Question
Trees are able to absorb CO2 and to reduce deforestation forest owners have been prevented from cutting down trees. However, people might cut trees as
Trees are able to absorb CO2 and to reduce deforestation forest owners have been prevented from cutting down trees. However, people might cut trees as their main economic activity. A study was done in which forest owners were put into a randomized controller trial and offered money to not cut down their trees.What if the researchers didnt conduct a randomized controlled trial? What if instead they surveyed farmers and compared tree cover in areas where leaders decided to give finanical incentive to not cut down trees, compared to other areas where this program didnt exist. Would this comparison allow someone to estimate thr effect on cash incentives on environmental conservation? Explain using words and potential outcomes notation. How would the expression for thr estimated impact of cash incentives on tree cover differ if cash incentives were randomized
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