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Author: Alex Pfaff

Investing in local capacity to respond to a federal environmental mandate: forest & economic impacts of the Green Municipality Program in the Brazilian Amazon

Erin Sills, Alexander Pfaff, Luiza Andrade, Justin Kirkpatrick, Rebecca Dickson
World Development 129:104891 https://doi.org/10.1016/j.worlddev.2020.104891

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Over the past decade, the Brazilian federal government has offered a negative collective incentive to reduce deforestation by ‘blacklisting’ the municipalities in the Amazon with the highest deforestation rates. As for any unfunded mandate, the responses to blacklisting depend on both local incentives and local capacities. We evaluate a state program — Programa Municípios Verdes (PMV) or the Green Municipality Program — to increase the capacity of municipal governments in the state of Pará to respond to this federal incentive. The PMV is voluntary, as municipal governments choose whether to participate. To control for differences due to self-selection into the program, we employ quasi-experimental methods: two-way, fixed-effects regressions in matched samples of municipalities; and the synthetic control method that compares outcomes in a participating municipality to outcomes in a weighted blend of control municipalities. Neither approach suggests that the PMV reduced deforestation beyond the effect of the blacklist. We hypothesize that municipalities joined the PMV to ameliorate the costs of complying with blacklist requirements, including the costs of exiting the blacklist. We show that the PMV increased total value added – with substantial heterogeneity – in participating blacklisted municipalities, and that these gains likely are not due to agricultural intensification. They may result from reductions in compliance risk and cost that make economic investments in a municipality more appealing. In the long run, this could make forest conservation more socially and politically sustainable.

 

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Pervasive human-driven decline of life on Earth points to the need for transformative change

Sandra Diaz, Josep Settele, Eduardo Brondizio, H.T. Ngo, A. Arneth, P. Balvanera, K.A. Brauman, S.H.M. Butchart, K.M.A. Chan, L.A. Garibaldi, K. Ichii, J. Liu, S.M. Subramanian, G.F. Midgley, P. Miloslavish, Z. Molnar, D. Obura, A. Pfaff, S. Polasky, A. Purvis, J. Razzaque, B. Reyers, R.R. Chowdury, Y. Shin, I. Visseren-Hamakers, K.J. Willis, C.N. Zayas
Science 366 DOI:10.1126/science.aaw3100

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The human impact on life on Earth has increased sharply since the 1970s, driven by the demands of a growing population with rising average per capita income. Nature is currently supplying more materials than ever before, but this has come at the high cost of unprecedented global declines in the extent and integrity of ecosystems, distinctness of local ecological communities, abundance and number of wild species, and the number of local domesticated varieties. Such changes reduce vital benefits that people receive from nature and threaten the quality of life of future generations. Both the benefits of an expanding economy and the costs of reducing nature’s benefits are unequally distributed. The fabric of life on which we all depend — nature and its contributions to people — is unravelling rapidly. Despite the severity of the threats and lack of enough progress in tackling them to date, opportunities exist to change future trajectories through transformative action. Such action must begin immediately, however, and address the root economic, social, and technological causes of nature’s deterioration.

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Graduated stringency within collective incentives for group environmental compliance: Building coordination in field-lab experiments with artisanal gold miners in Colombia

Luz A. Rodriguez, Alexander Pfaff, Maria Alejandra Velez
Journal of Environmental Economics and Management 98 https://doi.org/10.1016/j.jeem.2019.102276

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Small-scale gold mining is important to rural livelihoods in the developing world but also a source of environmental externalities. Incentives for individual producers are the classic policy response for a socially efficient balance between livelihoods and the environment. Yet monitoring individual miners is ineffective, or it is very costly, especially on frontiers with scattered small-scale miners. We ask whether monitoring at a group level effectively incentivizes cleaner artisanal mining by combining lower-cost external monitoring with local collective action.We employ a mining-framed, threshold-public-goods experiment in Colombia’s Pacific region, with 640 participants from frontier mining communities. To study compliance with collective environmental targets, we vary the target stringency, including to compare increases over time in the stringency versus decreases. We find that collective incentives can induce efficient equilibria, with group compliance — and even inefficient overcompliance — despite the existence of equilibria with zero contributions. Yet, for demanding targets in which the reward for compliance barely outweighs the cost, compliance can collapse. Those outcomes improve with past successes for easier targets, however, so our results suggest gain from building coordination via graduated stringency.

 

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Impacts of protected areas vary with the level of government: comparing avoided deforestation across agencies in the Brazilian Amazon

Diego Herrera, Alexander Pfaff, Juan Robalino
Proceedings of the National Academy of Sciences www.pnas.org/cgi/doi/10.1073/pnas.1802877116

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Protected areas (PAs) are the leading tools to conserve forests. However, given their mixed effectiveness, we want to know when they have impacts internally and, if they do, when they have spillovers. Political economy posits roles for the level of government. One hypothesis is that federal PAs avoid more internal deforestation than state PAs since federal agencies consider gains for other jurisdictions. Such political differences as well as economic mechanisms can cause PA spillovers to vary greatly, even from “leakage,” more deforestation elsewhere, to “blockage,” less deforestation elsewhere. We examine internal impacts and local spillovers for Brazilian Amazon federal and state agencies. Outside the region’s “arc of deforestation,” we confirm little internal impact and show no spillovers. In the “arc,” we test impacts by state, as states are large and feature considerably different dynamics. For internal impacts, estimates for federal PAs and indigenous lands are higher than for state PAs. For local spillover impacts, estimates for most arc states either are not significant or are not robust; however, for Pará, federal PAs and indigenous lands feature both internal impacts and local spillovers. Yet, the spillovers in Pará go in opposite directions across agencies, leakage for indigenous lands but blockage for federal PAs, suggesting a stronger external signal from the environmental agency. Across all these tools, only federal PAs lower deforestation internally and nearby. Results suggest that agencies’ objectives and capacities are critical parts of the contexts for conservation strategies.

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Summary for Policy Makers, IPBES Global Assessment

Sandra Diaz, Josep Settele, Eduardo Brondizio, H.T. Ngo, A. Arneth, P. Balvanera, K.A. Brauman, S.H.M. Butchart, K.M.A. Chan, L.A. Garibaldi, K. Ichii, J. Liu, S.M. Subramanian, G.F. Midgley, P. Miloslavish, Z. Molnar, D. Obura, A. Pfaff, S. Polasky, A. Purvis, J. Razzaque, B. Reyers, R.R. Chowdury, Y. Shin, I. Visseren-Hamakers, K.J. Willis, C.N. Zayas
Intergovernmental Panel on Biodiversity and Ecosystem Services, Global Assessment 2019

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The rate of global change in nature during the past 50 years is unprecedented in human history. The direct drivers of change in nature with the largest global impact have been (starting with those with most impact): changes in land and sea use; direct exploitation of organisms; climate change; pollution; and invasion of alien species. Those five direct drivers result from an array of underlying causes – the indirect drivers of change – which are in turn underpinned by societal values and behaviours that include production and consumption patterns, human population dynamics and trends, trade, technological innovations and local through global governance. The rate of change in the direct and indirect drivers differs among regions and countries.

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Reducing Environmental Risks from Belt and Road Initiative Investments in Transportation Infrastructure

Elizabeth Losos, Alexander Pfaff, Lydia Olander, Sara Mason, Seth Morgan
World Bank Policy Research Working Paper 8718

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The Belt and Road Initiative, due to its diverse and extensive infrastructure investments, poses a wide range of environmental risks. Some projects have easily identifiable and measurable impacts, such as energy projects’ greenhouse gas emissions. Others, such as transportation infrastructure, due to their vast geographic reach, generate more complex and potentially more extensive environmental risks. The proposed Belt and Road Initiative rail and road investments have stimulated concerns because of the history of significant negative environmental impacts from large-scaletransportation projects across the globe. This paper studies environmental risks—direct and indirect—from Belt and Road Initiative transportation projects and the mitigation strategies and policies to address them. The paper concludes with a recommendation on how to take advantage of the scale of the Belt and Road Initiative to address these concerns in a way not typically available to stand-alone projects. In short, this scale motivates and permits early integrated development and conservation planning.

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