Analysing the causes of deforestation in a CGE framework: The case of the Philippines

A computable general equilibrium (CGE) model is developed to evaluate some of the causes of deforestation in the Philippines. To quantify deforestation effects, the elasticities of various parameters of deforestation as identified in the literature are evaluated. The main conclusion derived is that the factors that have a relatively more direct influence on the level of harvest such as annual allowable cut would have a greater effect on deforestation rate than population growth and off-farm employment opportunities