Can PES Save the Forest? The Effects of an Avoided Deforestation Initiative in the Brazilian Amazon

Silvia H. Barcellos, RAND Corporation
Leandro Carvalho, RAND Corporation
Michael Greenstone, Massachusetts Institute of Technology (MIT)

This paper uses quasi-experimental econometric methods to study the effects on deforestation of a large AD initiative in the Brazilian Amazon. It will answer important questions such as whether AD initiatives work, how large is the effect on deforestation (and consequently on carbon emissions), and whether there are spillover effects to non-participant areas.