The Dynamics of Deforestation and Economic Growth in the Brazilian Amazon

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Cambridge University Press, Dec 12, 2002 - Business & Economics - 259 pages
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A multi-disciplinary team of authors analyze the economics of Brazilian deforestation using a large data set of ecological and economic variables. They survey the most up to date work in this field and present their own dynamic and spatial econometric analysis based on municipality level panel data spanning the entire Brazilian Amazon from 1970 to 1996. By observing the dynamics of land use change over such a long period the team is able to provide quantitative estimates of the long-run economic costs and benefits of both land clearing and government policies such as road building. The authors find that some government policies, such as road paving in already highly settled areas, are beneficial both for economic development and for the preservation of forest, while other policies, such as the construction of unpaved roads through virgin areas, stimulate wasteful land uses to the detriment of both economic growth and forest cover.
 

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Contents

Introduction
1
Deforestation and development
4
Structure of the book
9
Development of the Brazilian Amazon
11
Historical perspectives
13
Operation Amazonia and SUDAM
15
The rise of environmental concern
18
Improvements in monitoring capacity and enforcement
20
Conclusions and discussion
107
Modeling deforestation and development in the Brazilian Amazon
111
Model specification
113
Estimation results
122
Policy simulations
138
Conclusions
149
Carbon emissions
152
The carbon inventory model
153

The distributional impact of Amazon development
21
Avanca Brasil
33
Conclusions
34
The municipal database
36
concepts and measures
37
Socioeconomic dimensions
48
Geoecological dimensions
61
The sources and agents of deforestation
66
Cattle ranching
70
Small and largescale agriculture
77
Logging
80
Mining
83
Hydroelectric dams
85
Property rights
86
Secondary forest growth
88
Alternatives to deforestation extractivism
91
The data
93
Mapping extractive value densities
97
Explaining spatial differences in extraction values
101
Clearing carbon emissions and economic growth 19701985
160
Discussion of the results
163
Conclusions
166
The costs and benefits of deforestation
167
The value of intact Amazonian forests
173
The value of cleared land in the Amazon
189
Towards a better use of the Amazon rainforest
196
Conclusions
198
Conclusions and recommendations
200
Policy implications
203
Technical appendix
209
A2 Panel model evaluation
211
A3 Random reduction estimation strategy
212
A4 Technical issues with simulations
214
A5 Full model results
216
References
241
Index
257
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About the author (2002)

Chief Economist, Sustainable Development Department, Institute for Socio-Economic Research, Catholic University of Bolivia, La Paz.

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