on deforestation. Contrary to many studies, this result suggests that small farms convert more natural (forested) land into agricultural land than large ones.Farm size;Stochastic frontier model;Brazil.;Land use model

Historical and Comparative Institutional Analysis: Evidences from Deforestation

This paper investigates if past institutional, economic, political, social, and cultural features (i.e legal origins on law and regulations and colonial legacies) interact in shaping the current institutional performances on deforestation in 116 developed and developing countries. A two step approach is implemented. First, we investigate relations between colonial legacies-legal origins and current institutional performances. We find that common law countries and previous British colonies have better institutions that French civil law and other past colonized countries. Second, we provide two econometrics procedures to capture some institutional persistences on deforestation which allow to estimate current institutional effects on deforestation conditioned to historical variables. In a first time, we run our deforestation model on different samples (under historical variables) and in a second time, interactive variables are introduced. We find that (i) French civil law countries deforest less than common law ones; (ii) less corruption and more secured property rights decrease deforestation in common law countries; (iii) better rules of law reduce deforestation but this feature is more likely in previous British colonies or non colonized countries. Finally, this paper shows that current institutional performances are important factors in the process of deforestation and that these factors are conditioned to past influences.Deforestation; Institutional persistences; Colonial legacies; Legal Origins; Corruption; Property Ri

Legal origin, colonial origin and deforestation

This paper investigates whether inherited legacies such as legal origin allow of explaining deforestation in 110 developed and developing countries. The hypothesis is that differences in deforestation between countries can be attributed to their legal systems. Also, since nearly all common law countries are former English colonies, and nearly all civil law countries were colonized by France, Spain or Portugal, legal origin and colonial history are strongly correlated, so that one can not attribute all the variance to the effect of the legal system. What is found overall is that (i) French civil law countries deforest less than English common law ones within the total sample, within the sample of colonized countries, and within the sample of tropical developing countries; (ii) Former French colonies deforest less than former English colonies. These results hold when geography features are controlled for since the process of colonization was not random and depended on initial geographic and climatic conditions.Deforestation; Colonial legacies; Legal origin

Environmental Compliance, Corruption and Governance: Theory and Evidence on Forest Stock in Developing Countries

This paper analyses the relationships between environmental compliance, corruption and environmental regulations in the case of forestry. Using a Principal-Agent model, we highlight interrelationships between firm's environmental non-compliance and corruption conditioned to the efficiency of the legal and regulatory framework. Moreover, we show that environmental compliance and judicial efficiency may be complementary or substitutable depending on the level of judicial efficiency to strengthen the forest stock. After having design a new indicator of environmental compliance, we test these predictions using cross section data for 59 developing countries. The empirical results support the predictions of the model. Judicial efficiency reduces corruption and environmental non compliance which are positively correlated and conditioned to judicial efficiency. We also find empirical evidences on the substitutability and complementarity of environmental compliance and judicial efficiency to preserve the forest stock.corruption, Environmental compliance, Forest Stock, political economy, governance

Environmental Compliance, Corruption and Governance: Theory and Evidence on Forest Stock in Developing Countries

This paper analyses the relationships between environmental compliance, corruption and environmental regulations in the case of forestry. Using a Principal-Agent model, we highlight interrelationships between firm's environmental non-compliance and corruption conditioned to the efficiency of the legal and regulatory framework. Moreover, we show that environmental compliance and judicial efficiency may be complementary or substitutable depending on the level of judicial efficiency to strengthen the forest stock. After having design a new indicator of environmental compliance, we test these predictions using cross section data for 59 developing countries. The empirical results support the predictions of the model. Judicial efficiency reduces corruption and environmental non compliance which are positively correlated and conditioned to judicial efficiency. We also find empirical evidences on the substitutability and complementarity of environmental compliance and judicial efficiency to preserve the forest stock.corruption;Environmental compliance;Forest Stock;political economy;governance

Does Pervasive Corruption Matter For Firm's Demand for Good Governance in Developing Countries?

This paper investigates empirically the relationships between the corruption climate and the demand for good governance by focusing on firms' behaviors in developing countries. The concept of demand for good governance is conceived in terms of a firm's willingness to comply with regulatory norms measured through the firm's perception of the level of public accountability as well as the firm's behavior in terms of corruption practices. While there is a growing theoretical literature on the importance of externality mechanisms of corruption phenomena, little empirical evidences has been highlighted. This paper contributes to fill this gap by using firm-level data from the World Bank Enterprise Survey. We show that when corruption is found to be a very important constraint for a firm's business, its willingness to comply decreases and the probability of the firm's corrupting officials increases. These results support arguments according to which the demand for good governance is likely to be influenced by the perception of the existence of pervasive corruption. Moreover, the results are conditioned on countries' institutional features and the type of regulation. Some evidence is also found for firms' environmental overcompliance.Corruption; Compliance; Regulation; Firms

Historical and Comparative Institutional Analysis: Evidences from Deforestation

This paper investigates if past institutional, economic, political, social, and cultural features (i.e legal origins on law and regulations and colonial legacies) interact in shaping the current institutional performances on deforestation in 116 developed and developing countries. A two step approach is implemented. First, we investigate relations between colonial legacies-legal origins and current institutional performances. We find that common law countries and previous British colonies have better institutions that French civil law and other past colonized countries. Second, we provide two econometrics procedures to capture some institutional persistences on deforestation which allow to estimate current institutional effects on deforestation conditioned to historical variables. In a first time, we run our deforestation model on different samples (under historical variables) and in a second time, interactive variables are introduced. We find that (i) French civil law countries deforest less than common law ones; (ii) less corruption and more secured property rights decrease deforestation in common law countries; (iii) better rules of law reduce deforestation but this feature is more likely in previous British colonies or non colonized countries. Finally, this paper shows that current institutional performances are important factors in the process of deforestation and that these factors are conditioned to past influences

Technical Efficiency, Farm Size and Tropical Deforestation in the Brazilian Amazonian Forest

This paper analyses the impact of farm productivity as well as farm size on deforestation in Brazil. A two step econometric approach is adopted. A bootstrapped translog stochastic frontier that is a posteriori checked for functional consistency is used in order to estimate technical efficiency of which estimates are introduced in a land use model to assess the impact of productivity and farm size on deforestation. Analysis of agricultural census tract data suggests that technical efficiency has a nonlinear (convex) effect: less and more efficient farms use more land for agricultural activities and so they have a positive effect on deforestation. However, the majority of farms are on the ascendant slope so that efficiency implies more deforestation in Brazilian Legal Amazon. Moreover, farm size has a robust negative effect on deforestation. Contrary to many studies, this result suggests that small farms convert more natural (forested) land into agricultural land than large ones