The economic cost of deforestation in the Brazilian Amazon rainforest (1988-2014)

Authors

  • Alisson Silva de Castro Universidade Federal do Rio Grande do Norte
  • Daniel Caixeta Andrade Instituto de Economia da Universidade Federal de Uberlândia

DOI:

https://doi.org/10.4013/pe.2016.121.01

Abstract

This paper aims to calculate the economic cost of deforestation in the Brazilian Amazon rainforest. As a proxy for such cost we have used monetary estimates of the losses of intangible ecosystem services generated by deforestation. Such services – usually known as regulatory services – are important as they contribute to human well-being. The recognition of the importance of protecting forest ecosystems and their relevance to the provision of regulatory services can be stimulated by valuation studies and the subsequent presentation of monetary indicators that make explicit the economic costs resulting from deforestation. These results can be used mainly for educational purposes. Using the benefit transfer technique, the estimated total economic cost over the 1988-2014 period was about R$ 223 billion (2013 prices), which amounted to almost one entire GDP generated by the Brazilian Northern region in only one year (2012). These results corroborate our initial hypothesis that the intangible benefits provided by the Amazon Forest have a significant economic value.

Keywords: ecosystem services, economic costs, Amazon.

Author Biographies

Alisson Silva de Castro, Universidade Federal do Rio Grande do Norte

Mestrando pelo Programa de Pós-Graduação em Economia da Universidade Federal do Rio Grande do Norte

Daniel Caixeta Andrade, Instituto de Economia da Universidade Federal de Uberlândia

Professor Adjunto do Instituto de Economia da Universidade Federal de Uberlândia (UFU)

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Published

2016-02-10

Issue

Vol. 12 No. 1 (2016): Jan-Jun

Section

Articles

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