EconPapers    
Economics at your fingertips  
 

Protected areas, local governments, and strategic interactions: The case of the ICMS-Ecológico in the Brazilian state of Paraná

Alexandre Sauquet, Sébastien Marchand () and José Féres

Ecological Economics, 2014, vol. 107, issue C, 249-258

Abstract: Various conservation initiatives have been implemented in developing countries with increasing involvement on the part of local governments. A concern in entrusting decisions to local governments is that the effectiveness of the conservation instrument can be threatened by interactions among these local governments. We examine this concern with respect to an ecological fiscal transfer mechanism, the ICMS-Ecológico, implemented in Brazil in the early 1990's in order to reduce biodiversity loss. The mechanism enables states to reward municipalities for the creation and management of protected areas. We describe this mechanism, present a conceptual framework aimed at understanding the potential sources and consequences of interactions among local governments on the effectiveness of a decentralized mechanism aimed at promoting the creation of protected areas, and propose an empirical application using a Bayesian spatial Tobit model. Our empirical investigation on the creation of protected areas in the state of Paraná between 2000 and 2010 reveals strategic substitutability in municipalities' conservation decisions. This finding also leads us to discuss the issue of identification of a negative spatial lag coefficient when there is a positive spatial error correlation.

Keywords: Land use; Biodiversity; Fiscal federalism; Interactions; Bayesian spatial Tobit model; Brazil (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S092180091400278X
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:ecolec:v:107:y:2014:i:c:p:249-258

DOI: 10.1016/j.ecolecon.2014.09.008

Access Statistics for this article

Ecological Economics is currently edited by C. J. Cleveland

More articles in Ecological Economics from Elsevier
Bibliographic data for series maintained by Haili He ().

 
Page updated 2020-07-30
Handle: RePEc:eee:ecolec:v:107:y:2014:i:c:p:249-258