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The Role of Sanctions and Spillovers in Forest Conservation

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  • Vieira, João Pedro
  • Dahis, Ricardo
  • Assunção, Juliano

Abstract

We study how environmental sanctions and spillovers improve forest conservation in the Brazilian Amazon. Using a difference-in-differences framework and novel farm-level data, we show that sanctions curbed deforestation and promoted reforestation among punished farmers and their neighbors. Heterogeneity analysis reveals that even sanctions with limited incapacitation potential elicited relevant behavioral changes. In particular, farmers’ responsiveness to sanctions coincided with the government’s commitment to enforcement. We do not find substantial evidence of spatial displacement or monitoring evasion. Overall, sanctions prevented 1.6 billion tons of CO2 emissions between 2006 and 2019, equivalent to 31% of US emissions in 2021.

Suggested Citation

  • Vieira, João Pedro & Dahis, Ricardo & Assunção, Juliano, 2023. "The Role of Sanctions and Spillovers in Forest Conservation," SocArXiv vqpkm_v1, Center for Open Science.
    • Handle: RePEc:osf:socarx:vqpkm_v1
    DOI: 10.31219/osf.io/vqpkm_v1
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