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Decentralization Effects in Ecological Fiscal Transfers : A Bayesian Structural Time Series Analysis for Portugal

Droste, Nils LU orcid ; Becker, Claudia ; Ring, Irene and Santos, Rui (2018) In Environmental and Resource Economics 71(4). p.1027-1051
Abstract
Portugal has a unitary system in which the central government transfers funds to lower government levels for their public functions. In 2007, Portugal introduced Ecological Fiscal Transfers (EFT), where municipalities receive transfers for hosting protected areas (PA). We study whether introducing EFT in Portugal incentivized municipalities to designate PA and has led to a decentralization of conservation decisions. We employ a Bayesian structural time series approach to estimate the effect of introducing EFT in comparison to a simulated counterfactual time series. Quantitative results show a significant increase in the ratio of municipal and national PA designations following Portugal’s EFT introduction—which we infer to be a causal... (More)
Portugal has a unitary system in which the central government transfers funds to lower government levels for their public functions. In 2007, Portugal introduced Ecological Fiscal Transfers (EFT), where municipalities receive transfers for hosting protected areas (PA). We study whether introducing EFT in Portugal incentivized municipalities to designate PA and has led to a decentralization of conservation decisions. We employ a Bayesian structural time series approach to estimate the effect of introducing EFT in comparison to a simulated counterfactual time series. Quantitative results show a significant increase in the ratio of municipal and national PA designations following Portugal’s EFT introduction—which we infer to be a causal consequence. The analysis furthermore places emphasis on the importance of relevant municipal conservation competencies for the functioning of the instrument. Results have important implications for conservation policy-making in terms of allocating budgets and competencies in multi-level governments. (Less)
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author
; ; and
publishing date
type
Contribution to journal
publication status
published
in
Environmental and Resource Economics
volume
71
issue
4
pages
1027 - 1051
publisher
Springer
external identifiers
  • scopus:85038621526
ISSN
0924-6460
DOI
10.1007/s10640-017-0195-7
language
English
LU publication?
no
id
9659fd9b-dcfd-40dc-9cf7-07edce0eb8fa
date added to LUP
2019-05-20 11:43:01
date last changed
2022-03-02 22:45:15
@article{9659fd9b-dcfd-40dc-9cf7-07edce0eb8fa,
  abstract     = {{Portugal has a unitary system in which the central government transfers funds to lower government levels for their public functions. In 2007, Portugal introduced Ecological Fiscal Transfers (EFT), where municipalities receive transfers for hosting protected areas (PA). We study whether introducing EFT in Portugal incentivized municipalities to designate PA and has led to a decentralization of conservation decisions. We employ a Bayesian structural time series approach to estimate the effect of introducing EFT in comparison to a simulated counterfactual time series. Quantitative results show a significant increase in the ratio of municipal and national PA designations following Portugal’s EFT introduction—which we infer to be a causal consequence. The analysis furthermore places emphasis on the importance of relevant municipal conservation competencies for the functioning of the instrument. Results have important implications for conservation policy-making in terms of allocating budgets and competencies in multi-level governments.}},
  author       = {{Droste, Nils and Becker, Claudia and Ring, Irene and Santos, Rui}},
  issn         = {{0924-6460}},
  language     = {{eng}},
  month        = {{12}},
  number       = {{4}},
  pages        = {{1027--1051}},
  publisher    = {{Springer}},
  series       = {{Environmental and Resource Economics}},
  title        = {{Decentralization Effects in Ecological Fiscal Transfers : A Bayesian Structural Time Series Analysis for Portugal}},
  url          = {{http://dx.doi.org/10.1007/s10640-017-0195-7}},
  doi          = {{10.1007/s10640-017-0195-7}},
  volume       = {{71}},
  year         = {{2018}},
}