Changing Climate in Brazil: Key Vulnerabilities and Opportunities

Chen Chen, Koralai Kirabaeva, Christina Kolerus, Ian Parry and Nate Vernon-Lin

No 2024/185, IMF Working Papers from International Monetary Fund

Abstract: This paper assesses the Brazilian economy's exposure to climate change focusing on two key areas: agriculture and hydropower. While climate vulnerabilities are significant and recent patterns of land-use further amplify climate change risk, Brazil's opportunities for green growth are vast. Given geography and existing infrastructure, notably the very green energy mix, Brazil can boost its economic potential while mitigating a potential tradeoff between energy use, emissions, and growth. Policy options to address key vulnerabilities and leverage opportunities include boosting the Amazon's resilience via fiscal incentives for forest protection, investing in climate smart agriculture and insurance guided by sustainable feebates, continuing the diversification of renewable power generation, and stimulating green growth while greening the financial sector.

Keywords: Climate change; deforestation; fiscal incentives; feebate; carbon market; adaptation; climate vulnerability; climate change risk; climate strategy; leverage opportunity; mitigation potential; power gap; Renewable energy; Agricultural sector; Global (search for similar items in EconPapers)
Pages: 33
Date: 2024-08-30
New Economics Papers: this item is included in nep-ene
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=553988 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:2024/185

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().