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The Impacts Of Local Demands, Urbanization And Amazonian Metropolitan Regions Over Deforestation On Brazilian Amazon

Listed author(s):
  • Sergio Castelani
  • Joaquim Guilhoto


  • Danilo Igliori

The paper estimates how much of the Amazon deforestation is due to the consumption of goods and services from households who live within the Amazon region itself, comparing it to deforestation driven by consumers who live outside Amazon. As the Brazilian Amazon contains 5 big Metropolitan Regions, and in order to take into account this referred urbanization process, it not only compared the effects of demand vectors from within and outside Brazilian Amazon, but also with the isolated effects from consumption of households who live within the Metropolitan Areas of Brazilian Amazon from the consumption vector of families who live within Amazon, but outside those Metropolitan regions. Using an Inter-regional Input-Output model with socioeconomic data, and crossing this database with information on land use transition from forest areas to agricultural and livestock land use, it finds robust evidence that these local demand vectors play an important role in terms of the deforestation they drive. Results show that even though local population from the Amazon region represents only 13% of total Brazilian population, it drives around 30% of the total deforestation taking place within the region, through its direct and indirect consumption of the output produced in forest areas. The demand vector from families who live within the Amazonian Metropolitan Regions is responsible for more than a half of this 30%, even though only 25% of Amazon population live in these areas. In per capita terms, results also show that the demand vector from one individual living within the Amazon region, but outside the Metropolitan areas, generates 2.2 more deforestation than the consumption vector of one individual living outside Amazon, but within Brazil. For the consumption vector of one individual living within the Amazonian Metropolitan Regions, the deforestation impact is even higher: it is 7.7 times the impact of the demand vector from one individual living outside Brazilian Amazon. The results concerning the economic multipliers and generators, as well as the ones focusing only on the output per sector driven by each regional demand vector also point to this same direction. Therefore, these results bring evidence that support the theoretical expectations from Spatial Economics that local demand vectors and the urbanization process taking place within Brazilian Amazon play an important role in terms of the deforestation it might cause.

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa13p1213.

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Date of creation: Nov 2013
Handle: RePEc:wiw:wiwrsa:ersa13p1213
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  1. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
  2. Guilhoto, J. J. M. & Sonis, M. & Hewings, G. J. D., 2005. "Linkages and Multipliers in a Multiregional Framework: Integration of Alternative Approaches," MPRA Paper 38213, University Library of Munich, Germany.
  3. Kenneth M. Chomitz & Timothy S. Thomas, 2003. "Determinants of Land Use in AmazĂ´nia: A Fine-Scale Spatial Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 1016-1028.
  4. Walker, Robert, 1996. "Land Use Dynamics in the Brazilian Amazon," Ecological Economics, Elsevier, vol. 18(1), pages 1-2, July.
  5. Walker, Robert & Moran, Emilio & Anselin, Luc, 2000. "Deforestation and Cattle Ranching in the Brazilian Amazon: External Capital and Household Processes," World Development, Elsevier, vol. 28(4), pages 683-699, April.
  6. Walker, Robert & Homma, Alfredo Kingo Oyama, 1996. "Land use and land cover dynamics in the Brazilian Amazon: an overview," Ecological Economics, Elsevier, vol. 18(1), pages 67-80, July.
  7. Binswanger, Hans P., 1991. "Brazilian policies that encourage deforestation in the Amazon," World Development, Elsevier, vol. 19(7), pages 821-829, July.
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