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Title: Deforestation and environmental policy : a DSGE approach
Other Titles: Discussion Paper 247 : Deforestation and environmental policy : a DSGE approach
Effective rates of protection in Brazil : 2000 to 2015
Authors: Pereira, Rodrigo Mendes
Góes, Geraldo Sandoval
Abstract: This paper proposes an environmental dynamic stochastic general equilibrium (DSGE) model with deforestation of a tropical rain forest. The forest can be used to produce goods, but it also affects the well-being of the representative individual. Environmental policy is implemented with the taxation of the deforestation activity. We calibrate the model for the Brazilian economy, and show that it predicts a procyclical deforestation, and that a more stringent policy reduces the volatility of deforestation. Moreover, technological progress decreases the stock of forest, and it does so more intensely with a lenient environmental policy.
Rights holder: Instituto de Pesquisa Econômica Aplicada (Ipea)
License: É permitida a reprodução deste texto e dos dados nele contidos, desde que citada a fonte. Reproduções para fins comerciais são proibidas.
Type: Discussion Paper
Appears in Collections:Meio Ambiente. Recursos Naturais: Livros



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