Cost and equity implications of integrating sticks and carrots in conservation programs in Brazil...
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![Page 1: Cost and equity implications of integrating sticks and carrots in conservation programs in Brazil and Peru](https://reader033.fdocuments.in/reader033/viewer/2022052909/559848ac1a28ab43168b4734/html5/thumbnails/1.jpg)
Cost and equity implications of integrating sticks and carrots in
conservation programs in Brazil and Peru
Jan Börner (University of Bonn, CIFOR)
Eduardo Marinho (CIFOR)
Sven Wunder (CIFOR)
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Background
• Mounting empirical evidence suggests that Brazil has effectively reduced deforestation to 70-80% of pre-2004 levels (Hargrave and Kis-Katos, 2013)
• Command-and-control (stick) policies are relatively cheap to implement (Börner et al., 2014)
• Effective C&C requires complementary incentive-based policies to be sustainable in the long-run (Nepstad et al., 2014)
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Research questions
1. What tradeoffs in terms of cost-effectiveness and land user income do policy makers face when attempting to integrate sticks (C&C) and carrots (PES) for forest conservation (Brazil)?
2. How can the incentive component be designed to make conservation both cost-effective and fair (Peru)?
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Policy Mix tradeoffs
Cost-effectiveness
Income
C&C
PES
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PES design tradeoffs
Cost-effectiveness
Equity
• Concentration of land ownership• Historical deforestation patterns• Spatially variable opportunity costs• Targeting of payments
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Study areas
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Study areas
BRAZILIAN AMAZON
• High historical deforestation
• High concentration of land ownership
• Commercial agriculture and cattle operations at the agricultural frontiers
• Relatively well developed forest monitoring and law enforcement infrastructure
• Large-scale PES planned
PERUVIAN AMAZON
• Historically low deforestation
• Relatively homogeneous distribution of land
• Predominantly subsistence cattle production and small but growing commercial sector
• Relatively weak forest monitoring and law enforcement infrastructure
• Large-scale PES implemented
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Modelling decisions
Land user
• Deforestation is a function of expected profits and policy incentives
EPA
• Enforcement is a budget constrained optimization of deterrence through in situinspections
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Spatial analysis
• District-based opportunity cost analysis
• Grid-based spatial simulation of:– Avoided deforestation (Brazil + Peru)
– Land user income change (Brazil + Peru)
– Command-and-control implementation costs (Brazil)
– Sticks & Carrot integration (Brazil)
– Alternative PES payment modalities (Peru)
Spatial overlay
Threatened
forests
Returns to
deforestation
Community
boundaries
Population
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Policy mix tradeoff (Brazil)
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Net revenue of alternative policy mixes
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Welfare effects of alternative policy mixes
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PES design tradeoffs
0 2000 4000 6000 8000 10000 12000
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Cost-effectiveness: Peruvian Soles per hectare of conserved forest
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current PNCB schemeav. p/ha opp. cost payment
compensation up to av. opp.costav. department p/ha opp. cost paymentav. province p/ha opp. cost payment
1 min. salary per year + pure compensation1 min. salary per year + average opp. cost payment
UNEQUAL & INEFFICIENT
EQUAL & EFFICIENT
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Key findings
• Mixing carrots to sticks can make REDD+ fairer, but also more expensive (Brazil)
• If PES are intended to complement C&C (as common under REDD+) enforcement quality is key to cost-effectiveness (not necessarily fairness)
• Designing PES requires knowledge about spatial patterns of deforestation and opportunity costs
• Simple and feasible adjustments to the PNCB can boost its cost-effectiveness and equity effects