Economic Causes of Deforestation in the Brazil Amazon: A Panel Data Analysis for the 2000s

Jorge Hargrave and Krisztina Kis-Katos

No 17, Discussion Paper Series from Department of International Economic Policy, University of Freiburg

Abstract: We use under-explored municipality level datasets to assess the recent economic and policy determinants of deforestation in the Brazilian Amazon. We estimate yearly panel data models (from 2002 to 2009) for 457 municipalities in the region. The results show that recent deforestation is related to economic incentives, and especially to fluctuations in product (meat and soybean) prices. Moreover, we document that the increasing monitoring efforts of the Brazilian environmental police (IBAMA) were effective in reducing deforestation rates.

Keywords: Brazil; Amazon; deforestation (search for similar items in EconPapers)
JEL-codes: Q56 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2011-11, Revised 2011-11
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:fre:wpaper:17

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