IDEAS home Printed from https://ideas.repec.org/a/eee/ecolec/v166y2019ic11.html
   My bibliography  Save this article

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

Author

Listed:
  • 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.

Suggested Citation

  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0921800918309078
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ecolecon.2019.106425?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Droste, N. & Ring, I. & Santos, R. & Kettunen, M., 2018. "Ecological Fiscal Transfers in Europe – Evidence-Based Design Options for a Transnational Scheme," Ecological Economics, Elsevier, vol. 147(C), pages 373-382.
    2. Antonio Puppim de Oliveira, Jose, 2002. "Implementing Environmental Policies in Developing Countries Through Decentralization: The Case of Protected Areas in Bahia, Brazil," World Development, Elsevier, vol. 30(10), pages 1713-1736, October.
    3. Steven Tadelis & Oliver E.Williamson, 2012. "Transaction Cost Economics [The Handbook of Organizational Economics]," Introductory Chapters,, Princeton University Press.
    4. Olson, Mancur, Jr, 1969. "The Principle of "Fiscal Equivalence": The Division of Responsibilities among Different Levels of Government," American Economic Review, American Economic Association, vol. 59(2), pages 479-487, May.
    5. Mumbunan, Sonny & Ring, Irene & Lenk, Thomas, 2012. "Ecological fiscal transfers at the provincial level in Indonesia," UFZ Discussion Papers 06/2012, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    6. José Gustavo Feres & Sébastien Marchand & Alexandre Sauquet, 2014. "Protected areas, local governments, and strategic interactions: The case of the ICMS-Ecológico in the Brazilian state of Paraná," Post-Print halshs-01064979, HAL.
    7. Sauquet, Alexandre & Marchand, Sébastien & Féres, José Gustavo, 2014. "Protected areas, local governments, and strategic interactions: The case of the ICMS-Ecológico in the Brazilian state of Paraná," Ecological Economics, Elsevier, vol. 107(C), pages 249-258.
    8. Ring, Irene, 2002. "Ecological public functions and fiscal equalisation at the local level in Germany," Ecological Economics, Elsevier, vol. 42(3), pages 415-427, September.
    9. Fernandes, Luciany Lima & Coelho, Alexandre Bragança & Fernandes, Elaine Aparecida & Lima, João Eustáquio de, 2011. "Compensação e Incentivo à Proteção Ambiental: o caso do ICMS Ecológico em Minas Gerais," Revista de Economia e Sociologia Rural (RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 49(3), January.
    10. R. Schmalensee & R. Willig (ed.), 1989. "Handbook of Industrial Organization," Handbook of Industrial Organization, Elsevier, edition 1, volume 2, number 2.
    11. Droste, Nils & Becker, Claudia & Ring, Irene & Santos, Rui, 2017. "Decentralization effects in ecological fiscal transfers: The case of Portugal," UFZ Discussion Papers 3/2017, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    12. R. Schmalensee & R. Willig (ed.), 1989. "Handbook of Industrial Organization," Handbook of Industrial Organization, Elsevier, edition 1, volume 1, number 1.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Daniela Kletzan-Slamanig & Angela Köppl & Hans Pitlik & Margit Schratzenstaller, 2023. "Der Finanzausgleich als Hebel zur Umsetzung der österreichischen Klimaziele. Handlungsfelder und konzeptionelle Grundlagen," WIFO Studies, WIFO, number 70785, March.
    2. Jonah Busch & Irene Ring & Monique Akullo & Oyut Amarjargal & Maud Borie & Rodrigo S. Cassola & Annabelle Cruz-Trinidad & Nils Droste & Joko Tri Haryanto & Ulan Kasymov & Nataliia Viktorivna Kotenko &, 2021. "A global review of ecological fiscal transfers," Nature Sustainability, Nature, vol. 4(9), pages 756-765, September.
    3. 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).
    4. 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).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jonah Busch & Irene Ring & Monique Akullo & Oyut Amarjargal & Maud Borie & Rodrigo S. Cassola & Annabelle Cruz-Trinidad & Nils Droste & Joko Tri Haryanto & Ulan Kasymov & Nataliia Viktorivna Kotenko &, 2021. "A global review of ecological fiscal transfers," Nature Sustainability, Nature, vol. 4(9), pages 756-765, September.
    2. Rocha, Samuel José Silva Soares da & Comini, Indira Bifano & Morais Júnior, Vicente Toledo Machado de & Schettini, Bruno Leão Said & Villanova, Paulo Henrique & Alves, Eliana Boaventura Bernardes Mour, 2020. "Ecological ICMS enables forest restoration in Brazil," Land Use Policy, Elsevier, vol. 91(C).
    3. Droste, N. & Ring, I. & Santos, R. & Kettunen, M., 2018. "Ecological Fiscal Transfers in Europe – Evidence-Based Design Options for a Transnational Scheme," Ecological Economics, Elsevier, vol. 147(C), pages 373-382.
    4. Morasch, Karl, 1995. "Moral hazard and optimal contract form for R&D cooperation," Journal of Economic Behavior & Organization, Elsevier, vol. 28(1), pages 63-78, September.
    5. Almas Heshmati, 2003. "Productivity Growth, Efficiency and Outsourcing in Manufacturing and Service Industries," Journal of Economic Surveys, Wiley Blackwell, vol. 17(1), pages 79-112, February.
    6. Williamson, Oliver E., 2007. "Transaction Cost Economics: An Introduction," Economics Discussion Papers 2007-3, Kiel Institute for the World Economy (IfW Kiel).
    7. Jürgen Peters, 2000. "Buyer Market Power and Innovative Activities," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 16(1), pages 13-38, February.
    8. Roodhooft, Filip & Warlop, Luk, 1999. "On the role of sunk costs and asset specificity in outsourcing decisions: a research note," Accounting, Organizations and Society, Elsevier, vol. 24(4), pages 363-369, May.
    9. Bertschek, Irene, 2008. "Wissensvermittlung versus Legitimationsfunktion: Warum engagieren Unternehmen IT-Berater?," ZEW Discussion Papers 08-083, ZEW - Leibniz Centre for European Economic Research.
    10. Emeric Lendjel & Marianne Fischman, 2010. "Changements institutionnels et efficience de l'affrètement au voyage dans le transport fluvial de marchandises," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00515244, HAL.
    11. Christoph Grimpe & Ulrich Kaiser, 2008. "Gains and Pains from Contract Research: A Transaction and Firm-level Perspective," CIE Discussion Papers 2008-01, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
    12. Comini, Indira Bifano & Gonçalves Jacovine, Laércio Antônio & Zanuncio, José Cola & Lima, Gumercindo Souza, 2019. "Contribution of conservation units to Ecological ICMS generation for municipalities and environmental conservation," Land Use Policy, Elsevier, vol. 86(C), pages 322-327.
    13. E. Loukis & N. Kyriakou & K. Pazalos & S. Popa, 2017. "Inter-organizational innovation and cloud computing," Electronic Commerce Research, Springer, vol. 17(3), pages 379-401, September.
    14. Viitamo, Esa, 2014. "Service productivity, technology and organization - Converting theory to praxis," ETLA Working Papers 26, The Research Institute of the Finnish Economy.
    15. Tor Winston, 2006. "Innovation and Ex Ante Consideration of Licensing Terms in Standard Setting," EAG Discussions Papers 200603, Department of Justice, Antitrust Division.
    16. Henar Alcalde Heras, 2014. "Collaboration Patterns and Product Innovation in the Basque Country. Does a Firm’s Nationality Matter?," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 10(3), pages 29-56.
    17. Gooroochurn, Nishaal & Hanley, Aoife, 2007. "A tale of two literatures: Transaction costs and property rights in innovation outsourcing," Research Policy, Elsevier, vol. 36(10), pages 1483-1495, December.
    18. Hemmert, Martin & Kim, DaeSoo & Kim, Jisun & Cho, BooYun, 2016. "Building the supplier's trust: Role of institutional forces and buyer firm practices," International Journal of Production Economics, Elsevier, vol. 180(C), pages 25-37.
    19. Agyekum, Francis & Locke, Stuart & Hewa-Wellalage, Nirosha, 2016. "A search for Theory of Financial Market Failure in Lower Income Countries (LICs) and implication for Financial Exclusion," MPRA Paper 82861, University Library of Munich, Germany, revised 15 May 2017.
    20. Shih-Wei Chou, 2021. "Understanding crowdsourcing adoption based on IT managers’ decision," Information Technology and Management, Springer, vol. 22(4), pages 245-263, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:166:y:2019:i:c:11. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolecon .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.