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Protected areas, local governments, and strategic interactions: The case of the ICMS-Ecológico in the Brazilian state of Paraná

Author

Listed:
  • José Gustavo Feres

    (IPEA - Institute of Applied Economic Research - Institute of Applied Economic Research)

  • Sébastien Marchand

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

  • Alexandre Sauquet

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

Abstract

Various conservation initiatives have been implemented in developing countrieswith increasing involvement on the part of local governments. A concern in entrusting decisions to local governments is that the effectiveness of the conservation instrument can be threatened by interactions among these local governments.We examine this concern with respect to an ecological fiscal transfer mechanism, the ICMS-Ecológico, implemented in Brazil in the early 1990's in order to reduce biodiversity loss. The mechanism enables states to reward municipalities for the creation and management of protected areas. We describe this mechanism, present a conceptual framework aimed at understanding the potential sources and consequences of interactions among local governments on the effectiveness of a decentralized mechanismaimed at promoting the creation of protected areas, and propose an empirical application using a Bayesian spatial Tobit model. Our empirical investigation on the creation of protected areas in the state of Paraná between 2000 and 2010 reveals strategic substitutability in municipalities' conservation decisions. This finding also leads us to discuss the issue of identification of a negative spatial lag coefficient when there is a positive spatial error correlation.

Suggested Citation

  • 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.
  • Handle: RePEc:hal:journl:halshs-01064979
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-01064979
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    Cited by:

    1. Delacote, Philippe & Robinson, Elizabeth J.Z. & Roussel, Sébastien, 2016. "Deforestation, leakage and avoided deforestation policies: A spatial analysis," Resource and Energy Economics, Elsevier, vol. 45(C), pages 192-210.
    2. 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.
    3. Nolte, Christoph & Gobbi, Beatriz & le Polain de Waroux, Yann & Piquer-Rodríguez, María & Butsic, Van & Lambin, Eric F., 2017. "Decentralized Land Use Zoning Reduces Large-scale Deforestation in a Major Agricultural Frontier," Ecological Economics, Elsevier, vol. 136(C), pages 30-40.
    4. Divya Datt & Meeta Keswani Mehra, 2016. "Environmental Policy in a Federation with Special Interest Politics and Inter-Governmental Grants," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(4), pages 575-595, August.

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