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Climate change mitigation policy in Ecuador: Effects of land-use competition and transaction costs

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  • Ortega-Pacheco, Daniel V.
  • Keeler, Andrew G.
  • Jiang, Shiguo

Abstract

This paper develops an econometric model to estimate the economic determinants of forest land conversion in Esmeraldas, Ecuador and evaluates the effect that transaction costs have on incentive-based climate change mitigation activities. Using a logistic share model, the results show a high extent of competition for the use of land between agricultural production for palm oil processing and land-based carbon mitigation through avoided emissions from deforestation. Our results show that the current policy of introducing conservation payments in Ecuador is not sufficient to significantly reduce deforestation, but that payment levels based on a plausible international carbon price would make an appreciable difference in the net sequestration contribution of forests in northern Ecuador. Knowledge generated from this research can inform site-specific land use policy design aimed at addressing the opportunity costs of tropical forest conservation as an important component of climate mitigation strategies.

Suggested Citation

  • Ortega-Pacheco, Daniel V. & Keeler, Andrew G. & Jiang, Shiguo, 2019. "Climate change mitigation policy in Ecuador: Effects of land-use competition and transaction costs," Land Use Policy, Elsevier, vol. 81(C), pages 302-310.
    • Handle: RePEc:eee:lauspo:v:81:y:2019:i:c:p:302-310
    DOI: 10.1016/j.landusepol.2018.10.015
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    Cited by:

    1. Coral, Claudia & Bokelmann, Wolfgang & Bonatti, Michelle & Carcamo, Robert & Sieber, Stefan, 2021. "Understanding institutional change mechanisms for land use: Lessons from Ecuador’s history," Land Use Policy, Elsevier, vol. 108(C).
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    3. Alarcón-Aguirre, Jaime S. & Aguirre-Mejía, Patricia M. & Palacios-Hinestroza, Hasbleidy & Sulbarán-Rangel, Belkis, 2020. "Evaluation of the forestry administrative system that regulates the activity of extracting wood from the Northern Ecuadorian amazon," Land Use Policy, Elsevier, vol. 99(C).
    4. Li, Jintao & Sun, Zongfeng, 2021. "Does the transfer of state-owned land-use rights promote or restrict urban development?," Land Use Policy, Elsevier, vol. 100(C).

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