Economic Losses and Cross Border Effects Caused by Pantanal Catastrophic Wildfires

Mayara Camila Scur, Daniel Centuriao, Christian Niel Berlinck, Eugênia Kelly Luciano Batista, Renata Libonati, Julia Rodrigues, André Valle Nunes, Leticia Couto Garcia, G. Wilson Fernandes, Geraldo Alves Damasceno-Junior, Alexandre de Matos Martins Pereira, Liana Anderson, Jose Manuel Ochoa-Quintero, Maxwell da Rosa Oliveira, Danilo Bandini Ribeiro and Fabio O. Roque

MPRA Paper from University Library of Munich, Germany

Abstract: The Pantanal, the Earth's largest continuous wetland, experienced severe impacts from wildfires in 2019 and, particularly, in 2020. The surge in wildfires can be attributed to several factors, including climate extremes, inadequate fire management, ineffective policymaking, as well as commercial and demographic dynamics. Understanding the economic effects of wildfires is crucial for guiding resource allocation toward prevention and firefighting efforts. This study aims to examine the economic losses resulting from the catastrophic wildfires in the Brazilian Pantanal region during 2019 and 2020. By utilizing publicly available datasets and data obtained from representatives of public and private institutions, we constructed scenarios to simulate the fire's impacts on economic input-output matrices. Through the application of structural impact analysis, we can simulate variations in output, value-added, and income by considering demand variation scenarios resulting from external shocks. Our findings reveal that the economic impact of the wildfires extends beyond the burned areas, affecting other regions of Brazil, such as São Paulo and Paraná. The lack of a comprehensive public database encompassing different scales (municipal, state, and national), along with a clear methodology for calculating and reporting firefighting expenses, hinders accurate prediction of economic losses and impedes proactive investments in wildfire prevention.

Keywords: structural impact analysis; natural disasters; input-output models; S2iD portal; tele-coupling (search for similar items in EconPapers)
JEL-codes: Q15 Q57 (search for similar items in EconPapers)
Date: 2023-10-13, Revised 2023-10-13
New Economics Papers: this item is included in nep-dev, nep-env and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:119399

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