The Effects of Transportation Infrastructure on Deforestation in the Amazon
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World Bank, Washington, DC
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Investments in transportation
infrastructure can impact the environment beyond their
immediate surroundings. This paper builds an interregional
trade model to estimate the general equilibrium effects of
changes in infrastructure on deforestation. Using panel data
on the evolution of the transportation network in Brazil and
land use data in the Amazon, the paper estimates the model
and finds sizable effects of infrastructure on
deforestation. Model simulations show that ignoring general
equilibrium underestimates the impacts of deforestation by
one-quarter. The paper also shows that the model can be used
for evaluation of the deforestation induced by individual
projects, which is an essential input for public policies.
Palabras clave
DEFORESTATION, AMAZON, TRANSPORTATION, GENERAL EQUILIBRIUM, LAND USE POLICY, EFFECT OF INFRASTRUCTURE ON AMAZON