Abstract

ABSTRACT:

A unique GIS data set from Indonesia that distinguishes smallholder and plantation operations is used to test the impact of district subdivision, which enhances local control of natural-resource revenues, on the location of smallholder forest conversion. Nonparametric analyses show that in subdivided districts, smallholders convert forests on steeper land that is farther from the nearest road and deeper into the forest. Smallholders are also less responsive to forest protection in subdivided districts. District subdivision imposes external costs of $1,629 to $4,941 per hectare due to increased carbon emissions associated with smallholder conversion deeper into the forest.

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Additional Information

ISSN
1543-8325
Print ISSN
0023-7639
Pages
pp. 437-458
Launched on MUSE
2018-07-12
Open Access
No
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