Publication:
Deforestation, development, and government policy in the Brazilian Amazon : an econometric analysis

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Language

eng

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Região Amazônica
Brasil

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1970-1985

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BR

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dARK

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Instituto de Pesquisa Econômica Aplicada (Ipea)

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Reproduction of this text and the data it contains is allowed as long as the source is cited. Reproductions for commercial purposes are prohibited

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Discussion Paper 69 : Deforestation, development, and government policy in the Brazilian Amazon : an econometric analysis, Desmatamento, desenvolvimento e política do governo na Amazônia brasileira : uma análise econométrica

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Abstract

Este trabalho desenvolve um modelo de desmatamento e desenvolvimento econômico na Região Amazônica. Ele baseia-se na determinação da demanda por terra agrícola, isto é, na interação entre dinâmica da população, urbanização e crescimento do mercado local, preço da terra e política governamental. O modelo utiliza um conjunto de dados que cobrem 316 municípios da Região Amazônica brasileira durante o período 1970/85.

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This paper develops a model of deforestation and economic development in the Amazon. It is based on the determinants of demand for agricultural land, i.e. on the interactions between population dynamics, urbanization and the growth of local markets, land prices, and government policies. The model is estimated using a panel data set covering 316 municipalities in the Brazilian Amazon during the period 1970/85. The model is used to evaluate the effects of different policy instruments. The trade-off between economic growth and deforestation is shown to be quite good for subsidized credit but very bad for new road building.

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