Protecting Brazil's tropical forest: a CGE analysis of macroeconomic, sectoral, and regional policies
AbstractThe 'deforestation problem' in Brazil consists of a variety of interrelated issues, of which this paper identifies a regional, sectoral and macroeconomic dimension. Using a regionally and sectorally disaggregated general equilibrium model of Brazil, it is shown that macroeconomic reform is complementary to conservation policies. Therefore, if not for other reasons, macroeconomic reform is urgently needed to provide an adequate framework for microeconomic conservation policies to be effective. The analysis also shows that regional land taxes in the Amazon outperform the reduction of fiscal incentives for agriculture, both with regards to ecological effectiveness and efficiency. Finally, the results do not support claims for compensation payments.
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Bibliographic InfoPaper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 638.
Date of creation: 1994
Date of revision:
deforestation; public policy; general equilibrium analysis; Brazil;
Find related papers by JEL classification:
- Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
- Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
- C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
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