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Deforestation Spillovers from Costa Rican Protected Areas

Juan Robalino, Alexander Pfaff, Laura Villalobos
LACEEP Working Paper Series WP78

Robalino-et-al-Park-Spillovers-LACEEP-WP78.Spillovers can significantly reduce or enhance the effects of land-use policies, yet there exists little rigorous evidence concerning their magnitudes. We examine how national parks within Costa Rica affect the clearing of forest nearby. We find that average deforestation spillover impacts are not significant within 0-5km and 5-10km rings around parks. However, we argue that this average blends multiple spillover effects, each of which is likely to vary in magnitude across the landscape, yielding varied net effects. We distinguish these effects using distances to roads and park entrances, given the importance of transport costs and, for Costa Rica, tourism. We find large and statistically significant leakage close to roads in areas without tourism, i.e., far from the park entrances. In contrast, no leakage is found far from roads or close to park entrances. In sum, the combination of low transport costs and low returns to forest is conducive to deforestation leakage around the parks.


Early Days in the Certification of Logging Concessions: Estimating FSC’s Deforestation Impact in Peru and Cameroon

Stephanie Panlasigui, Jimena Rico-Straffon, Jennifer Swenson, Colby J. Loucks, Alexander Pfaff
Duke Environmental & Energy Economics Working Paper Series

PDF link iconConservation and development agendas often are seen as in contradiction and, in the past, most forest policy was driven by only one such agenda. Yet leading conservation policies such as protected areas (PAs) increasingly are understood to vary in how development considerations are integrated, within PA types, given the starting point of conservation. Similarly, development policies such as logging concessions can integrate conservation. Sustainable forest management pushes integration from a starting point of development. One of the most visible initiatives of this type is the certification of logging concessions − such as by the Forest Stewardship Council (FSC) − to reduce various impacts of logging. The cost of sustainable management may lead a firm not to certify any given concession, yet the potential benefits could lead firms to voluntarily certify at least some concessions (including as perhaps firms could benefit from strategies that raise forest loss elsewhere). Our empirical analyses of two countries, Peru and Cameroon, aid in understanding what actually has happened in certified sites for the relatively ‘early days’ of such certifications. We control for unobserved factors’ influences over space and time, without which impact − sometimes perverse − is mistakenly attributed to FSC certification (FSCC). For Peru, we see no average FSCC deforestation impact in our study area (almost all concessions). One region, Madre de Dios, has an average reduction of 0.07% per year. For Cameroon, we find a small average FSCC deforestation impact of 0.02% per year in our study area (all concessions), though in four of five regions there is no statistically significant effect. We suggest that, as available data improve, more impact may be seen in some conditions.


Generating New PES Institutions and Increased Impacts in Mexico: a framed field experiment on coordination and sanctions in Matching Funds sites

Alexander Pfaff, Luz Rodriguez, Elizabeth Shapiro
Draft working paper, Duke University (part of a project supported by The Tinker Foundation).

PDF link icon While states pay landowners in the big payment-for-ecosystem-services (PES) programs, PES can be locally organized. Downstream actors, e.g., may offer incentives to upstream. Even − or especially? − with local organization, though, there may be negative reactions to the increased monitoring and sanctioning of behavior required to increase PES impact. Mexico’s forest agency (CONAFOR) has had limited average impacts per PES contract in its direct state payments but also, since 2008, a novel policy to help create new local PES. The Fondos Concurrentes (Matching Funds) program solicits applications − initiated by varied partners − that must include agreement between upstream and downstream groups. We consider the creation of local PES programs, involving coordination by those groups to establish a new institution, and effects of permitting sanctions on upstream behaviors. We use PES framing (services go downstream, payment up) of the contributions in a new assurance game that, in real time, links the groups − each of which confronts free riding. After our field pilot, we recruited 240 downstream and 240 upstream Fondos participants from Xalapa (Veracruz State), Merida (Yucatan State) or Cancun (Quintana Roo State). Initial trust-game behaviors align with participant perceptions and predict baseline giving in assurance (which is significant, despite a zero equilibrium, perhaps due to our sample). For upstream providers, i.e., those who get sanctioned, the threat and the use of sanctions increase contributions. Any ‘motivation crowding’ is not dominant during these sanctions. Downstream users contribute less when offered the option to sanction − as if that option signals an uncooperative upstream − then contributions rise in line with complementarity.

Behavioral Spillovers from Targeted Incentives: losses from excluded individuals can counter gains from those selected

Francisco Alpizar, Anna Norden, Alexander Pfaff, Juan Robalino
Duke Environmental & Energy Economics Working Paper Series

PDF link iconIncentives conditioned on socially desired acts such as donating blood, departing conflict or mitigating climate change have increased in popularity. Many incentives are targeted, excluding some of the potential participants based upon characteristics or prior actions. We hypothesize that pro-sociality is reduced by exclusion, in of itself (i.e., fixing prices and income), and that the rationale for exclusion influences such ‘behavioral spillovers’. To test this, we use a laboratory experiment to study the effects of a subsidy to donations when participants are fully informed about why they are selected, or not, for the subsidy. We study the effects of introducing different selection rules upon changes in donations. Selecting for the subsidy those who initially acted less pro-social (i.e., gave little to start) increased donations, while random subsidies and rewarding greater pro-sociality did not. Yet a selection rule which targets lower prior pro-sociality also intentionally excludes the people who donated more initially, and only that rule reduced donations by the excluded. This shows a tradeoff between losses from excluded participants and gains from selected.


Deforestation dynamics in response to the evolution of the Western Amazonian Inter-Oceanic Highway

Cesar Delgado, Dalia Amor Conde, Joseph O. Sexton, Fernando Colchero, Jennifer J. Swenson, Alexander Pfaff
Draft working paper, Duke University.

Over the last three decades, the first continuous road has been paved to connect northern  South America’s Atlantic and Pacific coasts. The final sections of this Inter-Oceanic Highway are now being completed through the western Amazon Basin, a global biodiversity hotspot, at the triple-border of Brazil, Bolivia and Peru. Satellite images from 1989, 2000, and 2007 reveal accelerating clearing across the region, but the countries’ prior infrastructures governed their individual responses to the road. Brazilian deforestation slowed as the frontier expanded away from the highway with a network of capillary roads, but Bolivian clearing accelerated as its urban centers sprawled toward the road. Peru’s forests remain relatively intact, but similar trends isolated from Brazil suggest imminent acceleration as Peruvian infrastructural capacity increases.

Scaling up conservation impact in Madagascar

Theo Gimenez, Alexander Pfaff, Ranaivo Rasolofoson, Lucas Joppa
Draft working paper, Duke University.

PDF link iconTen years ago, Madagascar’s government committed to drastically scale up the nation’s protected-area coverage from ~3% to 10% of its area. We ask how successful this PA expansion is likely to be in terms of reducing deforestation (and, thereby, increasing the conservation of biodiversity). We statistically evaluate the impact of the prior generations of Malagasy PAs and use those results to anticipate the conservation impacts of Madagascar’s newest PAs. We find that deforestation was reduced by the prior PAs, although by less than suggested in simpler comparisons that lack explicit controls for land characteristics. Further, impacts are higher where deforestation pressure is higher, which often is closer to roads and cities (and which also may imply higher costs). We find Madagascar’s newest PAs are sited where, if managed correctly, they can achieve impacts at least as high as prior conservation.

Protected Areas’ Impacts Upon Land Cover Within Mexico: the need to add politics and dynamics to static land-use economics

Alexander Pfaff, Franciso Santiago-Avila, Lucas Joppa
Draft working paper, Duke University.

PDF link iconIncentives for REDD − i.e., reductions in emissions from deforestation and degradation − motivate application of static economic modeling of land use to assess heterogeneity over space in the business-as-usual baselines for land use required for forest policy evaluations. That some forested locations face higher threats is now recognized as an important factor in the evaluation and targeting of policy. Given this point − now often included in impact evaluation via matching − further theory is required to explain variations in policy impact. We show this need by analyzing impacts of Mexican protected areas (PAs) on land cover. Applying static land-use economics improves the baselines for our impact estimation and we find, on average, a 2.5% lower rate of 2000-05 natural land cover loss within the PAs. Stricter PAs appear closer to cities and have greater impact (4.4%) than less strict (2.3%), yet static baselines do not explain why. Nor do they explain why impact gradients by type differ across countries, or why PA spillovers vary across states − as we show for Mexico. We suggest an initial political economy model of impacts by type of PA and also provide examples of the economic and political dynamics required to understand PAs’ spillovers.

Sequenced Road Investments & Clearing Of The Mayan Forest

Dalia Amor Conde, Alexander Pfaff
Draft working paper, Duke University.

PDF link iconThe Selva Maya is an important tropical forest, the second biggest in the Americas after the Amazon and the largest continuous forest patch of the ‘Mesoamerican hotspot’ which contains around 7% of the world species . Located across Mexico, Belize and Guatemala, Selva Maya is subject to different policy, cultural and historical influences and to a grand road expansion program that will intersect its core . Given its biological importance and the environmental services it provides at a local and global scale, this region is a good case to consider road impacts. We focus on four questions: 1) what are the short and medium term effects of paved and unpaved roads investments on deforestation?; 2) do these impacts differ when roads are placed in areas with existing pressure vs. in less developed locations?; 3) do the effect of non-road drivers also vary with development contexts? We might expect that roads in previously pristine areas a new road will be the dominant predictor; and 4) using a different measure of context, do road impacts vary across the countries?


Unintended Effects of Targeting an Environmental Rebate

Francisco Alpizar, Anna Norden, Alexander Pfaff, Juan Robalino
Environmental and Resource Economics (accepted)

PDF link iconWhen designing schemes such as conditional cash transfers or payments for ecosystem services, the choice of whom to select and whom to exclude is critical. We incentivize and measure actual contributions to an environmental public good to ascertain whether being excluded from a rebate can affect contributions and, if so, whether the rationale for exclusion influences such effects.  Treatments, i.e., three rules that determine who is selected and excluded, are randomly assigned. Two of the rules base exclusion on subjects’ initial contributions. The third is based upon location and the rationales are always explained. The rule that targets the rebate to low initial contributors, who have more potential to raise contributions, is the only rule that raised contributions by those selected. Yet by design, that same rule excludes the subjects who contributed the most initially. They respond by reducing their contributions even though their income and prices are unchanged.