IDEAS home Printed from https://ideas.repec.org/p/ags/iaae15/211378.html
   My bibliography  Save this paper

Economic analysis of deforestation reduction in Brazil

Author

Listed:
  • Rodrigues Cabral, Caroline
  • Gurgel, Angelo
  • Paltsev, Sergey

Abstract

Brazil has committed itself to reduce its greenhouse gas (GHG) emissions by 36.1% and 38.9% compared to projected emissions for 2020. In order to accomplish this, the deforestation in the Amazon will have to be reduced by 80% and in the savannah region (Cerrado) by 40% by that year. Concurrently, Brazil is the country with the greatest potential to increase its agricultural production and contribute to the challenge of feeding an increasing world population. Moreover, agribusiness is a key sector of the Brazilian economy for income generation and promotion of foreign exchange. This article discusses the economic impact of a restrictive policy of deforestation on the agricultural and livestock sector and the national economy using a computable general equilibrium model. The results point to low losses in GDP from the limited deforestation scenario as compared with the baseline, but non negligible impacts in the agricultural, livestock and food sector.

Suggested Citation

  • Rodrigues Cabral, Caroline & Gurgel, Angelo & Paltsev, Sergey, 2015. "Economic analysis of deforestation reduction in Brazil," 2015 Conference, August 9-14, 2015, Milan, Italy 211378, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae15:211378
    DOI: 10.22004/ag.econ.211378
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/211378/files/Cabral-Economic%20Costs%20of%20Limiting%20Deforestation%20in%20Brazil-927.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.211378?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Paltsev, Sergey & Morris, Jennifer & Cai, Yongxia & Karplus, Valerie & Jacoby, Henry, 2012. "The role of China in mitigating climate change," Energy Economics, Elsevier, vol. 34(S3), pages 444-450.
    2. Frankel, Jeffrey, 2008. "Global Environmental Policy and Global Trade Policy," Working Paper Series rwp08-058, Harvard University, John F. Kennedy School of Government.
    3. Ferreira-Filho, Joaquim Bento de Souza & Horridge, Mark, 2012. "Endogenous Land Use and Supply, and Food Security in Brazil," Conference papers 332215, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Rutherford, Thomas F, 1999. "Applied General Equilibrium Modeling with MPSGE as a GAMS Subsystem: An Overview of the Modeling Framework and Syntax," Computational Economics, Springer;Society for Computational Economics, vol. 14(1-2), pages 1-46, October.
    5. Gurgel Angelo & Reilly John M & Paltsev Sergey, 2007. "Potential Land Use Implications of a Global Biofuels Industry," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 5(2), pages 1-36, December.
    6. John C. Beghin & David Roland-Holst & Dominique van der Mensbrugghe, 2002. "Global Agricultural Trade and the Doha Round: What are the Implications for North and South?," Center for Agricultural and Rural Development (CARD) Publications 02-wp308, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    7. SERGEY PALTSEV & JOHN M. Reilly & HENRY D. JACOBY & ANGELO C. GURGEL & GILBERT E. METCALF & ANDREI P. SOKOLOV & JENNIFER F. HOLAK, 2008. "Assessment of US GHG cap-and-trade proposals," Climate Policy, Taylor & Francis Journals, vol. 8(4), pages 395-420, July.
    8. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
    9. Aldy,Joseph E. & Stavins,Robert N. (ed.), 2009. "Post-Kyoto International Climate Policy," Cambridge Books, Cambridge University Press, number 9780521129527.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ferreira, J.B. De Souza Filho & De Faria, V. Guidotti & Guedes Pinto, L.F. & Sparovek, G., 2018. "Economic and Social Impacts of Deforestation reduction in Brazil," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277084, International Association of Agricultural Economists.
    2. Ferreira-Filho, Joaquim Bento & Pinto, Luis Fernando Guedes & Faria, Vinicius Guidotti & Sparovek, Guerd, 2018. "Environmental and Welfare Impacts of Deforestation Reduction in Brazil," Conference papers 332925, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Octaviano, Claudia & Paltsev, Sergey & Gurgel, Angelo Costa, 2016. "Climate change policy in Brazil and Mexico: Results from the MIT EPPA model," Energy Economics, Elsevier, vol. 56(C), pages 600-614.
    2. Hertel, Thomas, 2013. "Global Applied General Equilibrium Analysis Using the Global Trade Analysis Project Framework," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 815-876, Elsevier.
    3. Ianchovichina, Elena, 2004. "Trade policy analysis in the presence of duty drawbacks," Journal of Policy Modeling, Elsevier, vol. 26(3), pages 353-371, April.
    4. James Markusen & Thomas F. Rutherford & David Tarr, 2017. "Trade and direct investment in producer services and the domestic market for expertise," World Scientific Book Chapters, in: Trade Policies for Development and Transition, chapter 19, pages 439-458, World Scientific Publishing Co. Pte. Ltd..
    5. Javier Ferri & Antonio G. Gómez-Plana & Joan Martín-Montaner, "undated". "International inmigration and mobility across sectors: an exploration of alternative scenarios for Spain," Studies on the Spanish Economy 124, FEDEA.
    6. Chen, Y.-H. Henry, 2015. "Economic Projection with Non-homothetic Preferences: The Performance and Application of a CDE Demand System," Conference papers 332611, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. Go, Delfin S. & Kearney, Marna & Robinson, Sherman & Thierfelder, Karen, 2004. "An Analysis of South Africa's Value Added Tax," Conference papers 331274, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    8. Doumax-Tagliavini, Virginie & Sarasa, Cristina, 2018. "Looking towards policies supporting biofuels and technological change: Evidence from France," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 430-439.
    9. Hertel, Thomas W. & Keeney, Roman & Valenzuela, Ernesto, 2004. "Global Analysis of Agricultural Trade Liberalization: Assessing Model Validity," Conference papers 331270, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    10. Jean Foure & Angel Aguiar & Ruben Bibas & Jean Chateau & Shinichiro Fujimori & Julien Lefevre & Marian Leimbach & Luis Rey-Los-Santos & Hugo Valin, 2020. "Macroeconomic Drivers of Baseline Scenarios in Dynamic CGE models: Review and Guidelines Proposal," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 5(1), pages 28-62, June.
    11. Edward J. Balistreri & Christoph Böhringer & Thomas F. Rutherford, 2018. "Quantifying Disruptive Trade Policies," CESifo Working Paper Series 7382, CESifo.
    12. Karplus, Valerie J. & Paltsev, Sergey & Babiker, Mustafa & Reilly, John M., 2013. "Should a vehicle fuel economy standard be combined with an economy-wide greenhouse gas emissions constraint? Implications for energy and climate policy in the United States," Energy Economics, Elsevier, vol. 36(C), pages 322-333.
    13. Taran Faehn & Gabriel Bachner & Robert Beach & Jean Chateau & Shinichiro Fujimori & Madanmohan Ghosh & Meriem Hamdi-Cherif & Elisa Lanzi & Sergey Paltsev & Toon Vandyck & Bruno Cunha & Rafael Garaffa , 2020. "Capturing Key Energy and Emission Trends in CGE models: Assessment of Status and Remaining Challenges," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 5(1), pages 196-272, June.
    14. Raihan, Selim & Razzaque, Mohammad A, 2007. "WTO and regional trade negotiation outcomes: quantitative assessments of potential implications on Bangladesh," MPRA Paper 38475, University Library of Munich, Germany.
    15. Karplus, Valerie J. & Paltsev, Sergey & Babiker, Mustafa & Reilly, John M., 2013. "Applying engineering and fleet detail to represent passenger vehicle transport in a computable general equilibrium model," Economic Modelling, Elsevier, vol. 30(C), pages 295-305.
    16. Miles Kenneth LIGHT & Thomas Fox RUTHERFORD, 2003. "Free Trade Area of the Americas. An impact Assessment for Colombia," Archivos de Economía 2744, Departamento Nacional de Planeación.
    17. World Bank, 2008. "Brazil : Evaluating the Macroeconomic and Distributional Impacts of Lowering Transportation Costs," World Bank Publications - Reports 8083, The World Bank Group.
    18. Anderson, Kym & Jackson, Lee Ann, 2005. "Genetically Modified Rice Adoption: Implications for Welfare and Poverty Alleviation," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 20, pages 771-788.
    19. Bruno Lanz & Thomas F. Rutherford, 2016. "GTAPINGAMS, version 9: Multiregional and small open economy models with alternative demand systems," IRENE Working Papers 16-08, IRENE Institute of Economic Research.
    20. Taiwo BOLARINWA, 2024. "Computable General Equilibrium (CGE) Models: A Comprehensive Review and Future Directions," Management and Economics Review, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 9(1), pages 158-167, February.

    More about this item

    Keywords

    Environmental Economics and Policy;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iaae15:211378. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.