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Illicit exploitation of natural resources: The forest concessions in Brazil

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  • Banerjee, Onil
  • Alavalapati, Janaki

Abstract

The Brazilian forest sector has undergone crisis with complexities involved in investment in an insecure political environment, a regime of ambiguous property rights, forest sector illegality and enormous pressure for agricultural expansion. To address these challenges, Brazil's Public Forest Management Law was approved in 2006 enabling private forest management on public forestland. Assessing the policy in a dynamic computable general equilibrium framework, we find that household welfare improves and legal forestry grows faster. In the absence of improved monitoring and enforcement, however, forest concessions are shown to have a depressing effect on the price of forestland and accelerate illegal forestry operations.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Policy Modeling.

Volume (Year): 32 (2010)
Issue (Month): 4 (July)
Pages: 488-504

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Handle: RePEc:eee:jpolmo:v:32:y::i:4:p:488-504

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Web page: http://www.elsevier.com/locate/inca/505735

Related research

Keywords: Brazilian forest sector Forest concessions Forestland Illegal forestry operations Legal forestry Computable general equilibrium;

References

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  1. Gutierrez-Velez, Victor Hugo & MacDicken, Kenneth, 2008. "Quantifying the direct social and governmental costs of illegal logging in the Bolivian, Brazilian, and Peruvian Amazon," Forest Policy and Economics, Elsevier, vol. 10(4), pages 248-256, February.
  2. Cattaneo, Andrea, 2002. "Balancing agricultural development and deforestation in the Brazilian Amazon:," Research reports 129, International Food Policy Research Institute (IFPRI).
  3. Gibson, Bill, 2005. "The transition to a globalized economy: Poverty, human capital and the informal sector in a structuralist CGE model," Journal of Development Economics, Elsevier, vol. 78(1), pages 60-94, October.
  4. Beutre, Benjamin & Rodriguez, Gil & Pant, Hom M., 2003. "Data issues in general equilibrium modelling," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57838, Australian Agricultural and Resource Economics Society.
  5. Fortin, Bernard & Marceau, Nicolas & Savard, Luc, 1997. "Taxation, wage controls and the informal sector," Journal of Public Economics, Elsevier, vol. 66(2), pages 293-312, November.
  6. Kelley, Bruce, 1994. "The informal sector and the macroeconomy: A computable general equilibrium approach for Peru," World Development, Elsevier, vol. 22(9), pages 1393-1411, September.
  7. Bandara, Jayatilleke S, 1991. " Computable General Equilibrium Models for Development Policy Analysis in LDCs," Journal of Economic Surveys, Wiley Blackwell, vol. 5(1), pages 3-69.
  8. Lucilene Morandi & Eustáquio J. Reis, 2004. "Estoque De Capital Fixo No Brasil, 1950-2002," Anais do XXXII Encontro Nacional de Economia [Proceedings of the 32th Brazilian Economics Meeting] 042, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
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Cited by:
  1. Coria, Jessica & Sterner, Thomas, 2011. "Natural Resource Management: Challenges and Policy Options," Working Papers in Economics 480, University of Gothenburg, Department of Economics.

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