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The implementation costs of forest conservation policies in Brazil


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


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.

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  • 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

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    References listed on IDEAS

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    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. 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.
    4. 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).
    5. 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.
    6. 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.


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