Impact of Deforestation on the Sustainable Local Development of Households: Nicaragua, 1998-2005

Authors

  • Carlos Alberto Zúniga González Universidad Nacional Autónoma de Nicaragua, León

DOI:

https://doi.org/10.5377/encuentro.v43i88.502

Keywords:

LSMS Survey, MECOVI, Technical Efficiency, Stochastic Frontier, Sustainable Local Development

Abstract

The paper analyzes the deforestation problem and its impact on Sustainable Local Development (SLD) during the period between 1998 and 2005. A stochastic frontier production function is defined for panel data of farm-specific variables. The inefficiency effects are assumed to be independently distributed as truncations of normal distributions with constant variance but with means which are a linear function of observable variables. Panel Data was chosen between social and environment variables of the data base of the EMNV’98-05. The results prove that the deforestation problem is explained by household social expenditure and poverty. The mean technical efficiency was 22%, and poverty reached significant levels for explaining technical inefficiency on the stochastic frontier model. The technical efficiency by year was 27%, 35% and 5 % during 1998,
2001 and 2005 respectively. With these considerations, I suggest an educational and specialization process based on the country’s environmental policies.

Keyword: LSMS Survey; MECOVI; Technical Efficiency; Stochastic Frontier; Sustainable Local Development

DOI: http://dx.doi.org/10.5377/encuentro.v43i88.502

Encuentro 2011/ Año XLIII, N° 88, 101-119

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Author Biography

Carlos Alberto Zúniga González, Universidad Nacional Autónoma de Nicaragua, León

Facultad de Ciencias Económicas y Empresariales, Departamento de Economía,

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Published

2011-05-31

How to Cite

Zúniga González, C. A. (2011). Impact of Deforestation on the Sustainable Local Development of Households: Nicaragua, 1998-2005. Encuentro, (88), 101–119. https://doi.org/10.5377/encuentro.v43i88.502

Issue

No. 88 (2011)

Section

Articles

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