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Illicit exploitation of natural resources: The forest concessions in Brazil

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  • Banerjee, Onil
  • Alavalapati, Janaki

Abstract

The Brazilian forest sector has undergone crisis with complexities involved in investment in an insecure political environment, a regime of ambiguous property rights, forest sector illegality and enormous pressure for agricultural expansion. To address these challenges, Brazil's Public Forest Management Law was approved in 2006 enabling private forest management on public forestland. Assessing the policy in a dynamic computable general equilibrium framework, we find that household welfare improves and legal forestry grows faster. In the absence of improved monitoring and enforcement, however, forest concessions are shown to have a depressing effect on the price of forestland and accelerate illegal forestry operations.

Suggested Citation

  • Banerjee, Onil & Alavalapati, Janaki, 2010. "Illicit exploitation of natural resources: The forest concessions in Brazil," Journal of Policy Modeling, Elsevier, vol. 32(4), pages 488-504, July.
    • Handle: RePEc:eee:jpolmo:v:32:y::i:4:p:488-504
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    References listed on IDEAS

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    Cited by:

    1. Onil Banerjee & Martin Cicowiez & Mark Horridge & Renato Vargas, 2016. "A Conceptual Framework for Integrated Economic-Environmental Modelling," CEDLAS, Working Papers 0202, CEDLAS, Universidad Nacional de La Plata.
    2. Jessica Coria & Thomas Sterner, 2011. "Natural Resource Management: Challenges and Policy Options," Annual Review of Resource Economics, Annual Reviews, vol. 3(1), pages 203-230, October.
    3. Onil Banerjee & Martin Cicowiez & Marcia Macedo & Žiga Malek & Peter Verburg & Sean Goodwin & Renato Vargas & Ludmila Rattis & Paulo M. Brando & Michael T. Coe & Christopher Neill & Octavio Damiani, 2020. "An Amazon Tipping Point: The Economic and Environmental Fallout," CEDLAS, Working Papers 0292, CEDLAS, Universidad Nacional de La Plata.
    4. Sena, Kenton & Ochuodho, Thomas O. & Agyeman, Domena A. & Contreras, Marco & Niman, Chad & Eaton, Dan & Yang, Jian, 2022. "Wood bioenergy for rural energy resilience: Suitable site selection and potential economic impacts in Appalachian Kentucky," Forest Policy and Economics, Elsevier, vol. 145(C).
    5. Damania, Richard & Scandizzo, Pasquale Lucio, 2017. "The Serengeti ecosystem—Burden or bounty?," Journal of Policy Modeling, Elsevier, vol. 39(2), pages 185-205.
    6. Banerjee, Onil & Alavalapati, Janaki R.R. & Lima, Eirivelthon, 2016. "A framework for ex-ante analysis of public investment in forest-based development: An application to the Brazilian Amazon," Forest Policy and Economics, Elsevier, vol. 73(C), pages 204-214.

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