The role of domestic timber markets in tropical deforestation and forest degradation in Ecuador: Implications for conservation planning and policy

Abstract

Studies about the impact of the timber trade on tropical forests have often oversimplified process complexity and underestimated regional variability. This study shows that forest degradation and clearing in Northwest Ecuador between 1983 and 1992 was closely linked to commercial logging. A key finding is that domestic demand is critical for shaping timber extraction and, hence, forest degradation and deforestation in this region. Low timber prices for roundwood and sawnwood at the origin, which are bolstering unsustainable forest extraction, have not been affected by market liberalization. This suggests that conservation initiatives that target international trade linkages may only be partially successful, even when they do what they are intended to do. Results suggest that market-based incentives are more likely to produce the desired results if they target and support timber producers directly. These findings are also relevant for other regions where domestic markets are a significant drive for deforestation and where local markets are supplied through the activities of small-scale, labor-intensive primary producers. Also, by emphasizing areas where logging is a dominant force, meso-level studies, like this one, not only help to more accurately estimate the impact on local forests, but also identify major resource flows and the factors promoting or hindering sustainable use, and those affecting the effectiveness of policy options.