New Light Technologies reposted this
Glad to see our paper Investor Origin and Deforestation: Evidence from Global Mining Sites published in The Review of Economics and Statistics. In this paper, written together with Victoria Wenxin Xie and Wei You, we explore the relationship between forest cover loss, as observed by means of remote sensing, and prices of minerals produced in nearby mining sites. We find a significant and positive elasticity of forest cover loss with respect to the prices of minerals produced in nearby mining sites. The magnitudes are economically meaningful: for example, our estimates suggest that the “commodity super-cycle” in the early 2000s contributed to roughly 5.6% of total deforestation within 30 km of the mining sites. We further reveal that investor origin is a key determinant of mining-induced deforestation. We find that the elasticity of forest cover loss is significantly lower if the mine’s owner is from a high-income country. New Light Technologies