IDEAS home Printed from https://ideas.repec.org/a/cup/endeec/v5y2000i01p129-142_00.html
   My bibliography  Save this article

Estimating timber depreciation in the Brazilian Amazon

Author

Listed:
  • MOTTA, RONALDO SEROA DA
  • AMARAL, CLAUDIO A. FERRAZ DO

Abstract

This study estimates depreciation values for timber extraction activities in the Brazilian Amazon for 1990 and 1995. A generalized approach following Vincent and Hartwick (1997) is applied enabling us to calculate depreciation based on all three methods proposed in the literature. We also calculate Hotelling rents for timber as a whole and for mahogany alone. Apart from the expected differences in the results for each method, the results show substantially low depreciation estimates as a direct consequence of the high timber stocks and scarcity perception by economic agents due to the lack of property rights in the region. For mahogany alone we obtain substantially higher values. We conclude that if scarcity rents are not fully perceived, or they really do not exist in such huge supply conditions as our estimates may suggest, charges related to other forest services are fundamental to make environmental accounting an useful tool for planning in the Amazonian context.

Suggested Citation

  • Motta, Ronaldo Seroa Da & Amaral, Claudio A. Ferraz Do, 2000. "Estimating timber depreciation in the Brazilian Amazon," Environment and Development Economics, Cambridge University Press, vol. 5(1), pages 129-142, February.
    • Handle: RePEc:cup:endeec:v:5:y:2000:i:01:p:129-142_00
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S1355770X00000097/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Chichilnisky, Graciela, 1994. "North-South Trade and the Global Environment," American Economic Review, American Economic Association, vol. 84(4), pages 851-874, September.
    2. Martin L. Weitzman, 1976. "On the Welfare Significance of National Product in a Dynamic Economy," The Quarterly Journal of Economics, Oxford University Press, vol. 90(1), pages 156-162.
    3. John Hartwick, 1977. "Intergenerational Equity and the Investment of Rents from Exhaustible Resources in a Two Sector Model," Working Paper 281, Economics Department, Queen's University.
    4. Weitzman, Martin L., 1974. "Free access vs private ownership as alternative systems for managing common property," Journal of Economic Theory, Elsevier, vol. 8(2), pages 225-234, June.
    5. Hartwick, John M, 1977. "Intergenerational Equity and the Investing of Rents from Exhaustible Resources," American Economic Review, American Economic Association, vol. 67(5), pages 972-974, December.
    6. Régis Bonelli & Lauro Ramos, 1993. "Distribuição de renda no Brasil: avaliação das tendências de longo prazo e mundanças na desigualdade desde meados dos anos 70," Brazilian Journal of Political Economy, Center of Political Economy, vol. 13(2).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Giles Atkinson & Haripriya Gundimeda, 2006. "Accounting for India’s Forest Wealth," Development Economics Working Papers 22494, East Asian Bureau of Economic Research.
    2. Claudio Ferraz, 2015. "Explaining Agriculture Expansion and Deforestation: Evidence from the Brazilian Amazon – 1980/98," Discussion Papers 0106, Instituto de Pesquisa Econômica Aplicada - IPEA.
    3. Azqueta Oyarzún, Diego & Delacámara, Gonzalo, 2008. "Oil extraction and deforestation: a simulation exercise," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    4. Huhtala, Anni & Toppinen, Anne & Boman, Mattias, 2003. "When the theory is not enough - valuation of forest resources with "efficiency" prices in practice," Journal of Forest Economics, Elsevier, vol. 9(3), pages 205-222.
    5. Mkanta, William N. & Chimtembo, Mathew M.B., 2002. "Towards Natural Resource Accounting In Tanzania: A Study On The Contribution Of Natual Forests To National Income," Discussion Papers 18017, University of Pretoria, Center for Environmental Economics and Policy in Africa.
    6. Neumayer, Eric, 2004. "Does the "Resource Curse" hold for Growth in Genuine Income as Well?," World Development, Elsevier, vol. 32(10), pages 1627-1640, October.
    7. Ferreira, Susana & Moro, Mirko, 2010. "Constructing Genuine Savings Indicators for Ireland, 1995-2005," Stirling Economics Discussion Papers 2010-10, University of Stirling, Division of Economics.
    8. Mabugu, Ramos E. & Chitiga, Margaret, 2002. "Accounting For Forest Resources In Zimbabwe," Discussion Papers 18021, University of Pretoria, Center for Environmental Economics and Policy in Africa.
    9. Ngwenya, P. & Hassan, Rashid M., 2005. "An environmental accounting approach to valuing the services of natural forests and woodlands in Swaziland," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(2), pages 280-280, June.
    10. Eugenio Figueroa B. & Enrique Calfucura T., 2010. "Sustainable development in a natural resource rich economy: the case of Chile in 1985–2004," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 12(5), pages 647-667, October.
    11. Huhtala, Anni & Toppinen, Anne & Boman, Mattias, 2001. "An Environmental Accountant`s Dilemma: Are Stumpage Prices Reliable Indicators of Resource Scarcity?," Working Papers 77, National Institute of Economic Research.
    12. Atkinson, Giles & Gundimeda, Haripriya, 2006. "Accounting for India's forest wealth," Ecological Economics, Elsevier, vol. 59(4), pages 462-476, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nick Hanley & Louis Dupuy & Eoin McLaughlin, 2015. "Genuine Savings And Sustainability," Journal of Economic Surveys, Wiley Blackwell, vol. 29(4), pages 779-806, September.
    2. Barbier,Edward B., 2007. "Natural Resources and Economic Development," Cambridge Books, Cambridge University Press, number 9780521706513.
    3. Partha Sen, 2020. "Macroeconomics and the Environment: A Selective Survey," CESifo Working Paper Series 8159, CESifo.
    4. Cairns, Robert D. & Del Campo, Stellio & Martinet, Vincent, 2019. "Sustainability of an economy relying on two reproducible assets," Journal of Economic Dynamics and Control, Elsevier, vol. 101(C), pages 145-160.
    5. Toman, Michael & Pezzey, John C., 2002. "The Economics of Sustainability: A Review of Journal Articles," RFF Working Paper Series dp-02-03, Resources for the Future.
    6. Figueroa B., Eugenio & Orihuela R., Carlos & Calfucura T., Enrique, 2010. "Green accounting and sustainability of the Peruvian metal mining sector," Resources Policy, Elsevier, vol. 35(3), pages 156-167, September.
    7. Purnamita Dasgupta, 2008. "Measuring Sustainability with Macroeconomic Data for India," Working Papers id:1574, eSocialSciences.
    8. Edward B. Barbier, 2017. "Natural Capital and Wealth in the 21st Century," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 43(3), pages 391-405, June.
    9. Rubio, M. del Mar, 2004. "The capital gains from trade are not enough: evidence from the environmental accounts of Venezuela and Mexico," Journal of Environmental Economics and Management, Elsevier, vol. 48(3), pages 1175-1191, November.
    10. Eugenio Figueroa B. & Enrique Calfucura T., 2002. "Depreciación del Capital Natural, Ingreso y Crecimiento Sostenible: Lecciones de la Experiencia Chilena," Working Papers Central Bank of Chile 138, Central Bank of Chile.
    11. Jaime de Melo, 2015. "Trade in a ‘Green Growth’ Development Strategy: Issues and Challenges," World Scientific Book Chapters, in: Developing Countries in the World Economy, chapter 22, pages 553-580, World Scientific Publishing Co. Pte. Ltd..
    12. Vincent, Jeffrey R. & Panayotou, Theodore & Hartwick, John M., 1997. "Resource Depletion and Sustainability in Small Open Economies," Journal of Environmental Economics and Management, Elsevier, vol. 33(3), pages 274-286, July.
    13. Carl Obst & Lars Hein & Bram Edens, 2016. "National Accounting and the Valuation of Ecosystem Assets and Their Services," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(1), pages 1-23, May.
    14. Geir B. Asheim, 2003. "Green national accounting for welfare and sustainability:A Taxonomy Of Assumptions And Results," Scottish Journal of Political Economy, Scottish Economic Society, vol. 50(2), pages 113-130, May.
    15. Geir B. Asheim & Rintaro Yamaguchi, 2023. "Comprehensive National Accounting for Carbon Emissions," CESifo Working Paper Series 10562, CESifo.
    16. Doyen, L. & Martinet, V., 2012. "Maximin, viability and sustainability," Journal of Economic Dynamics and Control, Elsevier, vol. 36(9), pages 1414-1430.
    17. Linda Kleemann & Awudu Abdulai, 2013. "The Impact Of Trade And Economic Growth On The Environment: Revisiting The Cross‐Country Evidence," Journal of International Development, John Wiley & Sons, Ltd., vol. 25(2), pages 180-205, March.
    18. Valeria Costantini & Anil Markandya & Elena Paglialunga & Giorgia Sforna, 2018. "Impact and distribution of climatic damages: a methodological proposal with a dynamic CGE model applied to global climate negotiations," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(3), pages 809-843, December.
    19. Zaki, Chahir, 2009. "Towards an Explicit Modeling of Trade Facilitation in CGE Models: Evidence from Egypt," Conference papers 331897, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    20. Antony, Jürgen & Klarl, Torben, 2023. "Subsistence consumption and natural resource depletion: Can resource-rich low-income countries realize sustainable consumption paths?," Journal of Macroeconomics, Elsevier, vol. 77(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:endeec:v:5:y:2000:i:01:p:129-142_00. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/ede .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.