Deforestation and Economic Development: Evidence from National Borders

Does economic development result in tree cover loss for poor countries, but not so for already more developed countries? Using a new subnational dataset and employing a quasi-experimental method, this paper addresses this question using tree cover loss data for 14 contiguous countries. The analysis uses geographical regression discontinuity (using national borders as discontinuities) and our findings show that Sub-Saharan Africa and low-income countries in general have the highest development-deforestation elasticity.