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Protecting Brazil's tropical forest: a CGE analysis of macroeconomic, sectoral, and regional policies

  • Wiebelt, Manfred

The 'deforestation problem' in Brazil consists of a variety of interrelated issues, of which this paper identifies a regional, sectoral and macroeconomic dimension. Using a regionally and sectorally disaggregated general equilibrium model of Brazil, it is shown that macroeconomic reform is complementary to conservation policies. Therefore, if not for other reasons, macroeconomic reform is urgently needed to provide an adequate framework for microeconomic conservation policies to be effective. The analysis also shows that regional land taxes in the Amazon outperform the reduction of fiscal incentives for agriculture, both with regards to ecological effectiveness and efficiency. Finally, the results do not support claims for compensation payments.

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File URL: http://econstor.eu/bitstream/10419/667/1/043472680.pdf
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Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 638.

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Date of creation: 1994
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Handle: RePEc:kie:kieliw:638
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  1. Rainer Thiele & Manfred Wiebelt, 1993. "National and international policies for tropical rain forest conservation—A quantitative analysis for Cameroon," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 3(6), pages 501-531, December.
  2. Funke, Norbert & Nunnenkamp, Peter & Schweickert, Rainer, 1992. "Brazil: Another lost decade? Domestic policies and attractiveness for foreign capital," Kiel Discussion Papers 188, Kiel Institute for the World Economy (IfW).
  3. Motta, Ronaldo Serôa da, 1993. "Past and current policy issues concerning tropical deforestation in Brazil," Kiel Working Papers 566, Kiel Institute for the World Economy.
  4. Binswanger, Hans P., 1991. "Brazilian policies that encourage deforestation in the Amazon," World Development, Elsevier, vol. 19(7), pages 821-829, July.
  5. Thiele, Rainer, 1994. "Conserving tropical rain forests in Indonesia: a CGE analysis of alternative policies," Kiel Working Papers 621, Kiel Institute for the World Economy.
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