Voluntary opt-in programs to reduce emissions in unregulated sectors or countries have spurred considerable discussion. Since any regulator will make errors in predicting baselines and participants will self-select into the program, adverse selection will reduce efficiency and possibly...

In this paper we estimate deforestation patterns (across time and 436 districts within Costa Rica) with an econometric method explicitly derived from a dynamic microeconomic model. While the underlying model is similar to that used by Stavins and Jaffe 1990, we use different econometric tools...