Facebook Twitter LinkedIn Youtube Flickr
25/11/2019 12:00
topo dp_2017

DP 0247 - Deforestation and Environmental Policy: a DSGE approach

Rodrigo Mendes Pereira, Geraldo Sandoval Góes/ Rio de Janeiro, november 2019

icon pdf Acesse o PDF (3 MB)  icon pdf

Executive Summary (125 KB)

   


This paper proposes an environmental DSGE model with deforestation of a tropical rain forest. The forest can be used to produce goods, but it also affects the well-being of the representative individual. Environmental policy is implemented with the taxation of the deforestation activity. We calibrate the model for the Brazilian economy, and show that it predicts a procyclical deforestation, and that a more stringent policy reduces the volatility of deforestation. Moreover, technological progress decreases the stock of forest, and it does so more intensely with a lenient environmental policy.

Keywords: deforestation; real business cycle; environmental policy; DSGE.

 

 
 

Todo o conteúdo deste site está publicado sob a Licença Creative Commons Atribuição 2.5 Brasil.
Ipea - Instituto de Pesquisa Econômica Aplicada
Expediente – Assessoria de Imprensa e Comunicação