Publication: Deforestation and environmental policy : a DSGE approach
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por
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Brasil
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BR
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Instituto de Pesquisa Econômica Aplicada (Ipea)
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Discussion Paper 247 : Deforestation and environmental policy : a DSGE approach, Effective rates of protection in Brazil : 2000 to 2015
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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.