Work

Carbon Prices, Forest Conservation and Reforestation in the Brazilian Amazon

Year: 2026
Type: article
Abstract: Deforestation for cattle ranching in the Brazilian Amazon emits carbon, and reforestation absorbs carbon. The social productivities for these alternative activities vary across locations. We analyze a spatial/dynamic model of efficient land allocation to establish a benchmark for policies. We treat cattle prices as stochastic and location-specific productivities as uncertain when assessing the consequences of imposing alternative prices of carbon emissions. Modest carbon price increases would incentivize Brazil to choose policies that capture a significant amount of greenhouse gases in the next 30 years. Our analysis pinpoints tropical forest management as an important contributor to climate change mitigation.
Language: English
Open Access status: green
OpenAlex ID: W7213537429
FWCI: 3.008
Cites: 41
Cited by: 8
Related to: 10