Poverty, Policies, and Deforestation: The Case of Mexico

Abstract

This study examines the determinants and policy implications of deforestation in Mexico and includes a brief review of the relevant empirical literature and a description of the theoretical model. Land use patterns and socioeconomic and physiogeographic factors are determinants. Data were obtained from digital maps of land use and soils and the 1990 Population and 1991 Agricultural Censuses. A simple 2-period equation formalizes the relationship between deforestation and poverty government policies and local land tenure. In Period 1 representative producers in municipalities have 4 options in allocating labor time: wage generation; agricultural production; deforestation on land without clear property rights; and investment in technology. During Period 2 the options are to farm on available land and deforested areas or work in the wage sector. Findings reveal that: 1) communal land tenure (ownership by the ejido) did not increase deforestation; 2) pricing that favors maize production which is very land intensive increased deforestation and technical assistance reduced deforestation; and 3) poverty was related to higher rates of deforestation. Prices were the most important immediate factor in unsustainable resource use but other factors had an impact. The government policy mix did not support sustainable development. Reduced subsidies would benefit the environment. The government should provide safety nets to increase the level of rural investment and reduce poverty and should improve land productivity with technical inputs. Trade liberalization and elimination of subsidies should be sensitive to the poors need for real wages.