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Protection and Profit: Empirical Evidence of Governmental and Market-based Forest Policies

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  • Julika Herzberg

    (Aachen university)

Abstract

In this paper, I study the effectiveness of privately managed FSC certified forests and public sustainability reserves distributed over the entire Brazilian Amazon from 2002-2015. The paper uses high-resolution data on forest cover derived from satellite images and organized in a grid of 1 km2 cells. Using a difference-in-differences estimator in a regression discontinuity environment, I find an increase in deforestation of an annual area of 8,057 ha in FSC forests after the certification. Public sustainability zones' impact on deforestation is also positive but declines over time. The effectiveness of both type of zones improves if they are located closer to (export) markets or existing infrastructure.

Suggested Citation

  • Julika Herzberg, 2019. "Protection and Profit: Empirical Evidence of Governmental and Market-based Forest Policies," MAGKS Papers on Economics 201901, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    • Handle: RePEc:mar:magkse:201901
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    More about this item

    Keywords

    deforestation; commodity prices; sustainable forest management;
    All these keywords.

    JEL classification:

    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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