Do Property Rights Promote Investment but Cause Deforestation? Quasi-Experimental Evidence from Nicaragua

@article{Liscow2012DoPR,
  title={Do Property Rights Promote Investment but Cause Deforestation? Quasi-Experimental Evidence from Nicaragua},
  author={Zachary D. Liscow},
  journal={Built Environment eJournal},
  year={2012}
}
  • Zachary D. Liscow
  • Published 2012
  • Economics
  • Built Environment eJournal
  • Many policymakers argue that property rights decrease deforestation. Some theoretical papers also make this prediction, arguing that property rights decrease discount rates applied to a long-term investment in forestry. However, the effect is theoretically ambiguous. The paper takes a novel instrumental variables approach based on Nicaragua's agrarian reform to test for the effect, using a new dataset—Nicaragua's 2001 agricultural census. It finds that property rights significantly increase… CONTINUE READING
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