Graduation Year

Spring 2012

Document Type

Open Access Senior Thesis

Degree Name

Bachelor of Arts


Environment, Economics, and Politics (EEP)

Reader 1

Serkan Ozbeklik

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Rights Information

© 2012 Erin Franks


This study evaluates the effectiveness of the ecological ICMS (ICMS-e) in the Brazilian Amazon, an intragovernmental transfer for incentivizing biodiversity conservation. Tax funds are passed from state governments to municipalities in proportion to the amount of protected area within their borders; biological reserves, sustainable use areas, and indigenous lands are all considered. Econometric analysis using a fixed effects model found that the policy had little positive effect on increasing protected areas compared to the significant negative influence of poor land tenure, agricultural influences, and lack of monitoring for illegal deforestation. However, the policy may increase municipal governments' acceptance of and support for protected areas, especially if combined with institutional support.