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The Influence of Economic Factors and Policies on Deforestation in Tanzania

Thadei D. Sagamiko, Nyimvua Shaban Mbare, Cuthbert L. Nahonyo

Abstract

 

In this paper we analysed the influence of economic factors and policy on the rate of deforestation in Tanzania. A multiple linear regression model was formulated and the effects of each factor on deforestation were tested. The ordinary least squares method was used to estimate the model parameters. Correlation analysis revealed that per capita income, per capita purchasing power, and electricity consumption have positive relationship with deforestation rate; while inflation rate and poverty rate have a negative relationship with deforestation rate. All factors were found to be significant and were used for regression analysis. By considering the p-value at 5% level, the coefficient of determination from regression analysis indicated that 87% of deforestation rate is caused by explanatory variables captured in the model; and all explanatory variables had positive impact on deforestation. Thus, it is suggested that policy and decision-making should link with the country’s desire for economic growth and environmental management.

 

Keywords

deforestation, economic factors, correlation, regression, Tanzania

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