[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/ris/nereus/2024_002.html
   My bibliography  Save this paper

Spatial Difference-in-Differences and Event Study: Identification and Application to the Case of Priority List of Municipalities in the Brazilian Amazon

Author

Listed:
  • Chagas, André Luis Squarize

    (Departamento de Economia, Universidade de São Paulo)

  • Andrade, Luiza

    (Departamento de Economia, Universidade de São Paulo)

Abstract
Difference-in-differences (DID) has long been a staple in estimating treatment effects in applied econometrics, with recent advancements relaxing traditional assumptions to explore heterogeneous and spillover effects. While heterogeneous effects analysis examines causal impacts across diverse groups and periods, spillover effects analysis delves into the influence of treatments on neighboring units. Incorporating spatial dependence within the DID framework, Spatial Difference-in-Differences (SDID) models have emerged as a powerful tool for analyzing such effects, particularly in settings where observations represent fixed geographical units. This study contributes to the literature by explicitly formalizing underlying assumptions and employing an SDID model to analyze the impact of Brazil’s Priority Municipalities List on deforestation in the Amazon region. Utilizing both traditional DID and SDID methodologies, we uncover significant reductions in deforestation odds ratios within listed municipalities and neighboring unlisted municipalities. Furthermore, we introduce an event study approach linked with SDID to explore the policy’s anticipatory effects. Our findings underscore the effectiveness of the Priority Municipalities List in curbing deforestation and highlight the importance of spatially explicit methodologies in environmental policy evaluation. This article advances methodological discussions surrounding SDID estimation and provides empirical insights into the efficacy of targeted environmental policies in combating deforestation in sensitive ecosystems like the Amazon.

Suggested Citation

  • Chagas, André Luis Squarize & Andrade, Luiza, 2024. "Spatial Difference-in-Differences and Event Study: Identification and Application to the Case of Priority List of Municipalities in the Brazilian Amazon," TD NEREUS 2-2024, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    • Handle: RePEc:ris:nereus:2024_002
    as

    Download full text from publisher

    File URL: http://www.usp.br/nereus/wp-content/uploads/TD_NEREUS_02_2024.pdf
    File Function: Full text
    Download Restriction: ris
    ---><---

    More about this item

    Keywords

    Spatial diff-in-diff; spillover effects; spatial event study; causal inference; deforestation; Brazilian Amazon;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:nereus:2024_002. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Eduardo Amaral Haddad (email available below). General contact details of provider: https://edirc.repec.org/data/neuspbr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.