Abstract
The paper examines the current relevance of the set of variables reported in the literature as driving deforestation in the Brazilian Amazon. The analysis uses a computable general equilibrium (CGE)model adapted to capture regional economic structures and the environmental processes specific to tropical areas. The paper compares the impact on deforestation in the Brazilian Amazon of: changes in real exchange rate; modifications in agricultural tax and support policies; reductions in transportation costs arising from investment in infrastructure in the Amazon; changes in land tenure regimes; and technological change in agriculture affecting productivity and agronomic sustainability. (JEL Q15, Q23)
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