A Macroeconomic Perspective of Deforestation in Brazil's Legal Amazon

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dc.creatorFerreira Filho, Joaquim Bento De Souza
dc.creatorHanusch, Marek
dc.date2022-11-03T13:11:44Z
dc.date2022-11-03T13:11:44Z
dc.date2022-11
dc.date.accessioned2026-07-01T00:34:08Z
dc.descriptionDespite policy efforts in recent decades, deforestation remains a pervasive phenomenon in Brazil. Yet deforestation is not only affected by forest governance. It is also driven by global demand for commodities and the relative competitiveness of agriculture, which in turn depends on macroeconomic factors impacting product and factor prices. These macroeconomic mechanisms remain largely unexplored. This paper explores the role of economic productivity in shaping deforestation. It uses an economic model with an empirically founded land use extension to study the macro-structural drivers of land use patterns in Brazil’s Legal Amazon. It demonstrates that productivity gains in the Legal Amazon’s agriculture sector increase deforestation, while such gains in non-land intensive sectors (such as manufacturing) reduce deforestation by attenuating the relative competitiveness of agriculture. Higher productivity in other parts of Brazil also reduces incentives for forest conversion in the Legal Amazon. The paper points to the economic forces that forest protection efforts need to counter, while calling for complementary structural reforms to overcome “Brazilian disease” in the longer-term: addressing the legacy of import substitution industrialization and moving up the value chain will shift economic drivers beyond commodities, thus also reconciling development with standing forests.
dc.formatapplication/pdf
dc.formattext/plain
dc.identifierhttp://documents.worldbank.org/curated/en/099259511022263316/IDU0612940060dd49044a30924d0b7995b33ea8c
dc.identifierhttps://hdl.handle.net/10986/38253
dc.identifierhttps://doi.org/10.1596/1813-9450-10162
dc.identifier.urihttp://hdl.handle.net/123456789/406319
dc.languageEnglish
dc.languageen
dc.publisherWorld Bank, Washington, DC
dc.relationPolicy Research Working Papers;10162
dc.rightsCC BY 3.0 IGO
dc.rightshttp://creativecommons.org/licenses/by/3.0/igo
dc.rightsWorld Bank
dc.subjectMACROECONOMICS AND GROWTH
dc.subjectSTRUCTURAL POLICY AD REFORM
dc.subjectENVIRONMENTAL SUSTAINABILITY
dc.subjectGREEN GROWTH
dc.subjectCLIMATE CHANGE MITIGATION
dc.subjectDEFORESTATION
dc.subjectCO2 EMISSIONS
dc.subjectENVIRONMENTAL POLICY
dc.subjectLAND USE PATTERS
dc.titleA Macroeconomic Perspective of Deforestation in Brazil's Legal Amazon
dc.typeWorking Paper
dc.typeDocument de travail
dc.typeDocumento de trabajo

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