Labor Market Rigidities Mediate the Effectiveness and Distributional Impacts of Conservation Policies
The drawbacks of ignoring labor-markets when evaluating conservation policies are highlighted in Ray et al. (2023), who published the SIMPLE-G-CZ model that incorporates spatially explicit labor-markets in the analysis of conservation policies. In this paper, we develop the underlying theoretical framework for the evaluation of conservation policies under contrasting assumptions about labor markets. We use a two-input framework to identify key parameters underlying the success and distributional effects of a conservation policy. We identify new propositions on the interplay between labor-market functioning and consequences of conservation policies. We propose a novel ‘bridging’ methodology and leverage our theoretical framework, to investigate a conservation policy at a high spatial resolution. We decompose the impacts of the policy based on extensive and intensive margin producer responses. This rigor is currently missing in IAM-style policy evaluation, where the model generated results are displayed in maps but lack clarity on the underlying economic processes. The novel methodology developed in this paper, allows us to characterize the distributional impacts of a natural resource conservation policy and identify the specific parameters that drive these results. These are useful insights for conservation policy design which allow identification of hitherto unforeseen adverse impacts on members of rural communities
Year of publication: |
[2023]
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Authors: | Ray, Srabashi ; Hertel, Thomas W. |
Publisher: |
[S.l.] : SSRN |
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