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Economic analysis of deforestation reduction in Brazil

Author

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  • Rodrigues Cabral, Caroline
  • Gurgel, Angelo
  • Paltsev, Sergey

Abstract

Brazil has committed itself to reduce its greenhouse gas (GHG) emissions by 36.1% and 38.9% compared to projected emissions for 2020. In order to accomplish this, the deforestation in the Amazon will have to be reduced by 80% and in the savannah region (Cerrado) by 40% by that year. Concurrently, Brazil is the country with the greatest potential to increase its agricultural production and contribute to the challenge of feeding an increasing world population. Moreover, agribusiness is a key sector of the Brazilian economy for income generation and promotion of foreign exchange. This article discusses the economic impact of a restrictive policy of deforestation on the agricultural and livestock sector and the national economy using a computable general equilibrium model. The results point to low losses in GDP from the limited deforestation scenario as compared with the baseline, but non negligible impacts in the agricultural, livestock and food sector.

Suggested Citation

  • Rodrigues Cabral, Caroline & Gurgel, Angelo & Paltsev, Sergey, 2015. "Economic analysis of deforestation reduction in Brazil," 2015 Conference, August 9-14, 2015, Milan, Italy 211378, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae15:211378
    DOI: 10.22004/ag.econ.211378
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    File URL: https://ageconsearch.umn.edu/record/211378/files/Cabral-Economic%20Costs%20of%20Limiting%20Deforestation%20in%20Brazil-927.pdf
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    References listed on IDEAS

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    Cited by:

    1. Ferreira, J.B. De Souza Filho & De Faria, V. Guidotti & Guedes Pinto, L.F. & Sparovek, G., 2018. "Economic and Social Impacts of Deforestation reduction in Brazil," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277084, International Association of Agricultural Economists.
    2. Ferreira-Filho, Joaquim Bento & Pinto, Luis Fernando Guedes & Faria, Vinicius Guidotti & Sparovek, Guerd, 2018. "Environmental and Welfare Impacts of Deforestation Reduction in Brazil," Conference papers 332925, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

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