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A study on environmental infractions for Brazilian municipalities: a spatial dynamic panel approach

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  • Júlia Gallego Ziero Uhr

    ()

  • André Luis Squarize Chagas, Daniel de Abreu Pereira Uhr, Renan Porn Peres

Abstract

This paper presents novel evidence for environmental offenses in Brazil. IBAMA's strategy to deter violations is based on large operations and on decapitalizing offenders to signal its will to monitor and enforce the law. We want to answer the following questions: Do the sanctions applied by IBAMA, especially sanction charges, deter actual and potential offenders? Are there any spatial or temporal patterns affecting violations? We use data on offenses against flora and applied fines for Brazilian municipalities between 1998-2015. We contribute to the existing research by providing evidence for Brazil and by incorporating spatial controls in a dynamic panel approach to explain infractions against the environment. We develop and apply a Spatial LIML estimator that accounts for the endogeneity of sanction charges to estimate our panel models. Results show that there is a pedagogic deterrent effect associated with applied fine values. Sanction charges are important to discourage new offenses.

Suggested Citation

  • Júlia Gallego Ziero Uhr & André Luis Squarize Chagas, Daniel de Abreu Pereira Uhr, Renan Porn Peres, 2017. "A study on environmental infractions for Brazilian municipalities: a spatial dynamic panel approach," Working Papers, Department of Economics 2017_13, University of São Paulo (FEA-USP).
  • Handle: RePEc:spa:wpaper:2017wpecon13
    as

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    File URL: http://www.repec.eae.fea.usp.br/documentos/JuliaUhr_Chagas_DanielUhr_Peres_13WP.pdf
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    References listed on IDEAS

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    Keywords

    Environment; Violations; Deterrence; Pedagogic effect; Brazil.;

    JEL classification:

    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C55 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Large Data Sets: Modeling and Analysis

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