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Regional economic impacts of greenhouse gas emission mitigation policies in Brazilian agriculture: the role of the degraded paste recovery program

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  • Souza, Gessica
  • Domingues, Edson
  • Magalhaes, Aline

Abstract

This paper estimates the regional economic impacts of a Brazilian public policy aimed at mitigating greenhouse gases on agriculture. More specifically the Degraded Pasture Recovery Program (RPD) of the ABC Plan during the period from 2015 to 2018 and the projected period (2019 to 2025). A computable general equilibrium (EGC) model is constructed and regionalized especially for this simulation, in order to differentiate geographical spaces according to their geomorphological, climatic and pedological characteristics. Results indicate different impacts between regions and sectors. The greater the representativeness of the ABC plan financing in relation to the value of production in the livestock sectors, the greater the accumulated decrease of the region's GDP. The policy is essential for the economic growth of regions that do not necessarily have large livestock production but have a high ratio between production and value financed by the program. In addition, the impact on production goes beyond the livestock sectors and may interfere with the production of a range of sectors that are important to the economy, both agriculturally and industrially. Keywords: mitigation policy; environmental; degraded pasture; computable general equilibrium model

Suggested Citation

  • Souza, Gessica & Domingues, Edson & Magalhaes, Aline, 2020. "Regional economic impacts of greenhouse gas emission mitigation policies in Brazilian agriculture: the role of the degraded paste recovery program," Conference papers 333142, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:333142
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    File URL: https://ageconsearch.umn.edu/record/333142/files/9784.pdf
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    References listed on IDEAS

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    1. Dixon, Peter B. & Koopman, Robert B. & Rimmer, Maureen T., 2013. "The MONASH Style of Computable General Equilibrium Modeling: A Framework for Practical Policy Analysis," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 23-103, Elsevier.
    2. Lucas Resende de Carvalho & Admir Antonio Betarelli Junior & Pedro Vasconcelos Maia do Amaral & Edson Paulo Domingues, 2016. "Matrizes de distâncias entre os distritos municipais no Brasil: um procedimento metodológico," Textos para Discussão Cedeplar-UFMG 532, Cedeplar, Universidade Federal de Minas Gerais.
    3. Horridge, Mark & Madden, John & Wittwer, Glyn, 2005. "The impact of the 2002-2003 drought on Australia," Journal of Policy Modeling, Elsevier, vol. 27(3), pages 285-308, April.
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