Cutting special interests by the roots: Evidence from the Brazilian Amazon

Arthur Bragança and Ricardo Dahis

Journal of Public Economics, 2022, vol. 215, issue C

Abstract: Government policies may impact economic outcomes directly but also indirectly through effects on political incentives. This paper examines the effects of the PPCDAm – a centralized set of environmental policies that effectively raised the expected cost of illegal deforestation – on the behavior of a powerful special-interest group operating in the Brazilian Amazon: farmers. Using different identification strategies, we document that municipalities governed by farmer politicians experienced larger declines in deforestation, greenhouse gas (GHG) emissions, and violence than municipalities governed by other politicians after this set of policies was implemented. Our findings suggest the PPCDAm had indirect and persistent effects on political incentives, amplifying its impact on environmental and social outcomes.

Keywords: Deforestation; Environmental Policy; Special Interests; Spillovers (search for similar items in EconPapers)
JEL-codes: D72 H77 Q57 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:215:y:2022:i:c:s0047272722001554

DOI: 10.1016/j.jpubeco.2022.104753

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