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

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  • da Silva, Jorge Hargrave Gonçalves
  • Kis-Katos, Krisztina

Abstract

We use newly launched and some never before analyzed datasets, to assess the recent economic and policy determinants of deforestation in the Brazilian Amazon. We estimate panel data models for the years between 2002 and 2007 for 368 municipalities in the region using municipality fixed effects and GMM. The results show that recent deforestation is driven by fluctuations in meat and soybean prices, it increases with rural credit availability, and with the size of rural reform settlements, while it decreases with protected areas. Moreover we find that higher presence of the Brazilian environmental police (IBAMA) was effective in reducing deforestation rates.

Suggested Citation

  • da Silva, Jorge Hargrave Gonçalves & Kis-Katos, Krisztina, 2010. "Economic Causes of Deforestation in the Brazilian Amazon: A Panel Data Analysis for 2000s," Proceedings of the German Development Economics Conference, Hannover 2010 34, Verein für Socialpolitik, Research Committee Development Economics.
    • Handle: RePEc:zbw:gdec10:34
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    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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