Economic Development and Environmental Conservation: Evidence from Ecotourism

Santiago Saavedra

Economic Development and Cultural Change, 2025, vol. 73, issue 3, 1297 - 1324

Abstract: It is essential to address the dual challenges of economic growth and environmental preservation. In theory, promotion of ecotourism can simultaneously incentivize forest conservation and boost economic prospects. Through a randomized controlled trial conducted in Colombia, I empirically investigate the effect of ecotourism on deforestation and economic opportunities. Municipalities were randomly assigned to either a control group or a treatment group that received ecotourism promotion. I find an increase in the number of tourists and workers in surveyed businesses of treated municipalities. Furthermore, there is a significant decrease in deforestation around ecotourism sites in treated areas. These findings underscore the critical role of economic opportunities in encouraging local communities to preserve forests.

Date: 2025
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