Getting greener by going black: the effect of blacklisting municipalities on Amazon deforestation

Juliano Assunção and Romero Rocha

Environment and Development Economics, 2019, vol. 24, issue 2, 115-137

Abstract: In 2008, the Brazilian government blacklisted municipalities in the Amazon to better target efforts to repress deforestation. Not only were law enforcement and monitoring activities intensified, but also economic sanctions and political pressures were imposed on those municipalities. We use a differences-in differences approach to compare deforestation reduction in blacklisted municipalities and non-blacklisted municipalities. We find that: (i) the blacklisting has significantly reduced deforestation; and (ii) this effect was primarily driven by the monitoring and law enforcement channel – there is no effect on agricultural production or credit concessions.

Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:cup:endeec:v:24:y:2019:i:02:p:115-137_00

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