IDEAS home Printed from https://ideas.repec.org/a/eee/ecolec/v130y2016icp209-220.html
   My bibliography  Save this article

The implementation costs of forest conservation policies in Brazil

Author

Listed:
  • Cunha, Felipe Arias Fogliano de Souza
  • Börner, Jan
  • Wunder, Sven
  • Cosenza, Carlos Alberto Nunes
  • Lucena, André F.P.

Abstract

Tropical forest conservation is considered a low-cost option for climate change mitigation. But mitigation cost assessments have featured opportunity costs, neglecting policy implementation costs. Here we use official data to identify the Brazilian federal government's operational and institutional budgets related to forest conservation policies implemented from 2000 to 2014. We distinguish the allocated and executed budgets of these policies, and provide scenario-based estimates of their cost-effectiveness. On average, Brazil spent US$ 1billion/year on forest conservation policies at the federal level. Brazil's substantial reduction in annual forest loss after 2004 was accompanied by a higher operational budget execution of disincentive-based policy instruments, and an absolute increase in both allocated and executed institutional budgets. The post-2004 successful mitigation effort represented additional implementation costs to the Brazilian federal government of US$ 308–923/ha of avoided deforestation, or US$ 0.87–2.60/tCO2 of avoided emissions. Factoring in also approximate municipal and state expenditures, these costs increase to US$ 385–1153/ha or US$ 1.09–3.25/tCO2. We conclude that implementations costs are non-trivial in size, including compared to estimates of land users' opportunity costs. This has important implications for REDD+ policy design, in the sense that implementation costs need to be adequately considered.

Suggested Citation

  • Cunha, Felipe Arias Fogliano de Souza & Börner, Jan & Wunder, Sven & Cosenza, Carlos Alberto Nunes & Lucena, André F.P., 2016. "The implementation costs of forest conservation policies in Brazil," Ecological Economics, Elsevier, vol. 130(C), pages 209-220.
  • Handle: RePEc:eee:ecolec:v:130:y:2016:i:c:p:209-220
    DOI: 10.1016/j.ecolecon.2016.07.007
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0921800915301270
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ecolecon.2016.07.007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Dang Phan, Thu-Ha & Brouwer, Roy & Davidson, Marc, 2014. "The economic costs of avoided deforestation in the developing world: A meta-analysis," Journal of Forest Economics, Elsevier, vol. 20(1), pages 1-16.
    2. Riera, Pere & Aranda, Leticia & Mavsar, Robert, 2007. "Efficiency and equity of forest policies: A graphic analysis using the partial equilibrium framework," Forest Policy and Economics, Elsevier, vol. 9(7), pages 852-861, April.
    3. McDermott, Constance L. & Irland, Lloyd C. & Pacheco, Pablo, 2015. "Forest certification and legality initiatives in the Brazilian Amazon: Lessons for effective and equitable forest governance," Forest Policy and Economics, Elsevier, vol. 50(C), pages 134-142.
    4. Pinto, Luís Fernando Guedes & Gardner, Toby & McDermott, Constance L. & Ayub, Karim Omar Lara, 2014. "Group certification supports an increase in the diversity of sustainable agriculture network–rainforest alliance certified coffee producers in Brazil," Ecological Economics, Elsevier, vol. 107(C), pages 59-64.
    5. L'Roe, Jessica & Naughton-Treves, Lisa, 2014. "Effects of a policy-induced income shock on forest-dependent households in the Peruvian Amazon," Ecological Economics, Elsevier, vol. 97(C), pages 1-9.
    6. Jorge Hargrave & Krisztina Kis-Katos, 2013. "Economic Causes of Deforestation in the Brazilian Amazon: A Panel Data Analysis for the 2000s," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 54(4), pages 471-494, April.
    7. Fabian Kesicki & Paul Ekins, 2012. "Marginal abatement cost curves: a call for caution," Climate Policy, Taylor & Francis Journals, vol. 12(2), pages 219-236, March.
    8. Cacho, Oscar J. & Milne, Sarah & Gonzalez, Ricardo & Tacconi, Luca, 2014. "Benefits and costs of deforestation by smallholders: Implications for forest conservation and climate policy," Ecological Economics, Elsevier, vol. 107(C), pages 321-332.
    9. V. Bellassen & V. Gitz, 2008. "Reducing Emissions from Deforestation and Degradation in Cameroon - Assessing costs and benefits," Post-Print hal-00716370, HAL.
    10. Börner, Jan & Wunder, Sven & Wertz-Kanounnikoff, Sheila & Tito, Marcos Rügnitz & Pereira, Ligia & Nascimento, Nathalia, 2010. "Direct conservation payments in the Brazilian Amazon: Scope and equity implications," Ecological Economics, Elsevier, vol. 69(6), pages 1272-1282, April.
    11. 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.
    12. Bellassen, Valentin & Gitz, Vincent, 2008. "Reducing Emissions from Deforestation and Degradation in Cameroon -- Assessing costs and benefits," Ecological Economics, Elsevier, vol. 68(1-2), pages 336-344, December.
    13. Pagiola, Stefano & Bosquet, Benoit, 2009. "Estimating the costs of REDD at the country level," MPRA Paper 13726, University Library of Munich, Germany.
    14. Barua, Sepul K. & Uusivuori, Jussi & Kuuluvainen, Jari, 2012. "Impacts of carbon-based policy instruments and taxes on tropical deforestation," Ecological Economics, Elsevier, vol. 73(C), pages 211-219.
    15. Irawan, Silvia & Tacconi, Luca & Ring, Irene, 2013. "Stakeholders' incentives for land-use change and REDD+: The case of Indonesia," Ecological Economics, Elsevier, vol. 87(C), pages 75-83.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. van der Hoff, Richard & Rajão, Raoni, 2020. "The politics of environmental market instruments: Coalition building and knowledge filtering in the regulation of forest certificates trading in Brazil," Land Use Policy, Elsevier, vol. 96(C).
    2. Augustynczik, Andrey Lessa Derci & Yousefpour, Rasoul & Rodriguez, Luiz Carlos Estraviz & Hanewinkel, Marc, 2018. "Conservation Costs of Retention Forestry and Optimal Habitat Network Selection in Southwestern Germany," Ecological Economics, Elsevier, vol. 148(C), pages 92-102.
    3. Cunha, Felipe Arias Fogliano de Souza & Meira, Erick & Orsato, Renato J. & Klotzle, Marcelo Cabus & Lucena, André F.P., 2021. "Do low-carbon investments in emerging economies pay off? Evidence from the Brazilian stock market," International Review of Financial Analysis, Elsevier, vol. 74(C).
    4. Fergusson, Leopoldo & Saavedra, Santiago & Vargas, Juan F., 2020. "The perils of misusing remote sensing data: The case of forest cover," Working papers 41, Red Investigadores de Economía.
    5. Correa, Juliano & Cisneros, Elías & Börner, Jan & Pfaff, Alexander & Costa, Marcelo & Rajão, Raoni, 2020. "Evaluating REDD+ at subnational level: Amazon fund impacts in Alta Floresta, Brazil," Forest Policy and Economics, Elsevier, vol. 116(C).
    6. Thaís Pacheco Kasecker & Mario Barroso Ramos-Neto & Jose Maria Cardoso Silva & Fabio Rubio Scarano, 2018. "Ecosystem-based adaptation to climate change: defining hotspot municipalities for policy design and implementation in Brazil," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 23(6), pages 981-993, August.
    7. Tacconi, Luca & Rodrigues, Rafael J. & Maryudi, Ahmad, 2019. "Law enforcement and deforestation: Lessons for Indonesia from Brazil," Forest Policy and Economics, Elsevier, vol. 108(C), pages 1-1.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yang, Hongqiang & Li, Xi, 2018. "Potential variation in opportunity cost estimates for REDD+ and its causes," Forest Policy and Economics, Elsevier, vol. 95(C), pages 138-146.
    2. Patrick Bottazzi & David Crespo & Harry Soria & Hy Dao & Marcelo Serrudo & Jean Paul Benavides & Stefan Schwarzer & Stephan Rist, 2014. "Carbon Sequestration in Community Forests: Trade-offs, Multiple Outcomes and Institutional Diversity in the Bolivian Amazon," Development and Change, International Institute of Social Studies, vol. 45(1), pages 105-131, January.
    3. Rakatama, Ari & Pandit, Ram & Ma, Chunbo & Iftekhar, Sayed, 2017. "The costs and benefits of REDD+: A review of the literature," Forest Policy and Economics, Elsevier, vol. 75(C), pages 103-111.
    4. Neudert, Regina & Olschofsky, Konstantin & Kübler, Daniel & Prill, Laura & Köhl, Michael & Wätzold, Frank, 2018. "Opportunity costs of conserving a dry tropical forest under REDD+: The case of the spiny dry forest in southwestern Madagascar," Forest Policy and Economics, Elsevier, vol. 95(C), pages 102-114.
    5. Bottazzi, Patrick & Cattaneo, Andrea & Rocha, David Crespo & Rist, Stephan, 2013. "Assessing sustainable forest management under REDD+: A community-based labour perspective," Ecological Economics, Elsevier, vol. 93(C), pages 94-103.
    6. West, Thales A.P. & Grogan, Kelly A. & Swisher, Marilyn E. & Caviglia-Harris, Jill L. & Sills, Erin O. & Roberts, Dar A. & Harris, Daniel & Putz, Francis E., 2018. "Impacts of REDD+ payments on a coupled human-natural system in Amazonia," Ecosystem Services, Elsevier, vol. 33(PA), pages 68-76.
    7. Westholm, Lisa & Henders, Sabine & Ostwald, Madelene & Mattsson, Eskil, 2009. "Assessment of existing global financial initiatives and monitoring aspects of carbon sinks in forest ecosystems – The issue of REDD," Working Papers in Economics 373, University of Gothenburg, Department of Economics.
    8. Duchelle, Amy E. & Cromberg, Marina & Gebara, Maria Fernanda & Guerra, Raissa & Melo, Tadeu & Larson, Anne & Cronkleton, Peter & Börner, Jan & Sills, Erin & Wunder, Sven & Bauch, Simone & May, Peter &, 2014. "Linking Forest Tenure Reform, Environmental Compliance, and Incentives: Lessons from REDD+ Initiatives in the Brazilian Amazon," World Development, Elsevier, vol. 55(C), pages 53-67.
    9. Anderson, Blake & M'Gonigle, Michael, 2012. "Does ecological economics have a future?," Ecological Economics, Elsevier, vol. 84(C), pages 37-48.
    10. Rossi, Vivien & Claeys, Florian & Bastin, Didier & Gourlet-Fleury, Sylvie & Guizol, Philippe & Eba’a-Atyi, Richard & Sonwa, Denis J. & Lescuyer, Guillaume & Picard, Nicolas, 2017. "Could REDD+ mechanisms induce logging companies to reduce forest degradation in Central Africa?," Journal of Forest Economics, Elsevier, vol. 29(PB), pages 107-117.
    11. Philip Fearnside & Adriano Figueiredo & Sandra Bonjour, 2013. "Amazonian forest loss and the long reach of China’s influence," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 15(2), pages 325-338, April.
    12. Heli Lu & Guifang Liu, 2012. "A case study of REDD+ challenges in the post‐2012 climate regime: The scenarios approach," Natural Resources Forum, Blackwell Publishing, vol. 36(3), pages 192-201, August.
    13. Assunção, Juliano & Rocha, Romero, 2019. "Getting greener by going black: the effect of blacklisting municipalities on Amazon deforestation," Environment and Development Economics, Cambridge University Press, vol. 24(2), pages 115-137, April.
    14. Luiza Andrade & André Luis Squarize Chagas, 2016. "Spillover effects of blacklisting policy in the Brazilian Amazon," Working Papers, Department of Economics 2016_32, University of São Paulo (FEA-USP).
    15. Cacho, Oscar J. & Milne, Sarah & Gonzalez, Ricardo & Tacconi, Luca, 2014. "Benefits and costs of deforestation by smallholders: Implications for forest conservation and climate policy," Ecological Economics, Elsevier, vol. 107(C), pages 321-332.
    16. West, Thales A.P. & Fearnside, Philip M., 2021. "Brazil’s conservation reform and the reduction of deforestation in Amazonia," Land Use Policy, Elsevier, vol. 100(C).
    17. Bowman, Maria S., 2016. "Impact of foot-and-mouth disease status on deforestation in Brazilian Amazon and cerrado municipalities between 2000 and 2010," Journal of Environmental Economics and Management, Elsevier, vol. 75(C), pages 25-40.
    18. Romero Rocha & Juliano Assunção & Clarissa Gandou, 2014. "Amazon Monitoring And Deforestation Slowdown: The Priority Municipalities," Anais do XLI Encontro Nacional de Economia [Proceedings of the 41st Brazilian Economics Meeting] 197, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    19. Mann, Michael L. & Kaufmann, Robert K. & Bauer, Dana Marie & Gopal, Sucharita & Nomack, Mallory & Womack, Jesse Y. & Sullivan, Kerry & Soares-Filho, Britaldo S., 2014. "Pasture conversion and competitive cattle rents in the Amazon," Ecological Economics, Elsevier, vol. 97(C), pages 182-190.
    20. Acosta, Montserrat & Sohngen, Brent, 2009. "How big is leakage from forestry carbon credits? Estimates from a Global Model," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49468, Agricultural and Applied Economics Association.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:130:y:2016:i:c:p:209-220. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.elsevier.com/locate/ecolecon .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolecon .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.