The Development of the Brazilian Amazon Region and Greenhouse Gases Emission: A Dilemma to Be Faced!

Abstract:     
The purpose of this work is to verify the existence of possible tradeoffs between policies direct to reduce the emissions of greenhouse gases (GHGs) with the ones direct to foster the development of the Brazilian Amazon Region, which is one of the poorest in the country. In order to achieve this goal, this paper uses an interregional input-output (I-O) model, estimated for the Brazilian economy for the year of 2004. The I-O model is used to make a comparison between the economical and the environmental relevance of each sector in the economies of the Amazon region and the rest of Brazil. This study considers the greenhouse gases emissions not only from the economic activities by itself, but, also for the more important factor of the land-use changes. This is a fact of most importance, given that in 2005, about 60% of the Brazilian GHGs emissions were due to the land-use change in its different biomes. Moreover, in the Brazilian Amazon region, especially in the last decades, the deforestation was linked mainly to economic factors than to policies conducted by the government. The results show that the sectors with the greatest importance in terms of emissions are cattle and soybean production. Also, they are also the most prominent for the region's economic development. This poses a dilemma that needs to be faced not only by Brazil, but also by the developed nations, as the burden of the reduction in the greenhouse gases emission in the Brazilian Amazon region cannot be only put on the poor population of the region!

Number of Pages in PDF File: 49

Keywords: Amazon Region, Greenhouse Gases, Brazil, Input-Output, Economic Development, Productive Structure, Deforestation

JEL Classification: C67, D57, R11, R15, Q25

working papers series