IDEAS home Printed from https://ideas.repec.org/a/ids/ijgenv/v18y2019i1p41-70.html
   My bibliography  Save this article

Economic evaluation of massive restoration in Brazil: how to achieve the iNDC-Brazil target

Author

Listed:
  • Andrea Lucchesi
  • Paula Carvalho Pereda
  • Maria Alice Móz Christofoletti
  • Keyi Ando Ussami
  • Eduardo Gusson
  • Girlei Costa Da Cunha

Abstract

The Brazilian Government has established a target to restore 12 million hectares of the country's forest area by 2030. In this study, we address the economic and financial feasibility of this massive restoration, as well as job creation and government receivables, by applying a traditional valuation method and assumptions from the environmental literature. Conservative scenarios, based on an agricultural producer perspective, indicate that the recovery is economically unviable: the net present value is negative, and though the internal rate of return is positive, it is lower than the cost of capital. However, sensitivity analysis suggests that it may become feasible when considered as an outsourced business and a market for forest carbon capture is included. In terms of public policy, there is still room for creating instruments to improve its feasibility, since we have not addressed other positive externalities and also the sale of non-timber forest products.

Suggested Citation

  • Andrea Lucchesi & Paula Carvalho Pereda & Maria Alice Móz Christofoletti & Keyi Ando Ussami & Eduardo Gusson & Girlei Costa Da Cunha, 2019. "Economic evaluation of massive restoration in Brazil: how to achieve the iNDC-Brazil target," International Journal of Global Environmental Issues, Inderscience Enterprises Ltd, vol. 18(1), pages 41-70.
    • Handle: RePEc:ids:ijgenv:v:18:y:2019:i:1:p:41-70
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=98897
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    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:ids:ijgenv:v:18:y:2019:i:1:p:41-70. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=14 .

    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.