IDEAS home Printed from https://ideas.repec.org/p/osf/socarx/v9sm7_v1.html

Drying the Wetland: Water Scarcity in the Brazilian Pantanal

Author

Listed:
  • Hector, Vinícius
  • Araujo, Rafael
  • Costa, Francisco J M

    (FGV EPGE Brazilian School of Economics and Finance)

Abstract

This paper examines the impact of upstream deforestation on water coverage and burned area in wetlands. Using a panel dataset of satellite-derived land cover for multiple hydrographic basins, we analyze this relationship in the Brazilian Pantanal from 1985 to 2023. We find that a 1% increase in upstream deforestation reduces water coverage by 0.51% and increases burned area by 0.55% per year. The effect of upstream deforestation on downstream burned area generates an emissions multiplier, as carbon released through deforestation is compounded by emissions from downstream burned area. On average, for each ton of carbon emitted due to deforestation, an additional 0.14 tons are released through downstream fire.

Suggested Citation

  • Hector, Vinícius & Araujo, Rafael & Costa, Francisco J M, 2026. "Drying the Wetland: Water Scarcity in the Brazilian Pantanal," SocArXiv v9sm7_v1, Center for Open Science.
  • Handle: RePEc:osf:socarx:v9sm7_v1
    DOI: 10.31219/osf.io/v9sm7_v1
    as

    Download full text from publisher

    File URL: https://osf.io/download/69c31baea3c7a3bc11927c8d/
    Download Restriction: no

    File URL: https://libkey.io/10.31219/osf.io/v9sm7_v1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ghislain B D Aihounton & Arne Henningsen, 2021. "Units of measurement and the inverse hyperbolic sine transformation," The Econometrics Journal, Royal Economic Society, vol. 24(2), pages 334-351.
    2. Charles A. Taylor & Hannah Druckenmiller, 2022. "Wetlands, Flooding, and the Clean Water Act," American Economic Review, American Economic Association, vol. 112(4), pages 1334-1363, April.
    3. Will Rafey, 2023. "Droughts, Deluges, and (River) Diversions: Valuing Market-Based Water Reallocation," American Economic Review, American Economic Association, vol. 113(2), pages 430-471, February.
    4. Molly Lipscomb & Ahmed Mushfiq Mobarak, 2017. "Decentralization and Pollution Spillovers: Evidence from the Re-drawing of County Borders in Brazil," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 84(1), pages 464-502.
    5. Renata Libonati & Carlos C. DaCamara & Leonardo F. Peres & Lino A. Sander de Carvalho & Letícia C. Garcia, 2020. "Rescue Brazil’s burning Pantanal wetlands," Nature, Nature, vol. 588(7837), pages 217-219, December.
    6. Daniel Aronoff & Will Rafey, 2023. "Conservation Priorities and Environmental Offsets: Markets for Florida Wetlands," NBER Working Papers 31495, National Bureau of Economic Research, Inc.
    7. Avraham Ebenstein, 2012. "The Consequences of Industrialization: Evidence from Water Pollution and Digestive Cancers in China," The Review of Economics and Statistics, MIT Press, vol. 94(1), pages 186-201, February.
    8. Chen, Zhao & Kahn, Matthew E. & Liu, Yu & Wang, Zhi, 2018. "The consequences of spatially differentiated water pollution regulation in China," Journal of Environmental Economics and Management, Elsevier, vol. 88(C), pages 468-485.
    9. Eduardo Souza-Rodrigues, 2019. "Deforestation in the Amazon: A Unified Framework for Estimation and Policy Analysis," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 86(6), pages 2713-2744.
    10. Rafael Araujo & Francisco Costa & Marcelo Sant’Anna, 2026. "Efficient Conservation of the Brazilian Amazon: Estimates from a Dynamic Model," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 93(1), pages 72-105.
    11. Mateus Dias & Rudi Rocha & Rodrigo R Soares, 2023. "Down the River: Glyphosate Use in Agriculture and Birth Outcomes of Surrounding Populations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 90(6), pages 2943-2981.
    12. Juliano Assunção & Clarissa Gandour & Romero Rocha & Rudi Rocha, 2020. "The Effect of Rural Credit on Deforestation: Evidence from the Brazilian Amazon," The Economic Journal, Royal Economic Society, vol. 130(626), pages 290-330.
    13. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:nbr:nberch:15391 is not listed on IDEAS
    2. Garg, Teevrat & Hamilton, Stuart E. & Hochard, Jacob P. & Kresch, Evan Plous & Talbot, John, 2018. "(Not so) gently down the stream: River pollution and health in Indonesia," Journal of Environmental Economics and Management, Elsevier, vol. 92(C), pages 35-53.
    3. Cui, Liyuan & Chen, Zeyu & Huang, Yanfen & Yu, Huayi, 2024. "Window dressing: Changes in atmospheric pollution at boundaries in response to regional environmental policy in China," Journal of Environmental Economics and Management, Elsevier, vol. 125(C).
    4. Xiaojia Chen & Yuanfen Li & Yue Chen & Wei Xu, 2022. "Effects of Decentralized Water Regulation on Agriculture in China: A Quasi-Natural Experiment Based on Incentives for Promoting Officials," Sustainability, MDPI, vol. 15(1), pages 1-16, December.
    5. Yang, Zhijiu & Ding, Hai, 2024. "Turning a blind eye: How local government fiscal distress affects the entry of energy-intensive enterprises," Energy Economics, Elsevier, vol. 138(C).
    6. Chen, Zhao & Kahn, Matthew E. & Liu, Yu & Wang, Zhi, 2018. "The consequences of spatially differentiated water pollution regulation in China," Journal of Environmental Economics and Management, Elsevier, vol. 88(C), pages 468-485.
    7. Kerui Du & Qilin Huang & Presley K. Wesseh, 2025. "Domestic Pollution Havens: Linking Interregional Capital Flight and Water Pollution Regulation in China," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 88(1), pages 125-161, January.
    8. Li, Zhen & Wu, Baijun & Wang, Danyang & Tang, Maogang, 2022. "Government mandatory energy-biased technological progress and enterprises' environmental performance: Evidence from a quasi-natural experiment of cleaner production standards in China," Energy Policy, Elsevier, vol. 162(C).
    9. Zhang, Yan & Cui, Jingbo & Lu, Chenghao, 2020. "Does environmental regulation affect firm exports? Evidence from wastewater discharge standard in China," China Economic Review, Elsevier, vol. 61(C).
    10. Shiyu Bo, 2021. "Environmental Regulations, Political Incentives and Local Economic Activities: Evidence from China," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 83(3), pages 812-835, June.
    11. Suhyun Jung & Cecilie Dyngeland & Lisa Rausch & Laura Vang Rasmussen, 2022. "Brazilian Land Registry Impacts on Land Use Conversion," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(1), pages 340-363, January.
    12. Guanyi Yu & Chunliang Xiu & Changsong Zhao & Zhengliang Ding, 2018. "Strategic Cross-Border Water Pollution in Songliao Basin," Sustainability, MDPI, vol. 10(12), pages 1-19, December.
    13. Isabelle Chort & Berk Öktem, 2024. "Agricultural shocks, coping policies and deforestation: Evidence from the coffee leaf rust epidemic in Mexico," American Journal of Agricultural Economics, John Wiley & Sons, vol. 106(3), pages 1020-1057, May.
    14. Xia Xu & Fengping Wu & Lina Zhang & Xin Gao, 2020. "Assessing the Effect of the Chinese River Chief Policy for Water Pollution Control under Uncertainty—Using Chaohu Lake as a Case," IJERPH, MDPI, vol. 17(9), pages 1-26, April.
    15. Araujo, Rafael & Costa, Francisco J M & Sant'Anna, Marcelo, 2020. "Efficient Forestation in the Brazilian Amazon: Evidence from a Dynamic Model," SocArXiv 8yfr7, Center for Open Science.
    16. Wang, Hao & Ploegmakers, Huub & van der Krabben, Erwin & Meijerink, Sander, 2024. "The environmental effectiveness of water quality trading: Evidence from emissions trading programs in China," Ecological Economics, Elsevier, vol. 224(C).
    17. Jiang, Qisheng & Tang, Pengcheng, 2023. "All roads lead to Rome? Carbon emissions, pollutant emissions and local officials’ political promotion in China," Energy Policy, Elsevier, vol. 181(C).
    18. Wang, Xiaoxi & Xu, Meng & Chen, Kevin, 2025. "Internalizing externalities through ecological compensation: Evidence from trans-boundary water pollution in China," Journal of Environmental Economics and Management, Elsevier, vol. 133(C).
    19. Kazuki Motohashi, 2023. "Unintended Consequences of Sanitation Investment: Negative Externalities on Water Quality and Health in India," ISER Discussion Paper 1210, Institute of Social and Economic Research, The University of Osaka.
    20. David A Keiser & Joseph S Shapiro, 2019. "Consequences of the Clean Water Act and the Demand for Water Quality," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 134(1), pages 349-396.
    21. repec:osf:socarx:dk4bc_v1 is not listed on IDEAS
    22. Xu Ou & Haiwei Jiang, 2023. "The Impact of Environmental Regulation on Firm Performance: Evidence from the Pulp and Paper Industry in China," IJERPH, MDPI, vol. 20(4), pages 1-18, February.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:osf:socarx:v9sm7_v1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: OSF (email available below). General contact details of provider: https://arabixiv.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.