Protecting forests, biodiversity, and the climate: predicting policy impact to improve policy choice

Alexander Pfaff and Juan Robalino ()

Oxford Review of Economic Policy, 2012, vol. 28, issue 1, 164-179

Abstract: Policies must balance forest conservation’s local costs with its benefits—local to global—in terms of biodiversity, the mitigation of climate change, and other eco-services such as water quality. The trade-offs with development vary across forest locations. We argue that considering location in three ways helps to predict policy impact and improve policy choice: (i) policy impacts vary by location because baseline deforestation varies with characteristics (market distances, slopes, soils, etc.) of locations in a landscape; (ii) different mixes of political-economic pressures drive the location of different policies; and (iii) policies can trigger ‘second-order’ or ‘spillover’ effects likely to differ by location. We provide empirical evidence that suggests the importance of all three considerations, by reviewing high-quality evaluations of the impact of conservation and development on forest. Impacts of well-enforced conservation rise with private clearing pressure, supporting (i). Protection types (e.g. federal/state) differ in locations and thus in impacts, supporting (ii). Differences in development process explain different signs for spillovers, supporting (iii). Copyright 2012, Oxford University Press.

Date: 2012
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