AGRICULTURAL EXPANSION, INTEREST GROUPS AND DEFORESTATION IN MAURITIUS: A DYNAMIC APPROACH
PROPOSED PAPER FOR ISEE 2004 CONFERENCE
R. SULTAN1 and J. K.A. BENHIN2
1University of Mauritius, Faculty of Social Studies and Humanities, Reduit, Mauritius (E-mail: )
2Centre for Environmental Economics and Policy in Africa (CEEPA), Agricultural Annex, University of Pretoria, Pretoria 0002, South Africa (E-mail: )
FEBRUARY 2004
Abstract
The world’s remaining tropical forests with its rich biodiversity are believed to be located mainly in the developing regions of the world. However, the demand for such resources and land to meet the needs of the growing populations and developing economies has resulted in many of these resources coming under threat. For a small island like Mauritius, where around 31% of land is forest, there are pressures generated from agricultural development, which is fuelled by the rise in the population and the concern for economic development (Paupiah, 2003). There are also pressures from both within the island and international circles to control the use of the forest because of its rich biodiversity and other key ecological functions. The relative impacts of these interest groups will influence the extent of forest loss on the island.
This paper attempts to examine the impact of agriculture expansion on the forest in Mauritius and the role of interest groups. Following Ehui and Hertel (1989), and Benhin and Barbier (2001), an optimal control model is used to determine the optimal steady-state forest stock in the country. The model is then extended to assess the effects of interest groups on the optimal forest stock.
The paper will show that the optimum forest stock increases with increased benefits from timber production and the forest itself. While timber production on the island is relatively modest (with a relatively high import), a rise in the relative price of timber in the international markets could make forest and growing of trees profitable on the island because around 50% of the forest areas are privately owned. The model will also show that a rise in the profitability of the agricultural sector leads to a lower optimum stock of forest. Extending the model to interest groups, the paper will show that if the party that places a relatively high weight on environmental services dominates the decision-making process with respect to the use of the forest resource, then the optimum forest area will increase. In an attempt therefore to control the use of the forest resource, the role of interest groups should be an important factor to consider.
References
Benhin, J.K.A. and E.B. Barbier (2001), ‘The effects of the structural adjustment program on deforestation in Ghana’, Agricultural and Resource Economics Review 30(1): 66-80.
Ehui, E.K. and T.W. Hertel (1989), ‘Deforestation and agricultural productivity in the Côte d’Ivoire’, American Journal of Agricultural Economics 71(3): 701-11.
Paupiah, A.S. (2003), National Report to the Third Session of the United Nations Forum on Forests for the Republic of Mauritius.