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Individual Pay for Collective Performance and Deforestation: Evidence from Brazil

Author

Listed:
  • Po Yin Wong

    (School of Business and Management, Queen Mary University of London.)

  • Karlygash Kuralbayeva

    (King's College London)

  • Liana O. Anderson

    (National Center for Monitoring and Early Warning of Natural Disasters (CEMADEN))

  • Ana M. Pessoa

    (National Institute for Space Research (INPE))

  • Torfinn Harding

    (University of Stavanger Business School)

Abstract

We study Brazil's Bolsa Verde program, which pays extremely poor households for implementing sustainable activities and maintaining forest cover at the communal level. Using difference-in-differences, we find that the program keeps deforestation 22% lower inside treated areas compared to similar untreated areas. The estimated program benefits in terms of emissions reductions are about four times the program costs. Heterogeneous effects across property types suggest that the program provides protection against deforestation pressure from groups other than program recipients. Data on fines and satellite-based alarms point to monitoring and reporting as a mechanism through which the program reduces illegal deforestation.

Suggested Citation

  • Po Yin Wong & Karlygash Kuralbayeva & Liana O. Anderson & Ana M. Pessoa & Torfinn Harding, 2023. "Individual Pay for Collective Performance and Deforestation: Evidence from Brazil," Working Papers 110, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    • Handle: RePEc:cgs:wpaper:110
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    File URL: http://cgr.sbm.qmul.ac.uk/CGRWP110.pdf
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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