PLoS ONE 10(4):e0124910 (2015) doi:10.1371/journal.pone.0124910
We estimate the effects on deforestation that have resulted from policy interactions between parks and payments and between park buffers and payments in Costa Rica between 2000 and 2005. We show that the characteristics of the areas where protected and unprotected lands are located differ significantly. Additionally, we find that land characteristics of each of the policies and of the places where they interact also differ significantly. To adequately estimate the effects of the policies and their interactions, we use matching methods. Matching is implemented not only to define adequate control groups, as in previous research, but also to define those groups of locations under the influence of policies that are comparable to each other. We find that it is more effective to locate parks and payments away from each other, rather than in the same location or near each other. The high levels of enforcement inside both parks and lands with payments, and the presence of conservation spillovers that reduce deforestation near parks, significantly reduce the potential impact of combining these two policies.
Journal of Development Economics 97 (2012) 427–436
We estimate neighbor interactions in deforestation in Costa Rica. To address simultaneity and the presence of spatially correlated unobservables, we measure for neighbors’ deforestation using the slopes of neighbors’ and neighbors’ neighbors’ parcels. We find that neighboring deforestation significantly raises the probability of deforestation. Policies for agricultural development or forest conservation in one area will affect deforestation rates in non-targeted neighboring areas. Correct estimation of the interaction reverses the naive estimate’s prediction of multiple equilibria.
Frontiers of Biodiversity Economics, Cambridge University Press
This chapter is structured as follows. Section 2 describes a simple model of interactions in the context of deforestation, based on an equilibrium in beliefs about the neighbours’ actions. Section 3 discusses empirical issues in measurement of interactions and the benefits of using an instrumental variable approach. Data requirements for analysing neighbours’ interactions in deforestation decisions are discussed in section 4. Finally, results for two regions within Costa Rica, as well as discussion of how to obtain the equilibria once the parameters of the model are estimated, are presented in section 5.