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Who benefits from Deforestation and who loses?

At Loggerheads? Agricultural Expansion, Poverty Reduction, and Environment in the Tropical Forests
Who benefits and loses

Benefits vary widely

Losses are both global
and local

Picture Credit: Curt Carnemark

Private gains from deforestation can be sometimes miniscule and sometimes huge

Private gains from deforestation vary tremendously between places, technologies and land use systems. Profits from deforestation range from near zero to thousand of dollars a hectare.

In some places, there are huge incentives to convert or degrade forest.

  • In Cameroon, oil palm and intensive cocoa cultivation has a net present value of more than $1,400 a hectare.
  • In Brazil's cerrado, some conversions result in land values over $3,000 a hectare.
  • And India offers very high values for land devoted to coffee cultivation in the Western Ghats, a biodiversity hotspot.

In other places, conversion results in low-value land

  • Mean land values are just $400 a hectare in the Atlantic forest of Bahia, Brazil.
  • Low-value land uses are also reported in Indonesia, Uganda and the Cameroonian forest frontier.

Where conditions are amenable to crops such as soybeans, oil palm, or cocoa, and where old growth timber is still standing, deforesters are rewarded with thousands of dollars per hectare.

On marginal lands, lands far from markets, or where agricultural technologies are unavailable, there may be little incentive beyond the ability to eke out a living at the going wage.

The losses from deforestation can be local and/or global

Type of damageLocation of deforestationBurden/location of impact
Global climate changeAll deforesting locations; higher per hectare damages come from dense humid forests.Global
Imminent risk of globally significant biodiversity lossSpecific areas in mosaiclands and non-remote frontier forests  Global, but especially on high-income populations and future generations
Long-term risk of globally significant biodiversity loss Frontier and transfrontier forests Global, but especially on high-income populations and future generations
 Local and regional climate change Unclear, possibly widespread Unclear, possibly widespread
 Smoke and smog from forest fires Most areas of rapid deforestation Populated areas downwind of large rapid deforestation
 Local flooding, erosion and dimished dry season flows Small, steep upper watersheds in mosaiclands, non-remote frontier forests, and short littoral watershedsSmall, steep lower watersheds in mosaiclands; coral reefs
Reduced water quality for drinking and irrigationSmall, steep watersheds near cities and reservoirsDownstream cities and reservoirs
 Loss of pollination, pest control, and other biological services Mosaiclands; high-density frontier forests Fields near deforesting locations; possible far-field effects

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