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Innovative fire policy in the Amazon: A statistical Hicks-Kaldor analysis

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  • Morello, Thiago
  • Anderson, Liana
  • Silva, Sonaira

Abstract

Developing countries have been recently addressing the respiratory health impact of agricultural burnings with innovative environmental policy. In Acre state, Brazilian Amazon, mechanization is subsidized, enabling smallholders to comply with a cap on burned area. To appraise amendments in the policy, a statistical Hicks-Kaldor test was developed and applied to stakeholders' stated choice surveys coupled with an econometric estimate of fire's effect on health. The test unveiled the trade-off between urban dwellers' health and smallholders' production. It also avoided the large disparity of groups in size and in goods valued to result into instability of efficiency assessment across six alternative group weighting schemes. The amendments that increased joint welfare required a great expansion of mechanization supply. Such change, which is not presently feasible at state level, could be piloted at municipal level by relying on the private sector and smallholders' organizations, and also on subsidized credit and power tillers.

Suggested Citation

  • Morello, Thiago & Anderson, Liana & Silva, Sonaira, 2022. "Innovative fire policy in the Amazon: A statistical Hicks-Kaldor analysis," Ecological Economics, Elsevier, vol. 191(C).
    • Handle: RePEc:eee:ecolec:v:191:y:2022:i:c:s0921800921003074
    DOI: 10.1016/j.ecolecon.2021.107248
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    More about this item

    Keywords

    Cost-benefit analysis; Air Pollution; Health; Discrete choice experiments; Welfare weighting; Amazon;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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