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Buying a Blind Eye: Campaign Donations, Regulatory Enforcement, and Deforestation

Published online by Cambridge University Press:  09 June 2023

ROBIN HARDING*
Affiliation:
University of Oxford, United Kingdom
MOUNU PREM*
Affiliation:
Einaudi Institute for Economics and Finance, Italy and Universidad del Rosario, Colombia
NELSON A. RUIZ*
Affiliation:
University of Essex, United Kingdom
DAVID L. VARGAS*
Affiliation:
Inter-American Development Bank, United States
*
Robin Harding, Associate Professor, Department of Politics and International Relations, University of Oxford, United Kingdom, robin.harding@politics.ox.ac.uk.
Mounu Prem, Assistant Professor, Einaudi Institute for Economics and Finance, Italy, and Assistant Professor, School of Economics, Universidad del Rosario, Colombia, francisco.munoz@eief.it.
Nelson A. Ruiz, Senior Lecturer, Department of Government, University of Essex, United Kingdom, nelson.ruiz@essex.ac.uk.
David L. Vargas, Research Fellow, Research Department, Inter-American Development Bank, United States, davidvar@iadb.org.
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Abstract

While existing work has demonstrated that campaign donations can buy access to benefits such as favorable legislation and preferential contracting, we highlight another use of campaign contributions: buying reductions in regulatory enforcement. Specifically, we argue that in return for campaign contributions, Colombian mayors who rely on donor-funding (compared with those who do not) choose not to enforce sanctions against illegal deforestation activities. Using a regression discontinuity design, we show that deforestation is significantly higher in municipalities that elect donor-funded as opposed to self-funded politicians. Further analysis shows that only part of this effect can be explained by differences in contracting practices by donor-funded mayors. Instead, evidence of heterogeneity in the effects according to the presence of alternative formal and informal enforcement institutions, and analysis of fire clearance, support the interpretation that campaign contributions buy reductions in the enforcement of environmental regulations.

Information

Type
Research Article
Creative Commons
Creative Common License - CCCreative Common License - BY
This is an Open Access article, distributed under the terms of the Creative Commons Attribution licence (http://creativecommons.org/licenses/by/4.0), which permits unrestricted re-use, distribution and reproduction, provided the original article is properly cited.
Copyright
© The Author(s), 2023. Published by Cambridge University Press on behalf of the American Political Science Association
Figure 0

Table 1. Summary Statistics

Figure 1

Figure 1. Deforestation during Term by MunicipalityNote: This figure shows the geographical distribution of deforestation and the vote share of privately funded candidates for the 2011 election period. The shades of blue correspond to the quartiles of deforestation during the full term. The bubble size correspond to the quartiles of the margin of victory of privately funded candidates.

Figure 2

Table 2. Smooth Covariates

Figure 3

Figure 2. Manipulation TestNote: This figure presents the density test suggested by Cattaneo, Jansson, and Ma (2018) using a quadratic polynomial and triangular kernel weights. The p-value for the bias corrected density test is 0.76. The p-values using a polynomial of degree 1 and 3 are 0.25 and 0.59, respectively.

Figure 4

Figure 3. Effect of Electing a Donor-Funded Politician on DeforestationNote: This figure presents a graphical approximation of the regression discontinuity design. We present deforestation during the full incumbency term in the first row, whereas deforestation during the previous incumbency term is shown in the second row. The observations are shown within MSE optimal bandwidth. From left to right, the first figure uses a linear polynomial approximation; meanwhile, the second uses a quadratic approximation.

Figure 5

Table 3. Donor-Funded Politician and Deforestation during Term in Office

Figure 6

Figure 4. Different Bandwidth Sizes: Effect of Electing a Donor-Funded Politician on DeforestationNote: Estimates of average treatment effects at the cutoff, using triangular kernel weights. Optimal MSE bandwidths are displayed in the dotted line. Following Cattaneo, Idrobo, and Titiunik (2020), we display estimates between half and double the optimal bandwidth. Robust 90% confidence intervals estimated following Calonico, Cattaneo, and Titiunik (2014).

Figure 7

Table 4. Donor-Funded Politician and Deforestation by Year of Government

Figure 8

Table 5. Donor-Funded Politician and Contracts

Figure 9

Table 6. Heterogeneous Effects: State Presence

Figure 10

Table 7. Heterogeneous Effects: Armed Conflict

Figure 11

Table 8. Donor-Funded Politician and Fire Intensity

Supplementary material: Link

Harding et al. Dataset

Link
Supplementary material: PDF

Harding et al. supplementary material

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