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"Decentralisation and Forest Conservation: Evidence from India"

Thu, September 10, 2:00 to 3:30pm MDT (2:00 to 3:30pm MDT), TBA

Abstract

Natural resource management decision-making has been decentralised significantly in the developing world, despite theoretical ambiguity in whether such a move would improve preservation or accelerate depletion. Using a difference-in-differences design, we study the effects of the
staggered implementation of a 1996 law that implemented elected local government councils in
Scheduled Areas in 8 states in India on deforestation rates as measured using remote-sensing
data. We find that the extension caused a large decrease in the rate of deforestation, and find
suggestive evidence that these effects are concentrated in areas with greater mining potential,
and where ethnic groups with strong resource-preservation norms are an electoral plurality. Our
findings suggest that devolution of political power to local communities that can also enforce sustainable resource-use norms can appreciably aid the preservation of forest ecosystems, even in
areas where state capacity is weak.

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