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Legal Reserve Requirements In Brazilian Forests: Path Dependent Evolution Of De Facto Legislation

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  • Bernardo Mueller
  • Lee J. Alston

Abstract

Why would a poor and largely pro-developmental country such as Brazil, that has so much of its territory covered in forest, adopt one of the most restrictive land use requirements in the world when it comes to cutting the forest to give way to other economic uses? We describe the evolution of legal reserve legislation in Brazil, which currently requires that 20% of the area in a property (80% in the Amazon) be left in forest or its native vegetation. This legislation was put into place in 1934 with the objective of assuring the supply of wood for fuel. Over time this objective has become irrelevant, but the legislation remained in place, though non-constraining, until the late 1980s when growing environmental concerns led to increasing levels of enforcement. We show how the path dependent nature of the legislation interacted with the changing de facto impact of the law to create a situation where environmental interests were able to ratchet up changes in the laws that could never have been achieved if the point of departure had been the complete absence of legislation.
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Suggested Citation

  • Bernardo Mueller & Lee J. Alston, 2007. "Legal Reserve Requirements In Brazilian Forests: Path Dependent Evolution Of De Facto Legislation," Anais do XXXV Encontro Nacional de Economia [Proceedings of the 35th Brazilian Economics Meeting] 147, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  • Handle: RePEc:anp:en2007:147
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    File URL: http://www.anpec.org.br/encontro2007/artigos/A07A147.pdf
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    References listed on IDEAS

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    1. Lee J. Alston & Marcus André Melo & Bernardo Mueller & Carlos Pereira, 2006. "Political Institutions, Policymaking Processes and Policy Outcomes in Brazil," IDB Publications (Working Papers) 3365, Inter-American Development Bank.
    2. Robert T. Deacon & Catherine S. Norman, 2006. "Does the Environmental Kuznets Curve Describe How Individual Countries Behave?," Land Economics, University of Wisconsin Press, vol. 82(2), pages 291-315.
    3. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 407-443.
    4. Lee J. Alston & Bernardo Mueller, 2006. "Pork for Policy: Executive and Legislative Exchange in Brazil," Journal of Law, Economics, and Organization, Oxford University Press, vol. 22(1), pages 87-114, April.
    5. Arik Levinson, 2001. "The Ups and Downs of the Environmental Kuznets Curve," Working Papers gueconwpa~01-01-08, Georgetown University, Department of Economics.
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    Cited by:

    1. Uhr, Daniel & Ziero Uhr, Júlia & Mueller, Bernardo, 2012. "Como as ONGs ambientais influenciam a política ambiental brasileira?," Revista Brasileira de Economia - RBE, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil), vol. 66(1), March.
    2. Luca Corato & Michele Moretto & Sergio Vergalli, 2013. "Land conversion pace under uncertainty and irreversibility: too fast or too slow?," Journal of Economics, Springer, vol. 110(1), pages 45-82, September.
    3. Pacheco, Pablo, 2009. "Agrarian Reform in the Brazilian Amazon: Its Implications for Land Distribution and Deforestation," World Development, Elsevier, vol. 37(8), pages 1337-1347, August.
    4. Bernardo Mueller, 2011. "The Fiscal Imperativeand the Role of Public Prosecutors in Brazilian Environmental Policy," Anais do XXXVII Encontro Nacional de Economia [Proceedings of the 37th Brazilian Economics Meeting] 184, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
    5. Ulybina, Olga, 2014. "Russian forests: The path of reform," Forest Policy and Economics, Elsevier, vol. 38(C), pages 143-150.
    6. repec:eee:touman:v:61:y:2017:i:c:p:161-172 is not listed on IDEAS
    7. Pascale COMBES MOTEL & Jean-Louis COMBES & Catherine ARAUJO BONJEAN & Claudio ARAUJO & Eustaquio J. REIS, 2010. "Does Land Tenure Insecurity Drive Deforestation in the Brazilian Amazon?," Working Papers 201013, CERDI.
    8. repec:fgv:epgrbe:v:66:n:1:a:4 is not listed on IDEAS

    More about this item

    JEL classification:

    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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