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When Does Land Tenure Formalization Protect the Environment: Evidence from Benin

Sat, September 2, 2:00 to 3:30pm PDT (2:00 to 3:30pm PDT), LACC, 506

Abstract

The prospect that more secure property rights for landowners across the globe can lead to the double win of improving economic and environmental outcomes has led to a surge in land tenure formalization projects and studies over the last 20 years. Previous research has found that while property rights can reduce ecosystem destruction and improve agricultural productivity, the evidence does not always live up to expectations. In particular, recent meta-analyses have found mixed results from the literature, and recent empirical papers point to heterogeneous effects of land tenure formalization. In this paper I estimate the effects of the largest ever randomized control trial of land tenure formalization--the Plan Foncier Rural program in Benin--on the clearing of natural vegetation using fires. I hypothesize that land tenure formalization should only lead to land sparing in areas where initial land tenure security is low and when trust in formal institutions is high. This is because people who experience higher land tenure security will be more likely to make productivity enhancements on their existing cultivated land, and can reduce the amount of labor used purely to signal ownership. However, the experience of land tenure security depends on formal land tenure rights, the ability of existing institutions to ensure tenure security, and trust in formal institutions. This paper provides the first evidence from a randomized control trial of how the political context mediates the effects of land tenure formalization and uses novel, satellite measurements of outcomes. It also points to the importance of understanding the local context of land tenure reforms for creating policy recommendations.

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