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Ecological Fiscal Transfers for Biodiversity Conservation Policy: A Transaction Costs Analysis of Minas Gerais, Brazil

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  • Lima de Paulo, Felipe Luiz
  • Camões, Pedro Jorge Sobral

Abstract

This paper addresses the influence of ecological fiscal transfers (EFT) on the policy-making process of adopting local protected areas (PA) by municipal governments. Framed on the transaction-cost politics (TCP), it argues that an EFT schema designed at the state level may affect the expected payoff/costs of local level decisions and the time length to create PA. The mixed research design is composed of two parts: first, a descriptive analysis detailing the evolution of EFT in the state of Minas Gerais since the beginning until its current version; second, an event history analysis of municipal PA adoption from 1966 to 2013. The conclusion suggests that, while there is an overall increase in municipal PA after the introduction of EFT, some design aspects of the instrument such as uncertainty and monitoring costs slowed and flattened that increase.

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  • Lima de Paulo, Felipe Luiz & Camões, Pedro Jorge Sobral, 2019. "Ecological Fiscal Transfers for Biodiversity Conservation Policy: A Transaction Costs Analysis of Minas Gerais, Brazil," Ecological Economics, Elsevier, vol. 166(C), pages 1-1.
    • Handle: RePEc:eee:ecolec:v:166:y:2019:i:c:11
    DOI: 10.1016/j.ecolecon.2019.106425
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    References listed on IDEAS

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    2. Ruggiero, P.G.C. & Pfaff, A. & Pereda, P. & Nichols, E. & Metzger, J.P., 2022. "The Brazilian intergovernmental fiscal transfer for conservation: A successful but self-limiting incentive program," Ecological Economics, Elsevier, vol. 191(C).
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    4. Cheng, Yuhong & Ma, Ben & Sun, Yidan, 2023. "Does central ecological transfer payment enhance local environmental performance? Quasi-experimental evidence from China," Ecological Economics, Elsevier, vol. 212(C).

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