Revisiting the historical state: Long-term effects of institutional history on deforestation

Abstract

Existing work has shown long-run effects of historical institutions on economic development. However, few studies examine long-run effects of institutions on the environment. In this paper, we build on work by Dell et al. (2018) to demonstrate the effect of historical institutions in southern Vietnam on forest cover. Using a spatial regression discontinuity design, we find a larger coverage of forest and a lower rate of deforestation in a region that historically delegated administrative tasks from the central state to the village, fostering local cooperation. Thus, our findings are in line with previous work suggesting a connection between local cooperation and the preservation of common pool resources. Further, the results suggest that historical institutional differences should be considered for a better understanding of determinants and possible remedies of forest loss.