Pereira, Rodrigo MendesGóes, Geraldo Sandoval2020-01-132020-01-132019-11http://repositorio.ipea.gov.br/handle/11058/9588This 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.porAcesso AbertoWorking paperInstituto de Pesquisa Econômica Aplicada (Ipea)Estudos sobre o Meio AmbienteDesmatamentoCiclos EconômicosLicença ComumÉ permitida a reprodução deste texto e dos dados nele contidos, desde que citada a fonte. Reproduções para fins comerciais são proibidas.DeforestationReal business cycleEnvironmental policyDSGE