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

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  • Wiebelt, Manfred

Abstract

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.

Suggested Citation

  • Wiebelt, Manfred, 1994. "Protecting Brazil's tropical forest: a CGE analysis of macroeconomic, sectoral, and regional policies," Kiel Working Papers 638, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:638
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    References listed on IDEAS

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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, Springer;European Association of Environmental and Resource Economists, vol. 3(6), pages 501-531, December.
    2. May, Peter Herman & Reis, Eustáquio J., 1993. "The user structure in Brazil's tropical rain forest," Kiel Working Papers 565, Kiel Institute for the World Economy (IfW Kiel).
    3. Binswanger, Hans P., 1991. "Brazilian policies that encourage deforestation in the Amazon," World Development, Elsevier, vol. 19(7), pages 821-829, July.
    4. World Bank, 1992. "World Development Report 1992," World Bank Publications - Books, The World Bank Group, number 5975.
    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 (IfW Kiel).
    6. Amelung, Torsten & Wiebelt, Manfred, 1995. "Ansatzpunkte zur Reduktion der globalen CO₂-Emissionen," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 45(3), pages 172-177.
    7. 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 Kiel).
    8. Serôa da Motta, Ronaldo, 1993. "Past and current policy issues concerning tropical deforestation in Brazil," Kiel Working Papers 566, Kiel Institute for the World Economy (IfW Kiel).
    9. Robert M. Stern & Jonathan Francis & Bruce Schumacher, 1976. "Price Elasticities in International Trade," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-03137-5, February.
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    Cited by:

    1. Cattaneo, Andrea, 2002. "Balancing agricultural development and deforestation in the Brazilian Amazon," Research reports 129, International Food Policy Research Institute (IFPRI).
    2. Banerjee, Onil & Alavalapati, Janaki, 2009. "A computable general equilibrium analysis of forest concessions in Brazil," Forest Policy and Economics, Elsevier, vol. 11(4), pages 244-252, July.

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    Keywords

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    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

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