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Ecological Fiscal Incentives and Spatial Strategic Interactions: the Case of the ICMS-E in the Brazilian state of Paraná

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  • Sébastien MARCHAND

    ()
    (Centre d'Etudes et de Recherches sur le Développement International)

  • Alexandre SAUQUET
  • José Gustavo FERES

Abstract

The ICMS-Ecológico is a fiscal transfer mechanism from states to municipalities, implemented in the early 1990's in Brazil, to reward municipalities for the creation and management of protected areas. This paper investigates the efficiency of this mechanism by testing for the presence of interactions among Brazilian municipalities in their decision to create conservation units, in the state of Paraná, between 2000 and 2010. We estimate a Bayesian spatial Tobit model in order to analyze the behavior of municipalities. The empirical investigation reveals strategic substitutability in municipalities conservation decisions.

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File URL: http://publi.cerdi.org/ed/2012/2012.19.pdf
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Bibliographic Info

Paper provided by CERDI in its series Working Papers with number 201219.

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Length: 35
Date of creation: 2012
Date of revision:
Handle: RePEc:cdi:wpaper:1356

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Keywords: biodiversity; Land use; Fiscal Federalism; Interactions; Spatial Tobit model; Brazil;

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  1. Albers, Heidi J. & Ando, Amy W. & Chen, Xiaoxuan, 2008. "Spatial-econometric analysis of attraction and repulsion of private conservation by public reserves," Journal of Environmental Economics and Management, Elsevier, vol. 56(1), pages 33-49, July.
  2. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 64, pages 416.
  3. McDonald, John F & Moffitt, Robert A, 1980. "The Uses of Tobit Analysis," The Review of Economics and Statistics, MIT Press, vol. 62(2), pages 318-21, May.
  4. Corinne Autant‐Bernard & James P. LeSage, 2011. "Quantifying Knowledge Spillovers Using Spatial Econometric Models," Journal of Regional Science, Wiley Blackwell, Wiley Blackwell, vol. 51(3), pages 471-496, 08.
  5. Kumar, Surender & Managi, Shunsuke, 2009. "Compensation for environmental services and intergovernmental fiscal transfers: The case of India," Ecological Economics, Elsevier, Elsevier, vol. 68(12), pages 3052-3059, October.
  6. Andersen,Lykke E. & Granger,Clive W. J. & Reis,Eustaquio J. & Weinhold,Diana & Wunder,Sven, 2002. "The Dynamics of Deforestation and Economic Growth in the Brazilian Amazon," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521811972.
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