Estimates of the Economic Cost of Deforestation in the Amazon

Abstract

This valuation exercise presents an estimation of total economic cost associated with deforestation in the Brazilian Amazon for the year 2000. Although some crucial methodological problems could not be totally overcome, we had the opportunity to apply more consistent and robust estimation procedures than the previous studies on the matter. We show that our final estimation value of US$ 108,1 per hectare year would be enough to promote forest sustainable uses. Along this line we discuss several ways in which some externalities counted into this value - particularly the global ones - could be captured by local producers.

Note: Paper is available in Portuguese only.

Keywords: Costs, deforestation, the Amazon

JEL Classification: I1, O1, Q0, Q1, Q2