Economic Dynamics and Forest Clearing: A Spatial Econometric Analysis for Indonesia

Abstract

This paper uses a large panel database to investigate the determinants of forest clearing in Indonesian kabupatens since 2005. The study incorporates short-run changes in prices and demand for palm oil and wood products, as well as the exchange rate, the real interest rate, land-use zoning, forest protection, the estimated opportunity cost of forested land, the quality of local governance, the poverty rate, population density, the availability of communications infrastructure, transport cost, and local rainfall and terrain slope. [CGD Working Paper 280]. URL:[http://www.cgdev.org/files/1425820_file_Wheeler_et_al_Forest_Clearing_Indonesia.pdf].Indonesia, forest clearing, Economic Dynamics, Spatial Econometric, greenhouse gas emissions, energy resources, poverty alleviation, global warming, Asian markets, plantations, Sumatra and Kalimantan, Bali