Land Use Transition and Deforestation in Developing Countries

Deforestation in developing countries frequently occurs when logging interests abandon cut plots to farmers, who then make use of the land by producing either cash or food crops. This paper presents a model of land use transition that reveals conditions under which logging interests abandon cut plots to follow-on farmers. The model incorporates key characteristics of forest utilization contracts so that the effects of particular contracts may be observed. Thus, the model serves as a basis for designing contracts that can help control deforestation.