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Environmental Protection and Impact on Adjacent Economies: Evidence from the Swedish Mountain Region

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ABSTRACT

The study presented here considers the effects of protected land on neighboring local economies, based on a panel data analysis of its influence on economic growth, net migration, and employment in the forest and tourism sectors in 15 municipalities in northwestern Sweden from 1985 to 2001. The main findings are that increases in the area of protected land in this region seem to have promoted slight increases in per capita income growth and net migration, slight reductions in employment in the forest sector, and possible increases (not significant at the 5 percent probability level) in employment in the tourism sector. In addition, there are indications of conditional divergence in the Swedish mountain region, implying that small economies grow more slowly here than larger economies.
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Document Type: Research Article

Affiliations: Department of Forest Economics, Swedish University of Agricultural Sciences, Umeå, and is affiliated with the School of Business, Umeå University, Umeå, Sweden., Email: [email protected]

Publication date: September 1, 2009

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