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Fire, Tractors, and Health in the Amazon: A Cost-Benefit Analysis of Fire Policy

Author

Listed:
  • Thiago Morello
  • Simone Martino
  • Alejandro F. Duarte
  • Liana Anderson
  • Katrina J. Davis
  • Sonaira Silva
  • Ian J. Bateman

Abstract

Pollution from agricultural fires is a global health issue that is particularly challenging where smallholders depend on burnings for subsistence. In Acre state, Western Amazon, a partial ban on fire, enforced with fines, is coupled with subsidized tractors. To evaluate this policy, a discrete choice experiment and contingent valuation were merged into a novel statistical variant of the Hicks-Kaldor test that is robust to preference heterogeneity. Among 27 ways to extend the ban, 5 could improve both respiratory health and smallholders’ welfare, when compensated with tractors that are available for longer hours and at the right time of the year.

Suggested Citation

  • Thiago Morello & Simone Martino & Alejandro F. Duarte & Liana Anderson & Katrina J. Davis & Sonaira Silva & Ian J. Bateman, 2019. "Fire, Tractors, and Health in the Amazon: A Cost-Benefit Analysis of Fire Policy," Land Economics, University of Wisconsin Press, vol. 95(3), pages 409-434.
  • Handle: RePEc:uwp:landec:v:95:y:2019:i:3:p:409-434
    Note: DOI: 10.3368/le.95.3.409
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    File URL: http://le.uwpress.org/cgi/reprint/95/3/409
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    More about this item

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects

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