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Category Text Publication
Reference Category Reports
Document publication document
Title (Primary) Decentralization effects in Ecological Fiscal Transfers – the case of Portugal
Author Droste, N.; Becker, C.; Ring, I.; Santos, R.
Source Titel UFZ Discussion Papers
Year 2017
Department OEKON
Volume 3/2017
Page To 33
Language englisch
Keywords Bayesian structural time series; ecological fiscal transfers; fiscal federalism; municipal competencies; nature conservation; Portugal
UFZ wide themes RU6;
Abstract Portugal has a unitary system in which the central government transfers funds to lower government levels for their public functions. In 2007, Portugal introduced Ecological Fiscal Transfers (EFT), where municipalities receive transfers for hosting Protected Areas (PA). We study whether introducing EFT in Portugal incentivized municipalities to designate PA and has led to a decentralization of conservation decisions. We employ a Bayesian structural time series approach to estimate the effect of introducing EFT in comparison to a simulated counterfactual time series. Quantitative results show a significant increase in the ratio of municipal and national PA designations following Portugal’s EFT introduction. The analysis furthermore places emphasis on the importance of relevant municipal conservation competencies and the role of local decision makers’ motivations for PA designations. Results have important implications for conservation policy-making in terms of allocating budgets and competencies in multi-level governments.
Persistent UFZ Identifier
Droste, N., Becker, C., Ring, I., Santos, R. (2017):
Decentralization effects in Ecological Fiscal Transfers – the case of Portugal
UFZ Discussion Papers 3/2017
Helmholtz-Zentrum für Umweltforschung - UFZ, Leipzig, 33 pp.