Deforestation in Tanzania's East Usambaras: sticks, carrots, and the crowding out effect
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Transcript of Deforestation in Tanzania's East Usambaras: sticks, carrots, and the crowding out effect
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Deforestation in Tanzania’s East Usambaras: Sticks, Carrots and the ‘Crowding Out’ effect
David Kaczan
M.Sc Student
Brent Swallow
Professor and supervisor
Vic Adamowicz
Professor and co-supervisor
Delia Catacutan
ICRAF co-supervisor
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What is the ‘Crowding Out’ effect, and why does it matter?
Framing
Self determination
Information conveyance
Endogenous preferences
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(Reyes et al. 2006; Burgess et al. 2007)
The Context
•3300 km2 of sub montane and montane forest
•A Biodiversity hotspot: “...the highest ratio of endemic flora and fauna per 100 km2 of all biodiversity hotspots in the world”
•35 % of species endemic
•Other important ecosystem functions: water provision, local climate
(Reyes, et al. 2006)
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Human Impact
Reyes et al. (2007)
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•60 percent of forest cover lost in East Usambaras
•26 percent of remaining forest has cardamom
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Hall, 2006
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Conservation efforts
•Forest reserves, Amani nature reserve, Deremacorridor
•What about incentive schemes (PES)?
•If so, how would you design such a scheme for maximum effectiveness?
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Intervention Points> 100 percent compensation
(- altruism / pro social)
No compensation?(Knowledge transfer,
Credit)
> 50 percent compensation (- altruism / pro social)
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But: if PES is used, is there a danger that economic incentives could ‘crowd out’ pre existing altruistic/pro social incentives?
A research question
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Approach 1: Experiments
Precedents, mechanisms?
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Experimental design: dictator game
30 Tsh
50 Tsh
20 Tsh
40 Tsh
50 Tsh
20 Tsh
Donated to passive group
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0.2
0.25
0.3
0.35
0.4
0.45
0.5
0.55
0.6
0.65
1 3 5 7 9 11 13 15 17 19 21 23 25 27
Period
Control PES treatment
Control (average) PES (average)
Not Significant Significant
Dictator game: stylized PES
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0.2
0.25
0.3
0.35
0.4
0.45
0.5
0.55
0.6
0.65
1 3 5 7 9 11 13 15 17 19 21 23 25 27
Period
Control Enforcement - high
Control (average) Enforcement - high (average)
Significant Not significant
Dictator game: stylized enforcement (high)
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0.2
0.25
0.3
0.35
0.4
0.45
0.5
0.55
0.6
0.65
1 3 5 7 9 11 13 15 17 19 21 23 25 27
Period
Control Enforcement - low (average)
Control (average) Enforcement - low
Not Significant Not significant
Dictator game: stylized enforcement (low)
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0.2
0.25
0.3
0.35
0.4
0.45
0.5
0.55
0.6
0.65
1 3 5 7 9 11 13 15 17 19 21 23 25 27
Period
Control PES - collective
Control (average) PES collective (average)
Significant Significant
Dictator game: stylized PES (collective)
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62%
23%
11%
2.5%
0%
10%
20%
30%
40%
50%
60%
70%
No payment but provision for
village infrastructure
Individual payment of
Tsh2000
Payment of Tsh2000
transferred to village
committee
Disagree/Need additional
options
Experiment II: Which of the payment options will you prefer? (n=194)
Vardhan, 2010 (unpublished)
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Vardhan, 2010 (unpublished)
97%
82% 76%74%
64%
0%
20%
40%
60%
80%
100%
120%
High individual payment (Tsh1000)
offered
No mention of payment
High social payment (Tsh 1000) offered
Payment mentioned
but not offered
Low individual
payment (Tsh 200 offered)
Experiment I: Will your neigbor participate under these payment options? (n=194)
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In summary...
•Preliminary evidence suggests crowding out for rewards, less so for enforcements
• Fact of enforcement may be more important than its magnitude
•Contrary to other studies, but some similarities with Vardhan?
•Collective payment unsuccessful
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“First do no harm....”
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With thanks…
to supervisors B. Swallow, V. Adamowicz and D. Catacutan;
field assistants F. Njilima, V. Mkongewa, Y. Mwaikio and A. Kajiru;
administrators at ICRAF Tanzania and Kenya;
and valuable, regular advice from H. Vihemaki, S. Rantala and R. Bullock