Forest plantation subsidies: Impact evaluation of the Chilean case

F. España, R. Arriagada, Oscar Melo and William Foster

Forest Policy and Economics, 2022, vol. 137, issue C

Abstract: Over the past half century there has been a rapid expansion of the forestry sector in Chile. One hypothesis is that this growth was stimulated in major part by government-supported financial incentives to forestry plantations dating from the mid-1970s. Evaluating the effects of subsidies on plantations is of current policy interest due to the potential importance of forests as carbon sinks. This study evaluates the impact of subsidies on the establishment of forest plantations (under the specific law DL701) for the period between the years 1998 and 2013 using matching techniques in combination with Difference-in-Differences. Results show that government subsidies have had a statistically and economically significant positive impact on plantations, increasing the forested area of subsidy program participants by approximately 13% compared with the counterfactual scenario without such subsidies.

Keywords: Forestry subsidies; Impact evaluation; Land use change; Forest additionality (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1389934122000089
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:forpol:v:137:y:2022:i:c:s1389934122000089

DOI: 10.1016/j.forpol.2022.102696

Access Statistics for this article

Forest Policy and Economics is currently edited by M. Krott

More articles in Forest Policy and Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().