Annotation This title studies the role of cattle ranching its dynamic and profitability in the expansion of deforestation in Brazilian Amazonia. It provides a social evaluation of deforestation in this region and presents and compares a number of different scenarios and proposed recommendations.

Since the 1970s, federal policies promoting migration and encouraging agricultural development of large farms, logging, and ranching have led to the deforestation of vast areas of the Amazon rainforest.Though these policies have largely been replaced, deforestation continues. What effects do current macroeconomic and regional policies and events have on deforestation and on the well-being of settlers on the agricultural frontier? This report identifies the links between the agriculture and logging sectors in the Amazon, economic growth, poverty alleviation, and natural resource degradation in the region and in Brazil as a whole.It considers the effects of currency devaluation, building roads and other infrastructure in the Amazon, property rights, adoption of technological change, and fiscal incentives and disincentives to deforest.The results are sometimes counterintuitive, but shed new light on why slowing deforestation is so difficult and on the trade-offs between environmental and economic goals.

A multi-disciplinary team of authors analyze the economics of Brazilian deforestation using a large data set of ecological and economic variables. They survey the most up to date work in this field and present their own dynamic and spatial econometric 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 economic 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 economic 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 economic growth and forest cover.