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The Evolution of Reforestation in Brazil


  • Carlos Jose Caetano Bacha


This paper analyses the evolution of reforestation in Brazil and evaluates the federal government's previous programmes to stimulate that activity, focusing on the discontinued Programme of Fiscal Incentives for Afforestation and Reforestation (PIFFR). Despite the great increase in reforested area in Brazil since the 1970s, the country will suffer a scarcity of roundwood from reforested areas over the first decade of the 21st Century. In the 1960s, 1970s and 1980s, the Brazilian federal government supported programmes to foster reforestation; however, no stimulus programmes were implemented in the 1990s when roundwood demand increased and production stagnated. Today, the government recognizes the need to stimulate reforestation. The PIFFR, the most important of those earlier programmes, is evaluated using a traditional cost-benefit approach. The evaluation shows that a reinstatement of this programme would now be inappropriate. The conclusion suggests a direction for new federal policies that seek to foster the enlargement of reforestation in segments where the price mechanism has not worked well.

Suggested Citation

  • Carlos Jose Caetano Bacha, 2006. "The Evolution of Reforestation in Brazil," Oxford Development Studies, Taylor & Francis Journals, vol. 34(2), pages 243-263.
  • Handle: RePEc:taf:oxdevs:v:34:y:2006:i:2:p:243-263 DOI: 10.1080/13600810600705189

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    References listed on IDEAS

    1. Werner Baer & Pedro Elosegui & Andres Gallo, 2002. "The Achievements and Failures of Argentina's Neo-liberal Economic Policies," Oxford Development Studies, Taylor & Francis Journals, vol. 30(1), pages 63-85.
    2. Luiz Fernando R. De Paula & Antonio José Alves, 2000. "External Financial Fragility and the 1998-1999 Brazilian Currency Crisis," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 22(4), pages 589-617, July.
    3. Lee Alston & Andres Gallo, 2002. "The Political Economy of Bank Reform in Argentina Under Convertibility," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 5(1), pages 1-16.
    4. A. Liasko, 1999. "The Economic Crisis and Its Consequences for the Budget System of the Russian Regions," Problems of Economic Transition, Taylor & Francis Journals, vol. 42(7), pages 6-22.
    5. Masahiro Kawai, 1998. "The East Asian Currency Crisis: Causes And Lessons," Contemporary Economic Policy, Western Economic Association International, vol. 16(2), pages 157-172, April.
    6. Shalendra Sharma, 2001. "The Missed Lessons of the Mexican Peso Crisis," Challenge, Taylor & Francis Journals, vol. 44(1), pages 56-89.
    7. Steven Radelet & Jeffrey D. Sachs, 1998. "The East Asian Financial Crisis: Diagnosis, Remedies, Prospects," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 29(1), pages 1-90.
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