A multi-disciplinary team of authors analyze the ecomics of Brazilian deforestation using a large data set of ecological and ecomic variables. They survey the most up to date work in this field and present their own dynamic and spatial ecometric analysis based on municipality level panel data spanning the entire Brazilian Amazon from 1970 to 1996. By observing the dynamics of land use change over such a long period the team is able to provide quantitative estimates of the long-run ecomic costs and benefits of both land clearing and government policies such as road building. The authors find that some government policies, such as road paving in already highly settled areas, are beneficial both for ecomic development and for the preservation of forest, while other policies, such as the construction of unpaved roads through virgin areas, stimulate wasteful land uses to the detriment of both ecomic growth and forest cover.
Chief Economist, Sustainable Development Department, Institute for Socio-Economic Research, Catholic University of Bolivia, La Paz. Chancellor's Associate Chair in Economics, University of California, San Diego. Winner of The Nobel Prize for Economics 2003. Director of Macroeconomic Studies, Institute for Applied Economic Research (IPEA), Rio de Janeiro. Reader in Economics, London School of Economics and Political Science. Centre for Development Research, Copenhagen.
Clive W. J. Granger, Diana Weinhold, Eustaquio J. Reis, Lykke E. Andersen, Sven Wunder