The Cost of Forest Preservation in the Brazilian Amazon: The "Arc of Deforestation"

We estimate the trade-off between agricultural production and forest preservation for the municipalities in Brazil's agricultural frontier, the so-called 'arc of deforestation,' using census and deforestation data for 2006. We use a nonparametric directional output distance function t...

Full description

Bibliographic Details
Main Authors: Felipe de Figueiredo Silva, Lilyan E. Fulginiti, Richard K. Perrin
Format: Article
Language:English
Published: Western Agricultural Economics Association 2019-09-01
Series:Journal of Agricultural and Resource Economics
Subjects:
Online Access:https://ageconsearch.umn.edu/record/292328
_version_ 1819110944779796480
author Felipe de Figueiredo Silva
Lilyan E. Fulginiti
Richard K. Perrin
author_facet Felipe de Figueiredo Silva
Lilyan E. Fulginiti
Richard K. Perrin
author_sort Felipe de Figueiredo Silva
collection DOAJ
description We estimate the trade-off between agricultural production and forest preservation for the municipalities in Brazil's agricultural frontier, the so-called 'arc of deforestation,' using census and deforestation data for 2006. We use a nonparametric directional output distance function that allows us to identify the gradients of the production possibility frontier, which are the trade-offs of interest. We found that, on average, $979 is forgone in annual livestock, timber, and grain revenues to conserve 1 hectare of forest. This translates, ceteris paribus, to an average present value of costs to permanently sequester CO2 of $16.36/t, higher than most previous estimates.
first_indexed 2024-12-22T03:49:46Z
format Article
id doaj.art-82c2a296c2674ed986d08a2961f30fb7
institution Directory Open Access Journal
issn 1068-5502
2327-8285
language English
last_indexed 2024-12-22T03:49:46Z
publishDate 2019-09-01
publisher Western Agricultural Economics Association
record_format Article
series Journal of Agricultural and Resource Economics
spelling doaj.art-82c2a296c2674ed986d08a2961f30fb72022-12-21T18:40:01ZengWestern Agricultural Economics AssociationJournal of Agricultural and Resource Economics1068-55022327-82852019-09-0144349751210.22004/ag.econ.292328292328The Cost of Forest Preservation in the Brazilian Amazon: The "Arc of Deforestation"Felipe de Figueiredo SilvaLilyan E. FulginitiRichard K. PerrinWe estimate the trade-off between agricultural production and forest preservation for the municipalities in Brazil's agricultural frontier, the so-called 'arc of deforestation,' using census and deforestation data for 2006. We use a nonparametric directional output distance function that allows us to identify the gradients of the production possibility frontier, which are the trade-offs of interest. We found that, on average, $979 is forgone in annual livestock, timber, and grain revenues to conserve 1 hectare of forest. This translates, ceteris paribus, to an average present value of costs to permanently sequester CO2 of $16.36/t, higher than most previous estimates.https://ageconsearch.umn.edu/record/292328co2 sequestration costdirectional distance functiontrade-off
spellingShingle Felipe de Figueiredo Silva
Lilyan E. Fulginiti
Richard K. Perrin
The Cost of Forest Preservation in the Brazilian Amazon: The "Arc of Deforestation"
Journal of Agricultural and Resource Economics
co2 sequestration cost
directional distance function
trade-off
title The Cost of Forest Preservation in the Brazilian Amazon: The "Arc of Deforestation"
title_full The Cost of Forest Preservation in the Brazilian Amazon: The "Arc of Deforestation"
title_fullStr The Cost of Forest Preservation in the Brazilian Amazon: The "Arc of Deforestation"
title_full_unstemmed The Cost of Forest Preservation in the Brazilian Amazon: The "Arc of Deforestation"
title_short The Cost of Forest Preservation in the Brazilian Amazon: The "Arc of Deforestation"
title_sort cost of forest preservation in the brazilian amazon the arc of deforestation
topic co2 sequestration cost
directional distance function
trade-off
url https://ageconsearch.umn.edu/record/292328
work_keys_str_mv AT felipedefigueiredosilva thecostofforestpreservationinthebrazilianamazonthearcofdeforestation
AT lilyanefulginiti thecostofforestpreservationinthebrazilianamazonthearcofdeforestation
AT richardkperrin thecostofforestpreservationinthebrazilianamazonthearcofdeforestation
AT felipedefigueiredosilva costofforestpreservationinthebrazilianamazonthearcofdeforestation
AT lilyanefulginiti costofforestpreservationinthebrazilianamazonthearcofdeforestation
AT richardkperrin costofforestpreservationinthebrazilianamazonthearcofdeforestation