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Ecological Fiscal Transfers in Europe: Evidence-based design options of a transnational scheme

Author

Listed:
  • Droste, N.
  • Ring, I.
  • Santos, R.
  • Kettunen, M.

Abstract

Ecological Fiscal Transfers (EFT) have recently gained attention as a promising instrument to provide incentives for nature conservation addressing public authorities. In parallel, both the EU and different European countries are exploring new mechanisms to mobilise funding to support biodiversity conservation. So far, existing EFT mechanisms in Europe have been implemented at the national level in Portugal and, to some extent, in France while in Brazil EFT schemes exist between the state and local level. In this paper we develop a proposal for an EFT design within the supranational context of the EU and assess its potential effects with evidence-based estimates. To provide such a knowledge base for a potential supranational EU-EFT implementation, we i) provide a theoretical underpinning, and an analytical synthesis of the current experiences both with the uptake of EFT and the implementation of EU's nature conservation legislation (i.e. the Habitats and Bird Directives), ii) propose a model for an EFT implementation within the existing EU funding framework for N2k financing which is built upon both quantitative and qualitative conservation indicators, iii) compute fiscal effects of our suggested model and analyse how the resulting payments would be (spatially) distributed among European regions, and iv) discuss the model outcomes in terms of ecological effectiveness, distributive effects, and cost-efficiency. Thereby we aim at stimulating a debate about how to better integrate ecological public functions within multi-level and supra-national governance structures.

Suggested Citation

  • Droste, N. & Ring, I. & Santos, R. & Kettunen, M., 2016. "Ecological Fiscal Transfers in Europe: Evidence-based design options of a transnational scheme," UFZ Discussion Papers 10/2016, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
  • Handle: RePEc:zbw:ufzdps:102016
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    References listed on IDEAS

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    8. Farley, Josh & Aquino, André & Daniels, Amy & Moulaert, Azur & Lee, Dan & Krause, Abby, 2010. "Global mechanisms for sustaining and enhancing PES schemes," Ecological Economics, Elsevier, vol. 69(11), pages 2075-2084, September.
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    Cited by:

    1. Xin Yang & Fan Zhang & Cheng Luo & Anlu Zhang, 2019. "Farmland Ecological Compensation Zoning and Horizontal Fiscal Payment Mechanism in Wuhan Agglomeration, China, From the Perspective of Ecological Footprint," Sustainability, MDPI, Open Access Journal, vol. 11(8), pages 1-15, April.
    2. Lima de Paulo, Felipe Luiz & Camões, Pedro Jorge Sobral, 2019. "Ecological Fiscal Transfers for Biodiversity Conservation Policy: A Transaction Costs Analysis of Minas Gerais, Brazil," Ecological Economics, Elsevier, vol. 166(C), pages 1-1.
    3. de Paulo, Felipe Luiz Lima & Sobral Camões, Pedro Jorge, 2019. "The adoption of ecological fiscal transfers: An empirical analysis," Land Use Policy, Elsevier, vol. 88(C).

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    More about this item

    Keywords

    Ecological Fiscal Transfers; European Union; Natura 2000 network; policy advice; spatial econometrics;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods
    • P48 - Economic Systems - - Other Economic Systems - - - Political Economy; Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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