The role of local governance and financial capacities in the effectiveness of international environmental agreements: Evidence from the Ramsar convention

ABSTRACT Wetlands are critical components of natural water infrastructure, delivering hydrological regulation, biodiversity support, and climate resilience, yet they continue to deteriorate globally. This article provides new causal evidence on the effectiveness of International Environmental Agreements (IEAs) by examining the impacts of wetland designation under the Ramsar Convention. Exploiting the spatial and temporal rollout of Ramsar sites worldwide and combining high-resolution geospatial data on land cover, water extent, and biodiversity, we estimate the causal effect of designation on wetland's ecological character as well as anthropogenic activities. On average, we find that Ramsar designation has limited impacts on reversing wetland degradation and does not consistently halt declines in water, vegetation, or biodiversity. However, treatment effects are highly heterogeneous. Positive impacts emerge in countries with stronger environmental governance, higher water-management capacity, and higher income levels, as well as in smaller wetlands that are easier to monitor and manage. In contrast, large wetlands and sites in weak institutional settings often continue to deteriorate following designation. These findings suggest that international commitments alone are insufficient to safeguard wetlands. Effective policy requires pairing IEAs with investments in local institutional capacity, integrated water governance, and financing mechanisms that align conservation with development objectives, positioning wetlands as core assets within broader water systems.