Browsing by Autor "Alfonso Malky"

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Bolivia's Net Zero path: Investment needs, challenges, and opportunities
(Frontiers Media, 2022) Lykke E. Andersen; Luis E. Gonzales; Alfonso Malky
Due to high levels of deforestation, Bolivia's per capita CO 2 emissions are currently among the highest in the world. Indeed, at more than 25 tCO 2 eq/person/year, they far exceed the per capita emissions of the United States and the United Arab Emirates. Achieving Net Zero would require a complete change of the current resource-intensive development model and would especially have to adjust the incentives that are promoting the rapid expansion of soybean farming and cattle ranching in the Bolivian Amazon and Chiquitano forests. This paper identifies the main sources of emissions in Bolivia and the most cost-effective measures to reduce them, under the condition that the selected measures do not decrease average incomes nor increase poverty compared to the Business-as-Usual scenario. The paper estimates the magnitude of the investment needed to reduce net emissions to zero by 2050 at about $150 billion or 7.8% of Bolivia's GDP between 2022 and 2050. To make sure that poor people are not hurt by the Net Zero strategy, most of the funds should be used to promote alternative and more sustainable economic opportunities for Bolivians, including resilient and diverse agro-forestry activities, zero-deforestation beef production, nature-based tourism, high value-added wood products, scientific research, etc. These alternative opportunities should include women as much as possible, so as to provide more gender equal opportunities than the traditional activities at the agricultural frontier. The paper reviews different financing options and proposes a simple, easily verifiable, performance-based mechanism, that shares the costs and benefits of reduced deforestation fairly. Finally, the paper discusses the main social, economic, and political challenges to achieving these goals.
Ecological Compensation to Address Environmental Externalities: Lessons from South American Case Studies
(Taylor & Francis, 2015) J. Leighton Reid; Aaron Bruner; Jeffrey Chow; Alfonso Malky; José Carlos Rubio; Cristián Vallejos
Large development projects commonly cause damage to ecosystems, even after measures have been taken to avoid and reduce impacts on site. Governments are increasingly seeking to offset losses through ecological compensation programs to maintain overall levels of biodiversity and ecosystem services. The key to successful programs are criteria that reduce uncertainty and transaction costs while enhancing ecological equivalency. In South America, the government of Brazil, and Colombia have implemented compensation programs, and Peru has recently published broad guidelines and is developing detailed rules. Brazil emphasizes regulatory simplicity, which mitigates cost uncertainty, over ecological equivalence. Colombia has sophisticated methods for establishing ecological equivalence, but has yet to develop institutions necessary to reduce transaction costs. These experiences suggest a trade-off between rules that rigorously compensate losses with ecologically equivalent areas, and simpler approaches that have low transaction costs but may fail to ensure specific biodiversity goals. The success of Peru’s system will depend on being practical enough to implement at scale and rigorous enough to deliver environmental benefits. We describe a series of mutually compatible recommendations to balance both needs. Ecological compensation is still a nascent effort in the neotropics and policy adjustments will be necessary as better information on success and failure becomes available.