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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

    (Université d'Auvergne(UdA))

  • 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.

Suggested Citation

  • Sébastien MARCHAND & Alexandre SAUQUET & José Gustavo FERES, 2012. "Ecological Fiscal Incentives and Spatial Strategic Interactions: the Case of the ICMS-E in the Brazilian state of Paraná," Working Papers 201219, CERDI.
  • Handle: RePEc:cdi:wpaper:1356
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    Cited by:

    1. Lutz Philip Hecker & Frank Wätzold & Gunther Markwardt, 2018. "Spotlight on Spatial Environmental Policy Spillovers: An Econometric Analysis of Wastewater Treatment in Mexican Municipalities," CESifo Working Paper Series 7251, CESifo.
    2. Ariane Amin & Johanna Choumert, 2015. "Development and biodiversity conservation in Sub-Saharan Africa: A spatial analysis," Economics Bulletin, AccessEcon, vol. 35(1), pages 729-744.
    3. Amin, Ariane, 2016. "Exploring the role of economic incentives and spillover effects in biodiversity conservation policies in sub-Saharan Africa," Ecological Economics, Elsevier, vol. 127(C), pages 185-191.
    4. Markwardt, Gunther & Hecker, Lutz & Wätzold, Frank, 2019. "Spotlight on spatial environmental policy spillovers: An econometric analysis of wastewater treatment in Mexican municipalities," VfS Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203627, Verein für Socialpolitik / German Economic Association.
    5. Hecker, Lutz Philip & Wätzold, Frank & Markwardt, Gunther, 2020. "Spotlight on Spatial Spillovers: An Econometric Analysis of Wastewater Treatment in Mexican Municipalities," Ecological Economics, Elsevier, vol. 175(C).

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    More about this item

    Keywords

    Land use; Biodiversity; Fiscal Federalism; Interactions; Spatial Tobit model; Brazil;
    All these keywords.

    JEL classification:

    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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