Economic Development and Environmental Conservation: Evidence from Ecotourism

It is essential to address the dual challenges of economic growth and environmental preservation. In theory, promotion of ecotourism can simultaneously incentivize forest conservation and boost economic prospects. Through a randomized controlled trial conducted in Colombia, I empirically investigate the effect of ecotourism on deforestation and economic opportunities. Municipalities were randomly assigned to either a control group or a treatment group that received ecotourism promotion. I find an increase in the number of tourists and workers in surveyed businesses of treated municipalities. Furthermore, there is a significant decrease in deforestation around ecotourism sites in treated areas. These findings underscore the critical role of economic opportunities in encouraging local communities to preserve forests.