Template-Type: ReDIF-Paper 1.0 Author-Name: Po Yin Wong Author-X-Name-First: Po Yin Author-X-Name-Last: Wong Author-Email: po.wong@qmul.ac.uk Author-Workplace-Name: School of Business and Management, Queen Mary University of London. Author-Name: Karlygash Kuralbayeva Author-X-Name-First: Karlygash Author-X-Name-Last: Kuralbayeva Author-Email: karlygash.kuralbayeva@kcl.ac.uk Author-Workplace-Name: King's College London Author-Name: Liana O. Anderson Author-X-Name-First: Liana Author-X-Name-Last: Anderson Author-Email: liana.anderson@cemaden.gov.br Author-Workplace-Name: National Center for Monitoring and Early Warning of Natural Disasters (CEMADEN) Author-Name: Ana M. Pessoa Author-X-Name-First: Ana Author-X-Name-Last: Pessoa Author-Email: ana.pessoa@inpe.br Author-Workplace-Name: National Institute for Space Research (INPE) Author-Name: Torfinn Harding Author-X-Name-First: Torfinn Author-X-Name-Last:Harding Author-Email: torfinn.harding@uis.no Author-Workplace-Name: University of Stavanger Business School Title: Individual Pay for Collective Performance and Deforestation: Evidence from Brazil Abstract: We study Brazil's Bolsa Verde program, which pays extremely poor households for implementing sustainable activities and maintaining forest cover at the communal level. Using difference-in-differences, we find that the program keeps deforestation 22% lower inside treated areas compared to similar untreated areas. The estimated program benefits in terms of emissions reductions are about four times the program costs. Heterogeneous effects across property types suggest that the program provides protection against deforestation pressure from groups other than program recipients. Data on fines and satellite-based alarms point to monitoring and reporting as a mechanism through which the program reduces illegal deforestation. Length: 81 pages Creation-Date: 2023-02 Revision-Date: Publication-Status: Classification-JEL: I38, O13, Q23, Q28, Q56 Keywords: Deforestation, Poverty, Conservation, Evaluation, Brazil File-URL: http://cgr.sbm.qmul.ac.uk/CGRWP110.pdf Number: 110 Handle: RePEc:cgs:wpaper:110