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Illicit exploitation of natural resources: The forest concessions in Brazil


  • Banerjee, Onil
  • Alavalapati, Janaki


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

    1. Fortin, Bernard & Marceau, Nicolas & Savard, Luc, 1997. "Taxation, wage controls and the informal sector," Journal of Public Economics, Elsevier, vol. 66(2), pages 293-312, November.
    2. Gibson, Bill, 2005. "The transition to a globalized economy: Poverty, human capital and the informal sector in a structuralist CGE model," Journal of Development Economics, Elsevier, vol. 78(1), pages 60-94, October.
    3. Kelley, Bruce, 1994. "The informal sector and the macroeconomy: A computable general equilibrium approach for Peru," World Development, Elsevier, vol. 22(9), pages 1393-1411, September.
    4. Gutierrez-Velez, Victor Hugo & MacDicken, Kenneth, 2008. "Quantifying the direct social and governmental costs of illegal logging in the Bolivian, Brazilian, and Peruvian Amazon," Forest Policy and Economics, Elsevier, vol. 10(4), pages 248-256, February.
    5. Lucilene Morandi & Eustáquio J. Reis, 2004. "Estoque De Capital Fixo No Brasil, 1950-2002," Anais do XXXII Encontro Nacional de Economia [Proceedings of the 32th Brazilian Economics Meeting] 042, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
    6. Cattaneo, Andrea, 2002. "Balancing agricultural development and deforestation in the Brazilian Amazon:," Research reports 129, International Food Policy Research Institute (IFPRI).
    7. Bandara, Jayatilleke S, 1991. " Computable General Equilibrium Models for Development Policy Analysis in LDCs," Journal of Economic Surveys, Wiley Blackwell, vol. 5(1), pages 3-69.
    8. Beutre, Benjamin & Rodriguez, Gil & Pant, Hom M., 2003. "Data issues in general equilibrium modelling," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57838, Australian Agricultural and Resource Economics Society.
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    Cited by:

    1. 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.
    2. repec:eee:jpolmo:v:39:y:2017:i:2:p:185-205 is not listed on IDEAS
    3. 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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