The Effects of Economic Development on Neotropical Deforestation: Household and Village Evidence from Amerindians in Bolivia

A survey of 200 lowland Amerindian households (Mojeño=88; Yuracaré=50; Chimane=62) in the department of Beni, Bolivia, was done to test the effects of income on the clearance of primary rain forest. The link between income and forest clearance resembles an inverted U, with clearance peaking among middle-income households. Deforestation drops after households reach a threshold of income because at higher income households seem to enjoy: a) more secure property rights, b) higher educational attainment and better educational facilities in their villages, c) greater use of modern farm technologies (eg, chemical herbicides and pesticides), which allows them to practice more intensive agriculture, and d) higher income from off-farm employment. After controlling for income, household variables which lower pressure include radios, female education, and credit; village variables which lower pressure include schools and cattle ranchers. The presence of loggers, distance to market town, and the number of stores in the village seem to be associated with greater clearance