Political Economy

Incentives faced by local bureaucrats partially explain deforestation in Indonesia. As districts split over time, the power of bureaucrats to obtain rents decreases and, as a consequence, they allow more illegal logging. When alternative sources of revenue increase, such as oil or gas, then deforestation decreases, because bureaucrats have more to lose from being found engaging in illegal activity in the forest sector.

Burgess et al. (2012) Quarterly Journal of Economics


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s