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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:

    1. Neal, Timothy, 2024. "Estimating the effectiveness of forest protection using regression discontinuity," Journal of Environmental Economics and Management, Elsevier, vol. 127(C).
    2. Reynaert, Mathias & Souza-Rodrigues, Eduardo & van Benthem, Arthur A., 2024. "The environmental impacts of protected area policy," Regional Science and Urban Economics, Elsevier, vol. 107(C).
    3. 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.
    4. repec:osf:socarx:8yfr7_v1 is not listed on IDEAS
    5. Wei Wang & Yanan She & Yue Peng & Yunqiang Liu, 2025. "Unleashing green technology innovation in agribusiness: traditional environmental regulations, carbon trading, or synergies?," Palgrave Communications, Palgrave Macmillan, vol. 12(1), pages 1-14, December.
    6. Cisneros, Elías & Kis-Katos, Krisztina, 2024. "Unintended environmental consequences of anti-corruption strategies," Journal of Environmental Economics and Management, Elsevier, vol. 128(C).
    7. 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.
    8. Karpavicius, Luiza & Chimeli, Ariaster, 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).
    9. Araujo, Rafael, 2024. "The value of tropical forests to hydropower," Energy Economics, Elsevier, vol. 129(C).
    10. Merkus, Erik, 2024. "The economic consequences of environmental enforcement: Evidence from an anti-deforestation policy in Brazil," World Development, Elsevier, vol. 181(C).
    11. Klaus W. Deininger & Thea Hilhorst & Zevenbergen,Jaap & Nkurunziza,Emmanuel, 2025. "Capitalizing on Digital Transformation to Enhance the Effectiveness of Property Institutions : Conceptual Background and Evidence from 85 Countries," Policy Research Working Paper Series 11100, The World Bank.
    12. Leila Pereira & Rafael Pucci, 2024. "A Tale of Gold and Blood: The Consequences of Market Deregulation on Local Violence," Working Papers, Department of Economics 2024_18, University of São Paulo (FEA-USP).

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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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