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Economic Causes of Deforestation in the Brazil Amazon: A Panel Data Analysis for the 2000s


  • Jorge Hargrave
  • Krisztina Kis-Katos

    () (Department of International Economic Policy, University of Freiburg)


We use under-explored municipality level datasets to assess the recent economic and policy determinants of deforestation in the Brazilian Amazon. We estimate yearly panel data models (from 2002 to 2009) for 457 municipalities in the region. The results show that recent deforestation is related to economic incentives, and especially to fluctuations in product (meat and soybean) prices. Moreover, we document that the increasing monitoring efforts of the Brazilian environmental police (IBAMA) were effective in reducing deforestation rates.

Suggested Citation

  • Jorge Hargrave & Krisztina Kis-Katos, 2011. "Economic Causes of Deforestation in the Brazil Amazon: A Panel Data Analysis for the 2000s," Discussion Paper Series 17, Department of International Economic Policy, University of Freiburg, revised Nov 2011.
  • Handle: RePEc:fre:wpaper:17

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    More about this item


    Brazil; Amazon; deforestation;

    JEL classification:

    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth


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