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Title (Primary) Integrating ecological indicators into federal-state fiscal relations: a policy design study for Germany
Author Droste, N.; Ring, I.; Schröter-Schlaack, C.; Lenk, T.
Journal Environmental Policy and Governance
Year 2017
Department OEKON
Volume 27
Issue 5
Page From 484
Page To 499
Language englisch
UFZ wide themes RU6;
Abstract Protected areas (PA) provide conservation benefits and ecosystem services that spill over the boundaries of jurisdictions to other regions. In this paper we analyze the foundations of and design options for ecological fiscal transfers (EFT) that may internalize such positive external effects. We propose a model for integrating ecological indicators into the intergovernmental fiscal transfer system between federal and state-level governments in Germany. Our approach is performance-oriented and would thus compensate those states that designate an above-average share of their area for nature conservation purposes. The suggested EFT design builds upon the existing fiscal equalization system in Germany and complies with the legal requirements for indicators determining fiscal needs. We employ an econometric analysis to demonstrate that, on average, sparsely populated states provide more PA per capita and would thus be eligible for increased fiscal transfers. A quantitative model of the fiscal transfer scheme is then used to estimate the marginal financial effects of integrating ecological indicators into federal–state fiscal relations in Germany. Moving beyond the specific case presented, we discuss the implications in terms of the specific role of EFT as a policy instrument within the broader conservation policy mix.

Integrating Ecological Indicators into Federal-State Fiscal Relations: A Policy Design Study for Germany. Available from: https://www.researchgate.net/publication/318602282_Integrating_Ecological_Indicators_into_Federal-State_Fiscal_Relations_A_Policy_Design_Study_for_Germany?ev=prf_high [accessed Jul 31, 2017].
Persistent UFZ Identifier https://www.ufz.de/index.php?en=20939&ufzPublicationIdentifier=18699
Droste, N., Ring, I., Schröter-Schlaack, C., Lenk, T. (2017):
Integrating ecological indicators into federal-state fiscal relations: a policy design study for Germany
Environ. Policy Gov. 27 (5), 484 - 499