Environmentally Related Taxes and Forest Loss

Abstract

In recent years, environmental state theory has argued that nations have implemented laws and regulations along with spending money on conservation to address environmental problems. However, questions remain about the effectiveness of such policies. The authors draw on environmental state theory to frame this study in which they examine if higher levels of environmentally related forestry taxes correspond with lower levels of forest loss in low- and middle- income nations. The authors test this hypothesis by using use two-stage least squares regression models for a sample of 81 low- and middle- income nations. The results indicate support for the hypothesis that higher levels of environmentally related taxes are associated with less forest loss in low- and middle-income nations.