The response of illegal mining to revealing its existence
Authors
Saavedra, Santiago
Editor
Publication date
2022-05-17
Document language
eng
Publisher
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Volume Title
Abstract
Description
New monitoring technologies can help curb illegal activities by reducing information asymmetries between enforcing and monitoring government agents. I created a novel dataset using machine learning predictions on satellite imagery that detects illegal mining. Then I disclosed the predictions to government agents to study the response of illegal activity. I randomly assigned municipalities to one of four groups: (1) information to the observer (local government) of potential mine locations in his jurisdiction; (2) information to the enforcer (National government) of potential mine locations; (3) information to both observer and enforcer, and (4) a control group, where I informed no one. The effect of information is relatively similar regardless of who is informed: in treated municipalities, illegal mining is reduced by 11\% in the disclosed locations and surrounding areas. However, when accounting for negative spillovers --- increases in illegal mining in areas not targeted by the information --- the net reduction is only 7\%. These results illustrate the benefits of new technologies for building state capacity and reducing illegal activity.
Códigos JEL
H26 - Tax Evasion and Avoidance, K42 - Illegal Behavior and the Enforcement of Law, O13 - Agriculture; Natural Resources; Energy; Environment; Other Primary Products, O17 - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements, Q53 - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste Recycling
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Keywords
Illegal mining, Monitoring Technology, Colombia
