Estimating the Impacts of Local Policy Innovation: The Synthetic Control Method Applied to Tropical Deforestation.

Abstract

Quasi-experimental methods increasingly are used to evaluate the impacts of conservation interventions by generating credible estimates of counterfactual baselines. These methods generally require large samples for statistical comparisons, presenting a challenge for evaluating innovative policies implemented within a few pioneering jurisdictions. Single jurisdictions often are studied using comparative methods, which rely on analysts' selection of best case comparisons. The synthetic control method (SCM) offers one systematic and transparent way to select cases for comparison, from a sizeable pool, by focusing upon similarity in outcomes before the intervention. We explain SCM, then apply it to one local initiative to limit deforestation in the Brazilian Amazon. The municipality of Paragominas launched a multi-pronged local initiative in 2008 to maintain low deforestation while restoring economic production. This was a response to having been placed, due to high deforestation, on a federal "blacklist" that increased enforcement of forest regulations and restricted access to credit and output markets. The local initiative included mapping and monitoring of rural land plus promotion of economic alternatives compatible with low deforestation. The key motivation for the program may have been to reduce the costs of blacklisting. However its stated purpose was to limit deforestation, and thus we apply SCM to estimate what deforestation would have been in a (counterfactual) scenario of no local initiative. We obtain a plausible estimate, in that deforestation patterns before the intervention were similar in Paragominas and the synthetic control, which suggests that after several years, the initiative did lower deforestation (significantly below the synthetic control in 2012). This demonstrates that SCM can yield helpful land-use counterfactuals for single units, with opportunities to integrate local and expert knowledge and to test innovations and permutations on policies that are implemented in just a few locations.

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Published Version (Please cite this version)

10.1371/journal.pone.0132590

Publication Info

Sills, Erin O, Diego Herrera, A Justin Kirkpatrick, Amintas Brandão, Rebecca Dickson, Simon Hall, Subhrendu Pattanayak, David Shoch, et al. (2015). Estimating the Impacts of Local Policy Innovation: The Synthetic Control Method Applied to Tropical Deforestation. PLoS One, 10(7). p. e0132590. 10.1371/journal.pone.0132590 Retrieved from https://hdl.handle.net/10161/12709.

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Pattanayak

Subhrendu K. Pattanayak

Oak Foundation Distinguished Professor of Environmental and Energy Policy

Subhrendu K. Pattanayak is the Oak Professor of Environmental and Energy Policy at Duke University. He studies the causes and consequences of human behaviors related to the natural environment to help design and evaluate policy interventions in low-income tropical countries. His research is in three domains at the intersection of environment, development, health and energy: forest ecosystem services, environmental health (diarrhea, malaria, respiratory infections) and household energy transitions. He has focused on design of institutions and policies that are motivated by enormous inequities and a range of efficiency concerns (externalities, public goods and imperfect information and competition).

Dr. Pattanayak approaches these problems through systematic reviews of the literature (meta-analyses) and statistical modeling with high-resolution objective data collected in the field. He then uses those data to test hypotheses salient to policy manipulation, developed both from economic frameworks, stakeholder discussions and direct observations in the field. He employs empirical methods that exploit quasi-experimental variation (or experiments where feasible and appropriate), captured through household, community and institutional surveys. He typically matches these survey data with meso-scale secondary statistics and estimates econometric models to generate policy parameters. Dr. Pattanayak has collaborated closely with multi-lateral agencies, NGOs, governments, and local academics in Brazil, Costa Rica, Ethiopia, India, Indonesia, Mexico, Nepal, Sri Lanka and the U.S.

Pfaff

Alexander Pfaff

Professor in the Sanford School of Public Policy

Alex Pfaff is a Professor of Public Policy, Economics and Environment at Duke University. He studies how economic development affects and is affected by natural resources and the environment. His focus is on the impacts of conservation policies (such as protected areas, ecoservices payments, and certifications) and development policies (such as roads and rights). Those impacts are functions of choices by individuals and communities that affect land use, water quantity and quality, human exposures (to arsenic, mercury, mining, and particulates), and both the provision and use of information.

Research accessible at AlexPfaff.com




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