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DETER-ing Deforestation in the Amazon: Environmental Monitoring and Law Enforcement

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  • Juliano Assunção
  • Clarissa Gandour
  • Romero Rocha

Abstract

We study Brazil's recent use of satellite technology to overcome law enforcement shortcomings resulting from weak institutional environments. DETER is a system that processes satellite imagery and issues near-real-time deforestation alerts to target environmental enforcement in the Amazon. We propose a novel instrumental variable approach for estimating enforcement's impact on deforestation. Clouds limiting DETER's capacity to detect clearings serve as a source of exogenous variation for the presence of environmental authorities. Findings indicate that monitoring and enforcement effectively curb deforestation. Results hold across several robustness checks.

Suggested Citation

  • Juliano Assunção & Clarissa Gandour & Romero Rocha, 2023. "DETER-ing Deforestation in the Amazon: Environmental Monitoring and Law Enforcement," American Economic Journal: Applied Economics, American Economic Association, vol. 15(2), pages 125-156, April.
    • Handle: RePEc:aea:aejapp:v:15:y:2023:i:2:p:125-56
    DOI: 10.1257/app.20200196
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    References listed on IDEAS

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    1. Assunção, Juliano & Gandour, Clarissa & Rocha, Rudi, 2015. "Deforestation slowdown in the Brazilian Amazon: prices or policies?," Environment and Development Economics, Cambridge University Press, vol. 20(6), pages 697-722, December.
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    Cited by:

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    4. Araujo, Rafael, 2024. "The value of tropical forests to hydropower," Energy Economics, Elsevier, vol. 129(C).
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    6. Merkus, Erik, 2024. "The economic consequences of environmental enforcement: Evidence from an anti-deforestation policy in Brazil," World Development, Elsevier, vol. 181(C).
    7. Alexander Alexandrovich Golub & Marek Hanusch & Bardal,Diogo & Bruce Ian Keith & Daniel Navia Simon & Cornelius Fleischhaker, 2025. "Innovative Financial Instruments and Their Role in the Development of Jurisdictional REDD+," Policy Research Working Paper Series 11114, The World Bank.
    8. Luiza M Karpavicius & Ariaster Chimeli, 2023. "Forest Protection and Human Health: The Case of Malaria in the Brazilian Amazon," Working Papers, Department of Economics 2023_08, University of São Paulo (FEA-USP), revised 26 Jul 2023.
    9. Tillaguango, Brayan & Alvarado, Rafael & Ahmad, Munir & Rehman, Abdul & Işık, Cem & Chamba, José, 2025. "Impact of agricultural employment, gross domestic product, informal economy, institutional quality on forest cover in Ecuador," Forest Policy and Economics, Elsevier, vol. 174(C).
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    12. Wang,Dieter & O'Reilly Gurhy,Bryan & Hanusch,Marek & Kollenda,Philipp, 2023. "Could Sustainability-Linked Bonds Incentivize Lower Deforestation in Brazil’s Legal Amazon ?," Policy Research Working Paper Series 10558, The World Bank.
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    15. Luiza Karpavicius & Ariaster Chimeli, 2023. "Forest Protection and Human Health: The Case of Malaria in the Brazilian Amazon," TD NEREUS 6-2023, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
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    More about this item

    JEL classification:

    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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